Stocks traded in mixed fashion all day with little movement on either side of the red/black line. At the close the Dow was down 3 points at 26,449. Trading volume was up a bit. The healthcare sector is getting whacked due to all the talk of healthcare reform coming from presidential candidates. Markets are still in rally mode.
Shares of telecom equipment provider Qualcomm shot higher after the company reached a settlement with Apple over chips in modems and cell phones. The gurus called the agreement a big win for Qualcomm and while shares of Apple were up a couple bucks, shares of Qualcomm went from the $50 range to just under $80. Qualcomm said the deal will add $2 per shares to net income. In reaction to the deal Intel said it would stop making 5G modems and let Qualcomm have that market.
Economic news from China appears to be improving. Sales of construction equipment is on the rise again and real estate sales and values are improving. Meanwhile over in Europe the struggle continues and the German economy in particular continues to disappoint as ISM manufacturing data has surprised the experts and fallen into contraction mode. Germany is facing the EV revolution and between that and a possible merger between Deutsche Bank and Commerz Bank, Germany could experience significant jobs losses. Money managers that we talk with are in agreement that the European Union is lagging the rest of the world in innovation. Meanwhile across the pond the Atlanta Fed recently upped its US Q1 GDP growth estimate from 0.3% to 2.3%.