It's Friday, sort of.
Stocks Better Go Up on This Deals News, or Else
I'm running on close to zero sleep after making the rounds of the New York Auto Show cocktail party scene Wednesday. Shout out to Lamborghini for revealing one hell of a new supercar that I hope to buy in the world's reserve currency, SozCoin, by 2045. Plus, I'm preparing to sit down with Stifel's long-time CEO Ron Kruszewski this morning for a wide-ranging interview. So if this is a short read, please go easy on me, or feel free to light me up on Twitter @BrianSozzi for my lack of effort. What's catching my attention on Thursday is full on deal explosion news. CME Group (CME - Get Report) is buying Britain's NEX for $5.5 billion, making it an instant player in fixed-income. CME Group's CEO Terry Duffy told me last December a deal was coming, so I'm not surprised. Impressive purchase here. Given CME's cash position, expect more deals over the next few years. Renault is talking merger with Nissan. Renault (RNLSY) CEO Carlos Ghosn is another impressive executive - I've long dug his work in the auto space. Not straight deal news, but SoftBank is reportedly looking at a $9.6 billion stake in insurer Swiss Re. SoftBank CEO Masayoshi Son continues to try to be Warren Buffett-light with his deal-making prowess. Takeda has reportedly made a play for Irish rival Shire (SHPG) . GlaxoSmithKline (GSK - Get Report) agreed to buy Novartis AG's (NVS - Get Report) stake in their consumer health joint venture for a cool $13 billion. To date, announced healthcare deals have tallied a hot $156 billion, according to Bloomberg data. In short, deal activity is simply going bonkers into the end of the first quarter. If the broader market can't trade higher off this news in the short-term, investors better move 100% into cash and prepare for the April start of the bear market. The next big deal is coming in the tech space off this recent pullback. Expect something sizable from someone in the second quarter.
Tesla Is Toast
This has been a terrible week for money-losing auto outfit Tesla (TSLA - Get Report) . For the first time in a while, investors are really questioning the company's viability and doing so in two markets. First in the equity market, where Tesla's stock has plunged 7.6% this week. Over the last month, the stock has cratered about 25%. The other source of angst could be seen in the debt market. Tesla's benchmark debt maturing in 2025 dove 3.4% on Wednesday, the largest one-day decline since the bonds hit the market last August, according to Bloomberg. The yield for you risk-takers out there: 7.17%. To be sure, Tesla's next capital raise will be very expensive and at the same time put immense pressure on CEO Elon Musk to actually deliver on delivery goals for a change. And no, now is not time to buy the stock.
Your Deep Thought Today
Today's deep thought is on formerly booming tech stocks such as Facebook (FB - Get Report) , Amazon (AMZN - Get Report) , Apple (AAPL - Get Report) , Netflix (NFLX - Get Report) and Alphabet (GOOGL - Get Report) . And the deep thought comes from veteran tech exec and BlackBerry (BB - Get Report) CEO John Chen. "Given the fact the market has been in a bull market for so long, and the high-fliers have seen a really big return, I think what we are seeing is a quick knee-jerk reaction to many things going on," Chen told TheStreet. "Tech [stocks] will come back because technology does represent high value and a lot of good things on in the future in robotics and analytics." Relax and get ready to go all in on Action Alerts Plus holding Amazon.
TheStreet got up close and personal Wednesday night for the North American reveal of Lamborghini's latest supercar. Watch below.
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