Welcome back to the rally no one trusts. Stocks are slightly green pre-market, driven by little more than boredom and skeptics. The S&P 500(INDEXSP:.INX) tacked on another .6% yesterday but the NASDAQ Composite(INDEXNASDAQ:.IXIC) was where all the action was. Facebook Inc(NASDAQ:FB), Google Inc(NASDAQ:GOOG), and Tesla Motors Inc(NASDAQ:TSLA) all rose more than 2%. Even the Russell 2000 (^RUT) got some love with a 1.4% gain. Here’s what people are talking about as May races to the close.
Standard & Poors issued a B- or “junk” rating on Tesla’s credit yesterday after the bell. Tesla raised $2.3 billion in March to fund its new “Gigafactory.” In its note issued after the bell S&P said Tesla faced displacement risk and limited demand for its products. Interestingly S&P, which is normallypaid for offering such views, graded Tesla pro-actively. Business has been a little slow since S&P missed the housing crisis then downgraded the U.S. in 2011
Valeant Pharmaceuticals Intl Inc(NYSE:VRX) has sweetened its offer for Allergan, Inc.(NYSE:AGN), adding more cash and slightly upping the total pot. Valeant says it will now offer $58.30 in cash and a portion of stock for Allergan who’s shares closed at $129.50 yesterday. That makes the total offer more than $49.5 billion, about 10% more than the original offer. Allergan says the new offer still substantially undervalues the company and vows to remain independent.
You can see the full “Breakout” segment below: