Johnson & Johnson’s actions fall again to the 200 -day SMA after the third verdict on Talc

• Johnson & Johnson’s actions sold more than 5% on Tuesday.
• A Texas court arrested the company to allow its Talco subsidiary to request bankruptcy.
• This was the third time that Jnj tried to conclude his demands for talc through the bankruptcy court.
• Reuters reports that pharmaceutical companies could obtain a gradual path to 25%tariffs.

Johnson & Johnson’s actions (JNJ) 200 days fell back to the simple mobile average (SMA) on Tuesday after the company’s attempt to place its old bankruptcy business failed for the third time.

A judge in Texas dismissed the case of the health giant to get rid of tens of thousands of demands that claim that Johnson & Johnson’s talc caused cancer. This means that the parent company will probably face financial claims separately in the trial that could end up costing more than 9,000 million dollars it has agreed to pay.

The US Stock Market was recovered in the Tuesday late morning trade after having lost ground shortly after the opening. The Dow Jones industrial average (DJIA) has won 0.25% at the time of writing, while Nasdaq Composite has risen 1.00%.

News about Johnson & Johnson’s actions

Johnson & Johnson had created a subsidiary to possess all its talcal assets called River Talc. Then agreed with 83% of the plaintiffs to request bankruptcy and then finance the subsidiary with $ 9,000 million that would be divided among the plaintiffs. This legal strategy is sometimes called Texas Two-Step.

83% of “yes” votes is key since the law requires that 75% of the plaintiffs agree this type of plan. However, the judge of the US bankruptcy court. Christopher Lopez concluded that Johnson & Johnson had not given the plaintiffs enough time to decide on their vote.

The company’s attempt to make River Talc request bankruptcy has already failed twice in a similar court in New Jersey.

“The decision to litigate each case filed is based on the simple fact that this is a false claim created by greedy demanding lawyers who seek another deep pocket to sue and fueled by the advertising of lawyers financed by litigation,” said Erik Haas, vice president of J & J Worldwide, in a statement.

In a good signal for the company, Reuters reports that pharmaceutical companies will probably earn a slight relief of the Trump administration. While the White House is expected to impose 25% tariffs on the importation of most foreign goods, Fuentes told Reuters that pharmaceutical companies will probably see the tariffs gradually to 25% instead of facing an abrupt increase. This will allow pharmaceutical companies to relocate their production of precursors and active return ingredients to the United States during the next year.

Johnson & Johnson’s actions forecast

Johnson & Johnson’s actions broke the 50 -day SMA on Tuesday but stopped before the 200 -day SMA. This gives more importance to the 200 -day SMA, but it also means that a break of that purple line will cause an even stronger sale.

An additional support is found in the recent minimums of December and January between $ 140.50 and $ 142.50.

Jnj’s shares need to exceed the old support level in $ 162.50 to free themselves from the technical bearish trend.

JNJ’s daily chart