STOCK MARKET NEWS: Stocks close lower on mixed economic data
US stocks fell for the second time in three days as the latest economic reports gave investors little reassurance that inflation is under control. The Nasdaq falls 1.4%, the S&P slipped 1.1% and the Dow lost 0.56%. The 10-year Treasury yield rose 0.047 percentage point to 3.458%. FOX Business is providing real-time updates on the markets, stocks, commodities, acquisitions and businesses on the move.
Coverage for this event has ended.
Freight Train (AP)
It looks like what would have been a crippling strike by workers at freight railroads has been avoided.
U.S. Secretary of Labor Marty Walsh sent out a tweet early Thursday morning indicating that a tentative agreement had been reached.
"Following more than 20 consecutive hours of negotiations, the rail companies and union negotiators came to a tentative agreement that balances the needs of workers, businesses, and our nation’s economy."
During marathon negotiations early Thursday morning, talks were taking place with three remaining unions.
The White House released a statement applauding the tentative agreement calling it "an important win for our economy and the American people."
The statement continued, "It is a win for tens of thousands of rail workers who worked tirelessly through the pandemic to ensure that America's families and communities got delivers of what have kept us going during these difficult years."
President Biden thanked the unions and rail companies for reaching an agreement.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| ADBE | $307.42 | -64.10 | -17.25 |
Adobe Systems Inc. (ADBE) on Thursday reported fiscal third-quarter net income of $1.14 billion.
The San Jose, California-based company said it had net income of $2.42 per share. Earnings, adjusted for one-time gains and costs, were $3.40 per share.
The results topped Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of $3.33 per share.
The software maker posted revenue of $4.43 billion in the period, matching Street forecasts.
For the current quarter ending in November, Adobe expects its per-share earnings to be $3.50. Analysts surveyed by Zacks had forecast adjusted earnings per share of $3.43.The company said it expects revenue in the range of $4.52 billion for the fiscal fourth quarter. Analysts surveyed by Zacks had expected revenue of $4.6 billion.
Adobe shares have declined 34% since the beginning of the year. The stock has declined 42% in the last 12 months.
US stocks fell for the second time in three days as the latest economic reports gave investors little reassurance that inflation is under control.
The Federal Reserve meets on interest rates next week. The CME FedWatch tool shows a 20% chance the Fed will raise rates by 100 basis points and an 80% chance the increase will be 75 basis points.
The S&P 500 fell 1.13%, to end at 3,901.35 points, while the Nasdaq Composite slid 1.43%, to 11,552.36. The Dow Jones Industrial Average declined 0.56% to 30,961.82.
Retail sales rose 0.3% in August while industrial production dipped 0.2%.
The 10-year Treasury yield rose 0.047 percentage point to 3.458% today.
Nymex Crude for October delivery lost $3.38 per barrel, or 3.82% to $85.10.Gold for September delivery lost $31.10 per troy ounce, or 1.83% to $1665.40.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| GM | $41.22 | 0.60 | 1.47 |
General Motors plans to invest $491 million at its Marion, Indiana metal stamping operations to help support electric vehicle production, the largest US automaker said.
The funds will prepare the facility to produce a variety of steel and aluminum stamped parts for future products built at multiple GM assembly plants.
“While this investment prepares the facility for our all-electric future, it’s really an investment in our talented Marion team and will keep the plant working for many years to come,” said Gerald Johnson, GM executive vice president of Global Manufacturing and Sustainability.
IRS plans to improve technology and taxpayer services while bolstering tax compliance among wealthy Americans and corporations with its $80B in new funding, said Treasury Secretary Janet Yellen.
Providing the IRS with an influx of funding has been a top priority for Democrats and emerged as one of the most prominent financiers of the $739 billion Inflation Reduction Act.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| STOR | $32.13 | 5.34 | 19.93 |
| OWL | $11.41 | 0.38 | 3.40 |
Singapore's GIC and private equity firm Oak Street, a division of Blue Owl Capital Inc OWL.N, will buy commercial real estate investment trust Store Capital Corp STOR.N in a deal valued at about $14 billion, the companies said on Thursday.
Store Capital's shares jumped about 21% to $32.50 in premarket trading.
As part of the agreement, Store Capital shareholders will get $32.25 per share in cash, which represents a 20.4% premium to the stock's last close.
The deal agreement has a 30-day "go-shop" period that will expire on Oct. 15, which will allow Store Capital to solicit and consider alternative acquisition proposals, the companies said.
