A couple stories are dominating trader talk today:
1) GE stabilizing. Our parent company has been up 3 days in a row after hitting near-15 year lows last Wednesday. That day it briefly dipped below $6 to 5.72, but hit $7.80 in trading this morning. Credit default swaps have fallen to their lowest levels in a week
2) Rally in energy continues as oil approaches $50.
3) The indifference of the market to a major pharmaceutical deal. Three years ago if Merck would have announced its $41 billion deal to buy Schering Plough , it would have been big news. Lots of analysis, discussion of the creation of a new drug behemoth, etc.
This time, the Street yawned. Cynics dismissed it as an attempt by two aging giants to pare costs.
Here’s a few of the cynical comments I got from traders:
--“Keep in mind, the last big merger was Dow-Rohm & Haas and we all know how well that worked out. We need answers.”
--“We don’t even know they can close the deal!”
--“Two weaklings trying to fix their problems by hooking up.”
That's what this financial crisis has done: sucked the excitement out of everything. Instead, it all revolves around resolving the issue with banks.
Traders were more excited about GE stabilizing and U.S. banks not dropping on a day when European banks are down, than about the Schering deal.
The U.S. Treasury said this morning that details on the toxic asset/bank plan will be unveiled in "coming weeks."
Let's hope it's sooner rather than later.
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