Supreme Court Case Could Change Tax Laws; Airline and Health Insurance Mergers on the Horizon

As the Supreme Court hears a case that could redefine tax laws, potential mergers in the airline and health insurance industries could reshape their respective markets. Meanwhile, Wharton's Jeremy Siegel warns of potential stock market disruption due to the Federal Reserve's approach to rate hikes.

The Supreme Court hears arguments in a case that could significantly change taxes. The case, Moore v United States, revolves around when income is taxable: when it is realized or when it exists. A ruling could impact how much tax large companies and individuals need to pay, potentially costing the federal government nearly $5.7 trillion.
Alaska Airlines announces plans to buy Hawaiian Airlines for $1.9 billion. The deal would triple the number of North American destinations available to Hawaiian travelers. However, the Department of Justice may challenge the deal over fears of creating travel monopolies and higher prices.
Health insurance companies Cigna and Humana are reportedly in merger talks. If the deal goes through, it could create a health insurance titan worth around $140 billion.
Pharmaceutical giant Roche announces it will buy U.S.-based Carmot Therapeutics for $2.7 billion. Carmot currently has an anti-obesity drug candidate known as CT-388, which demonstrated substantial weight loss in early clinical trials.
Wharton Business School's Jeremy Siegel warns that the Federal Reserve's approach to rate hikes could derail the stock market's potential for an all-time high. He suggests that the Fed needs to adopt an element of flexibility into its approach.