Amtrak plans a full schedule Friday after U.S. railroads and their unions reached a tentative deal. The passenger rail operator had cancelled all long-distance routes. Some Amtrak trails use freight lines.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| GPS | $9.04 | -0.30 | -3.27 |
The Gap will soon have a retail hole to fill. Kanye West is ending his collaboration with the casual clothing retailer to start his own chain of Yeezy retail clothing stores.
The musician-fashion mogul accuses the owner of Athleta, Banana Republic, Gap and Old Navy of failing to live up to its agreements to market the billionaire’s Yeezy fashion line.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| FMCC | $0.58 | 0.00 | 0.62 |
Mortgage rates continued to rise alongside hotter-than-expected inflation numbers this week, exceeding six percent for the first time since late 2008, Freddie Mac reported.
• The 30-year fixed rate rose to 6.02%.
• The 15-year fixed rate reached 5.21%
Although the increase in rates will continue to dampen demand and put downward pressure on home prices, inventory remains inadequate. This indicates that while home price declines will likely continue, they should not be large, Freddie Mac said.
Interest payments on the national debt will rise further if the Federal Reserve lifts interest rates next week. Interest on the federal debt is already projected to be the fastest-growing part of the federal budget in fiscal year 2022.
The national debt is set to hit $31 trillion as soon as this month amid a slew of new spending by President Biden and Democratic lawmakers.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| ADBE | $371.52 | 3.13 | 0.85 |
Adobe fell 13% as trading opened Thursday. The maker of Acrobat and Photoshop also announced it will acquire Figma for $20 billion, comprised of approximately half cash and half stock.
Figma is a design platform for teams who build products together.
The transaction is expected to close in 2023, subject to the receipt of required regulatory clearances and approvals and the satisfaction of other closing conditions, including the approval of Figma’s stockholders.
Adobe reports fiscal third quarter earnings after the US markets close Thursday.
US stocks opened lower Thursday as declining gasoline prices supported spending and initial jobless claims fell.
Retail sales increased 0.3% last month, the Commerce Department said Thursday, surprising economists who expected sales to be flat.
The national average gasoline price dropped to about $3.82 per gallon in late August after hitting an all-time high just above $5.00 in mid-June, according to data from AAA. Prices at the pump were averaging $3.698 per gallon on Thursday.
A separate report from the Labor Department on Thursday showed initial claims for state unemployment benefits fell 5,000 to a seasonally adjusted 213,000 for the week ended Sept. 10.There were 11.2 million job openings at the end of July, with two jobs for every unemployed person.
Meantime the Federal Reserve reported industrial production decreased 0.2 percent in August.
Oil and gold are lower.
Reuters contributed to this report.
Industrial production decreased 0.2% in August, the Federal Reserve reported.
Manufacturing output edged up 0.1% after increasing 0.6% in July.
The index for mining was unchanged, and the index for utilities decreased 2.3%.
At 104.5% of its 2017 average, total industrial production in August was 3.7% above its year-earlier level. Capacity utilization declined 0.2 percentage point in August to 80.0%, a rate that is 0.4 percentage point above its long-run (1972–2021) average.
The Ethereum blockchain has undergone a major software upgrade, drastically reducing its energy usage, its inventor and co-founder tweeted on Thursday.
The new system will use 99.95% less energy, according to the Ethereum Foundation. The upgrade, which changes how transactions occur and how ether ETH=BTSP tokens are created, could give Ethereum a major advantage as it seeks to surpass rival blockchain bitcoin.
Ethereum has moved from a "proof of work" system, in which energy-hungry computers validate transactions by solving complex maths problems, to a "proof of stake" system, where individuals and companies act as validators, using their ether as collateral, to win newly created tokens.
Ethereum was born in 2013. Proponents say it will form the backbone of much of the widely hyped but still unrealised "Web3" vision of an internet where crypto technology takes center stage in applications and commerce.
The cryptocurrency ether ETH=BTSP fell as much as 4% to $1,571, a move analysts put down to a cautious mood for risk assets more generally.
Investors bet ahead of Merge that the upgrade would bolster the price of the ether token. Ether has gained about 85% from its June lows, outperforming larger rival bitcoin's 15% gain.
U.S. retail sales advanced 0.3% in August, or 9.1% year over year, the Commerce Department reported.
Retail trade sales were up 0.2% (±0.4%) from July 2022, and up 8.9% (±0.7%) above last year. Gasoline stations were up 29.3% (±1.6%) from August 2021, while nonstore retailers were up 11.2% (±1.2%) from last year.
