What you need to know on Wall Street right now

Finance Insider is Business Insider’s summary of the top stories of the past 24 hours.

It’s easy to see why EpiPen has become the focus of America’s fury over drug prices. But while it’s easy to jump all over drugmakers, like EpiPen’s maker, Mylan, other actors in the healthcare system ought to draw as much scrutiny.

One group of companies, called pharmaceutical-benefit managers, or PBMs, serve as middlemen, and they touch every part of the purchase of a prescription drug.

And now there’s a growing realisation, from Washington to Wall Street, that PBMs have been a big beneficiary of soaring drug prices burdening Americans — profits of the largest companies have doubled in recent years — even as they pitch their services as critical to controlling costs.

Volatility is back in markets after a dead-quiet summer. US Treasurys are selling off, and Goldman Sachs’ equity strategists expect that the next move for the S&P 500 will be down.

Potash Corporation of Saskatchewan and Agrium are merging to create the largest crop nutrient company in the world. The deal could net investment banks working on the deal close to $100 million in fees.
It’s not all good news for dealmakers, however. The German industrial-gases group Linde and US rival Praxair said on Monday they have ended talks to create a $60-billion-plus market leader.

KKR, the private-equity dealmaker that inspired “Barbarians at the Gate,” is trying to muscle in on Silicon Valley, and a
ctivist investor Jeff Smith has a new target.

Donald Trump has continued his recent attacks on Janet Yellen and the Federal Reserve. Mark Cuban is continuing his crusade against Trump. Meanwhile, Home Depot cofounder Bernie Marcus says “America will go down the drain” if Hillary Clinton is elected president.

Lastly, here’s how Tesla’s cars have changed over the years.

Here are the top Wall Street headlines at midday:

A record number of renters are renewing their leases to avoid a crazy house hunt – A record number of renters in the US are choosing to renew their leases, according to RealPage.

The toxic asset made famous by ‘The Big Short’ might actually be a good investment – A lot has changed since the housing- and global-financial crisis that roiled the world economy from 2007 to 2009 (and still impacts it now).

One group is hurting wage growth in some of the world’s biggest economies – Wage growth has been stagnating in Europe and Japan recently.

One of the biggest signs of a recession isn’t going away – Joe LaVorgna, chief US economist at Deutsche Bank, is again raising warnings about a corporate profit-led recession.

The one question prominent Silicon Valley investor Bill Gurley asked Warren Buffett when they met Venture capitalist Bill Gurley has, for a while, been one of the most prominent voices in Silicon Valley warning of a tech bubble,especially in on-demand companies.

American Apparel founder Dov Charney is back with a new T-shirt business he says is already worth $30 million – Dov Charney, the founder of American Apparel who was forced out of the company in a 2014 boardroom coup, has a new gig: He has started a T-shirt company with some of his old colleagues from American Apparel and is already shipping merchandise.

PICTURES: Tom Hardy, Lindsay Lohan, and Pippa Middleton raise money in memory of 9/11 Every year broker BGC, which used to be part of Cantor Fitzgerald, holds a charity day to honour the memory of the 658 Cantor employees and 61 Eurobrokers employees who lost their lives in the 9/11 World Trade Center attacks.