DAILY MARKET REPORTS
- U.S. stocks broadly fell Tuesday, led by declines among energy and materials companies.
- IEA said the oil-price rally could be short-lived and global oil demand would be weaker than expected this year and next.
- Data late Monday showed that growth in M2, the broadest measure of money supply in China, was lower than expected at 8.8% in October.
- U.S. crude oil was off 1.1% at $56.14 a barrel.
US FINANCIAL MARKET
Home Depot Beats Estimates, Raises Guidance for Year
- Earnings at the Atlanta-based company were $2.17 billion up from $1.97 billion a year ago, the company said.
- Net sales rose 8.1% to $25.03 billion.
- Comparable store sales growth was helped by $282 million by the hurricanes.
- The company also increased its guidance and expects comparable-store sales growth for the year to increase 6.5%.
TJX Companies Shares Slide as Retailer Misses Sales Estimate
- Consolidated same-store sales, which includes results from TJ Maxx, Marshalls, HomeGoods and non-U.S. stores, were flat from a year before.
- The company’s third-quarter revenue increased 7% to $8.76 billion.
- TJX’s net income was $641 million, or $1 a share, in line with analysts’ expectations.
Roku hits record high on Philips licensing deal
- The company said the licensing partnership with Japan’s Funai Electric, which manufactures Philips televisions for North American, would place its operating system on Philips’ smart TVs.
- Roku also said that it would give a $20 discount on its $69.99-priced streaming stick for the Black Friday weekend.
- Roku’s stock has now more than tripled from its IPO price of $14 on Sept. 27.
AT&T, Verizon strike tower agreement in effort to diversify vendors
- The U.S. cell tower market is currently dominated by three companies: American Tower, SBA Communications, and Crown Castle.
- AT&T and Verizon said on Monday they have agreed to lease hundreds of new cell towers from owner and operator Tillman Infrastructure.
- As part of the agreement, Tillman will construct the towers and AT&T and Verizon will serve as anchor tenants.
- Construction will begin in the first quarter of 2018.
Oil-Price Recovery Threatened by Weak Demand, Says IEA
- International Energy Agency lowers its crude demand forecasts for this year and next, in contrast to OPEC, which has just raised them.
- The IEA cut its crude demand growth outlook by 100,000 barrels a day for 2017 and 2018.
- The agency now expects demand to grow by 1.5 million barrels a day this year and 1.3 million barrels a day next year.
- The IEA noted that oil prices have risen roughly 20% since early September—with Brent crude sustaining gains above $60 a barrel in recent weeks—on the back of supply disruptions and geopolitical tensions in the Middle East.
US ECONOMY & POLITIC
U.S. producer prices surge 0.4% in October
- Another measure preferred by economists, known as core PPI, rose 0.2% for the third straight month.
- The core rate strips out food, energy and trade margins.
- The increase in the PPI pushed the 12-month rate of wholesale inflation up to 2.8%, the highest since February 2012.
Tax Overhaul Bills Keep ‘1031 Exchange’ and Add Other Commercial Property Perks
- The Senate bill, unveiled last week, also would shorten the depreciation period for commercial property to 25 years from 39 years.
- Owners of office buildings, malls, warehouses and other commercial property would benefit from lower taxes on their profits and would be able to avoid a 30% limit on deductions for interest expense that would be imposed on other businesses, based on two separate bills originating in the House and the Senate, respectively.
U.S. Ran $63 Billion Budget Deficit in October
- The S. government ran a $63 billion budget deficit in October, as government spending outpaced revenue collection at the start of the fiscal year.
- Federal government outlays last month totaled $299 billion, exceeding $235 billion in total receipts, the Treasury Department said Monday.
- The Congressional Budget Office had estimated the government recorded a deficit of $62 billion in October.
- The monthly deficit was about $17 billion wider than a $46 billion budget gap in October 2016.
- The budget shortfall rose to $666 billion in the fiscal year that ended on Sept. 30, up $80 billion, or 14%, from fiscal year 2016.
Millions More Millionaires Around the World, Led by U.S
- The number of dollar-based millionaires around the world rose in the year through mid-2017 by 2.3 million, with nearly half of them residing in the U.S.
- There were over 15 million U.S.-based millionaires in 2017, up 1.1 million from a year earlier.
- Globally, there were just over 36 million of them.
- Japan and the U.K. were a distant second and third, respectively, though their millionaire ranks fell in the past year due to declining values in their currencies, a particular issue for the U.K. in the wake of Brexit.
EUROPE & WORLD
German, Italian Growth Add Fuel to Eurozone Recovery
- The German and Italian economies moved up a gear in the third quarter, aided by an increase in demand for their exports.
- The eurozone’s $10 trillion economy remained on course for its strongest year since 2007.
- Germany’s gross domestic product grew at a quarter-to-quarter rate of 0.8% in the three months through September, or 3.3% in annualized terms, the Federal Statistical Office said.
U.K. Inflation Rate Holds at Five-Year High
- Consumer prices grew 3.0% in October, unchanged from September, but still recorded the joint-fastest annual increase since March 2012.
- Growth in input prices paid by factories, however, slowed to its lowest rate since the immediate aftermath of the Brexit vote last year, and stood at 4.6% in October.
Vodafone raises outlook as customers ditch wifi for mobile
- Vodafone Netherlands and foreign exchange movements resulted in a 1 percent dip in total revenue to 23.1 billion euros.
- It has recently announced a 2 billion euro investment in fiber connections in Germany and a strategic partnership with CityFibre in Britain to improve its fixed-line position.
- Chief Executive Vittorio Colao lifted guidance for the first time in Vodafone’s recent history after reporting a 13 percent rise in first-half adjusted core earnings to 7.4 billion euros ($8.7 billion), comfortably ahead of market forecasts.
Foxconn’s Profit Down 39% Amid iPhone Production Woes
- The iPhone X, which Foxconn assembles in China, went on sale this month after it was plagued by a series of production problems among Apple’s suppliers.
- Taiwan-based Foxconn, known formally as Hon Hai Precision posted 21 billion New Taiwan dollars (about $695.5 million) in net profit.
- Quarterly revenue was NT$1.1 trillion, nearly flat from a year before.
TODAY in HISTORY
- The British Broadcasting Corporation began its domestic radio service. (1922)
- The first regular UK Singles Chart published by the New Musical Express. (1952)
- American physicist Theodore Maiman is given a patent for his ruby laser systems, the world’s first laser. (1967)
- Apollo program: NASA launches Apollo 12, the second crewed mission to the surface of the Moon. (1969)
- Mariner 9 enters orbit around Mars. (1971)
- The most distant object ever found in our solar system, named Sedna, was discovered by astronomers at the Mount Palomar Observatory. (2003)
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