Your Monday Market Blip 11/23/15

Your Monday Market Blip 11/23/15

Stocks began the week in mixed fashion on light pre-Thanksgiving action. The Dow closed the session off 31 points to 17,792. As we head toward turkey day, trading action will tend to be subdued. Markets will be closed on Thursday and open for only a partial day on Friday, which is usually one of the slowest trading days of the year. All quiet on the western front.
It was “viagra Monday” as New York based drug maker Pfizer announced it was purchasing Irish based Allergan in an all stock $160 billion whopper of a deal which will make Pfizer the biggest drug company in the world. The deal is being seen as a tax inversion since it will allow Pfizer to lower its tax burden by a couple of billion smackers because Ireland has a more favorable tax code than the US.
With 90% of the S&P 500 companies having reported Q3 earnings the data so far shows a 1.5% drop in net income from this time last year. This is better than the 5% drop the experts had forecast. Meanwhile margins on the S&P 500 continue to hit highs. Energy and material stocks faired the worst while banks, tech and healthcare did well.
After September’s strong gains in existing homes sales, October experienced a 3.4% decline to an annual rate of 5.36 million units. The main reason for the decline was a 4.5% drop in inventory. Home prices have been down over the past 4 months but are still up an average of 5.8% over last year at this time. The inventory drop was the largest since 2013 and could spur more home construction.