On Wednesday the markets were strongly in the green early on as the Trump administration's crackdown on investments from Chinese companies was less restrictive than anticipated, but failed to hold their gains as tech and financial stocks fell sharply.
The Justice Department said it would approve Walt Disney Co.'s (DIS - Get Report) planned $71.3 billion acquisition of Twentieth Century Fox's (FOXA) movie and TV assets, but would require Disney "to divest 22 Regional Sports Networks as a condition."
Chipotle Has Massive Opportunity to Alter the Course of Its Future: Editor's Cut
"To say Wall Street is bullish on new Chipotle CEO Brian Niccol would be a gross understatement. Since the former Taco Bell wonderkid was appointed to the top job on March 5, Chipotle shares have been hotter than its Tomatillo Red-Chili Salsa, skyrocketing by 42%. In the eyes of the market, Niccol's ability to cut through the fast-food clutter at Taco Bell with real innovation is a template long overdue at Chipotle. Already, Niccol has unveiled six new menu items that should have been available at Chipotle five years ago (see quesadillas)," notes Sozzi.
I'm Drilling for Small Oil Stocks and May Have Found Some 'Black Gold'
"As I discussed in Columnist Conversations this back-tracking from an aggressive position is typical of the president. The market has come to expect it, which is part of the reason we have such tenacious dip-buying when there is a negative headline," says Real Money columnist James DePorre.
"This time the market was not as certain that Trump would relent and that is what has caused pressure the last few days. There is still a lot of confusion over trade and the issue cannot be repaired as easily as other matters. Therefore, it isn't going to go away due to the decision regarding China investment this morning, and the market is still concerned about the longer-term ramifications," DePorre adds.
Here's What Cash-Rich Small Caps Do With All Its Liquidity
Real Money columnist Jonathan Heller asks, "What's a small cap, cash-rich company with a great balance sheet to do with all of its liquidity? One option is to return some of that cash to shareholders via dividends and/or stock buybacks. Two recent examples of companies that have done so, Benchmark Electronics (BHE - Get Report) and Kulicke and Soffa (KLIC - Get Report) also have something else in common."