The Dow Jones Industrial Average Index crossed the 17,000 mark for the first time in history last Thursday. Many sectors such as industrials, financials and energy stocks are lagging today, after reaching the historical highs last week. The opinions are divided about where the US stock market is heading next. Bob Pisani of CNBC stated that good job report was behind the surge, and that the higher stock market is being associated with the improving economy. Among the stocks on the radar, Mr. Pisani mentioned Archer Daniels Midland Company (NYSE:ADM), PACCAR Inc (NASDAQ:PCAR), and Devon Energy Corp (NYSE:DVN).
Archer Daniels Midland Company (NYSE:ADM) announced today that it plans to buy Swiss WILD Flavours GmbH, as it was rumored previously. The transaction values the WILD Flavours GmbH enterprise at €2.3 billion ($3.15 billion) in an all-cash transaction, in which ADM will pay the WILD Flavours GmbH shareholders €2.2 billion in cash and assume €100 million of net debt. On the back of the announcement, the share price of Archer Daniels Midland Company (NYSE:ADM) has been climbing on Monday, currently being 1.5% up.
A lot of activity has been spotted around PACCAR Inc (NASDAQ:PCAR) as well, based on the rumours that the German automobile manufacturer Volkswagen AG (ADR) (OTCMKTS:VLKAY) plans to acquire it next year. Daimler’s Truck Chief, Wolfgang Bernhard, told this to analysts at Bernstein Research, according to Reuters, however the comment has been quickly rejected by VW. On the back of the news, the stock of the company has jumped by more than 5%, however, currently PACCAR Inc (NASDAQ:PCAR) is trading 1.3% in red.
Devon Energy Corp (NYSE:DVN) upgrade by the Citigroup analyst has also been mentioned by Pisani. The news made the stock of Devon Energy Corp (NYSE:DVN) to jump a couple of percents up, although so far it has edged down by 0.8%.
Mr. Pisani also mentioned that there is some cautiousness among some very notable market players, like by the investment banking giant Morgan Stanley, however he is staying bullish, saying that “that’s not a hard call. In an environment, where you are in the slow seasonal part of the season, that’s not a tough call.”
The money is still flowing into the stock markets. According to the report, the ETF flows have been $25 billion in June, which is set to be another record year if it continues this way, after the record has been set in the last year with a $188 billion.
Pisani suggested that there is no need to move into assets that provide protection against inflation, like the real estate or commodities, and he showed how it is not happening as of now, with Gold being the exception.