Pardon my ignorance, but why would JPM's stock fall after it was announced it is the sole advisor to Merck on one of the biggest M&A deals of the year?
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You really think 15 - 25 million dollars in fees is going to help a firm's stock price go up? That's not the way the stock market functions.
It's something like $58 million in fees if I remember correctly. Regardless, it's one of the biggest deals of the year - positive news like this usually should boost a company's stock...
Yeah - agreed.
Though the sector was up, the drop occurred around 2PM. About the same time when BarCap announced it was going to purchase Bear Wagner Specialists from JPM. Perhaps, this is why?
Guys, I seriously doubt the drop had to do with any fundamental reason. Remember that in this kind of an environment a lot of moves in the stock market don't necessarily make sense.
Fine. Let's call it the random strut.
Fees from the Merck deal are peanuts compared to JPM's risk exposures from mortgage originations and credit card defaults. This is all in addition to the macro conditions.
Not sure how one deal should boost the stock of a global bank that has 750 billion in off-balance sheet exposure.
If it was a buyout like the BCE deal, that show Citi and DB stock move, where the bank saved billions overnight that is something else.
Just my 2c.
look... IT IS ALL RANDOMNESS... maybe a few traders had a bad day or pressed the wrong buttons on their machine... who knows? I find it very weird that people have to attribute some reason for every little movement in stock prices...
lol
B/C it's not the sole adviser? 20m is small potatoes.
I'm pretty sure JPM is the sole advisor to Merck. Goldman and Morgan are advising Shering Plough.
Everyone is always going to look for a reason a stock moves or how the market is doing. It's just how we are. It's like going to a casino and being overly superstitious or some athlete who has a routine before every game. I've been online stock trading for years and the only thing i've seen make stocks really move is a company like google coming around.
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