Stocks start Q4 in the red, Trump taxes in focus
Wall Street kicked off the final quarter of the year with losses after putting its best performance of 2016 in the third quarter. All three major averages (^GPSC, ^DJI, ^IXIC) were lower in as investors digested a fresh batch of economic data, including monthly auto sales figures.
US auto sales got dinged in September. General Motors (GM) reported sales slipped 0.6%, while Ford (F) sales fell 8.1% and Fiat Chrysler (FCAU) slid 0.9%.
Tesla (TSLA) set records for electric vehicle deliveries and production in the third quarter. Tesla delivered 24,500 cars in the last three months, after missing its targets in the previous two quarters. The company run by Elon Musk repeated its goal of delivering 50,000 vehicles in the second half of this year. Will this convince skeptics that Musk can take Tesla to the next level?
Documents obtained by the New York Times show GOP presidential candidate Donald Trump reported a $916 million loss in 1995. That means he could have avoided paying federal income taxes for 18 years or so after that. Trump’s defenders say that makes him a genius and Trump tweeted that he’s the only person who can fix our tax laws. Does this hurt his standing with undecided voters?
Toyota (TM) thinks it has an answer for people who need a friend—a baby robot! The Japanese automaker today introduced a 4-inch-tall robot called Kirobo Mini that will go on sale in Japan later this year. The tiny robot talks in a high-pitched voice, blinks its eyes and wobbles like a baby. It’ll cost about $400. Is this depressing or simply a sign of the times?
Cabela’s (CAB) shares shot up in early trading. The fishing and hunting equipment chain is being bought by privately-held rival Bass Pro Shops for $5.5 billion, or $65.50 a share. The deal will help Bass expand in North America by almost doubling its store count in the region.
Janus Capital (JNS) shares soared in early trading. The US money manager is merging with rival Henderson Group (HGG.L) in an all-stock deal. The combination will create a company with a market value of $6 billion and $320 billion in assets under management.
Deutsche Bank (DB) stock is not trading in Germany today due to a public holiday, but investors are closely monitoring US shares of the company. Germany’s largest lender continues to negotiate with US authorities to settle charges related to the sale of toxic mortgage securities before the financial crisis. The stock jumped 14% Friday following reports Deutsche Bank was close to settlement with the US Justice Department for $5.4 billion. That’s much less than the $14 billion initially requested. However, The Wall Street Journal reported that the details of deal remain in flux, with no agreement presented to senior decision makers on either side.
Twitter (TWTR) shares were sharply higher in early trading as takeover talk for the social media firm continues. Late Friday, Bloomberg reported that Google’s parent company Alphabet is considering an offer to buy Twitter. Other potential suitors include Disney (DIS), Salesforce.com (CRM), Microsoft (MSFT) and AT&T (T).
ING (ING) is joining the growing list of European lenders that are cutting jobs. Netherlands’ largest financial services company said it’s slashing 7,000 over the next couple of years. That’s roughly 12% of its workforce. This as the company looks to cuts costs to invest in its digital platforms.
