The Department of Justice (‘DOJ’) is going after another mega-firm. After filing a suit against Apple (AAPL) and Alphabet (GOOG), the DOJ is accusing Visa (V) of monopolizing its debit card business.
Visa processes over 60% of debit transactions in the U.S. and collects $7 billion in fees annually. The DOJ alleges that the credit card firm is protecting its dominance. It is setting up agreements with card issuers, businesses, and its competition.
The firm has agreements with Apple, PayPal (PYPL), and Block (SQ). Markets appear to have anticipated the DOJ lawsuit. Shares in PYPL and SQ stock traded in an uptrend for weeks before Tuesday night’s news.
After announcing a steep cut in mortgage rates and supporting its banking system with 1 trillion yuan, Chinese tech stocks jumped higher. Alibaba (BABA) closed at $97.19, a fresh 52-week high. JD (JD), a retailer, closed near its high at $33.90. Baidu (BIDU) also erased losses, when the stock traded in a downtrend up until early September.
China likely wanted to maximize the potency of its stimulus ahead of the week-long holiday that begins next week. Value investors should not chase Chinese tech stocks. They have a history of selling off just as quickly as they rallied.
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