Stocks rallied on Tuesday, sending the Dow to a new record high; led by gains in the energy sector. Bobbi Rebell reports.
Two big M&A deals got investors back into stocks on Tuesday, with the S&P and Dow and Nasdaq indexes roaring back after a big stumble on Monday. Adding to the surge were energy stocks like Chevron and Exxon Mobil, this in spite of another dip in oil prices. Still, U.S. Bank senior portfolio manager Eric Wiegand is cautious on his outlook for the energy sector. SOUNDBITE: ERIC WIEGAND, SENIOR PORTFOLIO MANAGER, U.S. BANK (ENGLISH) SAYING: "We still see supply coming online throughout 2015, so our expectations are not for a very quick or sharp rebound in the underlying prices." Cheaper gas and a robust Black Friday helped top U.S. automakers rev up sales in November, pushing up shares of GM, Fiat Chrysler, and Ford. The annualized sales rate was about 17.1 million vehicles, the best pace for that month since 2003. In the merger arena, chipmaker Cypress Semiconductor is purchasing Spansion for $1.6 billion. Both stocks rocketed higher. In an ever bigger deal, Japan's Otsuka Pharmaceuticals is buying drug maker Avanir Pharmaceuticals for about $3.5 billion. In biotech, investors scooped up shares of Biogen, which was upbeat about results from an early study on its experimental Alzheimer's drug. Shares of Royal Caribbean Cruises rose after it was named to join the S&P 500 index. President Obama's request to Congress for $263 million to buy body cameras for police officers in response to the Ferguson protests boosted shares of video camera makers Digital Ally and Taser International. In economic news- construction spending posted their biggest gain in five months and small businesses ramped up borrowing to a record high in October. Over in Europe, energy shares also rebounded, powering stocks higher.