Stocks fell again yesterday as bond yields declined again, triggering concerns about the economic outlook. Increasing trade tensions in the China-U.S. trade fight also weighed on markets.
Shares of Johnson & Johnson fell as much as 6.2%, the biggest drop in five months, as a trial implicating the drug maker in the opioid crisis grinds on for a second day in Oklahoma. While Teva Pharmaceutical Industries reached a settlement with the state for $85 million on Sunday and Purdue Pharma LP settled for $270 million in March, Johnson & Johnson has so far committed to fighting it out in court.
The Pentagon presented a report to Congress on rare earth minerals to reduce our reliance on China. The pentagon continues to work closely with the President and Congress to mitigate U.S. reliance on China for rare earth minerals. The move came after China threatened to use its dominance in rare earth minerals as a countermeasure in the trade war with the Chinese explicitly warning the U.S. that China would cut off rare earth supply, saying “don’t say we didn’t warn you,” a phrase it only used twice in history, both of which involved full-on wars.
E-commerce giant Alibaba is considering raising $20 billion through a second listing in Hong Kong. The news came five years after Alibaba raised a record-breaking $25 billion through an IPO listing on the New York Stock Exchange in 2014 as Hong Kong refused to approve its filing due to rules around companies dual class structure.