News for the Week of November 6-10, 2017

News for the Week of November 6– November 10, 2017

 

by David Abuaf, CFA

Investment Manager, RJFS

 

General Markets / Economic

                                                                                                           

·       Some banks are shedding their holding company structure as a way to ditch regulation by the Federal Reserve and lower costs

 

 

Company News

 

1.     Disney disclosed new details on coming streaming services and the Star Wars franchise as it posted declines in three core businesses

2.     Hasboro has made a takeover bid for rival Mattel

3.     The Justice Department is pressing for changes to AT&T’s proposed deal for Time Warner, raising the prospect AT&T would have to sell either Turner, which includes CNN, or DirecTV

4.     Broadcom made an unsolicited $105B bid for Qualcomm. However, Qualcomm has formally rejected the bid

5.     CVS will offer next day delivery of prescription drugs as it faces potential competition by Amazon

 

 

Interesting News

 

1.      Worried about the upcoming Robot Apocalypse? While robots may enslave us all someday, here’s a useful tip; if one of them goes berserk, a good tactic is to shut the door behind you. One after another, robots in a government sponsored contest were stumped by an unlocked door that blocked their path at an outdoor obstacle course…this is only in “Interesting News” because I read about this in the WSJ, front page!

2.      T-Mobile’s CEO has a side gig; hosting an online Cooking Leger. John Legere’s “Slow cooker Sunday” show draws millions of viewers on Facebook Live

 

 

Commentary for the Week of November 6– November 10, 2017

 

by David Abuaf, CFA

Investment Manager, RJFS

 

 

Market sentiment soured last week, snapping an eight-week equity winning streak, as the S&P 500 fell 0.1%. The driving factors of the market move were large scale mergers, pressures in the high yield market, increased uncertainty over differences between the House and Senate tax reform plans (heaven-forbid our legislative branch should decide to ever pass identical laws) and a stronger focus on next year’s mid-term elections following Democratic wins in last week’s contests.

 

At this point, we think positive equity market momentum may be cresting, but we do not see the signals necessary that would presage the end to the bull market. As such, we think volatility may be likely to rise and wouldn’t be surprised to see a market correction or consolidation before prices can sustain another prolonged increase.

 

 

 

All opinions presented are those of David Abuaf, and not of Raymond James or Forman Investment Services. All opinions are as of this date and are subject to change without notice.

 

This information is not a complete description of the securities, markets, or developments discussed and has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation.  This information is not intended as a solicitation or an offer to buy or sell any security referred to herein.

 

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