What you need to know on Wall Street today
Last week, Donald Trump tweeted that the post office loses $1.50 for every package it delivers for Amazon. Then he said it was $1.47.
Where did he get these figures? He didn't make them up. He's relying on an equity research report from Citigroup, which doesn't quite say what the president says, but it says something pretty close.
The Citi note, from last April, proposes that the post office might need to raise the average price per piece for all of its "competitive products" by $1.46 - that is, not just deliveries for Amazon, and not just parcels, but also priority and express mail.
But the bank made a key math error in coming up with the figure the president has seized on. In other words, one of the central arguments in Trump's attacks on Amazon is all wrong - and it's Citigroup's fault.
In markets news:
- Bank of America knows what it'll take to send the market into a 'full bull detox' - and we're dangerously close
- A $165 billion CIO dispels one of investing's biggest myths
- GOLDMAN SACHS: There's one huge mistake traders should avoid making this earnings season
- Bank of America has identified a major discount in the stock market that's about to get even more enticing
In deal news, Novartis just handed out a $8.7 billion endorsement for new therapies that are changing how we treat genetic diseases. And it's not just the IPO market that's booming - here's why this Silicon Valley VC says 2018 will also be the year of M&A.
Lastly, in tech news:
- Facebook, Google, Apple, and Amazon have too much power - so it's time for regulators to take on tech's titans
- Apple cofounder Steve Wozniak is quitting Facebook over data and privacy concerns
- These are the senators to watch in Tuesday's blockbuster hearing with Mark Zuckerberg
- MORGAN STANLEY: Internet companies could be stuck 'in the penalty box' for a while - here are the corners of tech we'd rather own
- HBO's programming boss says Netflix's enormous spending in TV feels like the 'irrational exuberance' of the 90s dot-com bubble