DAILY MARKET REPORTS
- The S&P information technology index, up about 26 percent this year, was on pace to post its first losses in seven sessions.
- Janet Yellen is scheduled to address the Community Banking in the 21st Century Research and Policy Conference.
- The ADP National Employment Report indicated that private jobs increased by 135,000 in September.
- PepsiCo was among the S&P 500’s worst performers after it reported weaker-than-expected sales in the most recent quarter.
- News hit that Yahoo’s data breach in 2013 was far more extensive than previously disclosed.
US FINANCIAL MARKET
Higher sales of Frito-Lay snacks helps boost PepsiCo profit
- Overall, the company reported net income of $2.14 billion, greater than $1.99 billion in the same quarter a year ago.
- Revenue rose 1 percent to $16.24 billion, missing the $16.41 billion analysts had expected.
- Frito-Lay snacks helped the company’s third-quarter profit rise 8 percent from the same period a year ago.
- Sales of its beverages in North America, its biggest market, fell 3 percent in the quarter.
Monsanto Boosted by Continued Adoption of New Products
- Monsanto said its $57 billion sale deal to German chemical conglomerate Bayer was progressing.
- For the quarter Monsanto reported income of $20 million up from a loss of $191 million a year ago.
- Revenue grew 4.8% to $2.69 billion.
Yahoo Triples Estimate of Breached Accounts to 3 Billion
- Yahoo’s reported that the data breach that occurred in 2013 affected all of its 3 billion use accounts, Verizon said.
- Several other major cyberattacks recently have focused attention on the vulnerability of big companies that possess enormous amounts of vital personal information about their customers.
- Oath will immediately begin notifying by email users who own the additional roughly 2 billion accounts.
Ford plans $14B in cost cuts as part of new CEO’s strategy
- Jim Hackett, Ford’s CEO, met with around 100 investors in New York Tuesday to lay out his plans for the future.
- To do this, Ford will drop some car models and focus the company’s resources on trucks, SUVs and electric vehicles.
- Ford also says it will cut $4 billion in engineering costs through 2022 by making fewer prototypes and reducing product-development time.
- Ford told investors it expects to reduce material costs by $10 billion by 2022 through new deals with suppliers and simpler designs.
Airbus says it has capacity to raise A350 production above targeted levels
- “We are sticking by our target to increase A350 production to 10 per month by the end of 2018 and we have the industrial capacity to go higher,” said an Airbus spokesman.
- Airbus has said that it has delivered 50 A350 aircraft so far this year.
- Also in September, Boeing said it would raise production of competing 787 Dreamliner jets to 14 a month in 2019, from the current 12 a month.
Jetcraft predicts upward trend for business jets over 10 years
- Pre-owned aircraft broker Jetcraft on Wednesday forecast an increase in business jet deliveries over the next 10 years.
- Jetcraft forecast deliveries of 8,349 aircraft worth about $252 billion based on 2017 prices.
- North America having the greatest market share at 62 percent.
- Europe and Asia follow with 17 percent and 12 percent, respectively.
US ECONOMY & POLITIC
U.S. Private Sector Adds 135,000 Jobs in September
- Firms across the country added 135,000 workers to their ranks in September, according to payroll processor ADP.
- The August gain in payrolls was revised down to 228,000 from 235,000.
- “Hurricanes Harvey and Irma which significantly impacted smaller retailers. In addition, the continued slow down we have seen in small business hiring could be due to a lack of competitive compensation to attract skilled talent.”
U.S. refinancing applications lowest since July: MBA
- S. mortgage applications to refinance a home fell to their lowest in two months, ass borrowing costs broadly rose last week in line with higher U.S. bond yields.
- The Washington-based group’s seasonally adjusted weekly index on refinancing activity declined 1.8 percent to 1,419.2 in the week ended Sept. 29.
- This was the lowest since 1,361.0 in the July 28 week.
EUROPE & WORLD
Tesco Resumes Dividend Payments; 1st Half Pretax Profit Rises Eight-Fold
- The U.K.’s biggest grocer by market share made a profit of 562 million pounds ($744.5 million), compared with a profit of GBP71 million a year earlier.
- Group revenue rose to 3 billion, compared with GBP27.34 billion a year earlier.
- The supermarket chain declared an interim dividend of 1.0 pence per share, its first payout since December 2014.
EU orders Amazon to pay EUR250 million in back taxes to Luxembourg
- The European Commission has ordered Luxembourg to recoup EUR250 million ($294 million) from com in back taxes.
- The European Commission said the U.S. e-commerce giant has received illegal state aid.
- “As a result, almost three quarters of Amazon’s profits were not taxed,” said Margrethe Vestager, the EU’s competition commissioner.
- Last August, the commission ordered Apple to repay Ireland EUR13 billion in uncollected taxes.
Toronto home sales fall again, prices down 15.5 percent from peak
- Sales and prices inched up from August, suggesting housing in Canada’s largest city may be stabilizing, data showed on Wednesday.
- The average selling price was up 2.6 percent compared with a year earlier, while new listings and days on the market both rose, TREB said.
- The average selling price for all home types combined was C$775,546 ($621,680), down 15.5 percent from a peak of C$918,285 in April.
TODAY in HISTORY
- The first U.S. Open Golf tournament was held in Newport, Rhode Island. (1895)
- The Soviet Union launched the first artificial satellite, Sputnik, into orbit around the earth, ushering in the Space Age and Space Race. (1957)
- Pope Paul VI made the first visit to the Western Hemisphere by a reigning pope. He came to New York to address the UN General Assembly. (1965)
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