Business and Finance News - 3.7.25

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President Donald Trump signed an executive order creating a Strategic Bitcoin Reserve, funded by seized bitcoin, to serve as a long-term digital asset store. The order also establishes a U.S. Digital Asset Stockpile, managed by the Treasury, to hold other confiscated cryptocurrencies, signaling a major shift in federal crypto policy. (CNBC)

Key Insight → The creation of a Strategic Bitcoin Reserve marks a significant shift in U.S. digital asset policy, signaling Bitcoin’s growing role as a recognized store of value. By funding the reserve exclusively with seized assets, the government avoids taxpayer costs while reinforcing Bitcoin’s legitimacy in global finance. More broadly, this move could accelerate institutional adoption, influence global crypto regulations, and further distinguish Bitcoin from other digital assets in both markets and policy discussions.

Costco reported mixed earnings, with revenue beating expectations but profits falling short as cautious consumer spending and inflationary pressures impacted results. The company remains concerned about potential tariff increases, supply chain costs, and shifting shopping behaviors, highlighting broader economic uncertainty in the retail sector. (Yahoo! Finance)

Key Insight → Costco’s weaker-than-expected earnings reflect growing consumer caution and the looming impact of potential tariffs on imported goods. While same-store sales grew, international markets underperformed, and inflationary pressures in fresh food remain a challenge. More broadly, this signals shifting retail dynamics, where price sensitivity and geopolitical risks are shaping both consumer behavior and corporate strategy.

A Delaware judge is expediting a lawsuit challenging Paramount Global’s $8 billion sale to Skydance Media, citing concerns that it undervalues public shareholders. While the deal awaits regulatory approval, the court has required advance notice before closing, allowing shareholders to seek an order to block the merger. (Reuters)

Key Insight → The potential legal challenge to Paramount’s $8 billion sale to Skydance highlights growing shareholder scrutiny over media industry mergers. Investors argue the deal undervalues public shareholders, signaling broader concerns about governance and fair valuation in corporate takeovers. If blocked or delayed, this case could set a precedent for future media consolidations and shareholder rights disputes.

Walgreens is going private in a $10 billion deal with Sycamore Partners, ending its nearly century-long run as a public company. The move follows years of financial struggles due to declining consumer spending, pharmacy reimbursement challenges, and an unsuccessful healthcare expansion. (CNBC)

Key Insight → Walgreens' $10 billion deal to go private under Sycamore Partners marks the end of its nearly century-long run as a public company, reflecting the challenges facing traditional pharmacy chains. The company has struggled with declining consumer spending, pharmacy reimbursement pressures, and a troubled healthcare expansion, leading to store closures and strategic shifts. More broadly, this signals increasing private equity interest in struggling retail giants and highlights the ongoing transformation of the pharmacy industry as companies adapt to competitive pressures from CVS, Amazon, and big-box retailers.

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Here’s how the major indexes did yesterday:

• Dow Jones Industrial Average: 42,579.08 -427.51 (-0.99%)

• S&P 500: 5,738.52 -104.11 (-1.78%)

• Nasdaq Composite: 18,069.26 -483.48 (-2.61%)

• Russell 2000: 2,066.55 -34.19 (-1.63%)

Here’s how The Magnificent Seven did yesterday:

• Apple (AAPL) [3.539T]: 235.33 -0.41 (-0.17%)

• Microsoft (MSFT) [2.95T]: 396.89 -4.13 (-1.03%)

• Nvidia (NVDA) [2.698T]: 110.57 -6.73 (-5.74%)

• Alphabet (GOOGL) [2.104T]: 172.35 -0.67 (-0.39%)

• Amazon (AMZN) [2.127T]: 200.70 -7.66 (-3.68%)

• Meta Platforms (META) [1.591T]: 627.93 -28.54 (-4.35%)

• Tesla (TSLA) [847B]: 263.45 -15.65 (-5.61%)

Here’s how Bitcoin and Ethereum did yesterday:

• Bitcoin (BTC): $85,590.64 (5:00PM PST on 3/6/25)

• Ethereum (ETH): $2,121.13 (5:00PM PST on 3/6/25)