US FINANCIAL MARKET
U.S. Stocks Little Changed at the Open on Payrolls Data after Records
- The S&P 500 and Dow reached records yesterday, Dow rising within two points of 17,000.
- Data from employment to housing is fueling confidence that the U.S. economy is rebounding after the worst contraction in gross domestic product since 2009.
- Companies in the U.S. added 281,000 workers to their payrolls in June, figures from the ADP showed today.
- Gains yesterday were fueled by data showing a pickup in factory output. In the U.S., the ISM’s manufacturing index was 55.3 last month, near a five-month high. China’s Purchasing Managers’ Index (PMI) was at 51.0, matching analysts’ median estimate.
- Investors who subscribe to Dow Theory, which says transportation and industrial stocks must advance together for market gains to last, may gain confidence in the bull market after yesterday.
T-Mobile Sued by U.S. for Bogus Customer Charges
- T-Mobile profited from bogus charges for subscriptions to content such as celebrity gossip and horoscope information sent by text messages that typically cost $9.99 per month, the U.S. Federal Trade Commission (FTC) said in a statement today.
- In third-party billing, a phone company places charges on a consumer’s bill for services offered by another company, often receiving a percentage of the amount charged. When the charges are placed on the bill without authorization, the practice is known as “cramming.”
Demand for automobiles remains a bright spot for spending
- Cars and light trucks sold at a 16.9 million pace in June, the strongest since July 2006.
Americans on the Road Again as Recovery Gains Traction
- About 34.8 million people plan to drive 50 miles or more from home during the five days ending July 6, up from 34.1 million last year and the most since 2007.
- The travel recovery is boosting sales for hotels and attractions, a sign that consumer confidence and consumer spending are on the mend.
- Hotel occupancies across the U.S. averaged 62 % during the first five months of this year, up from 60 % during the same period last year and the highest average for that time frame since 1996.
JPMorgan Investors Show Support for Dimon in Cancer Fight
- Dimon told employees and shareholders in a memo his condition is curable and that he’ll continue running the firm “as normal” during eight weeks of radiation and chemotherapy.
Allergan readies defense as it fights Valeant
- Allergan may take on debt to buy back its own shares as part of a multi-faceted plan to thwart a $53 billion takeover bid by Valeant.
- Allergan had also announced an initial round of spending cuts in May when it first rejected Valeant’s offer.
- Valeant says it already has enough shareholders on its side to call a special meeting to replace Allergan board members with nominees who support its takeover proposal.
- To call a meeting, the acquisitive Canadian company needs support of the holders of at least 25 % of the shares.
JetBlue sees new sleeper seats aiding profit
- Deviating from its all-coach format, JetBlue now offers fully reclining seats on flights between New York and Los Angeles.
- The service, called Mint, includes some private suites with doors that close, tapas-style food and amenity kits. The seats are located at the front of the plane.
- The seats, which recline to convert into flat beds, are initially priced from $599 to $999 one way.
US ECONOMY & POLITICS
ADP Says Companies in U.S. Add Most Workers Since 2012
- The 281,000 surge exceeded the most optimistic forecast in a Bloomberg survey. The median estimate of economists called for a 205,000 advance.
- A Labor Department report tomorrow may show private payrolls climbed by 213,000 workers last month, according to the Bloomberg survey.
- Manufacturers, builders and other goods-producing industries increased headcount by 51,000. Employment in construction rose by 36,000, while factories added 12,000 jobs, today’s report showed.
U.S. factory orders hurt by defense; investment appetite positive
- New orders for manufactured goods decreased 0.5 %. That was a steeper drop than the 0.3 % decline forecasted by analysts.
- Stripping out military wares, new orders rose a modest 0.2 %.
EUROPE & WORLD
London House Prices Surge the Most Since 1987
- Values in the capital surged 26 % in the three months through June from the same period a year earlier, the biggest increase since 1987.
- National prices rose 1 % in June from May, the 14th month of increases, to an average 188,903 pounds.
Roche to buy U.S. biotech firm Seragon for up to $1.7 billion
- Roche has long dominated the field of breast cancer with drugs.
- Seragon is focused on developing a new generation of oral medicines that it believes offer an improved way of tackling hormone receptor-positive breast cancer, and potentially other cancers.
TODAY in HISTORY
- French astrologer, physician, and prophet Nostradamus died (1566)
- Congress passed the Sherman Antitrust Act, which prohibits certain business activities that federal government regulators deem to be anticompetitive (1890)
- President Johnson signed the Civil Rights Act of 1964 into law (1964)
- Steve Fossett became the first to circumnavigate the globe solo in a balloon (2002)
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