Dow Drops, Tech Wanes
Stocks continued their steep falls this week as the Dow fell below to 25,000 for the first time since this past July. In the 2-day period from Tuesday to Thursday, the Dow totaled losses of over 5%. The NASDAQ, known for its highly tech-centered portfolio, fell more than 2% alone on Tuesday as the riskiness of the tech market continued to show through.
As interest rates continue to rise, and President Trump voices his constant displeasure with them, investors have begun to flee from risky assets like tech stocks, and move their investments into safer havens like gold and oil.
CVS-Aetna Merger Gets Green Light
The Department of Justice passed the approval of the long-awaited CVS (CVS)–Aetna (AET) deal on Wednesday. Valued at $69 billion, the acquisition will add to CVS’s status as the nation’s largest pharmaceutical retailer.
This deal was being watched closely, just like other M&A deals in the past year, due to its sheer size, and uncertainties that the restructuring could bring changes such as reduced competition and consumer choice to the market. However, after this merger, as well as the Time Warner-AT&T (T) deal, it’s clear market-moving acquisitions are still prevalent.
Tesla Back on Target?
Tesla (TSLA) surpassed the 100,000 Model 3 electric mark, the company announced on Friday. This is a quick turnaround from earlier this year when Tesla’s assembly process broke down and Tesla engineers were forced to construct white tents outside to continue working.
This sign of good news comes just a week after Musk settled with the SEC on his securities fraud charge. Rumors of James Murdoch’s soon-to-be appointment to chairman of the board of Tesla leaked soon after Musk was forced to step down. Tesla was trading up 1% on Friday.