Your Tuesday Market Blip 11/24/15

Your Tuesday Market Blip 11/24/15

Stocks opened the day lower thanks to a Middle East Turkey shoot. The event caused oil prices to jump as Russia and Turkey have been planning an oil/gas pipeline venture which might now be on the rocks. The higher oil prices however brought a relief rally to US energy companies and this helped the Dow reverse from a 100 point drop to close at 17,812 up 20. Trading volume was higher.
Politicians came out against the Pfizer Allergan merger saying it was a tax inversion and unfair to American taxpayers. Meanwhile “The Donald” chimed in saying he was against the deal but instead of blaming Pfizer he blamed politicians for allowing a high corporate tax that encourages inversions. Pfizer indicated it could save about $2 billion each year in taxes on the deal. Could Pfizer at the same time justify the deal by saying it will help them reduce price increases on drugs? It will be interesting to see how the dynamics of this situation plays out since people want lower drug prices and maybe a way for that to happen is for the drug makers to seek low tax jurisdictions in which to operate. This will be a good debate topic.
Boeing and Taiwan based carrier EVA recorded the largest single commercial airplane purchase in the island nation’s history when they booked an $8 billion order for 24 787’s and a couple of 777’s. EVA is a fast growing carrier and CEO Austin Cheng said this deal will help the company’s growth efforts.
WTI crude prices jumped today due to the escalation of Middle East tensions. Soon we might have everyone fighting everyone over there. At the close WTI crude was up 2.7% to $42.80 per barrel. Energy stocks bolted higher in response.
Have a great evening. Tomorrow I will be out of the office fetching some Christmas Trees for the Boy Scouts. I wish everyone a wonderful Thanksgiving.