DAILY MARKET REPORTS
- Thursday’s moves came during a wobbly week for stock markets around the world.
- Strong company earnings and solid economic growth have underpinned a broad-based rally in stocks from New York to Tokyo this year.
- But with the S&P 500 up roughly 18% in 2017, some investors are asking how long the upswing can last.
- The number of Americans filing applications for new unemployment benefits fell last week.
- Broadcom rose 3% after the chipmaker reported upbeat profit and boosted its dividend by 72%.
- Lululemon gained 8% after the Canadian yoga and leisure apparel maker reported a higher-than-expected profit and gave an upbeat holiday season forecast.
US FINANCIAL MARKET
Smartphone Parts Boost Broadcom’s Earnings
- Broadcom reported higher-than-expected earnings in the most recent quarter as the chip maker looks to convince Qualcomm’s shareholders to back its $105 billion takeover bid.
- Broadcom’s profit was boosted by sales of smartphone parts to “a large North American smartphone customer,” presumably Apple.
- Broadcom swung to a profit of $636 million, compared with a loss of $632 million a year earlier.
- Revenue jumped 8.5% to $4.84 billion.
- Broadcom also provided an upbeat outlook in its current quarter, forecasting revenue between $5.22 billion and $5.37 billion.
LULU beats Streets, orders $200M stock repurchase
- Canadian yoga and leisure apparel maker Lululemon Athletica reported a higher-than-expected profit and gave an upbeat holiday-quarter forecast, sending its shares up nearly 7 percent in after-hours trading.
- The company said it expects holiday-quarter sales of $870 million to $885 million.
- Analyst on average were expecting revenue of $866 million.
- Last quarter, net revenue rose 13.7 percent to $619 million.
- The company’s net income fell 13.8 percent to $58.9 million, mainly due to an asset impairment charge of $21 million.
GE’s Power Division to Eliminate 12,000 Jobs
- GE said Thursday it was cutting 12,000 jobs in its power business, or nearly 18% of the unit’s workforce.
- GE’s Power unit has been a major source of pain for the struggling company as global demand has dropped in tandem with GE integrating its acquisition of Alstom SA’s power business.
Hackers Steal $70 Million in Bitcoin
- Andrej P. Škraba, head of marketing at NiceHash, confirmed to The Wall Street Journal that approximately 4,700 bitcoin had been stolen from a bitcoin wallet, an online account that stores the digital currency.
- Bitcoin wallets, like other online bank accounts, have been targets of hackers in the past.
- NiceHash, which markets itself as the largest crypto-mining marketplace, said it is investigating the breach and cooperating with authorities as it seeks to restore the service “with the highest security measures at the earliest opportunity.”
- NiceHash, based in Slovenia, matches people in need of computer-processing power to mine cryptocurrencies with people who have power to spare. Payment is made in bitcoin and other cryptocurrencies.
Iger Likely to Stay On as Disney CEO Past 2019 if Fox Deal Is Reached
- Robert Iger will likely stay on past his 2019 retirement date if the entertainment company wins its bid to buy the entertainment assets of 21st Century Fox Inc., according to people familiar with the negotiations.
- Representatives of 21st Century Fox and its executive chairman, Rupert Murdoch, requested as part of the potential sale that Mr. Iger stay on past his planned July 2019 retirement to assist with the integration of assets, valued today at $40 billion, and strategic repositioning of the combined businesses, according to some of these people.
- A deal could be announced as soon as late next week, people with knowledge of the talks said.
Senate Votes to Begin Tax-Overhaul Negotiations with House
- The U.S. Senate voted Wednesday to start formal tax-bill negotiations with the House of Representatives as lawmakers began grappling with the delicate balance they must strike to advance final legislation through both chambers and to the president by Christmas.
- Republicans are weighing a number of changes that would expand tax cuts and force offsetting adjustments.
- Among the issues in play are allowing deductions for medical expenses and state income taxes, both of which were repealed in the House bill.
- In addition, lawmakers would prefer to repeal the individual and corporate alternative minimum taxes the Senate included at the last minute.
