Markets Lose, Wynn Wins
- Once again, markets closed lower across the board, with fingers pointing towards (drumroll please)…yes, oil. The heavily-spotlighted commodity fell to its lowest level since February 2009—back when President Obama made his first Congressional address.
- Yes, it was a rough day for stocks, but it didn’t start off that way: the Dow was actually up as much as 200 points early on, but ended up dropping to close down 75 points on the day. Meanwhile, the S&P 500’s drop sent the index back into the negative for the year.
- While U.S. stocks across the board struggled, casino owner Wynn Resorts was feeling lucky. Shares jumped 13% after founder Steve Wynn went all in, buying 1 million shares of his company’s stock. It could be a sign that the worst is behind Wynn, which gets the majority of its revenues from Macau, where gambling revenues have fallen 36% this year.
Yesterday, the head of Argentina’s central bank, Alejandro Vanoli, resigned. This not-so-coincidentally comes the day before Argentina’s new president, Mauricio Macri, is due to be inaugurated. Macri has announced that he plans on making Argentina’s economy more conservative (using fewer state controls) and Vanoli wanted no part in it. Considering the fact that Argentina’s reserves are just above zero, this resignation could be viewed as a blessing—there’s no money left for disagreement.
Dow Chemical + DuPont
2015’s M&A market (valued at a record $4.35 trillion so far) could soon be getting another notch on its belt: Dow Chemical and DuPont. This deal would combine two of America’s oldest chemical giants at a price tag of around $120 billion. The deal would be a merger of equals, so if you’re a shareholder, don’t expect too much of the merger money to find its way into your wallet (nonetheless, shares of both companies rose around 11% each). Of course, it should be no surprise that a major agricultural merger is in the works, as companies big and small alike in the industry look to join forces to fend off pressures from decreased commodities prices.
Lululemon Loses It
After missing quarterly estimates and reporting downbeat forward guidance, even Lululemon’s yoga pants couldn’t keep investors comfortable enough to hold onto their shares. Call it inventory buildup from West Coast port disruptions or excessive markdowns squeezing margins—either way, it’s hard to justify a 12% drop in profits. Unsurprisingly, shares of the athletic apparel retailer plummeted 8%.
TODAY IN TECH
Bitcoin Creator Unmasked and Arrested
Has the mystery finally been solved? The creator of the cryptocurrency bitcoin, known by the pseudonym Satoshi Nakamoto, has long been a secret. On Tuesday, Wired magazine unveiled his supposed identity: Australian entrepreneur and academic Craig Steven Wright. But that’s not all: yesterday, Australian police raided Wright’s home and arrested him. But wait…inventing bitcoin isn’t a crime, right? True. But the arrest likely has to do with Wright evading taxes through his ownership of bitcoins—estimated to be the long-fabled massive block of 1 billion bitcoins, worth a whopping $400 million in tax-free digital money.
- Monday: H&R Block Earnings
- Tuesday: Job Openings and Labor Turnover Survey; Krispy Kreme Doughnuts Earnings
- Wednesday: Costco, Lululemon, Men’s Wearhouse Earnings
- Thursday: Adobe Earnings; Weekly Jobless Claims; Import Prices
- Friday: Retail Sales; Producer Price Index; Consumer Sentiment