WALL ST. LITTLE CHANGED IN EARLY TRADING; OIL SKIDS
- Oil fell nearly 4% as major exporters struggled to agree to a production freeze to reduce global oversupply ahead of an OPEC meeting on Wednesday.
- Data showed the U.S. economy grew faster than initially thought in the third quarter.
- GDP increased at a 3.2%
- Traders are pricing in an 89% chance of a rate hike in December.
- Tiffany was up 5.6% after the upscale jeweler reported its first rise in sales in eight quarters.
US FINANCIAL MARKET
- U.S. online sales gained momentum on Cyber Monday and are set to surpass initial expectations by hitting a record $3.39 billion as consumers snapped up deals on the busiest day of the year for internet shopping.
- Sales on Cyber Monday were expected to finish up 10.2 percent from a year ago at $3.39 billion, compared with an earlier estimate of $3.36 billion.
- The rate of growth on Cyber Monday, however, was slower than Black Friday and Thanksgiving, when sales grew 21.6 percent and 11.5 percent respectively. This was mainly due to a lower sales base a year ago for those two days, Adobe said.
- Oil prices fell Tuesday, with market participants unconvinced that OPEC will reach a deal to cut production.
- In September, OPEC agreed on targets that would have translated into production cuts of 200,000 to 700,000 barrels a day.
- Analysts say if the Wednesday meeting ends inconclusively, oil prices could fall as low as $35 a barrel.
- Same-store sales declined 2%, better than the 2.8% drop projected by analysts.
- In the Americas, Tiffany’s sales fell 2%.
- However, the company’s sales in Japan, which climbed 13%, benefited from the strengthening yen versus the U.S. dollar.
- Excluding currency effects, sales in Japan fell 4% compared with a year ago. Sales in the Asia-Pacific region rose 4%, or 3% in constant currency.
- Overall, Tiffany earned $95.1 million, compared with $91 million a year earlier.
- Total sales rose 1.2% to 949.3 million.
- Actelion shares rose more than 9%, rebounding from negative territory, after a Bloomberg News report on Tuesday that Johnson & Johnson had boosted its takeover offer for the Swiss biotechnology company.
- Samsung Electronics, under pressure from shareholders to improve investor returns, said on Tuesday it will consider creating a holding company in what would be the biggest shake-up in its 47-year history.
- Boom Technology, which says it’s time to bring supersonic jet travel into the mainstream.
- The company is pursuing speed with an audacious idea: a 45-seat aircraft that cruises at Mach 2.2 (1,451 miles per hour), faster than the defunct Concorde and certainly faster than the standard 550 mph, with fares no more expensive than a current business-class round trip, which ranges between $5,000 and $10,000.
- Boom has struck a deal with the Spaceship, the manufacturing division of Richard Branson’s Virgin Galactic, to use that company’s engineering, design, and flight-test support services.
US ECONOMY & POLITICS
- GDP expanded at an inflation- and seasonally adjusted annual rate of 3.2% in the third quarter, the strongest growth in two years, instead of the previously reported 2.9% pace.
- Growth accelerated from the second quarter’s more modest 1.4% pace.
- Consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased at a 2.8% rate in the third quarter and not the 2.1% pace reported last month.
- That was still a slowdown from the second quarter’s robust 4.3% pace.
- Spending on nonresidential structures, which include oil and gas wells, increased at a 10.1% rate.
- Nonresidential outlays were previously reported to have increased at a 5.4% pace.
- Business spending on equipment, however, fell at steeper 4.8% rate, instead of the previously reported 2.7% pace of contraction.
- The export growth estimate was little changed at a 10.1% rate, the fastest pace since the fourth quarter of 2013.
- Still, trade contributed 0.87 percentage point to GDP growth and not 0.83 percentage point as reported last month.
- Businesses increased spending to restock after running down inventories in the second quarter, but just not as much as previously reported.
- Conference Board index jumps to 107.1 from 100.8 in October as holiday shopping season kicks off.
- The average home price for September was 0.1% above the July 2006 peak, according to the S&P CoreLogic Case-Shiller U.S. National Home Price index.
- Adjusted for inflation, the index remains about 16% below the 2006 high.
- Home prices jumped 5.5% over the past year.
EUROPE & WORLD
- Lenders have been trying to force the tech company to offer them access to its Apple Pay technology.
- The decision could help smooth Apple Pay’s difficult entry into Australia, where mobile-payment technology is more advanced than in the U.S.—chip-and-PIN payments, widely rolled out in America only in the past year, are virtually passé in Australia—and where most consumers simply wave a debit or credit card near a reader to make everyday payments.
- Airbus in September announced plans to restructure in the latest of a series of steps to boost profitability.
- Airbus, which employs 136,000 people, also said it would transfer 325 positions, in part as it completes the relocation of headquarters staff from the former centers in Paris and Munich to Toulouse.
- In recent weeks, Riyadh offered to cut its own output by 0.5 million bpd, according to OPEC sources, and suggested Iran limit production at around 3.8 million bpd – in line with or slightly above the country’s current output.
- But Tehran has sent mixed signals including that it wanted to produce 4.2 million bpd.
- Iraq has also been pressing for higher output limits, saying it needs more money to fight the militant group Islamic State.
- Iran and Iraq together produce over 8 million bpd, only slightly behind long-time leader Saudi with 10.5 million bpd.
TODAY in HISTORY
The United Nations voted to grant the Jewish people a homeland to be established in Palestine (1947)
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