Investors are watching shares of some popular momentum stocks after a sell-off Friday. The Nasdaq was down more than 2.5%, its worst decline in more than two months. Some of the stocks that had been among the biggest winners, including Facebook (FB) and Tesla (TSLA) have slid into bear market territory. Netflix (NFLX), Amazon (AMZN) and other tech stocks were also down sharply Friday.
General Motors (GM) executives met with an adviser on Friday to discuss how it might distribute compensation to victims of an ignition switch problem in several GM models. As part of its bankruptcy in 2009, GM was shielded from lawsuits dealing with car accidents that occurred before the restructuring, and the company has stopped short of saying it will definitely compensate victims of the ignition switch problem that cut power to vehicles and has been linked to at least 12 deaths. GM's adviser is Kenneth Feinberg, who administered the victims' funds for the 9-11 terrorist attacks and the Deepwater Horizon oil spill in the Gulf of Mexico. Separately, GM is expected to announce this week that it will invest $450 million and add 1400 jobs in two facilities in Michigan to build a redesigned Chevy Volt.
And Boeing (BA) and General Electric (GE) said they have received licenses from the Treasury Department to sell aircraft parts and services to Iran in the first such deals since the 1979 hostage crisis. The licenses cover parts needed to service engines and aircraft sold to Iran before the revolution. The limited licenses are allowed under temporary sanctions relief that began in January.
In our poll today, tell us what you think of these deals. Do you agree with the U.S. moves to ease sanctions and start doing business with Iran again? Cast your vote and post your comments below as well.
Two rival Indian pharmaceutical firms will merge to create the world's fifth largest generic drug maker. Sun Pharmaceutical Industries has agreed to buy Ranbaxy Laboratories for $3.2 billion. The combined company would make the largest generic drug business by sales in India. Ranbaxy has had some quality control issues that were a problem for its current owner Daiichi Sankyo. The Food and Drug Administration banned all of Ranbaxy's Indian plants from selling drugs to the U.S. Sun had its own quality control issues as well. The FDA banned one of Sun's plants in India from exporting products to the U.S. India provides 40% of generic and over-the-counter drugs in the U-S, second only to Canada.
And Chinese Internet giant Sina's (SINA) Weibo unit said on Friday it would price 20 million shares at an estimated range of $17 to $19 a share in its initial public offering on the Nasdaq. At that range, China's Twitter-like social media site would raise about $380 million and give the company a market value of about $4 billion.