Memo to you, Mr. President: U.S. President Donald Trump tweeted on Sunday that people who lost money in the stock market following Friday's erroneous ABC News report on Flynn should sue the network giant. How can you not expect that statement from the king of lawyering-up? But before you go out to hire a top flight lawyer keep this in mind: The sharp selloff in response to the news is simply a typical risk of investing. Read any annual report from a Fortune 500 company and one of the zillions of risks they discuss is political risk. Companies cite that to cover their rear-ends in this crazy world of 24/7 politics. And not for nothing, the market came back after investors fully digested the Flynn news. Simmer down, Prez.
Another stock warning: At least this one is insightful and comes via a new report from the Bank for International Settlements. While stopping short of calling a market top, researchers pointed out that the recent slowdown in stock buybacks should be a worry for the bulls. "When and if interest rates begin to rise, corporates may have the incentive to tilt their capital structure back to equity, or at least to reduce stock repurchases, which could raise further questions about stock market valuations," said the report. The fancy charts they provided were enough for me to internally wonder how much room Facebook (FB) , Amazon (AMZN) , Netflix (NFLX) and Alphabet (GOOGL) have left to run. So does the CVS (CVS) deal for Aetna (AET) . With executives probably feeling the heat to keep valuations growing from already hot levels, expect eye-popping deals that may not truly be thought out. After all, do you want a pharmacist checking your vitals inside a CVS in front of teens shopping for candy?
Broadcom fires a cannon at Qualcomm: Broadcom (AVGO) CEO Hock Tan must read a lot of old war strategy textbooks -- he just went nuclear in his bid to win rival Qualcomm (QCOM) . A true shock and awe campaign. Broadcom put forth a list of 11 new directors for election to Qualcomm's board. No big names on the list, but the optics reflect Broadcom's view that Qualcomm isn't being managed/run too well.
Bye-Bye Blockbuster (For Real This Time)
A Blockbuster store in Oregon, one of the last 10 in existence, said Saturday it will close at the end of 2017. Sad.
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