The stock market fell sharply Tuesday as a result of a questionable aquisition and renewed tensions with North Korea. The Dow Jones industrial average dropped about 250 points, partialy as a result of United Technologies and Goldman Sachs Group Inc (NYSE: GS) contributing the most of the losses. United Technologies Corporation (NYSE: UTX) stock dropped after announcing a $30 billion mega-deal to buy Rockwell Collins, Inc. (NYSE: COL) according to CNBC.
In addition, North Korea reportedly has successfully tested a hydrogen bomb, which can be mounted onto an intercontinental ballistic missile. Since 2006, the North korean regime has conduct six nuclear test, and the latest one was most powerful to date.
"North Korea's successful hydrogen bomb explosion over the weekend" is "adding to the uncertainty," said Jeff Saut, chief investment strategist at Raymond James CNBC reported. "Our sense is that if there is going to be a downside feint it should begin this week."
"It wasn't an 'all's well that ends well' or an 'all clear signal' that empowered stocks last week as much as a sense that even as some things and situations have worsened others have actually improved," said John Stoltzfus, chief investment strategist at Oppenheimer Asset Managemen.