Markets traded mixed on higher trading volume as the earnings season has now peaked and is on the wane while tax reform debate is on the rise. The Dow was up 8 to 23,557 while the tech heavy NASDAQ fell about 18 points. Media stocks were higher on merger news. Bank stocks were lower because of tax reform debate. IBD still has markets in rally mode and BTS continues to show green lights on high yield bonds.
There has been a boat load of mergers this week. Singapore based Broadcom announced it was buying San Diego based Qualcomm in a deal valued at $130 billion smackers. When asked if he had any qualms about Qualcomm CEO Hock Tam said “very funny”. In other news it looks like 21st Century Fox is considering a sale of its entertainment assets to Disney. People are calling the potential deal transformative. 21st Century Fox owns National Geographic and various studio and movie production assets which would be part of the deal while the Fox news and Fox sports would not be included since Disney already has its own news broadcasting network.
Oil prices took a breather today as WTI crude fell 10 cents to $57.25 per barrel. The price of oil has benefited from several factors lately including Saudi Arabia cleaning house plus rising tensions between it and Iran coupled with a strengthening global economy and a falling US rig count. Some gurus are now saying oil could trade up as high as $70 per barrel. Natural gas prices continued to creep higher adding a fraction to trade near $3.15 per million BTUs.