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The Nasdaq edged lower on Tuesday, while the Dow and the S&P 500 were little changed.
- Dow: 23,557.23, +8.81, (+0.04%) S&P 500: 2,590.64, -0.49, (-0.02%) Nasdaq: 6,767.78, -18.65, (-0.27%)
1. Snap tanked after missing Wall Street’s expectations for its third quarter earnings. Shares were down by about 20% in after-hours trading after the firm announced it added only 3 million users in the third quarter. The primary question for investors is whether the young public company can continue to grow its business while under mounting pressure from Facebook’s copying efforts.
2. Bill Ackman suffers a big blow in his effort to shake up ADP. Ackman’s bid to add three directors including himself to ADP’s board was rejected by the company’s shareholders on Tuesday. He started a bitter proxy battle with the HR-software provider in August, calling for sweeping changes including the replacement of CEO Carlos Rodriguez.
3. Oil climbed to highs not seen in two years amid increased political tensions in Saudi Arabia. Brent crude oil, the international benchmark, poked above $64 per barrel earlier on Tuesday, before retracing some of those gains later in the day.
4. Republicans dropped a slew of changes to their tax bill on Monday. The amendment, which passed late in the evening on a party line vote, contains seven new adjustments to the tax plan. While Democrats decried the timing and sudden changes in the bill during the Ways and Means Committee markup, the package still was able to pass due to the GOP’s overwhelming advantage in the committee.
5. An influential conservative group slammed a key piece of the GOP tax plan as “class warfare.” David McIntosh, the president of Club for Growth, said in a statement that the bill contained several provisions that would attack wealthy Americans unfairly.
6. Traders are making big bets on the largest takeover attempt in tech history. Qualcomm may be willing to do whatever it takes to repel Broadcom‘s $103 billion hostile takeover, but stock investors remain bullish on a deal getting done.