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U.S. STOCKS MUTED AFTER NOTCHING RECORDS

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DAILY MARKET REPORTS

  • Solid corporate earnings growth and a pickup in growth across economies around the world have helped U.S. stocks climb this year, investors and analysts say, even as some have warned that valuations look stretched.
  • Policy changes in Washington could help push stocks and bond yields even higher, some analysts said.
  • U.S. companies continue to report their quarterly earnings. With more than 400 of S&P 500 companies having reported, earnings for the third quarter are expected to have climbed 8 percent, compared to an expectation of a 5.9 percent rise at the start of October.
  • Shares of Qualcomm rose 4.4% and was the biggest boost to the Nasdaq after Broadcom offered to buy the smartphone chip supplier in what could be the biggest merger in the tech sector. Broadcom rose 2.2%.
  • Advanced Micro Devices rose 7.3 percent on a report that it plans to team up with Intel to form a personal computer chip unit. Intel was up 0.5 percent.
  • Michael Kors was up 10% after the fashion accessories maker raised its 2017 revenue forecast.
  • Crude oil prices rose to a more than two-year high after Saudi Arabia’s future king tightened his grip on power by arresting royals, ministers and investors, including billionaire Alwaleed bin Talal.

US FINANCIAL MARKET

Broadcom Proposes to Acquire Qualcomm for Over $100 Billion

  • The California-based chip maker offered $70 per share for Qualcomm, representing a 28% premium from Thursday’s closing price.
  • Broadcom said Monday that the proposal stands regardless of the of the outcome of Qualcomm’s proposed acquisition of NXP Semiconductors. In a release, Broadcom said it valued the deal at $130 billion. The cash-and-stock deal carries a value of roughly $103 billion and includes about $25 billion of debt.

Michael Kors lifts revenue forecast, benefiting from Jimmy Choo

  • Kors, known for its “affordable luxury” line of handbags, said it now expects revenue of $4.59 billion for the year ending April 2018.
  • Net income rose to $202.9 million from $160.9 million a year earlier.
  • Its revenue in the second quarter rose 5.4 percent to $1.15 billion.

CVS Health’s profit beats estimates on higher claims

  • Net income fell to $1.29 billion in the quarter from $1.54 billion a year earlier.
  • Revenue rose 3.5 percent to $46.18 billion.
  • The drop in net income was mainly due to a loss of contracts to fill millions of retail prescriptions for customers of Tricare, a Department of Defense health care program, and pharmacy benefits manager Prime Therapeutics.

Mylan tweaks full-year forecasts on lift from Copaxone generic

  • Mylan raised the lower end of its full-year revenue forecast to $11.75 billion from $11.50 billion.
  • Mylan’s net earnings were $88.3 million in the third quarter compared with a loss of $119.8 million a year earlier.
  • Total revenue fell 2.3 percent to $2.99 billion.

Anthem Confirms Joseph Swedish to Step Down as CEO

  • Chief Executive Joseph R. Swedish will step down, and veteran managed-care executive Gail K. Boudreaux will take over as the insurance giant’s next leader Nov. 20.
  • Mr. Swedish will remain as executive chairman until May 2018 and will be a senior adviser through May 2020.

Altice USA, Sprint agree to wireless partnership

  • The companies announced the agreement a day after Sprint and T-Mobile US ended merger talks.
  • Under the terms of the agreement, Altice, the fourth-largest U.S. cable operator, will use Sprint’s network to provide voice and data services in the United States.
  • It gave no time line on when it will introduce such services.

Amazon Snips Prices on Other Sellers’ Items Ahead of Holiday Onslaught

  • Amazon.com has quietly started lowering prices by as much as 9% in recent weeks on goods offered by independent merchants on its site, ratcheting up a price war with other retail giants—and potentially straining its relationship with some sellers.
  • The move allows the retail giant to compete more fiercely with low-cost rivals, but could hurt its relationship with big-name brands, manufacturers and merchants.
  • Until now, Amazon has generally controlled prices only on merchandise it sells directly to consumers. Now, it is discounting some items sold by third parties, covering the cost difference itself to ensure competitive pricing.

CVS, With an Eye on Amazon, to Launch Next-Day Delivery

  • CVS on Monday said it would offer the service nationwide starting early next year, and same-day delivery in some urban areas. In Manhattan, the company will offer free, same-day delivery service starting Dec. 4.
  • The same-day service in Manhattan will be handled by couriers, and roughly 50 nonprescription goods will also be eligible for delivery as well.
  • Meanwhile, Amazon is considering entering the pharmacy business, which is a factor in CVS’s decision to pursue a $66 billion bid for insurer Aetna.

