DAILY MARKET REPORTS
- Investors said they were waiting Thursday for Senate Republicans to unveil their own tax bill, which lawmakers have said will differ sharply from the version House Republicans released last week.
- With third-quarter earnings season winding down, earnings for the quarter are expected to have climbed 8%, compared with expectations of a 5.9% rise at the start of October
- Shares of Macy’s rose 3.9% after the retailer beat profit estimates on lower revenue. Kohl’s tumbled 5.7% after it fell short of profit expectations even though it had grown same-store sales.
- Dish Network gained about 3.7% despite reporting a lower profit and saying it added fewer new subscribers compared with the same period a year earlier.
- Shares of Roku soared 40% after the television streaming device maker’s quarterly results and guidance beat expectations.
- Burberry shares dropped more than 10% after the fashion brand said it doesn’t expect sales to grow until fiscal 2021.
- Siemens fell 3% after the German industrial group said fourth-quarter net profit rose, but showed trouble at its wind energy and gas and power businesses.
US FINANCIAL MARKET
Macy’s third-quarter sales disappoint Wall Street, but profit beats
- Net income rose to $36 million from $17 million a year earlier.
- Net sales fell 6.1 percent to $5.28 billion, declining for the 11th straight quarter due to fewer stores from a year earlier. The average analyst estimate was $5.31 billion.
- Sales at Macy’s stores open more than 12 months, including sales in departments licensed to third parties, were down 3.6 percent. The average analyst estimate was for a 2.6 percent decline.
Kohl’s profit misses estimates on higher costs; shares fall
- Net sales were largely flat at $4.33 billion.
- Same-store sales rose 0.1 percent in the third quarter, while analysts had expected a decline of 0.7 percent.
Twenty-First Century Fox’s quarterly revenue beats Street
- Fox said revenue rose to $7.00 billion in the quarter, higher than the $6.51 billion a year earlier and the $6.81 billion analysts were expecting.
Time Inc misses revenue estimates as print ads decline
- The New York-based publisher of Time, Sports Illustrated and People magazines said its total advertising revenue fell 11.5 percent to $369 million in the quarter.
- Digital advertising revenue rose 2.3 percent to $132 million.
- Net income was $13 million, compared to a net loss of $112 million a year ago.
Roku shares skyrocket over 47% as sales crush Wall Street estimates
- Roku posts a narrower loss than Wall Street estimated, thanks to better-than-expected sales in its first earnings report as a public company.
- Roku saw a 48 percent year-over-year increase in active accounts, and a 58 percent yearly increase in streaming hours.
Dish misses Street 3Q forecasts
- Dish reported third-quarter net income of $297.4 million. The results missed Wall Street expectations.
- The satellite television provider posted revenue of $3.58 billion in the period, also falling short of Street forecasts.
Payments company Square beats estimates, raises full-year forecasts
- Square’s flagship technology is a credit card reader that turns smartphones or tablets into a payment terminal.
- Payments from larger merchants, or those processing more than $500,000 in transactions annually, grew 64 percent.
- The San Francisco-based company’s loss narrowed to $16.1 million from $32.3 million a year earlier.
- Revenue rose 45 percent to $257 million in the quarter.
D.R. Horton beats profit estimate, raises 2018 forecast
- Horton showed orders at the country’s largest housebuilder climbed 18.2 percent to 10,333 homes in the quarter.
- The average selling price rose 3.2% to $306,502.
- Home sales revenue rose 10.9 percent to $4.04 billion.
AMD, Nvidia shares drop after Intel hires AMD’s ex-graphics head to take them on
- Intel announced on Wednesday it hired the former head of AMD’s graphics business and will start a new high end graphics group inside the company.
- Raja Koduri will join Intel as chief architect and senior vice president of the newly formed Core and Visual Computing Group, and general manager of a new initiative to drive edge computing solutions.
Wal-Mart gears up to compete on Black Friday
- Stores will feature color-coded sections for different product categories on Black Friday, as it prepares to compete for shoppers on one of the busiest shopping days of the year.
- The holiday shopping season, which runs through Christmas on Dec. 25, can account for as much as 40 percent of retailers’ annual sales.
Amazon Puts Whole Foods, Rapid-Delivery Businesses Under Veteran Executive
- Steve Kessel oversees Prime Now, AmazonFresh and the company’s physical book and convenience stores.
- Mr. Kessel spent years overseeing Amazon’s digital strategy, including books and music; he led the team that developed the company’s Kindle e-reader, launched roughly a decade ago, and its Fire tablet in late 2011. Soon after, he went on a sabbatical, returning in 2015 and heading up an effort to reimagine the in-store experience.
Regulators Seek Significant Asset Sales in AT&T Deal for Time Warner
- The Justice Department has raised the prospect that the telecom giant would have to divest either the Turner television unit, which includes CNN along with other cable channels, or the satellite DirecTV business, the people said.
- U.S. President Donald Trump, a frequent critic of CNN, attacked the deal on the campaign trail last year, vowing that as president his Justice Department would block it. He has not commented on the transaction since taking office in January.
Lockheed to work with U.S. in bid to sell F-35s to Germany
- Lockheed Martin will work with the U.S. government as it talks to Germany about a replacement for its Tornado fighter jets.
- The German air force last month issued a formal request for information about the F-35, as well as three other jets: the F-15 and F/A-18E/F, both built by Boeing, and the European Eurofighter Typhoon.
Boeing signs deal to sell 300 planes worth $37 billion to China
- Boeing signed an agreement to sell 300 planes to China Aviation Supplies Holding Company worth $37 billion at list prices.
- State-run China Aviation Supplies, which leases planes to Chinese airlines, said the order was for 260 B-737s as well as 40 B777s and B787s.
