The Economy
Trump Signs Tax Bill, Approves Short-Term Spending
On Friday, U.S. President Donald Trump signed the $1.5 trillion Republican tax bill into law. In addition, the President also approved a short-term spending bill to prevent a possible government shutdown.
The new tax bill, which includes a reduction in corporate tax rates from 35% to 21%, is the biggest tax overhaul in the U.S. since the 1980s. The newly approved spending bill extends federal funding through to January 19.
Brazilian President Temer Opposes Potential Boeing-Embraer Deal
Brazilian President Michel Temer has stated that he is opposed to a potential buyout of Brazilian planemaker Embraer SA (NYSE:ERJ) by U.S. counterpart Boeing Co. (NYSE:BA). The Brazilian government currently holds veto power over any merger deal involving Embraer. However, analysts think that a joint venture between the companies could still happen without giving Embraer up to foreign control.
The Markets
Bitcoin Falls Below $12,000 as Selloff Continues
Bitcoin fell by more than 25% to below $12,000 on Friday, continuing a week of selloffs by investors which began after bitcoin reached its peak of near $20,000 over the weekend. This sharp price drop also had an adverse effect on the stock market, as bitcoin and blockchain related companies declined during the trading sessions.
UnitedHealth Signs Definitive Deal to Buy Banmedica for $2.8 Billion
UnitedHealth Group Inc. (NYSE:UNH) has signed a definitive agreement to buy Chilean healthcare company Banmedica SA for $2.8 billion. The companies previously signed a non-binding agreement for the merger in September.
Top Active Stocks
Nike (NYSE:NKE) shares fell to a four-month low of $60.14 on Friday after the company forecast slow sales growth for the current quarter as it continues to lose market share to rival Adidas.
Ignyta Inc. (NASDAQ:RXDX) has agreed to be bought by Swiss drugmaker Roche for $1.7 billion or $27 per share, a 74% premium to its closing price on Thursday. Ignyta’s stock went up by more than 72% to $26.80 on Friday.
Celgene Corp. (NASDAQ:CELG) went down by 2.15% following news that a combination of two of its cancer drugs failed to achieve the desired results in a late-stage clinical study. Specifically, the study evaluated Revlimid, the company’s biggest drug in terms of revenue, plus rituximab as a potential treatment for follicular lymphoma.
Papa John’s International Inc. (NASDAQ:PZZA) declined 3.85% as founder and CEO John Schnatter announced his resignation. Mr. Schnatter made headlines last month for criticizing the NFL, stating that the league’s national anthem controversy had hurt the company’s business.
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