So I woke up this morning to some odd M&A news for a Thursday, Express Scripts $ESRX is buying Medco Health Solutions $MHS for $29 Billion dollars in a cash/stock deal. At $71, this a 28% premium to prior days closing price. Although CVS Caremark $CVS is still operatioal at a $50 Billion dollar mkt cap, this will create a mini-monopoly especially in the generic drug business. My thoughts are "why?" ESRX basically had to use all of their cash and a large amount of their stock for this deal, while shareholders will have that overhang.
Futures this morning flat, debt talks still happeneing, looking for a deal by tomorrow to get passed into legislation. This morning we have Jobless claims for week ending 7/15, some economists are looking for under 400k. This would be the first time in 4 months, if that does happen, expect a sharp bounce in ES and a US$ selloff.