- Merck’s actions become the worst performance of Dow Jones on Tuesday.
- MRK’s actions fall 4.8% as concerns about tariffs grow.
- Trump hinted at a great announcement that could come later this week.
- Trump signed an executive orders to press foreign pharmaceutical producers.
Merck (MRK) He is losing impulse on Tuesday while the wide American stock market renounces the profits acquired during a strong rally in the last two weeks. MRK’s actions were the worst performance in the industrial average Dow Jones (DJIA), sinking up to 4.8% at the time of writing this. Merck faces great uncertainty about whether the Trump administration will add additional tariffs for pharmaceutical products in the light of US president’s belief that pharmaceutical products must be produced in the country.
Trump briefly excited investors on Tuesday when he hinted at a next advertisement during his meeting with the new Canadian prime minister, Mark Carney. But the market quickly lost interest when the president hinted that he would not necessarily be related to international trade.
“We are going to have a very, very big announcement to do,” President Trump said to journalists. “Very big, I will not tell you about what, Anque is very positive. It is really, really positive, and that announcement will be made either Thursday, Friday or Monday.”
The S&P 500, the Dow Jones and the Nasdaq moved between 0.8% and 1% downward in the middle of the afternoon. Palantir’s actions (PLT) Surprisingly, more than 13% fell despite presenting a strong guide during their quarterly gain call on Monday night.
News about Merck’s actions
President Trump signed an executive order on Monday that would impose more pressure on foreign manufacturers of pharmaceutical products, a policy that could increase costs for US pharmaceutical giants who subcontract their production to foreign companies.
Trump’s Executive Order addresses the US Food and Medicines Administration to reduce the time it takes to approve pharmaceutical production plants in the USA.
Taken together, these directives will probably increase costs for foreign pharmaceutical producers, who will need to collect higher prices to their US clients.
Trump also highlighted the Environmental Protection Agency (EPA), which, according to him, needs to expedite its approval process for pharmaceutical factories. Trump has said that the current time to build a pharmaceutical plant in the US can last from five to ten years.
This directive causes pharmaceutical investors to stop, because it means that Trump is probably serious about increasing tariffs on pharmaceutical products and ingredients of foreign origin, as he said in mid -April. On Monday, he told some journalists that it is likely to announce tariffs for the pharmaceutical industry in the next two weeks.
Until now, pharmaceutical products have been one of the few industries that have obtained an immediate exemption from tariffs. But Trump told journalists in mid -April that in the “not too distant future” that will change to bring pharmaceutical manufacturing back to the US coasts in response to questions about his eventual level of tariffs, Trump said at that time: “The higher the tariff, the faster they will come.”
Merck recently began the construction of a production installation of 1,000 million dollars in Wilmington, Delaware. The plant of almost half a million square feet will be the future home of Keytruda’s production. Keytruda is the leading medication of Merck and one of the most successful medications used to treat cancer worldwide. The completion of the plant is still several years away.
Merck actions forecast
Merck’s shares have been in a descending spiral for a while, so shareholders and curious bulls probably wonder where mass sale ends. It is difficult to say, of course, but several levels stand out in the weekly chart below.
First, Fibonacci extension of 78.6% is 73.51 $. This level is quite close to the top of the demand zone of $ 70 to $ 73 that promoted upward prices most of the time during the 2020 period until the beginning of 2022. This makes it clear that an adequate bet at the lowest point for MRK shares is probably less than 10% of the current price action.
Of course, the Actions Pharmaceuticals are at the mercy of the Trump administration like everyone else, but the graph then suggests that an attractive point of purchase is close.
Weekly MRK actions graphics
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
