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Markets Update, 9 November

 

 

 

  • Stocks drop Dragged by Tech Sector
  • Tax reform Blamed as Investors wary of Final Tax Bill
  • EU rising Growth prospects not lifting Markets
  • Oil price Gains

 

 

U.S. stocks fell Thursday as shares of technology companies tumbled in early trading.

The Dow Jones Industrial Average shed 130 points, or 0.6%, to 23432 shortly after the opening bell. The S&P 500 fell 0.6%, while the Nasdaq Composite got to  lose 1%

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Investors said they were waiting Thursday for Senate Republicans to unveil their own tax bill, which lawmakers have said will differ sharply from the version House Republicans released last week.

The Stoxx Europe 600 fell 1.2%, with technology and mining stocks among the biggest laggards.

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European equities fell the most since August as basic-resources shares dropped following a decline in industrial-metals prices. Inflation concerns also crept into markets, as the European Commission was the latest authority to raise growth forecasts. Sterling fluctuated as Brexit talks resumed, while oil looked to halt a two-day drop.

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The European Commission’s announcement that the eurozone economy is on track to grow at its fastest rate in a decade this year failed to lift stocks, with disappointing results from companies weighing on equities.

Earlier, stock indexes in Asia ended mixed.

Japan’s Nikkei Stock Average reversed a 2% gain to end the session 0.2% lower, after breaching 23000 for the first time since January 1992. The market’s shift lower came as the yen rebounded.

The Shanghai Composite Index added 0.4%, closing near a 2-year high, as better-than-expected inflation data for October eased investors’ concerns of a slowdown.

 

The main moves in markets from Bloomberg:

Stocks

  • The S&P 500 Index was down 0.4 percent to 2,585.12 as of 10:25 a.m. in New York, while the tech-heavy Nasdaq 100 Index dropped 0.5 percent.
  • The Stoxx Europe 600 Index sank 1.1 percent, the biggest decrease since July.
  • The MSCI Asia Pacific Index gained less than 0.1 percent to the highest in about 10 years.
  • The MSCI Emerging Market Index dipped 0.2 percent.

Currencies

  • The Bloomberg Dollar Spot Index declined 0.2 percent.
  • The euro gained 0.3 percent to $1.1634, the largest gain in a week.
  • The British pound fell less than 0.1 percent to $1.3111.
  • The Japanese yen gained 0.3 percent to 113.58 per dollar.

Bonds

  • The yield on 10-year Treasuries was little changed at 2.3345 percent.
  • Germany’s 10-year yield climbed five basis points to 0.378 percent.
  • Britain’s 10-year yield advanced four basis points to 1.260 percent.

Commodities

  • West Texas Intermediate crude increased 1 percent to $57.39 a barrel.
  • Gold gained 0.5 percent to $1,287.26 an ounce, the highest in three weeks.
  • Copper fell 0.7 percent to $3.08 a pound, the lowest in a month.

Wednesday’s Key Earnings

21st Century Fox (NASDAQ:FOXA+1% AH boosted network fees.
CenturyLink (NYSE:CTL-7.8% AH lowering full-year guidance.
Roku (ROKU) +28.2% AH on strong maiden earnings.
Square (NYSE:SQ-2.1% AH despite raising its outlook.

Stocks News

Equifax will publish quarterly results this afternoon, its first earnings release since the September disclosure of a massive data breach that prompted multiple government probes and the departure of its CEO. The credit monitoring firm will then hold a conference call on Friday, giving analysts their first public forum to grill Equifax (NYSE:EFX) about the financial impacts of the cyber attack.

Former Yahoo CEO Marissa Mayer apologized in Senate testimony for the pair of massive data breaches that came to define the end of her tenure as the company was being acquired by Verizon (NYSE:VZ). “Unfortunately, while all our measures helped Yahoo successfully defend against the barrage of attacks by both private and state-sponsored hackers, Russian agents intruded on our systems and stole our users’ data.”

Wisconsin’s economic development agency has approved a $3B incentives package for Foxconn (OTC:FXCOF) if it invests $10B to build a massive liquid-crystal display plant in the state. Governor Scott Walker said the company could ultimately employ 13,000 at the site, but critics have attacked the plan as corporate welfare, rushed and potentially harmful to the environment.

AT&T has “no intention” of selling CNN despite the DOJ’s demand the company sell it in order to approve the Time Warner (NYSE:TWX) acquisition, according to AT&T (NYSE:T) CEO Randall Stephenson. “It’s important to set the record straight. Throughout this process, I have never offered to sell CNN and have no intention of doing so,” he said in a statement.

As part of its fresh programming strategy, Apple (NASDAQ:AAPL) has struck a deal for a new drama starring Reese Witherspoon and Jennifer Aniston. Terms of the deal weren’t disclosed, but sources told the WSJ that the cost could reach beyond $10M an episode. Other parties interested in the as-yet-untitled, highly sought after show included Netflix (NASDAQ:NFLX) and CBS’s Showtime.

Bitcoin hit a record high just shy of $8,000 on Wednesday after a coalition of developers and investors suspended a software upgrade that would have split the digital currency in two. “We have not built sufficient consensus for a clean block size upgrade at this time,” wrote Mike Belshe, one of the leaders of the Segwit2x project. “Continuing on the current path could divide the community and be a setback to Bitcoin’s growth.

Deutsche Bank’s CEO has suggested that robots could replace half the company’s 97,000 employees. “Most big peers have more like half that number,” John Cryan told the FT. “Deutsche Bank (NYSE:DB) is too manual, which can make you error-prone and inefficient… There’s a lot of machine learning and mechanization that we can do.”

Preparing for one of the busiest shopping days of the year, Wal-Mart (NYSE:WMT) said its U.S. stores will feature color-coded sections for different product categories on Black Friday. The new move will allow shoppers to easily find deals. Wal-Mart will kick off online sales at 12:01 a.m. ET on Thanksgiving morning and at 6 p.m. local time in its stores.

Building a new pilot facility in Switzerland, Audi (OTCPK:AUDVF) is expanding production of what it says is a nearly carbon neutral kind of gasoline and diesel made from entirely renewable sources. The process uses electrolysis to split water into hydrogen and oxygen, with the former being combined with carbon dioxide to make hydrocarbons. The key will be if e-fuels could be produced at a higher, more cost-effective rate.

Fiat Chrysler is hoping to receive U.S. government approval as soon as March for emissions fixes to 104,000 diesel cars that pollute far beyond legal limits. The development, which would involve a new software calibration, could move Fiat (NYSE:FCAU) closer to settling widespread litigation and avoid costly buybacks of the affected vehicles.

Looking to secure production of its struggling superjumbo until the middle of the next decade, Airbus (OTCPK:EADSY) is close to a deal worth at least $14B to sell over 30 of its A380 jetliners to Dubai’s Emirates. The contract is expected to be announced at the opening of the Dubai Airshow on Sunday, and would give Airbus a much needed boost after severely trailing rival Boeing (BA) in terms of orders YTD

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