Stocks went red after the US Treasury issued a rule on corporate inversions which pretty much killed the deal between Pfizer and Allegran. The news sent shares of both companies to big losses and sparked a selloff in healthcare which spilled over to the rest of the market. The Dow closed the day off 133 points to 17,603. Trading volume was mixed.
New data that came out before Europe's open painted a gloomy picture for Germany, causing the DAX to fall over 2.6%. Figures showed that industrial orders in the euro zone's largest economy fell in February as foreign demand weakened. Contracts for 'Made in Germany' goods were down 1.2%, the biggest drop in six months.
Preorders for the Tesla Model 3 (“schree” as they say in Alabama) have crested 276,000 and are double what the expectations were. With 276,000 cars now on order and considering the fact that Tesla is currently delivering about 15,000 units per quarter you can see that this situation is ripe for a good news story about the dangers of success.
WTI crude prices were up slightly with a barrel of oil priced at $35.93 up about six tenths of a percent. Gold meanwhile shot higher on the weak European news and speculation that it will influence the Fed to not raise rates until later this year. Gold was up over $12 an ounce to $1,231.