Week in review: How Trump's policies moved stocks
Catch up on the top industries and stocks that were impacted, or were predicted to be impacted, by the comments, actions and policies of President Trump and his administration with this weekly recap compiled by The Fly: 1. DISNEY BUYS FOX, BUT NOT FOX NEWS: On Thursday, Disney (DIS) and 21st Century Fox (FOXA) confirmed that they have entered into a definitive pact under which Disney will acquire 21st Century Fox, including the company's Film and Television studios, along with cable and international TV businesses, for approximately $52.4B in stock. As part of the deal, Fox will spin off Fox Broadcasting network and stations, Fox News, Fox Business and several sports networks to its shareholders. Later in the day, Gabriel Sherman, a Vanity Fair special correspondent and NBC News contributor, tweeted: "Trump spoke with Murdoch ahead of Disney deal to make sure Murdoch wasn't selling Fox News, person briefed on the call said." 2. NET NEUTRALITY: Also on Thursday, and after being delayed by a bomb threat, the Federal Communications Commission voted to dismantle so-called "net neutrality" rules, which regulated the Internet like a utility and prohibited internet service providers, or ISPs, from blocking or charging websites for higher quality delivery to consumers. ISPs including AT&T (T), Charter Communications (CHTR), Comcast (CMCSA, CMCSK), and Verizon (VZ) may all benefit from this decision, which they have spent tens of millions of dollars lobbying toward. Content providers, such as Netflix (NFLX), Google (GOOG, GOOGL), Amazon (AMZN), Facebook (FB), and Twitter (TWTR), have all lobbied in favor of net neutrality. After the vote, Netflix's official corporate account tweeted: "We're disappointed in the decision to gut #NetNeutrality protections that ushered in an unprecedented era of innovation, creativity & civic engagement. This is the beginning of a longer legal battle. Netflix stands w/ innovators, large & small, to oppose this misguided FCC order." 3. CONSUMER FINANCE SEEN AS WINNER IN TAX REFORM: On Monday, Wedbush analyst Henry Coffey raised his price targets for Capital One (COF) to $95 from $80, Discover (DFS) to $80 from $70, and Synchrony (SYF) to $41 from $33, to factor in the high probability that marginal corporate tax rates decline from 35% to 20% in 2019. The analyst also noted that the lowered corporate and middle class tax rates promised by the bill greatly increases his confidence that he does not see a recession in 2018 and 2019. Meanwhile, Credit Suisse analyst Moshe Orenbuch told investors that he views tax reform as highly beneficial to U.S. consumer finance companies as most of them are full U.S. tax payers and any increases in consumer confidence from more cash flow could lead to more consumer borrowing, driving faster revenue growth and improved credit quality. His favorites to benefit from tax reform are Synchrony, Discover, OneMain (OMF), CIT Group (CIT), Santander Consumer (SC), Sallie Mae (SLM), and Air Lease (AL). "Week in Review" is The Fly's weekly recap of its recurring series of "Trump Effect" exclusive stories.