Two important corporate events have been announced yesterday: (1) Amazon will join the Dow Jones Industrial Average, replacing Walgreens. Rather than having a money flow impact, it may be more of a reputational impact, since very few ETFs and passive funds are tied to the the Dow. One important detail is that Amazon is classified as a consumer discretionary company, not as a technology company, so the index does not become tech heavy. (2) Capital One and Discover have announced its desire to merge, which if it ends up happening may have implications on the payments sector, and indirectly on the consumer. The key in that merger might be who lives in the White House starting January 2025. A democrat may not be willing to sacrifice competition, while a republican president might be more favorable to the merger.
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