U.S. STOCKS LITTLE CHANGED AS OIL WAVERS
- OPEC said they had proposed cutting their collective output to between 32.5 million and 33 million barrels a day, down from August levels of 33.2 million barrels a day.
- Oil prices rallied nearly 6% on Wednesday following the agreement.
- The U.S. economy grew at a 1.4% annual rate, faster pace in the second quarter than previously estimated.
- The number of Americans applying for first-time unemployment benefits rose last week but remained at a low level consistent with a generally healthy labor market.
- Investors and traders showed a 57% probability of an interest-rate increase from the Federal Reserve by December.
- The yield on the 10-year Treasury note is at 1.582%.
- Shares of PepsiCo rose 1.2% after the beverage giant reported quarterly revenue that beat analysts’ estimate.
US FINANCIAL MARKET
- Group to finalize plan in November, but reaching a deal is far from certain.
- The group proposed cutting its collective output to between 32.5 million barrels a day and 33 million barrels a day, down from August levels of 33.2 million barrels a day.
- If OPEC cuts its production by 200,000, to 33 million barrels a day, that wouldn’t be enough to bring production back in line with demand until the second half of 2017, according to IEA.
- If OPEC cut output by up to 700,000 barrels a day, the production glut would disappear as soon as the end of this year.
- The company now expects core earnings this year of $4.78 a share, up from its prior projection of $4.71.
- Maker of Pepsi-Cola, Cheetos and Gatorade cites cheaper raw materials amid declining revenue.
- PepsiCo posted a profit of $1.99 billion.
- Revenue declined 1.9% to $16.03 billion.
- National Amusements said it believes a merger could “allow the combined company to respond even more aggressively and effectively to the challenges of the changing entertainment and media landscape.”
- National Amusements said the optimal deal would be an all-stock transaction.
- Viacom said it expects its board will form a special committee of independent directors to consider the request and any proposed transaction.
- CBS said the company has received the letter, and that its management and independent directors “will take appropriate action to evaluate what is in the best interest of the Company and its shareholders.”
- In a Twitter message, Musk said “corrective action” had been taken on discounting of new vehicles, which “seems to be limited to a small number of cases.”
- The Tesla boss in the email to employees said, “It is absolutely vital that we adhere to the no negotiation and no discount policy that has been true since we first started taking orders 10 years ago.”
- Accenture’s investments to boost digital and cloud services pay off, sending its shares up 6.6%.
- Accenture said its revenue rose 7.6% to $8.49 billion.
- Net income rose to $1.13 billion, in the fourth quarter from $788.13 million a year earlier.
- California, the nation’s largest issuer of municipal bonds with $75 billion in investments, is barring Wells Fargo & Co. from underwriting state debt and handling its banking transactions after the company admitted to opening potentially millions of bogus customer accounts.
- Bank is facing mounting criticism over bogus accounts.
US ECONOMY & POLITICS
- That is up from last month’s estimate of a 1.1% growth rate during the spring.
- Latest data confirms expansion decelerated in the first half of the year.
- Inventory building has weighed on growth for five straight quarters.
- Overall, the inventory change subtracted 1.16 percentage points from the GDP advance last quarter.
- Consumer spending, which accounts for about two-thirds of total output, rose at a 4.3% pace in the spring, compared with an earlier estimate of growth at a 4.4% annual rate.
- Residential fixed investment, including home building and improvements, fell at an unrevised 7.7% pace.
- Growth in exports, which add to GDP, outpaced gains for imports, which subtract from domestic output, during the last quarter.
- Government spending declined at a 1.7% rate.
- Initial jobless claims, a proxy for layoffs, increased by 3,000 to a seasonally adjusted 254,000 in the week ended Sept. 24.
- Initial claims have now remained below 300,000 for 82 consecutive weeks.
- Pending home sales index, based on contracts signed last month, decreased 2.4% to 108.5 following a jump in July.
- The index was 0.2% lower than in August 2015.
- Pending home sales for July were also revised marginally lower to a reading of 111.2.
- Housing inventory has declined for 15 straight months on a year-on-year basis.
- A commuter train from New York barreled into a New Jersey rail station without stopping and crashed during the Thursday morning rush hour, injuring more than 100 people, some of them critically.
- Witnesses reported seeing one woman trapped under concrete and many people bleeding after the New Jersey Transit train crashed at the Hoboken station.
EUROPE & WORLD
- Confidence improves to its highest level this year, according to European Commission survey.
- The Economic Sentiment Indicator for the eurozone rose to 104.9 from 103.5 in August.
- Russia needs an oil price of around $50-60 per barrel so that it can invest in future oil production, the RIA news agency quoted Russian Energy Minister Novak as saying on Thursday.
- All five bidders seeking to bail out Japan’s beleaguered Takata have presented restructuring plans that require the air bag maker to file for bankruptcy protection.
- But some Japanese creditors have opposed such a filing as it would see them shoulder significant losses.
- Takata faces huge costs related to the global recall of millions of potentially faulty air bag inflators, and is seeking an outside investor to increase its capital.
- The company received proposals from five bidders last week.
- Mercedes-Benz and Smart brands will launch more than 10 different electric cars by 2025, and zero-emission vehicles will make up between 15% and 25% of overall Mercedes sales by then.
- The German lender will cut 9,600 jobs, merge its Mittelstandsbank, catering to small and medium-sized companies, with the corporates and markets unit and scale back securities trading operations.
- The restructuring plan through 2020 will cost about 1.1 billion euros ($1.2 billion).
TODAY in HISTORY
King Richard II became the first English monarch to abdicate his throne (1399)
Sir Robert Peel’s police force, the “bobbies,” began operations at Scotland Yard (1829)
French chemist Louis Pasteur died (1895)
John Paul I died one month after becoming pope (1978)
The space shuttle Discovery was launched, the first American staffed space flight since the Challenger disaster (1988)
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