Markets Rise on Talk of Deals

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July 16 (Bloomberg) –- Bloomberg’s Joseph Ciolli discusses how M&A activity is raising market sentiment and Fed Chair Janet Yellen's testimony. He speaks with Julie Hyman on "Street Smart." (Source: Bloomberg)

Deals, or the sentiment around deals, seeming to drive things higher.

Yes, it's true.

Yesterday, we had the big acquisition of lorillard iran owns.

And -- by reynolds.

And today there is talk about time warner cable being bought by 21st century fox.

It gets people thinking there is capital flowing into the markets and it gives people confidence.

If this company is willing to pay that much for its rival, then maybe i should get my money in, too, because the stock will go up that much more.

They feel comfortable with it growing and putting money in the market, so maybe i should, too.

This speaks to the optimism we have generally going into the earnings season.

It seems a lot of investors are feeling good about what we will continue to hear.

Yesterday, jpmorgan and goldman sachs came in better than estimated as well.

Financials was an area that was not expecting to see much earnings growth and it has done well.

It was the worst performing sector, and if it is doing well, then the rest of the market can only be better.

With intel today, we did see a big bump up in their shares and also in the market.

We should talk about janet yellen.

Yesterday, stocks went down.

Today, stocks went up.

What was the key difference between yesterday and today in terms of investor reaction?

Yesterday, we saw her do something that a federal reserve chief does not often do, which is call a lot of sectors overvalued.

A sickly, the big winners in the bull market in the stock market last year.

-- basically, the big winners in the bull market of the stock market last year.

She's putting a little more pressure on valuations, because they have kicked back up and maybe she's trying to put a lid on them now.

And the rest of 2000 was actually still down.

Traditionally, you have seen those groups, particularly small cap, lead a rally.

I don't know what it says about a rally at a stall to -- start to falter more significantly.

She might be trying to drive line between those facts and the rest of the market.

This text has been automatically generated. It may not be 100% accurate.

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