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| Hello, Wednesday-N2K’ers! | The stock market continues to party like John Belushi on a long weekend, and there’s absolutely no downside risk associated with that kind of partying, as Mr. Belushi would tell us if he hadn’t (checks notes) died after overdosing on a “speedball” at 33. Ah, I see what you’ve done there. Maybe it’s time to buy pharma stocks as a hedge? | —Matt Davis, Need2Know Chedditor | News You Need2Know | | | Companies mentioned in today’s newsletter | $NASDAQ ( 0.0% ) $DJI ( ▲ 0.91% ) $SPX ( ▼ 0.11% ) $LLY ( ▼ 0.47% ) $JNJ ( ▲ 2.08% ) $PFIZER.NSE ( ▲ 0.61% ) $MRK ( ▲ 3.35% ) $TSLA ( ▼ 5.34% ) $LULU ( ▲ 3.17% ) $COST ( ▼ 0.4% ) | | Nasdaq, Dow, and S&P all partying hard | | It seems the S&P 500, Dow, and the Nasdaq $SPX ( ▼ 0.11% ) $DJI ( ▲ 0.91% ) $NASDAQ ( 0.0% ) didn’t just wake up this quarter — they chugged a triple-shot espresso, hit record highs, and made those of us who keep our savings in coffee cans feel bad about ourselves. Financial types are pointing out that we’ve just had the best quarter in over a year, which makes you wonder: what happened last quarter? Answer: Let’s say… we did not have a good quarter, which may actually explain why we did just have a good one. Yay, the stock market! I’m sure it can only go up from here, right? #NotFinancialAdvice | | | Song of the day: This must be the place |  | Talking Heads - This Must Be The Place (Wall Street) |
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| "This Must Be the Place (Naive Melody)" is a song by American rock band Talking Heads. The closing track of their fifth studio album Speaking in Tongues, it was released in November 1983. In the "Self Interview" on the DVD of the concert film Stop Making Sense (1984), David Byrne says it is a love song: | “That's a love song made up almost completely of non sequiturs, phrases that may have a strong emotional resonance but don't have any narrative qualities. It's a real honest kind of love song. I don't think I've ever done a real love song before. Mine always had a sort of reservation, or a twist. I tried to write one that wasn't corny, that didn't sound stupid or lame the way many do. I think I succeeded; I was pretty happy with that.” |
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| It’s also featured on the soundtrack of the movie “Wall Street,” starring Michael Douglas and Charlie Sheen. So, is it a love song to Wall Street? You tell me. | | Free yourself from advertising forever! | Now you can sign up for an optional ad-free version of Need2Know! Subscribe for just $5 a month, or $50 a year, and you can continue to enjoy this reasonably high-quality newsletter uninterrupted. Bonus: The immense satisfaction that comes from supporting journalism*! | | Learn AI in 5 minutes a day | | This is the easiest way for a busy person wanting to learn AI in as little time as possible: | Sign up for The Rundown AI newsletter They send you 5-minute email updates on the latest AI news and how to use it You learn how to become 2x more productive by leveraging AI
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| | Why are lawmakers buying pharma stocks? | | Even as the Trump administration takes an aggressive stance against the pharmaceutical industry, threatening tariffs and demanding price cuts, U.S. lawmakers continue to invest heavily in drug company stocks.
According to Politico healthcare reporter Amanda Chu, an analysis of financial disclosures from members of the House and Senate revealed investments totaling up to $2.9 million in major U.S. pharmaceutical companies such as Eli Lilly $LLY ( ▼ 0.47% ) , Johnson & Johnson $JNJ ( ▲ 2.08% ) , Pfizer $PFIZER.NSE ( ▲ 0.61% ) , and Merck $MRK ( ▲ 3.35% ) . Republicans have outpaced Democrats in these purchases.
Chu explains that these investments come at a time of significant economic uncertainty, making pharmaceutical stocks an attractive "defensive option." She notes, "It's because people need their medications, and pharma companies enjoy patent protections and market exclusivity. Investing in pharma is a good option to do when you're worried about where the economy is going to go." | This historical perception of stability and insulation from economic downturns continues to draw investors, including those in Congress.
The significant lobbying efforts by the pharmaceutical industry on Capitol Hill further underscore the close relationship between pharma and Congress. In the first quarter of this year, the industry spent a record $13 million on lobbying — at least four times the amount of pharmaceutical stock owned by congresspeople. This long-standing influence, combined with the perception of pharma as a secure investment, helps explain why lawmakers continue to bet big on drug company stocks even in the face of intense political pressure. |
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