Merck announced a deal to buy Schering Plough, Rohm & Haas is being bought by Dow Chemical, and Genentech is getting closer to being acquired by Roche. This good news didn't effect stocks yesterday as they fell about 1%. In the bull market such a day would have been met with euphoria but this Bear doesn't seem to care. Stocks gyrated all day and concern about the banking system, the budget and the stimulus plan still dominated investor's thinking. Warren Buffett's interview on CNBC highlighted the economic weakness in this country and the concerns of some of the negative effects from new tax increases and other Democratic agendas being proposed in the budget.
It is time this administration focuses on fixing the problems at hand and put off tax increases, cap and trade, new union rules and other policies which should remain as long term goals. We are still in crisis mode and the President needs to narrow his agenda to fix the financial system, housing, and get the economic engine moving forward.
The stock market gyrated from positive to negative territory and back many times yesterday. It looks like we will be in positive territory today but we need a few up days to bring some smiles to investors' faces.
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