Investors largely expected the FOMC to cut rates by a quarter point.The Fedread more
The lack of clarity surrounding the U.S.-China trade war is what's really hitting global growth, says ex- Deputy Treasury Secretary Sarah Bloom Raskin.World Economyread more
China's economy has long relied on factors such high levels of investments and an expanding labor force for growth. Those growth drivers are running out of steam.China Economyread more
India could benefit from the fallout in the U.S.-China trade war, experts told CNBC — but much-needed reforms on land and labor could prove to be a challenge for companies...Asia Economyread more
New crash tests show the Tesla Model 3 and the Audi e-tron, are among the safest models out on the road. The results bolster the theory electric vehicles may be better...Autosread more
U.S. consumers and growth in sectors such as technology have offset declines in other American industries, says Tom Finke, chairman and CEO of investment management firm...US Economyread more
The FAA administrator's comments come on the eve of his visit to Boeing facilities outside Seattle. While there, he's scheduled to meet with Boeing executives and be briefed...Airlinesread more
Last weekend's attacks on oil facilities — and the spike in crude prices that followed — should show that the world needs to stop relying on oil, says Helen Clark.Energyread more
The photo depicts Canadian leader Justin Trudeau wearing a turban and robe, with dark makeup on his hands, face and neck. Liberal Party spokesman confirms the photo is of...Electionsread more
As the Fed was meeting to consider cutting interest rates, it lost control of the very benchmark rate that it manages.Market Insiderread more
CBS, CNN and other major media companies are starting to pull e-cigarette advertising off their airways, as the death toll from a mysterious vaping-related illness continues...Health and Scienceread more
Cheaper prescription drugs might seem like a good thing. But Wall Street analyst Michael Yee told CNBC that the trend of recent companies announcing they will lower or are considering lowering prices is not all it's cracked up to be.
"The important takeaway that investors should understand about the recent developments is that while there are either no price increases or in some cases, with Merck, price decreases, very interestingly, the drugs that they reduced prices on were either small drugs or very insignificant drugs," Yee, an analyst at Jefferies, said Friday on "Power Lunch."
In Merck's case, the U.S. pharmaceutical giant announced on Thursday that it would limit price hikes on select drugs or lower the price of some treatments, including a 60 percent price cut on hepatitis C treatment Zepatier.
But Yee pointed out that the medication had declining sales in its last earnings report, bringing in less than $300 million in sales, compared with $468 million in a previous report.
Merck declined to comment to CNBC on Yee's statements.
"Both the administration is trying to look good [and] drug companies are trying to look good," Yee said.
On July 9, Trump tweeted: "Pfizer & others should be ashamed that they have raised drug prices for no reason. They are merely taking advantage of the poor & others unable to defend themselves, while at the same time giving bargain basement prices to other countries in Europe & elsewhere. We will respond!"
Pfizer responded to the tweet by saying that it would postpone price increases until after the CEO and the president spoke.
Other drug companies, Yee said, are now lowering prices because they "do not want to be publicly shamed on Twitter."
As a result, both Trump and drug companies are "appearing to look good, at least on the surface," Yee said.
The analyst is not optimistic that any major legislative changes will occur to how drugs are priced. Instead, he reasons, a compromise will be the likely outcome.
"People will feel better about [a compromise]," Yee said. "Midterm elections will pass, and we’ll go into 19 feeling a lot better about these things."