M&A News Ahead of the Weekend Boosts Stocks

Normally, you would expect to hear this M&A news on Monday, but a couple of reports this morning jumped the gun and helped boost stocks.

GE announced that it is close to a deal to sell its plastics division for $11 billion. And Microsoft (MSFT) said it will buy aQuantive (AQNT) for $66.50, an 85% premium.

Also, Kohl's (KSS) reported solid earnings last night, and Bernstein upgraded the brokers this morning. The Univ. of Michigan consumer sentiment index came in better than expected (88.7 vs. 86.5). I guess the rising stock market may finally be making people feel a little bit better.

As for oil, it continues to rise, hitting $65.50, but not denting the progress of the stock market. Bond yields are rising also, with the 10-year reaching 4.77%. This surpasses the April highs, but the January highs were 4.90%.

Asian markets were lower overnight. China raised rates again, in an attempt to cool its overheating economy and mad rush into its stock markets. Bubbles can be great while they last, but the aftermath likely won't be pretty.