Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Only 3 Dow Stocks Missed Today’s Record-Breaking Rally: Merck & Co., Inc. (MRK), The Coca-Cola Company (KO)

Page 1 of 2

Today’s surge has brought the Dow Jones Industrial Average (Dow Jones Indices: .DJI) to a new nominal all-time high, surpassing the mark it reached on Oct. 9, 2007. As of 12:50 p.m. EST, the index is up 142 points, or 1%, to 14,270. Today’s rally has been broad and is showing strength across many sectors — financials, industrials, tech, pharmaceuticals, and materials stocks are all higher. Only three of the Dow’s 30 components weren’t invited to the party.

Merck & Co., Inc. (NYSE:MRK)The Home Depot, Inc. (NYSE:HD) is barely above breakeven after slipping from an early morning gain, up about 0.1%. The big news about the nation’s largest home-improvement retailer is that a trio of private-equity firms that own the vast majority of Home Depot’s former industrial-distribution subsidiary are now considering taking it public. Home Depot sold most of HD Supply to Bain Capital, Carlyle, and Dubliner & Rice in 2007, retaining a 12.5% stake, after the housing crisis undermined its investment in the business.

This seems like a poor reason to flee Home Depot today, as the two businesses do not have a great deal of overlap. In fact, the IPO is more likely to be a net positive for Home Depot over the long run, whether it chooses to use HD Supply’s IPO as a way to gain liquidity or simply decides to hold shares and collect the (potential) dividends to come.

The Coca-Cola Company (NYSE:KO) also gave up an early-morning gain, down about 0.2%. This appears to be primarily driven by news that Dr Pepper Snapple Group Inc. (NYSE: DPS) will pursue a more competitive international strategy following the reacquisition of its branding rights from Mondelez International Inc (NASDAQ:MDLZ) . Dr Pepper now has the rights to distribute its Snapple brand in much of Asia and will also be distributing a number of second-tier beverages (Clamato? Really?) in Australia. Coke also brought $2.5 billion in new corporate bonds to market last week, but the terms of that deal were so sweet that investors shouldn’t have taken the news as a bad sign.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!