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 Donald Trump and his administration with this weekly recap compiled by The Fly:
1. GOVERNMENT SHUTDOWN: President Trump tweeted on Thursday that he will be cancelling his trip to Davos, Switzerland for the World Economic Forum. "Because of the Democrats intransigence on Border Security and the great importance of Safety for our Nation, I am respectfully cancelling my very important trip to Davos, Switzerland for the World Economic Forum," Trump tweeted. "My warmest regards and apologies to the @wef!" Almost three weeks have elapsed since the government shutdown began and with the two sides still unable to reach an agreement on the border wall, closures and furloughs are likely to persist. In a research note to investors earlier this week, Jefferies said some retailers and restaurants could be impacted if federal employees without paychecks curtail their spending. The firm identified eleven companies that have 4% or more of their stores within a 30-mile radius of 1600 Pennsylvania Avenue, with Chuy’s (CHUY), Container Store (TCS), Nordstrom (JWN), Macy’s (M), Chipotle (CMG), and Cheesecake Factory (CAKE) topping the list. The others include Sonic (SAH), Hyatt (H), Marriott (MAR), Monro (MNRO), and Steven Madden (SHOO). The firm acknowledged, however, that unless the shutdown lasts much longer, impact to any of these companies’ sales is likely to be minimal. Nonetheless, even “minor sales misses can impact stocks,” it added.
2. CVS-AETNA RESOLUTION MAY BE DELAYED: The Department of Justice said in a court filing earlier this week that the government shutdown might postpone its response to comments on CVS Health's (CVS) acquisition of Aetna, a necessary step in a court giving final approval to the transaction, Reuters reported. Judge Richard Leon of the U.S. District Court for the District of Columbia has been examining the consent decree reached by the DOJ and the companies in October to clear their $69B tie-up, the publication noted. The deal has closed, though Judge Leon has required that certain aspects of the integration be halted during the review process.
3. U.S.-CHINA TRADE: The U.S. and China appear to have agreed on a time frame and what products will be included in a proposal to boost imports from the U.S. by $1.2T, with soybeans and natural gas the main candidates for the expansion, The Nikkei Asian Review reported on Thursday. The three-day trade talks that took place this week also focused on structural issues about which the U.S. has complained, and China has offered proposals on intellectual property theft and tech transfers that may help bridge the gap, according to The Nikkei, citing "an informed source close to the negotiations."
4. DRUG PRICING: Secretary of the U.S. Department of Health & Human Services Alex Azar tweeted earlier this week, "We've seen some good behavior from companies such as Merck [MRK], Gilead [GILD], and Amgen [AMGN], who announced lower prices for their drugs. We need to see more. @POTUS and I won't stop until American patients see the lower prices they deserve." Other publicly traded large-cap drugmakers include AstraZeneca (AZN), Bristol-Myers (BMY), Eli Lilly (LLY), GlaxoSmithKline (GSK), Johnson & Johnson (JNJ), Novartis (NVS), Pfizer (PFE), Roche (RHHBY) and Sanofi (SNY).
"Week in Review" is The Fly's weekly recap of its recurring series of "Trump Effect" exclusive stories.
Chuy's
+0.41 (+1.99%)
Tcsi Corp
+ (+0.00%)
Nordstrom
+0.125 (+0.26%)
Macy's
-0.71 (-2.72%)
Chipotle
-2.58 (-0.51%)
Cheesecake Factory
+0.18 (+0.39%)
Sonic Automotive
+0.08 (+0.51%)
Hyatt
+0.4 (+0.59%)
Marriott
-0.7 (-0.64%)
Monro
+0.12 (+0.17%)
Steven Madden
-0.24 (-0.77%)
CVS Health
+0.24 (+0.37%)
Merck
+0.455 (+0.61%)
Gilead
+0.07 (+0.10%)
Amgen
-2.16 (-1.07%)
AstraZeneca
-1.35 (-3.53%)
Bristol Myers
+0.27 (+0.57%)
Eli Lilly
+0.185 (+0.16%)
GSK
+0.02 (+0.05%)
Johnson & Johnson
-0.04 (-0.03%)
Novartis
-0.34 (-0.39%)
Pfizer
+0.57 (+1.35%)
Roche
+ (+0.00%)
Sanofi
-0.44 (-1.03%)