US FINANCIAL MARKET
WALL STREET MOVE HIGHER AS OIL RALLY CONTINUES
- US stocks rose on Wednesday, with the S&P inching closer to its record high, as oil prices increased again and chances of an interest rate hike in the near term faded.
- Oil held above $50 for the second consecutive day on supply disruptions in Nigeria.
- The World Bank cut its forecasts for global growth this year to 2.4%, from the 2.9% it forecast in January, and reduced its projections for the US economy.
- Chinese trade data added to economic concerns, as exports slid 4.1% in May from a year earlier.
World Bank Cuts Global-Growth Outlook
- The global economy will grow 2.4% this year, the bank predicts, amid troubles in both emerging markets and developed nations.
- That was down from the 2.9% forecast in January and slower than last year’s weak pace.
- The bank also cut its forecast for growth in 2017 to 2.8% from 3.1%.
- The bank kept its forecast for a 6.7% expansion in China.
- The World Bank said Japan will grow by 0.5% this year, nearly a full percentage point lower than expected in January.
- The bank pared its projections for the world’s largest economy, the US to 1.9% for the year.
Lululemon Athletica Revenue Tops Views, Gives Downbeat Quarterly Prognosis
- Sales at existing stores rose 3%, or by 5% excluding currency headwinds, in the first quarter.
- Lululemon posted a profit of $45.3 million, down from $47.8 million a year earlier.
- Revenue rose 17% to $495.5 million.
- Lululemon guided for earnings of 28 cents to 30 cents a share on revenue of $483 million to $488 million.
- Analysts polled by Thomson Reuters expected 31 cents in per-share profit on $488 million in revenue.
Tesla CEO says working exclusively with Panasonic for Model 3 battery
- The Japanese company plans to contribute $1.6 billion to Tesla’s $5 billion “Gigafactory” in phases over the next few years.
- Tesla has taken 373,000 orders for its Model 3 – which has a starting price of $35,000, about half its Model S – and has said it would begin customer deliveries in late 2017.
Salesforce to Invest $50 Million in Startups, Launch Incubator
- The dual move is the sales-software provider’s latest push to foster an ecosystem of applications that run on its cloud-computing platform.
Sprint’s Wireless Fix? More Telephone Poles
- Wireless provider’s innovative plan to boost cell service runs into local hurdles.
- The company wants to install low-power cellular antennas in public rights of way, land typically holding utility poles, street lamps and fire hydrants.
US ECONOMY & POLITICS
US Consumer Credit Increased at 4.49% Pace in April
- Outstanding consumer credit up by a seasonally adjusted $13.42 billion in April from the prior month.
- Economists had expected a $20.0 billion rise in April.
- Revolving credit outstanding, mostly credit cards, rose at a 2.08% annual pace in April, the slowest pace since January.
- Nonrevolving credit outstanding, including student and auto loans, rose at a 5.35% annual pace in April compared with March’s downwardly revised 8.22% growth rate.
Declaring a historic victory, Clinton turns fire on Trump in her White House bid
- The former first lady, US senator and secretary of state spoke to supporters at a raucous event in Brooklyn, New York, and placed her achievement in the context of the women’s rights movement.
- “The stakes in this election are high and the choice is clear. Donald Trump is temperamentally unfit to be president and commander in chief,” Clinton said.
Donald Trump Says His Comments on Judge Have Been ‘Misconstrued’
- Candidate says ‘I do not feel that one’s heritage makes them incapable of being impartial’.
- “While this lawsuit should have been dismissed, it is now scheduled for trial in November,” he said in a written statement issued by the campaign. “I do not intend to comment on this matter any further.”
- “It is unfortunate that my comments have been misconstrued as a categorical attack against people of Mexican heritage,” he said.
- “I am friends with and employ thousands of people of Mexican and Hispanic descent.”
EUROPE & WORLD
German Companies Wary of Brexit
- Almost half of the 215 enterprises surveyed, representing various sectors, anticipate increased complexity and higher costs because of potentially new and divergent regulations between the U.K and the EU.
- About 33% said Brexit would force them to review their entire supply chains for reorganization, while around 40% fear higher customs duties for German companies.
- Roughly 70% of companies surveyed said they expected uncertainty on financial markets.
Japan first-quarter GDP revised up, boosted by leap year gain
- Japan’s economy expanded at an annualized 1.9 percent rate in the first quarter of this year, revised up from a preliminary reading of 1.7 percent growth.
China Exports Continue to Shrink as Demand Wanes
- Exports and imports fall 4.1% and 0.4% in May, respectively.
- China’s trade surplus widened to $49.98 billion in May from $45.56 billion in April.
- Among imports, copper rose by 19% year over year, iron ore advanced by 19% and crude oil rose by 39%.
- China reported Tuesday that its foreign-exchange reserves fell by $27.9 billion to $3.19 trillion after rising during the two prior months.
TODAY in HISTORY
- The prophet Muhammad died (632)
- Tennessee became the 11th and last state to secede from the Union (1861)
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