US FINANCIAL MARKET
- U.S. stocks edged lower at the open on Tuesday on profit-taking after the S&P 500 index climbed to a record in the prior session and on caution the Federal Reserve may end its stimulus efforts sooner than expected.
- Wall Street faces increased government oversight of trading after U.S. regulators issued what they billed as a stricter Volcker rule today, imposing restrictions designed to prevent blowups while leaving many of the details to be worked out later.
- The Federal Reserve, the Federal Deposit Insurance Corp. and three other agencies are set to sign off today on the proprietary trading ban, which has been contested by JPMorgan Chase, Goldman Sachs and their industry allies for more than three years.
- General Motors was in the spotlight after the automaker said its Chief Executive Dan Akerson will step down next month and be replaced by Mary Barra, the company’s global product development chief.
- The US government sold its final shares of General Motors stock. U.S. taxpayers lost about $10 billion in the government bailout of GM.
- Boeing said that more commercial jet buyers will tap rapidly-expanding capital markets to finance $112 billion of jet sales in 2014.
- Airlines that have recently turned to capital markets for funds to buy planes include Air Canada and Virgin Australia. British Airways was the first UK airline to use new planes as collateral when it launched a $927 million asset-backed bond in June.
- Apple may sell 20 million iPhones on China Mobile, says Global Equities Research.
- Samsung Electronics is getting help from South Korea’s largest carrier to drum up sales of the Galaxy Round, the company’s curved-screen smartphone, amid reports of weak demand. Samsung has only managed to sell 10,000 units of the Galaxy Round last month in S. Korea.
US ECONOMY & POLITICS
- U.S. small business sentiment bounced back from a seven-month low in November. The National Federation of Independent Business’ Small Business Optimism Index edged up 0.9 point to 92.5 last month.
- Eight of the index’s 10 components advanced, with decent gains in job creation plans and the share of business owners saying this is a good time to expand.
- Federal Reserve Bank of St. Louis President James Bullard, a voter on policy this year, said an improving job market has increased the chances of a reduction in the Fed’s bond purchases, and any cut should be modest because of too-low inflation.
- Job openings in the U.S. climbed to a five-year high in October. The number of positions waiting to be filled rose by 42,000 to 3.925 million, the highest since May 2008.
- The number of people hired decreased to 4.51 million in October from a 4.63 million. The hiring rate fell to 3.3 % from 3.4 % in September.
- The number of total dismissals, which excludes retirements and those who left their job voluntarily, slumped to 1.47 million from 1.76 million in September.
- Some 2.385 million people quit their jobs in October, up from 2.327 million the prior month. The quits rate, which shows the willingness of workers to leave their jobs, was little changed from the prior month at 1.7 % in October, and it was down from a 2.1 % reading when the recession started almost six years ago.
EUROPE & WORLD
- A survey of 226 chief executives and board members in companies carried out by UK business organization the CBI and insurer Standard Life found more than two thirds reported the cost of so-called defined benefit pensions is stifling business investment. Among manufacturers, the figure rises to 78 %, the report said.
- Volkswagen increased sales at its core passenger-car brand by 3.4 % in November to 522,100 autos. Eleven-month deliveries rose by the same margin to 5.40 million vehicles.
- BMW delivered a record 174,996 BMW, Mini and Rolls-Royce vehicles in November, up 2.7 % from the year-earlier period. Year-to-date, BMW Group sales reached 1,777,017 vehicles, an all-time high.
- Polish flagship carrier LOT has agreed with Boeing on compensation for the faults that grounded its 787 Dreamliner jets. LOT, one of the world’s oldest airlines, is one of 13 carriers that fly the 787.
- U.K. industrial production rose for a second month in October. Output increased 0.4 % from September.
- China’s industrial output rose less than estimated in November while retail sales unexpectedly accelerated, giving a mixed picture of growth. Factory production rose 10 % from a year earlier. Retail sales advanced 13.7 %. China’s auto sales rose 16 %.
TODAY in HISTORY
- Mississippi became the 20th state in the United States (1817)
- The territory of Wyoming authorized women to vote and hold office (1869)
- The first Nobel Prizes were awarded in Stockholm, Sweden, in the fields of physics, chemistry, medicine, literature, and peace (1901)
- The United Nations General Assembly adopted its Universal Declaration on Human Rights (1948)
- Dr. Martin Luther King, Jr., received the Nobel Peace Prize (1964)
Sources: Reuters, Yahoo Finance, Google Finance, Bloomberg, CNN Money.
This information has been prepared from sources believed to be reliable, but no representation is being made as to its accuracy or completeness. The information provided should be used only as general information and is not intended to provide specific advice or recommendations for any individual. The economic forecasts set forth in the material may not develop as predicted. All indices, such as the S & P 500, are unmanaged and may not be invested into directly.