DAILY MARKET REPORTS
- The S&P and the Dow hit records at the open on Tuesday, led by gains in technology stocks.
- Jerome Powell heads into confirmation hearing to become next Federal Reserve Chairman.
- The global economy is on course for its best year since 2010, the OECD said.
- In Europe, shares of Royal Dutch Shell led an advance Tuesday after the Anglo-Dutch oil-and-gas company said it would begin paying its dividend only in cash because its free cash flow forecasts had risen.
- Buffalo Wild Wings jumped 6.4 percent as Roark Capital Group, owner of restaurant chain Arby‘s, announced it had agreed to buy the company for about $2.4 billion.
US FINANCIAL MARKETBuffalo Wild Wings to Be Acquired by Arby’s in Deal Worth $2.9 Billion
- Arby’s, which is controlled by Roark Capital Group, will buy the Minneapolis-based restaurant chain for $157 a share. Including debt, the deal is worth about $2.9 billion.
- Buffalo Wild Wings, which is known for its sports-bar atmosphere and wide selection of chicken flavors, was founded in 1982 and went public in 2003. The company had 220 restaurants in the U.S. when it debuted as a public company and now it operates more than 1,200 locations worldwide.
- Automation-systems maker Emerson Electric abandoned its bid for Rockwell Automation after its smaller rival snubbed several of its buyout offers.
- Emerson, looking to be an industrial automation giant, first made an offer of $200 per share for Rockwell in August. It then raised its offer twice – to $215 per share and $225 per share, but was rejected.
- West Texas Intermediate crude is poised to top $60 a barrel, up more than 36% from a low in June.
- The milestone would mark a drastic shift in sentiment compared with five months ago, when prices languished in a bear market despite efforts by global producers to limit output.
- Oil prices have been depressed for more than three years—prices are still down more than 45% from their 2014 high.
- Problems at Wells Fargo have extended to its investment bank, prompting the firm to fire with cause four foreign-exchange bankers, according to people familiar with the matter.
- The bank has launched an internal investigation and regulators are also probing the foreign-exchange business.
- Until now, issues at the bank have centered on its retail-banking operation.
- The issues in the foreign-exchange business emerged separately from the review of business practices sparked by the sales-practices scandal.
- Separately, the Office of the Comptroller of the Currency earlier this week sent a confidential report to Wells Fargo about the auto-insurance product issues.
- The report said the bank may need to refund to customers more than the $80 million the bank had previously cited.
US ECONOMY & POLITICConsumer Confidence Remains at a 17-Year High
- The Conference Board said its index of U.S. consumer confidence increased to 129.5 in November from 126.2 in October.
- The index hit the highest mark since registering 132.6 in November 2000.
- The S&PCoreLogic Case-Shiller National Home Price Index, which covers the entire nation, rose 6.2% in the 12 months ended in September, up from a 5.9% year-over-year increase reported in August.
- Seattle reported the largest annual gain, at 12.9%, followed by Las Vegas at 9% and San Diego at 8.2%.
- Month-over-month, the U.S. Index rose 0.4% in September before seasonal adjustment.
EUROPE & WORLDOECD Sees Global Economic Growth Reaching Seven-Year High
- Overall, it now expects the global economy to expand 3.6% this year, up from 3.5% forecast in September, while the 2018 growth projection was unchanged at 3.7%.
- The OECD raised its growth forecasts for the U.S. and the eurozone this year and next.
- It now sees the former growing 2.2% this year and the latter 2.4%.
- If the OECD is right, it would be second straight year in which the eurozone has outpaced the U.S.
- The OECD left its growth forecasts for China unchanged from September, and cut its forecasts for Canada.
- Shell said Tuesday it would begin paying its dividend only in cash, a fresh sign that big oil companies are trying to reward investors after struggling with three years of falling oil prices.
- Shell said it had shored up its dividend program because its free cash flow forecasts had risen to $25 billion to $30 billion by 2020 at Brent crude prices of $60 a barrel—$5 billion more than the company predicted in June 2016.
- Dubbed the E-Fan X program, the three companies anticipate flying a demonstrator aircraft in 2020 after ground tests, provisionally on a BAe 146 aircraft.
- Airbus will be responsible for the control architecture of the hybrid-electric propulsion system and batteries, and its integration with flight controls. Rolls-Royce will be responsible for the turbo shaft engine and 2 megawatt generator, while Siemens will deliver the 2 MW electric motor.
TODAY in HISTORY
- Portuguese explorer Ferdinand Magellan passed through the strait which bears his name to the Pacific Ocean (1520)
- American-born Lady Astor became the first woman to take a seat on the British Parliament (1919)
- Churchill, Roosevelt, and Stalin met in Tehran for their first meeting during World War II (1943)
- The U.S. spacecraft Mariner 4 launched—on its way to the first successful mission to Mars (1964)
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