Bank of America technical strategists say S&P 500 will hit 6150.
Bank of America’s technical strategists see a healthy summer rally for US equities on the horizon, with the S&P 500 (SPX) projected to reach 6150.
Their analysis highlights the recent surge in the SPX, which has already achieved new all-time highs and is approaching the projected target in the 5600s based on a 2022-2023 bullish cup and handle pattern.
However, Bank of America emphasizes the importance of broader market participation. While the SPX, S&P 100 (OEX), NASDAQ 100 (NDX), and NASDAQ Composite (COMP) have reached new highs, the Russell 2000 (IWM), S&P 500 equal weight (RSP), NYSE (NYA), and Dow Jones Industrial Average (INDU) haven’t followed suit.
Bank of America believes these laggards still hold potential for higher highs based on their “constructive absolute chart patterns,” but their confirmation is crucial for a healthy summer rally.
Encouragingly, volume indicators are presenting a bullish picture, according to the bank. Bank of America points to the “cumulative net up volume” metric, which tracks the difference between up and down volume on an index, reaching new highs alongside the SPX.
They explain that this positive trend is echoed across the OEX, NDX, NASDAQ Composite, and INDU. Additionally, the breakout in the “US top 15 most active A-D line,” a gauge of market breadth and volume for the most actively traded stocks, is seen as a strong confirmation of the rally.
While breadth indicators haven’t fully confirmed the uptrend yet, Bank of America identifies key levels on metrics like the percentage of SPX stocks above their 50-day and 200-day moving averages as potential “tipping point supports” to watch for a definitive signal from the broader market.
Vista Outdoor rejects MNC’s buyout offer, agrees to CSG’s sweetened bid for unit.
(Reuters) -Vista Outdoor on Monday rejected investment firm MNC Capital’s final buyout offers of $3.2 billion, citing that it undervalued the company, and said it had agreed to an increased bid for its ammunition unit from Czechoslovak Group (CSG).
The latest development adds to the months-long saga for the parent of Federal Ammunition and Remington Ammunition against the backdrop of rising demand for military supplies since the escalation of the Russia-Ukraine conflict in 2022.
MNC Capital, whose previous bids were all rejected by Vista in favor of its plan to separate its businesses, had increased its offer to $42 per share from $39.50 late last month.
But Vista said MNC Capital’s offer would not be more favorable to its shareholders than a deal with CSG for its ammunition unit, Kinetic Group.
“Vista Outdoor (NYSE: VSTO) engaged extensively with MNC Capital since MNC’s initial outreach in September 2022 … Despite these efforts, MNC’s final indication significantly undervalues Vista Outdoor as a whole and especially the Revelyst (performance gear) business,” the company said in a statement.
MNC Capital did not immediately respond to a Reuters request for a comment.
Prague-based defense firm CSG raised the purchase price for the proposed deal to buy Kinetic Group by $100 million to $2.1 billion, Vista said.
On closing of the CSG deal, Vista stockholders would receive one share of Revelyst common stock and $21.00 in cash, up from $18 offered in June.
Vista now expects the deal with CSG to close this month, subject to approval from stockholders at a special meeting scheduled to be held virtually on July 23.
End of Redstone era as Paramount, Skydance Media agree to merge.
(Reuters) -Skydance Media and Paramount Global have agreed to a merger, the companies announced late on Sunday, marking the end of an era for the Redstone media empire which was launched as a chain of movie theaters by Shari Redstone’s family in 1936.
Originally named the Northeast Theater Corporation, it later morphed into National Amusements, which eventually became one of the largest media companies in the United States, with Paramount Pictures, CBS, and Viacom under its umbrella.
Paramount and Skydance agreed to a two-step process in which Skydance, and its deal partners will acquire National Amusements, which holds the Redstone family’s controlling stake in Paramount, for $2.4 billion in cash.
After the National Amusements acquisition, Skydance will merge with Paramount, offering shareholders $4.5 billion in cash or stock, and add $1.5 billion to Paramount’s balance sheet.
Here are the key events leading up to the deal:
Year Events
December CBS Corp (NYSE: CBS_old) and Viacom merge to form ViacomCBS (NASDAQ: PARA),
2019 combining mogul Sumner Redstone’s media units.
13 years after a split. ViacomCBS acquires a
49% stake in film studio Miramax from BeIN
Media Group for $375 million
September ViacomCBS rebrands a CBS streaming service to
2020 Paramount+ and launches it in international.
markets. Sells CNET Media Group to Red
Ventures for $500 million
November ViacomCBS agrees to sell CBS Studio Center to
2021 private firms for $1.85 billion
February ViacomCBS changes its name to Paramount.