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The Dow Jones today (Wednesday) lost 0.08% to close at 16,501.65. The Standard and Poor's 500 Index and the Nasdaq Composite were both unable to deliver a seventh consecutive winning session. The S&P dropped 0.22% to close at 1,875.39, while the Nasdaq fell 0.83% to finish at 4,126.97.
Despite the downturn, it was an extremely busy day on Wall Street and in the financial world.
Here's your recap of major events affecting U.S. markets today…
- A Huge Score for Amazon: On Wednesday, Amazon.com Inc. (Nasdaq: AMZN) announced a huge, multi-year licensing deal to bring HBO series, movies, and comedy specials to its Prime subscription service. The HBO content, which includes all seasons of the iconic series The Sopranos, The Wire, and Rome, as well as original HBO movies, documentaries, and comedy specials, will arrive to Prime on May 21. Despite the news, shares slid more than 1.5%.
- The Tech Bubble Warning: He was the man who led to a huge sell-off in an overvalued Keurig Green Mountain (Nasdaq: GMCR) just a few years ago. Now, in an open letter to his fund investors, hedge fund manager David Einhorn said, "we are witnessing our second tech bubble in 15 years." In his letter, Einhorn said we are likely still a bit away from it bursting, but he mentioned a number of signs he thinks are problematic. He said that investors are rejecting "conventional valuation methods," embracing illogical first-day pops for new IPOs and that short sellers have to cover positions on a regular basis.
- A Big Soda Deal: According to Israeli business newspaper Globes, Starbucks Corp. (Nasdaq: SBUX) is aiming to purchase a 10% stake in Sodastream International (Nasdaq: SODA). The 10% share would value Sodastream at $1.1 billion, which is a 30% premium above the company's market value. Following the rumor, shares of Sodastream jumped more than 15%. Starbucks stock slid by more than 1.1% on the day.
- Facebook Given Clearance: The U.S. Justice Department and the Federal Trade Commission provided permission for Facebook Inc. (Nasdaq: FB) to purchase Oculus VR Inc., a manufacturer of virtual reality goggles. On March 25, Facebook announced plans to purchase Oculus for $2 billion, making it the social network's first-ever hardware deal.
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.