WALL ST. AT RECORD HIGHS, DOW TOPS 19,000 FOR FIRST TIME
- The Dow, S&P 500, Nasdaq and small cap Russell 2000 indexes all closed at record highs on Monday, the first such instance since December 1999.
- Trump’s promises of tax cuts, higher spending on infrastructure and simpler regulations in the banking and healthcare industries have led a rally, especially in those sectors, since the election on Nov. 8.
- Dollar Tree surged more than 10% after the biggest U.S. dollar-store chain reported a better-then-expected quarterly profit.
- Medtronic tumbled 7.5% after the medical device maker reported quarterly revenue that missed expectations and cut its full-year adjusted earnings forecast.
US FINANCIAL MARKET
- Investors believe a Trump presidency will mean higher growth, higher inflation and higher interest rates.
- Investor bets on rising U.S. short-term rates hit the highest ever last week in the eurodollar-futures market, at $2.1 trillion.
- Already, the Trump trade has sent the three major U.S. stock indexes to their first daily triple-record close since August.
- The ICE Dollar Index, after rising 10 straight sessions to its highest level since 2003, declined 0.3% Monday to 100.92.
- Bond prices have slumped, reflecting investor fears that inflation will eat away at the value of their fixed payments, reversing the sharp appreciation seen earlier in 2016 and sending the 10-year Treasury yield to 2.335%, up from 1.867% on U.S. Election Day and near its highest since last holiday season.
- It was just four months ago that the 10-year Treasury yield hit its all-time low at 1.366%.
- Medtronic reported a fiscal first-quarter profit of $1.12 billion.
- Revenue grew 4.1% to $7.35 billion.
- Medtronic said it now expects revenue growth in the mid-single digit range compared with the upper half of the mid-single digit previously forecast.
- Food company posted a first-quarter profit of $292 million, compared with a year-earlier profit of $194 million.
- Sales flat at $2.2 billion, meeting Wall Street expectations.
- Dollar Tree’s sales at stores open more than a year rose 1.7% in constant-currency terms, beating the 1.4% rise expected by analysts.
- Dollar Tree’s net income rose to $171.6 million from $81.9 million a year earlier.
- Net sales rose 1.1% to $5.00 billion, just short of the average estimate of $5.07 billion.
- Soda makers Dr Pepper Snapple and PepsiCo said Tuesday that they had each bought an upstart beverage maker that promote drinks seen as healthier and more natural, as consumers continue to turn away from traditional sodas.
- California-based KeVita offers more than two dozen flavors of probiotic drinks, and all its drinks are certified organic, gluten–free and vegan.
- Financial terms of the deal were not disclosed.
- In recent months, the e-commerce giant has been in talks with heavy hitters like the NBA, MLB and the NFL for the rights to carry live games.
- As part of their search, Amazon executives have approached traditional TV networks about game rights they aren’t using.
- AT&T has signed a deal with Fox Networks to continue showing its networks across its offerings including its online video service, DirectTV Now.
- The signing of Fox leaves CBS as the last major holdout not to have its networks on DirectTV Now, which will have a mix of live and on-demand broadcasts on over 100 channels and will cost $35 per month.
- AT&T is holding a launch event on Nov. 28 to provide more details about the service.
- The company on Tuesday unveiled plans for a US$1.4 billion expansion plan for the park—its smallest.
- New attractions are set to open nearly each year from 2018 to 2023.
- Disney will put up US$657 million for the expansion project, while the Hong Kong government, which has a 53% stake in the park, will contribute US$747 million in the form of cash equity injection.
- The park recorded attendance of 6.8 million people for the fiscal year ended early October 2015, down from 7.5 million a year earlier.
- Wal-Mart will start offering online deals reserved for Cyber Monday two days in advance this year.
- Wal-Mart’s special web promotions will be available on Black Friday.
- Cyber Monday is the biggest day of the year for internet shopping and follows Black Friday, which is the busiest shopping day for brick-and-mortar retailers.
- KKR announced on Tuesday it will pay 1,860 yen per Calsonic share, or a 28.3% premium over the stock’s last closing price, for the 41% stake held by Nissan and for the rest of the shares from the market through a tender offer.
US ECONOMY & POLITICS
- Sales of previously owned homes rose 2.0% from September to a seasonally adjusted annual rate of 5.60 million.
- Existing-home sales account for the vast majority of U.S. homebuying activity.
- After hitting an annual rate of 5.57 million in June, sales softened over most of the third quarter before picking up over the past two months.
- An Asia-Pacific trade deal stands almost no chance of working now that U.S. President-elect Donald Trump has pulled the plug on it.
- Japan and Australia expressed their commitment to the pact on Tuesday, hours after Trump vowed to withdraw from the 12-nation Trans-Pacific Partnership on his first day in office, calling the deal “a potential disaster for our country.”
- The TPP, which aims to cut trade barriers in some of Asia’s fastest-growing economies and stretch from Canada to Vietnam, can’t take effect without the United States.
- It requires the ratification of at least six countries accounting for 85% of the combined GDP of the member nations.
EUROPE & WORLD
- OPEC will debate an oil output cut of 4.0-4.5% for all of its members except Libya and Nigeria next week but the deal’s success hinges on an agreement from Iraq and Iran, which are far from certain to give full backing.
- In a bid to win European Union antitrust approval of its $26 billion acquisition of LinkedIn, Microsoft has proposed concessions that would allow rival professional social networks access to its Outlook programs.
- The EU’s current deadline to complete the review is set for Dec. 6 but that could be extended if the regulator still has concerns about the deal and decides to open an in-depth investigation.
- The company expects to generate €1 billion ($TK billion) in additional revenue from in-car digital services and that it aimed to sell one million electric vehicles annually by 2025.
- By the end of 2016, almost half of the world’s population will be using the internet as mobile networks grow and prices fall, but their numbers will remain concentrated in the developed world, a United Nations agency said.
- In the world’s developed countries about 80 percent of the population use the internet.
- But only about 40 percent in developing countries and less than 15 percent in less-developed countries are online.
- ITU expects 3.5 billion people to have access by the end of this year.
TODAY in HISTORY
Portuguese explorer Vasco de Gama became the first navigator to sail around the Cape of Good Hope in his search for a sea route to India (1497)
Mount St. Helens in Washington state erupted. Ash fallout reached as far as 48 mi away (1842)
“S-O-S” was adopted as a distress signal at the International Radio Telegraphic Convention in Berlin (1906)
President John F. Kennedy was assassinated while riding in a motorcade in Dallas (1963)
Margaret Thatcher announced her resignation as prime minister of the United Kingdom (1990)
This information has been prepared from sources believed to be reliable, but no representation is being made as to its accuracy or completeness. The information provided should be used only as general information and is not intended to provide specific advice or recommendations for any individual. The economic forecasts set forth in the material may not develop as predicted. All indices, such as the S&P 500, are unmanaged and may not be invested into directly. Sources: Reuters, Bloomberg, Wall Street Journal.
Content posted by third parties on this site is screened in order to protect clients’ privacy and comply with regulatory requirements. Content containing sensitive personal information, inappropriate language, information about specific investments, misleading information, information about other companies or websites, or information related to litigation will be removed. Content posted by third-parties on this site remains the responsibility of the party posting the content and is not adopted or endorsed by Pence Wealth Management or LPL Financial. Any opinions or statements posted by third parties are their own and may not be representative of the experience of others and are not indicative of future performance or success. Third party content on this site does not reflect the views of LPL Financial and have not been reviewed by LPL Financial as to accuracy or completeness.