Stocks are trading 0.75% higher as Merger Monday Tuesday, CitiGroup earnings and analyst upgrades help push prices higher. The Kraft/Cadbury deal was finalized overnight and Tyco announced a buyout of Brink’s Home Security.
CitiGroup reported an in-line quarter and gave commentary that was similar to that of JP Morgan on Friday – the recovery is very much in doubt and the consumer remains incredibly weak. Credit concerns remain an issue as the bank was forced to set aside $8.18B to cover unpaid loans. In other earnings news Parket Hannifin reported a better than expected quarter and provided a rosy outlook.
Analysts continue to chase the recovery as upgrades were once again abundant this morning and helping to boost stock prices. Credit Suisse upgrade McDonalds to outperform with a $71 price target. Deutsche Bank upgrade shares of U.S. Steel to a buy with a $77 price target.