The Biggest Market Events of 2016

As we close out 2016, many of us are reflecting on some of the biggest and most important moments. It was a highly political year, filled with presidential campaigns, reports on terrorism, and the BREXIT vote.

The events that happened this year had a large impact on the stock market, but the markets still had a handful of its own news, too. There was a fair amount of volatility this year, but the year ended strong after the election rally.

2016 S&P INDEX (SPX)

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The Election and President-Elect Trump

Since the election, many industries and stocks have soared on hopes that our new president’s policies will benefit several areas of business. For example, many stocks in the healthcare industry soared on the news of Trump’s victory. The winners included pharmaceutical companies, while companies that could be threatened by an appeal of the Affordable Care Act declined.

The president-elect’s comments before and after the election included naming specific companies that would either suffer or benefit from his administration. Companies including Deere & Company (NYSE: DE) and Caterpillar Inc. (NYSE: CAT) were called out for being the companies that Trump wants to complete his wall.

Aerospace-defense companies Boeing Company (NYSE: BA) and Lockheed Martin (LMT) saw a lot of volatility over Trump’s comments and Tweets.

While some analysts have expressed optimism over what 2017 (and the rest of the four years) will bring, others have expressed concern. There is no definite on what will happened, but man investors are already reaped the benefits with increases portfolios.

Merger Mania  

M&A is one of the most exciting events that happens in the markets. Every year, there are a handful of major deals that are announced and close (or get shot down by antitrust issues). Here are some of the largest deals announced in 2016.

AT&T and Time Warner – In October, AT&T (NYSE: T) announced its plan to acquire Time Warner (TWX) for $85 billion. The companies are optimistic that this deal will go through, but we will need to wait until 2017 to see if it is blocked.

Bayer and Monsanto – Shareholders of Monsanto (NYSE: MON) recently approved a deal that would allow Monsanto to acquire German pharmaceutical company Bayer for $66 billion. The combined company would control 25% of the world’s seeds and pesticides.

British American Tobacco and Reynolds American – In October, British American Tobacco (NYSE: BTI) offered to purchase its remaining stake in Reynolds American (NYSE: RAI) for $47 billion. This deal would create the largest publicly traded tobacco business.

Sunoco Logistics and Energy Transfer Partners – Sunoco Logistics announced in November its plan for a $20 billion merger with Energy Transfer Partners. The deal will allow the combined company to reduce operating expenses going forward.

Qualcomm and NXP Semiconductors – Qualcomm (NYSE: QCOM) announced in October that it plans to acquire NXP Semiconductors in a $38 billion deal. The deal would be the largest M&A deal ever in semiconductor industry.

Microsoft and Linkedin – Last June, Microsoft (NYSE: MSFT) announced its largest acquisition ever. The technology giant announced its plan to acquire social media networking site Linkedin (NYSE: LNKD) in a $26 billion deal.

 

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