H&M clothing store, Times Square, Manhattan, New York, Nov. 15, 2019. (REUTERS/Mike Segar)
| Symbol | Price | Change | %Change |
|---|---|---|---|
| HNNMY | $2.06 | 0.02 | 0.98 |
H&M reported on Thursday lower-than-expected quarterly sales as shoppers tighten their belts with energy and food bills soaring and the world's second-biggest fashion retailer struggles to compete with rival Zara.
Third-quarter net sales at the Swedish group were up 3% from a year earlier at 57.5 billion crowns ($5.4 billion), short of the 5% which analysts polled by Refinitiv had forecast for the June-August quarter.
"The third quarter got off to a weak start, in common with the industry in many of the group's major markets," H&M, which does the bulk of its business in Europe, said in a statement.
"Sales improved sequentially during the quarter, with a better start for the autumn collections than last year."
The Swedish retailer has substantially underperformed market leader Inditex, the owner of Zara, which this week posted sales growth in constant currency terms of 16% for its May-July quarter.
($1 = 10.7226 Swedish crowns)
Consumer Financial Protection Bureau (CFPB) headquarters in Washington, D.C, August 29, 2020. (REUTERS/Andrew Kelly)
The U.S. Consumer Financial Protection Bureau (CFPB) plans to start regulating “buy-now, pay-later” (BNPL) companies like Klarna and Affirm Holdings due to worries their fast-growing financing products are harming consumers, the agency said on Thursday.
The watchdog, which does not currently oversee BNPL companies or products, will issue guidance or a rule to align sector standards with those of credit card companies, it said. The agency also said it would implement appropriate supervisory examinations. The development will be a blow for the sector which is already under pressure due to rising funding costs and lower American consumer spending during soaring inflation.
It also marks a major offensive for CFPB director Rohit Chopra , who has pledged to scrutinize tech-driven companies as they increasingly encroach on the traditional financial sector.
Stock trader (Reuters)
U.S. equity futures were trading higher Thursday morning, after the Labor Department announced that a tentative agreement had been reached to avoid what would have been a crippling railroad worker strike.
The major futures indexes suggest a a gain of 0.2% when trading begins on Wall Street.
Oil prices remained steady on Thursday as the market balanced weak demand with supply disruption ahead of a potential rail stoppage in the United States.
U.S. West Texas Intermediate crude traded around $87.00.
Brent crude futures were around $93.00 a barrel.
Early Thursday morning, Labor Secretary Marty Walsh announced via Twitter that a tentative deal had been reached.
Traders will have a heavy load of economic data to sift through, ranging from retail sales, jobless claims and industrial production among others.
In Asia, China's central bank left its benchmark lending rate unchanged. The Shanghai Composite index lost 1.2%, Hong Kong's Hang Seng index rose 0.4%.
Tokyo's Nikkei 225 index gained 0.2%.
Trading was tentative in New York on Wednesday, a day after the market’s worst drop in two years was set off by fears that higher interest rates could cause a recession.
A report on inflation at the wholesale level showed prices are still rising rapidly, with pressures building underneath the surface, even if overall inflation slowed.
The S&P 500 added 0.3% to 3,946.01, while the Dow inched 0.1% higher, to 31,135.09. The Nasdaq gained 0.7% to 11,719.68.
The yield on the 10-year Treasury was 3.44% Thursday morning.
AIG Sign (Reuters)
AIG Inc's life insurance and retirement division Corebridge Financial Inc raised $1.68 billion on Wednesday.
It is the biggest initial public offering so far this year.
AIG said it sold 80 million Corebridge shares at $21 per share, which was at the lower end of their indicated target range of $21 to $24 per share.
The IPO values Corebridge at $13.6 billion.
All proceeds of the IPO will go to AIG and the new company is not raising new capital, according to an earlier filing with the U.S. Securities and Exchange Commission.
Corebridge's share sale could help shake the IPO market out of its hibernation. Russia's invasion of Ukraine and rampant inflation has made it hard for companies to press ahead with listings.
IPOs in the United States are on track for their worst year in over two decades, according to Dealogic. So far, companies have raised about $18 billion this year, compared to over $231 billion during the same period last year.
Reuters contributed to this post.
Gas Prices (AAA)
The average price of a gallon of gasoline slipped on Thursday to $3.698, according to AAA. Wednesday's price was $3.703. Gas has been on the decline since hitting a high of $5.016 on June 14.
Analysts and traders say wholesale gasoline prices are expected to keep falling in coming months as U.S. refiners overproduce fuel to try to rebuild low stocks of diesel and heating oil.
Diesel's price slipped to $4.989 per gallon.
