US stocks moved higher on Wednesday but initially moved lower as sentiment throughout the trading session improved. The concern of the impeachment investigation announced by the Speaker of the House on Tuesday seemed to fade following political comments from both parties. On Wednesday the 10th death in the vape scandal followed the abrupt exit of the leader of Juul labs.
Altria and Phillip Morris Terminate Merger Talks
The leader of the e-cigarette startup Juul Labs Inc. abruptly stepped down and two tobacco giants abandoned their blockbuster merger, as the regulatory pressure to curtail the sales of vaping products to underage individuals swept through the industry. Altria and Philip Morris on Wednesday ended their talks for a potential merger that would have created a company with assets of $200 billion. The talks were spurred in part by the threat Juul.
Market Sentiment is Choppy
Market confidence continues to be volatile following the formal launch of an impeachment What it clear is that Trump ask the Ukrainian President to look into Candidate Joe Biden’s son. What is unclear is whether Trump would hold back aid, which he told his Chief of Staff to do, 1-week before the conversation.
US consumer confidence dropped September to 125.1 from 134.2 in August, according to the Conference Board expectations had been for confidence to slip to 133.5. This was the biggest drop in nine months.
New Home Sales Rise More than Expected
New home sales of single-family homes rebounded more than expected in August, likely due to falling long term interest rates. The Commerce Department reported on Wednesday new home sales increased 7.1% to an annual rate of 713,000 units last month. July’s sales pace was revised up to 666,000 units from the previously reported 635,000 units. Expectations had been for new home sales to increase by 3.5% to a pace of 660,000 units in August. Sales surged 18.0% from a year ago. The median new house price rose 2.2% to $328,400 in August from a year ago.
This article was originally posted on FX Empire
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