Stock Market Surges to Best Week Since 2011 on Crude Oil and Pfizer Deal

Strategic Insights -

The stock market showed significant gains on Thursday, putting the Dow Jones industrial average on track for its best week since 2011. Investors returned to the market after a slump the previous week, motivated by a 4% jump in crude oil prices and Pfizer's $16 billion deal to acquire Hospira. The Dow Jones industrial average surged over 200 points, marking its third significant gain of the week. The blue-chip index is now up approximately 700 points, or 4%, for the week, a stark contrast to the nearly 3% decline the previous week.

Key Takeaways:

  • The Dow Jones industrial average jumped 211.86 points, or 1.2 percent, to 17,884.88, marking its third significant gain of the week.
  • The Standard & Poors 500 index added 21.01 points, or 1 percent, to 2,062.52, putting it back into the black for 2015.
  • Health care stocks and energy companies had some of the biggest gains, with Pfizer's deal to buy Hospira for $90 a share and a 35% surge in Hospira's stock price at the center of the market's attention.
  • The gains in the market came despite a volatile day in oil trading, with benchmark U.S. crude rising $2.03 to settle at $50.48 a barrel on the New York Mercantile Exchange.
  • The deal between Pfizer and Hospira marks the first major acquisition by Pfizer since it pulled out of a merger with AstraZeneca last year.
  • Gabriele Santos, a global market strategist with JPMorgan Funds, noted that the market's return to normal volatility is a recent trend, with the week's gains being an example of this.

Statistics:

  • The Dow Jones industrial average is up approximately 700 points, or 4%, for the week.
  • The Standard & Poors 500 index is up approximately 21 points, or 1%, for the week.
  • Health care stocks surged, with Pfizer's deal to buy Hospira being a major driver of the market's gains.
  • The price of crude oil rose $2.03 to settle at $50.48 a barrel on the New York Mercantile Exchange.
  • The Dow Jones industrial average has now had its third significant gain of the week, surpassing 200 points.

Sources:

  • Associated Press, "Stock Market Surges to Best Week Since 2011 on Crude Oil and Pfizer Deal" by KEN SWEET
  • Associated Press, "AP PHOTOS: US Markets Recovering After Recent Slump"
  • JPMorgan Funds, statement by Gabriela Santos
  • New York Mercantile Exchange, oil prices and settlement data.