Stocks opened the day higher but then reversed as investors are trying to make sense of the trade talks between China and the US which seems to change at a moment’s notice. At the close the Dow was off 120 points to 25,777. Trading volume was up a bit.
Costco has officially opened its first store in China and the early results appear to be good. So good in fact that they had to shut the doors early due to overcrowding and a line of cars stretching several blocks waiting for a parking space. Several European store chains have tried and failed to make a go of it in China, but Costco seems to think they have learned from the mistakes of others and hopefully have a different result. Check out our Faceplant page for an article about the store opening. The article has video clips of inside the store showing massive lines of eager shoppers. Costco stock hit an all-time high today.
A court in Oklahoma slapped Johnson & Johnson with a $573 million fine regarding its role in the opioid crisis. This is a landmark ruling but shares of JNJ where up on the news as the financial damage was much smaller than expected. Apparently, the State of Oklahoma was trying to get $17 billion as they seek to recover costs of treating people hooked on pain killers for years to come. JNJ also said it will appeal the ruling and feels it has a strong argument to overturn the judge’s decision. JNJ has over $18 billion in cash and generates about $15 billion a year in profits while the State of Oklahoma collected $13.6 billion in tax revenue last year.