Despite FIFA games starting soon, selling pressure in the media and cable firm Comcast (CMCSA) accelerated.
On Wednesday, CMCSA stock fell to a 52-week low. Markets are not pricing in the advertising revenue of $800 million for Telemundo. Traders are also selling shares of Disney (DIS) and Netflix (NFLX) as well.
As stock markets fall in broad fashion, bonds (TLT) are no longer a haven. The price of the 7-10 year Treasury (IEF) used to jump whenever volatility and panic rose. This time might not play out in the same way.
Globally, countries are protecting their currency against the strong U.S. dollar (UUP). In particular, countries like Japan, Poland, Turkey, the Middle East, and BRICs are likely to sell Treasury bonds.
The U.S. government continued to spend more and grow its debt. Interest payments on debt are increasing. Borrowers are losing confidence in the U.S. government’s ability to pay.
In the drug sector, Novo Nordisk (NVO) failed to break out back to the $50 level. On June 3, Novo launched a pill version of Wegovy in the United Arab Emirates. Shareholders are not confident in Novo’s management. Despite the firm having a superior weight-loss drug, markets are wary about buying NVO stock.
Lilly (LLY) enjoyed a market capitalization of over $1 trillion. That would suggest that LLY stock will continue to outperform NVO stock.
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