Stocks traded mostly lower in a market sell-off Wednesday despite a report showing U.S. retail sales and producer prices surged in January and bond yields traded at their highest levels in a year.
TheStreet’s Katherine Ross and Jeff Marks discussed breaking news in the stock market. Marks spoke about the Slack and Salesforce merger, Ford’s lastest Europe investment and markets on Wednesday.
Slack: Buy Or Sell?
Shares of Slack dropped premarket after the Department of Justice’s Antitrust Division sent both Slack and Salesforce a second request seeking more information on their proposed $27 billion merger deal.
Marks said he wasn’t too concerned by the DOJ taking a second look at the Salesforce and Slack merger and reiterated his belief in Salesforce and Marc Benioff for the longer term.
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Ford: Buy Or Sell?
Automaker Ford said it was investing $1 billion in an electric-vehicle-production facility in Cologne, Germany.
Marks welcomed the $1 billion investment by Ford in Germany. “Ford has completely fixed its cost structure in Europe. In the fourth quarter, they reported the highest quarterly profit in the region in over four years. And part of that is because they have taken $1.1 billion in annual costs out of that region.”
Markets on Wednesday
U.S. retail sales rose sharply for the first time in three months on Wednesday, as consumers spent government stimulus checks and also revived market concerns for faster near-term inflation.
Marks said the retail sales numbers show that consumers will spend their stimulus checks. “This is a very positive sign for economic growth because you’re going to expect that spending to only accelerate, and pick up even further as more parts of the economy reopen. We also had an industrial production number that was better-than-anticipated.”
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This article was originally published by TheStreet.