Stock market

Stocks fall into correction territory

NEW YORK, NY - DECEMBER 14: Traders and financial professionals work at the opening bell on the floor of the New York Stock Exchange (NYSE), December 14, 2018 in New York City
Photo: Drew Angerer/Getty Images

The Dow Jones Industrial Average closed 497 points lower on Friday, or 2.02%, while the S&P 500 fell 1.9% and Nasdaq Composite dropped nearly 2.3%. All three are now in correction territory.

Downward drivers: Johnson & Johnson, the biggest decliner in both the Dow and S&P 500, had its worst day in over 15 years after a Reuters report said the company knew its baby powder "was sometimes tainted with carcinogenic asbestos." Disappointing economic data in China also fueled the sell-off.

GOP tax law spurs drug companies to authorize more stock buybacks

Wall Street.
Photo: Spencer Platt/Getty Images

Pharmaceutical company AbbVie, the maker of rheumatoid arthritis drug Humira, said yesterday it has authorized another $5 billion in stock buybacks. AbbVie has now repurchased $15 billion of its own stock since the Republican tax overhaul was signed into law earlier this year.

The big picture: Drug companies are reporting massive profits, due in part to the tax law, and a lot of that money is being used on tools like stock buybacks that benefit Wall Street and executives. Patients, however, continue to voice frustration about their drug costs.

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