Qualcomm signs $12 billion in China deals amid Trump visit
- Qualcomm has signed $12 billion worth of deals with three Chinese mobile handset makers on the sidelines of a state visit to Beijing by U.S. President Donald Trump.
- The agreement was part of an over $250 billion package of deals unveiled between U.S. and Chinese firms during Trump’s first state visit to China.
General Electric signs $3.5 billion deals in China
- General Electric signed three aviation and engine deals with Chinese partners worth a total of $3.5 billion on the sidelines of a state visit to Beijing by U.S. President Donald Trump.
- The deals included an engine and repair deal for GEnx-1B engines from Juneyao Airlines worth $1.4 billion at list prices, and another $1.1 billion order for 80 Leap-1B engines to power 40 Boeing 737 MAX Aircraft from ICBC Leasing.
US ECONOMY & POLITIC
Forecasters Predict Nafta Withdrawal Would Slow U.S. Growth
- The probability of a U.S. withdrawal from the North American Free Trade Agreement is roughly 1 in 4.
- Some 82% of economists surveyed this month by The Wall Street Journal said if the U.S. does withdraw, gross domestic product would grow at a weaker rate over the subsequent two years than it would have been otherwise. An additional 7% said the economy would weaken so much that it would enter a recession.
Jobless claims rise more than expected as hurricane backlog clears
- Initial claims for state unemployment benefits increased 10,000 to a seasonally adjusted 239,000 for the week.
- Last week marked the 139th straight week that claims remained below the 300,000
- The so-called continuing claims rose 17,000 to 1.90 million.
Trump’s $250 billion China ‘miracle’ adds gloss to ‘off-kilter’ trade
- The biggest deal, an $83.7 billion Chinese direct-investment plan, didn’t even involve a U.S. company: state-owned China Energy Investment Corp. signed a preliminary agreement to invest in shale gas and chemical manufacturing in West Virginia. That headline figure would be invested over the course of 20 years.
- The second-largest figure—$43 billion—was an estimate of construction costs for an Alaska natural-gas project, with the investment breakdown between the U.S. and Chinese companies still under negotiation.
- In another heralded deal, Chicago-based Boeing said it would supply 300 aircraft, worth about $37 billion, to state-run aircraft-leasing company China Aviation Supplies.
GOP Tax-Cut Effort Enters Critical Phase in House, Senate
- The Republican effort to pass a $1.5 trillion tax cut and deliver President Donald Trump his first major legislative win entered a critical period Thursday, with the House and the Senate operating on parallel tracks to clear legislation over a series of hurdles.
- Passage of legislation through the House Ways and Means Committee, followed by the unveiling of a Senate alternative, will move the debate beyond fights between the GOP and Democrats and into an arena marked by differences between Republicans in each chamber.
- Senate Republicans were set to release a plan that diverges from the House version, which cuts individual- and corporate-tax rates and repeals the estate tax.
EUROPE & WORLD
Saudi Arabia’s foreign minister calls for sanctions on Iran for its ‘support of terrorism’
- Saudi Arabia’s foreign minister urged the international community to slap fresh sanctions against Iran Thursday, accusing its arch-regional rival of supporting terrorism.
- The Kingdom’s foreign minister went on to say the most effective way of dealing with Iran would be for the international community to hold Tehran accountable for “fixing” the nuclear agreement, supporting terrorism and for its ballistic missile program.
- Saudi Arabia blames Iran for allegedly being behind a ballistic missile attack on Saturday. The missile, which was fired by Houthi rebels in Yemen, was intercepted in flight near Riyadh’s airport.
- The ongoing civil war in Yemen is akin to a proxy war between Saudi Arabia and Iran and their competing ideologies of Sunni and Shia Islam, respectively.
- While Sunni-ruled Saudi Arabia backs the government of President Abdrabbuh Mansour Hadi, its rival Iran backs the pro-Shia Houthi movement loyal to the country’s former president Ali Abdulla Saleh.
- On Thursday, Saudi Arabia warned its citizens against travelling to Lebanon and asked those in the country to leave as soon as possible.
Burberry Shares Dive, Pointing to Scale of CEO’s Challenge
- Burberry said adjusted pretax profit jumped 28% to £188 million ($246.6 million), buoyed by a strong showing from its core Chinese consumers and a good response to new rainwear and bags.
- Revenue rose 9% to £1.26 billion, or 4% at constant currency.
- Retail same-store sales climbed 4%, up from flat sales a year earlier. Burberry’s adjusted operating margin climbed 2.1 percentage points to 14.6%
Siemens industrial profit dives ahead of year of change
- German engineering company Siemens reported a worse than expected 10 percent drop in quarterly industrial profit.
- Revenue edged up 1 percent in Siemens’ fourth quarter to 3 billion euros.
- Orders jumped 16 percent to 23.7 billion euros.
- Industrial profit came in at 2.2 billion euros ($2.6 billion) for the quarter to the end of September.
Chip boom drives Toshiba profit surge; raises questions about future earnings
- Profit for July-September jumped to 135 billion yen ($2 billion), its best-ever result for a second quarter.
- Its chips and devices division accounted for 97 percent of that profit.
- The jump in profit was driven almost entirely by a strong performance from its memory chip unit which it recently agreed to sell for $18 billion.
TODAY in HISTORY
- Pilgrims aboard the Mayflower sight land at Cape Cod, Massachusetts. (1620)
- Borders between East and West Germany were opened and the Berlin Wall began to be dismantled the next day. (1989)
- A US federal judge, in the largest civil settlement in United States history, orders 37 US brokerage houses to pay 1.03 billion United States dollars to cheated NASDAQ investors to compensate for price fixing. (1998)
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