Here's what happened on Wall Streed Wednesday, December 06.
The Dow Jones Industrial Average and S&P 500 both closed in the red for the second session in a row after spending significant time in positive territory throughout the day.
The Nasdaq was the lone average to close in the green, rising 0.21% on the day.
California Could Suspend or Revoke Wells Fargo's License
California's insurance regulator wants to revoke or suspend Wells Fargo's (WFC) license to operate in California a week after the state accused the bank of opening about 1,500 unauthorized policies on behalf of unwitting customers.
The issue revolves around renters insurance and term life policies that were offered by four different insurers through a referral program at the bank.
"As we previously announced, Wells Fargo suspended online referrals of renters and simplified term life insurance products in December 2016 and initiated an internal review of those products. We have been cooperating with the CA Department of Insurance (DOI) over the course of this year," Wells Fargo said in a statement Wednesday.
Bitcoin Continues Impressive Run
The price of cryptocurrency bitcoin has surged about $1,000 over the past 24 hours, taking it above the $13,000 mark. Bitcoin reached a high of $13,017.96.
Bitcoin has risen 9.63% over the past 24 hours and 18.74% over the last week. A year ago a bitcoin was worth $764, since then the cryptocurrency has increased 1,574%.
Bitcoin also set a new record for its market cap of $219.6 billion.
Aetna CEO to Receive $500 Million Once CVS Deal Closes
If CVS Health's (CVS) $69 billion bid for health insurer Aetna goes through, CEO Mark Bertolini's exit package could total $500 million, according to the Wall Street Journal.
Bertolini is expected to receive a cash payment and, combined with the expected increase in the stock's value, he could walk away with half a billion dollars.
Most of the projected payout is tied to the stock options he already has that are expected to increase in value once the deal closes.
The $207 per share purchase price immediately nets Bertolini $230 million due to vested stock options, plus the common stock he already owns is valued at about $190 million based on the purchase price.
Bank of America, JPMorgan Paint a Bleak Picture for Q4 Trading Revs
Banks of America (BAC) CEO Brian Moynihan told a banking conference in New York that he expects fourth-quarterer revenue from trading to fall 15% at the bank.
Meanwhile, JPMorgan Chase (JPM) finance chief Marianne Lake echoed that sentiment at the same conference, saying that she also expects the bank's trading revenue to fall 15%.
Trading revenue at the big-five banks has decreased 4.4% from a year ago through the first three quarters, according to the Wall Street Journal.
U.S. Worker Productivity Has Best Showing in 3 Years
U.S worker productivity rose 3% in the third quarter, the best showing in three years, as labor costs fell for the second consecutive quarter, according to data from the Labor Department.
The September-ended quarter built off of a 1.5% increase in productivity from the previous quarter. Meanwhile, labor costs fell 0.2% after falling 1.2% in the second quarter. Analysts were expecting labor costs to increase 0.5% in the period.
UnitedHealth Buys DaVita for $4.9 Billion
Health insurer UnitedHealth (UNH) shares were up slightly Wednesday morning after the company announced that it had reached a deal to purchase a physician group from kidney dialysis firm DaVita Inc. (DVA) .
DaVita operates about 300 clinics in six states, including California and Florida.
"Combining DaVita Medical Group and Optum advances our shared goal of supporting physicians in delivering exceptional patient care in innovative and efficient ways," Larry C. Renfro, chief executive of UnitedHealth's Optum unit, said.
Walmart Has a New Identity
Wal-mart Stores Inc. (WMT) has a new identity. The company will soon be known as Walmart Inc. (no hyphen), according to an SEC 8-K filing Wednesday.
The switchover becomes official February 1.
The move mirrors the company's journey to rebrand itself as more than just a brick and mortar retailer as it turns to digital sales to combat Amazon.com Inc. (AMZN) .
"Our customers know us as Walmart, and today they shop with us not only in our stores but online and with our app as well," said Doug McMillon, Walmart president and CEO. "While our legal name is used in a limited number of places, we felt it was best to have a name that was consistent with the idea that you can shop us however you like as a customer."
Walmart will still trade under the WMT ticker on the NYSE.
Walmart's official name has been Wal-Mart Stores, Inc. since January 1970.
Here's Walmart's CEO Doug McMillion talking with TheStreet's Brian Sozzi.
Bitcoin Mining Is Increasing Energy Usage
Bitcoin miners used more energy than 159 entire countries, including Ireland, according to a report by bitcoin analysis blog Digiconomist.
Bitcoin miners are using 30 terawatt-hours of energy, because the process involves using massive amounts of computing power to run the complex blockchains.
The energy usage partially explains why an estimated 58% of bitcoin mining takes place in China, where energy costs are low.
November Private Payrolls Beat Expectations
Private U.S. companies added 190,000 jobs in November, ahead of the market's expectation of 185,000. While the number topped expectations, it did fall short of the 235,000 jobs that were added in October.
Companies with 50 to 499 employees added 99,000 jobs while small businesses added 50,000 jobs. Goods-producing companies added about 36,000 jobs in the month, according to the data from ADP and Moody's Analytics.
U.S. futures were falling across the board Wednesday, indicating a soft opening for markets that have struggled this week.
The Dow Jones Industrial Average and S&P 500 began Tuesday's session in the green, but by the closing bell, all three major indices were in the red.
World markets weren't faring much better Wednesday morning. The Hang Seng in Hong Kong fell more than 2%, while the Nikkei dropped almost 2%.
In Europe, the DAX in Germany and CAC 40 in France were both down, while the FTSE 100 rose 0.17%.