Rivals AMD, Intel partner to take on Nvidia

  • Under the partnership, AMD’s semi-custom graphics chip will be integrated into Intel’s new multi-chip processor package for personal computing.

Valeant to Divest Itself of Unit That Makes ‘Female Viagra’

  • Valeant Pharmaceuticals will sell Sprout Pharmaceuticals to former Sprout shareholders, the company said Monday, after they accused the struggling pharmaceutical giant of botching the marketing of a female libido treatment.
  • Valeant purchased Sprout and its only drug, Addyi, two years ago for about $1 billion.
  • As part of the sale agreement, the lawsuit will be dismissed with prejudice, Valeant said.

Supreme Court rejects Samsung appeal of patent loss to Apple

  • The U.S. Supreme Court on Monday refused to step back into the years-long feud over patents between the world’s top smartphone makers, declining to hear Samsung’s appeal of a lower court ruling that reinstated a jury award of about $120 million in favor of Apple.
  • The justices left in place a 2016 ruling by the U.S. Court of Appeals for the Federal Circuit that upheld a verdict that found South Korea’s Samsung Electronics Co Ltd had infringed Apple Inc’s patents on several popular features of the California-based company’s iPhone. Those included slide-to-unlock, autocorrect and quick links, which automatically turn information like addresses and phone numbers into links.

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US ECONOMY & POLITIC

New York Fed Announces Dudley Plans to Retire in Mid-2018

  • The Federal Reserve Bank of New York announced Monday that its leader William Dudley is planning to step down early and retire in the middle of next year.
  • President Donald Trump has nominated central bank governor Jerome Powell to replace current Chairwoman Janet Yellen early next year when her leadership term ends. Last month, Fed vice-chair Stanley Fischer resigned from the bank.

Gunman kills 26 in rural Texas church during Sunday service

  • A man with an assault rifle killed at least 26 people and wounded 20 in a rural Texas church during Sunday services.
  • Media reports say the gunman was thrown out of the Air Force for assaulting his wife and child.
  • The massacre is likely to renew questions about why someone with a history of violence could amass an arsenal of lethal weaponry.

Trump boasts: ‘The reason our stock market is so successful is because of me’

  • President Donald Trump once again claimed that he is responsible for the U.S. stock market’s yearlong rally.
  • “The reason our stock market is so successful is because of me,” Trump said on Air Force One.
  • “I’ve always been great with money, I’ve always been great with jobs, that’s what I do. And I’ve done it well, I’ve done it really well, much better than people understand and they understand I’ve done well.”

Senator Paul suffers five broken ribs after assault: Reports

  • U.S. Senator Rand Paul’s return to Washington may be delayed after he suffered five broken ribs during an assault at his Kentucky home, media reported on Sunday.
  • Paul’s neighbor, Rene Boucher, has been charged with one count of fourth-degree assault causing minor injury in connection with the incident on Friday.
  • It was not clear what motivated the altercation and Paul did not go to the hospital, police said. Paul was mowing his lawn at the time of the attack.

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EUROPE & WORLD

Future Saudi king tightens grip on power with arrests including Prince Alwaleed

  • Prince Alwaleed, a nephew of the king and owner of investment firm Kingdom Holding, invests in firms such as Citigroup and Twitter. He was among 11 princes, four ministers and tens of former ministers detained, three senior officials told Reuters on Sunday.
  • The purge against the kingdom’s political and business elite also targeted the head of the National Guard, Prince Miteb bin Abdullah, who was detained and replaced as minister of the powerful National Guard by Prince Khaled bin Ayyaf.
  • The allegations against Prince Alwaleed include money laundering, bribery and extorting officials, one official told Reuters, while Prince Miteb is accused of embezzlement, hiring ghost employees and awarding contracts to his own companies including a $10 billion deal for walkie talkies and bulletproof military gear worth billions of Saudi riyals.

Trump Urges Japan to Buy More U.S. Military Equipment

  • ‘It’s a lot of jobs for us, and a lot of safety for Japan,’ said the president on his first stop in Asia.
  • Mr. Abe, in turn, anticipated buying more military equipment from the U.S., and mentioned plans for more advanced fighter jets and upgrades to existing missile-defense systems.
  • “We believe that we must bolster Japan’s defensive strength qualitatively and quantitatively,” Mr. Abe said. “We will be buying more from the United States. That’s what I’m thinking.”

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TODAY in HISTORY

  • Abraham Lincoln was elected president of the United States. (1860)
  • Cuba and the United States formally agree to begin an airlift for Cubans who want to go to the United States. By 1971, 250,000 Cubans had made use of this program. (1965)

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.

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