Oil rigs (iStock)
Oil prices remained steady on Thursday as the market balanced weak demand with supply disruption ahead of a potential rail stoppage in the United States.
U.S. West Texas Intermediate crude traded around $88.00.
Brent crude futures were around $93.00 a barrel.
The International Energy Agency (IEA) said Wednesday it expects widespread switching from gas to oil for heating purposes, saying it will average 700,000 barrels per day (bpd) in October 2022 to March 2023 - double the level of a year ago.
But data released by the Energy Information Administration showed U.S. crude and distillate inventories rose more than expected in the most recent week, suggesting weaker fuel demand and putting a lid on oil prices.
Bitcoin was trading around $20,000, after down over the last two days.
For the week, Bitcoin has gained more than 4%. For the month, the cryptocurrency was down just over 1%, but down more than 56% year-to-date.
Ethereum was trading at $1.600 and was little changed over the past week.
Dogecoin was trading around 6 cents and was down 0.3% over the past week.
The Disney+ website on a laptop computer in the Brooklyn borough of New York, US, on Monday, July 18, 2022. Walt Disney Co.'s ESPN will raise the price of its streaming service by 43% next month, betting that it can help cover the escalating cost of sports rights without losing subscribers who are grappling with soaring inflation. Gabby Jones/Bloomberg via Getty Images
The next company that may combine all its streaming assets under on app could be The Walt Disney Co., if Chief Executive Bob Chapek gets his way.
During Wednesday's Goldman Sachs investor conference, Chapek said that "there’s a little bit of consumer friction" for streaming customers who want to shift between Disney’s family-focused and franchise content in Disney+ and the general entertainment content of Hulu or sports content on the ESPN+ app, The Wall Street Journal reported.
Viewers must toggle between different apps on their smartphones, televisions and other devices to watch content on each service.
Placing all three services under one umbrella in a single app would reduce that.
However, to do that Disney must take full ownership of Hulu, which is now one-third owned by Comcast Corp.’s NBCUniversal.
Under a 2019 agreement, Disney had the right to force a sale of Comcast’s stake at fair-market value, starting in 2024, with a floor valuation of $27.5 billion.
Chapek suggested a more modest payout could be pursued, though Comcast Chief Executive Brian Roberts seemed to disagree.
Speaking at the same conference, Roberts signaled Hulu would not come cheap and would seek market value for its minority stake.
Here's more on the story: Disney CEO may combine streaming assets, including Hulu in one app
Locomotive's are coupled to railway cars at the Selkirk rail yard in Selkirk, N.Y. Government officials and a variety of businesses are bracing for the possibility of a nationwide rail strike that would paralyze shipments of everything from crude and (AP Photo/Hans Pennink / AP Newsroom)
The deadline to avert a freight railroad strike by Friday morning is fast approaching with three unions still talking. Negotiations have stretched on for at least 14 hours.
A Department of Labor spokesperson told Fox News that they "don't have any updates or sense of timing."
Of the 12 unions involved, one rejected a tentative deal, but agreed to delay a strike as talks with other unions continue.
Two have ratified agreements and three others remained at the bargaining table just days ahead of a strike deadline, threatening to intensify snarls in the nation's supply chain that have contributed to rising prices.
About 4,900 members of the International Association of Machinists and Aerospace Workers District 19 voted to reject the tentative agreement negotiated by IAM leadership with the railroads, the union said Wednesday. But the IAM agreed to delay any strike by its members until Sept. 29 to allow more time for negotiations and to allow other unions to vote.
For more on the story, click here: Talks continue to avert rail strike that could cripple supply chain
Apple CEO Tim Cook poses for a portrait next to a line of new MacBook Airs as he enters the Steve Jobs Theater during the Apple Worldwide Developers Conference (WWDC) at the Apple Park campus in Cupertino, California on June 6, 2022 . (Photo by Chris Tuite / AFP) (Photo by CHRIS TUITE/AFP via Getty Images)
Apple CEO Tim Cook attended a private meeting with several House Republican leaders on Wednesday to discuss issues surrounding tech censorship, according to a source familiar with the meeting.
Minority Leader Kevin McCarthy, R-Calif., Rep. Jim Jordan, R-Ohio, and Rep. Tim McClintock, R-Calif. were among those who attended the Capitol Hill meeting on Wednesday.
According to a source, the group discussed Big Tech censorship and what Republicans see as a bias against conservatives.
Issues surrounding China and privacy were also discussed.
Click here for more on the story: Republican House leaders meet with Apple CEO Tim Cook to discuss Big Tech censorship, China
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