This is a guest post by Steve Stapleton.
Steve is a stock market strategist at S&P Dow Jones Indices and author of “What You Need To Know About The Market.”
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Sony Corp. and Microsoft are reportedly planning to announce a deal on Monday that would create a new global mobile platform for content providers.
The Wall Street Journal and The New York Times reported the news Monday, citing unnamed sources familiar with the discussions.
The deal would be the first such partnership between the two companies in more than three decades.
The merger would create Sony’s own platform for streaming and video-on-demand services, the Journal and Times said.
Sony would be in a position to compete directly with Facebook Inc., which already has an existing video platform, and Google Inc., whose YouTube is a key player in the video-streaming market.
The two companies have been engaged in an extensive media strategy that has seen both companies invest billions in media platforms and hire a number of other top talent, including President of Content at Microsoft Eric Schmidt.
Sony has also been building out its own content management platform, called PSN, as part of a plan to expand its portfolio of services.
Microsoft has been focusing on games and mobile games, as well as social and gaming features.
Stock markets today are generally bullish, but a few major indexes have fallen off their recent peaks.
Here are some other interesting developments: On Friday, the Dow Jones Industrial Average (DJIA) fell 6.6%, but it’s been on a downward trajectory since late June, falling 5.3% over the past three months.
The S&P 500 (SPX) fell 2.3%, while the Nasdaq Composite (VIX) dropped 2.1%.
The index was off nearly 2% from the day before.
On Monday, the Nasay index (Nasdaq: NSC) rose 3.5%, but its gains have been less than 1% over five years.
The benchmark index of technology stocks (SPY) also fell, but its gain has been 3.7% over that same period.
In contrast, the S&P 500 fell just 2.9% during the same period and the NasDAQ Composite lost nearly 1%.
Also on Monday, Facebook (FB) also announced it would cut its workforce by 20% this year.
But the social network’s share price fell just 4% on Monday as investors wondered whether the company would cut the size of its workforce to cut costs.
And in mid-September, the Shanghai Composite fell 4.3%.
And on Friday, Chinese stocks were up 4.4% in a week, while stocks in Japan and Australia were up just 1.5%.
On Thursday, the Chinese economy grew at an annual rate of 3.9%, while U.S. growth was 3.6%.
In other words, China is growing, but it is growing at a slower pace than most other developed economies.
The latest data showed that China grew by just 1% in the third quarter, according to data from the Bureau of Economic Analysis.
Meanwhile, China’s manufacturing sector is expected to grow by just 2% in 2016, according the Chinese government’s central bank.
There is much more to come on these trends in the coming months.
For now, however, it looks like the stock market is going to be a bear market.
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