Budweiser maker Anheuser-Busch reserves 40 Tesla electric trucks
- This could the biggest order Tesla has received for its electric trucks, which are scheduled for rollout in 2019.
- The U.S. subsidiary of Anheuser-Busch InBev plans to use the trucks for shipments to wholesalers within 150 to 200 miles of its brewery locations — well within the 500-mile range that was promised by Tesla.
Czech Travel Service says signs deal for additional nine Boeing 737 MAX planes
- Czech airline Travel Service said on Thursday it had signed an order for nine additional Boeing 737 MAX planes for its fleet in November, increasing its total order book for the model to 39 planes.
- It said eight new Boeing 737 MAX planes would be supplied in 2018 and 15 in 2019 as part of fleet renewal planned until 2023.
Chevron projects $18.3 billion spending budget, down 4 percent
- The second largest U.S.-based oil producer is budgeting $18.3 billion for capital projects next year, the company said on Wednesday, about 4 percent less than this year and lower for a fourth year in a row.
- Next year, Chevron expects to spend $15.8 billion on oil and gas exploration, $2.2 billion on refining, marketing and petrochemicals, and about $300 million for its share of affiliated company spending.
US ECONOMY & POLITIC
U.S. Jobless Claims Fall as Labor Market Continues to Tighten
- Initial jobless claims, a proxy for layoffs across the U.S., fell by 2,000 to a seasonally adjusted 236,000.
- The four-week jobless claims moving average, a steadier measure, fell along with the headline number, hitting 241,500 last week.
Thousands Evacuate in Southern California as Wildfires Grow
- In Ventura County, north of Los Angeles, flames chewed through downtown Ventura and all the way to the Pacific Ocean.
- In Los Angeles, a fire sparked early Wednesday morning threatened some of the country’s most expensive real estate.
- “These will be winds that there will be no abilities to fight fires,” said Ken Pimlott director of CAL FIRE, the California Department of Forestry and Fire Protection. “This is about evacuations.”
- On Wednesday, the state’s insurance commissioner said the latest statewide total of insured losses is $9.4 billion.
EUROPE & WORLD
Hamas calls for Palestinian uprising in response to Trump’s Jerusalem plan
- Hamas urged Palestinians on Thursday to abandon peace efforts and launch a new uprising against Israel in response to U.S. President Donald Trump’s recognition of Jerusalem as its capital.
- The Israeli military said it was reinforcing troops in the occupied West Bank, deploying several new army battalions and putting other forces on standby, describing the measures as part of its “readiness for possible developments”.
- Trump reversed decades of U.S. policy on Wednesday by recognizing Jerusalem as the capital of Israel, imperiling Middle East peace efforts and upsetting the Arab world and Western allies alike.
Auto Makers Could Face Big Fines Under New European Rules
- The European Union expanded its powers to police and fine auto makers on Thursday, seeking to prevent a repeat of the diesel-emissions scandal that exposed abuses by the bloc’s manufacturers.
- EU negotiators clinched a deal after almost two years of negotiations, agreeing to allow the bloc’s executive body—the European Commission—to audit national regulators.
Alibaba, Ford to cooperate in search for new retail opportunities
- Alibaba has signed a deal with Ford to explore cooperation in areas such as cloud computing, connectivity and retail which could involve the sale of Ford cars on Alibaba’s online retail platform Tmall.
ExxonMobil, Chevron, Shell paid no tax in Australia for 2016
- Exxon Mobil, which has oil and gas production in the Bass Strait and a stake in the giant Gorgon LNG project among other assets in Australia, reported A$6.7 billion ($5.0 billion) in income, but it reported a loss for taxable income and paid no tax, similar to the previous two years.
- Chevron reported A$2.1 billion in income for 2016 and paid no tax, while Shell Energy Holdings Australia – a unit of Royal Dutch Shell – reported A$4.2 billion in income and A$97 million in taxable income, but paid no tax.
TODAY in HISTORY
- Delaware became the first state to ratify the U.S. Constitution. (1787)
- The U.S. declared war on Austria-Hungary in World War I. (1917)
- The Japanese attacked Pearl Harbor. (1941)
- Iraq formally declared to the UN that it had no weapons of mass destruction. (2002)
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