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February 15, 2013 – 6:15 pm

114918Three major deals reported this morning ( Heinz, Dell and Virgin Media) all in excess of $20 billion indicates a resumption of major industry consolidation that we have not seen in several years. We already have a couple very large mergers in the works with American and U.S. Air combining and InBev trying to buy Grupo Modelo for $20 billion.

This trend should continue as corporations are flush with cash and they need to do something with it. It appears that ‘something’ is buying their competition or at least consolidating their markets. This is good for the stock market and it remains to be seen if it is good for the consumer.

To keep the market rally in place deals such as these are very supportive as investor hope that their companies are part of the profit consolidation which buyouts produce. Since earnings season is fading, investors are looking for the next newsworthy event that will keep the market going. It might be jobs as this week we saw a sharp decline in unemployment claims, thus February’s job report might look good if that keeps up.

Then again disappointing news out of Europe today could weigh on the market. It is a never ending process of trying to gauge the health of not only our economy but the world economy and its effect on stock prices.

Good Trading
Steve Peasley

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