US futures point to slightly lower open - CNBC

U.S. stock index futures were slightly lower Wednesday morning.

At around 2:45 a.m. ET, Dow futures dipped 12 points, indicating a negative open of more than 7 points. Futures on the S&P and Nasdaq were both slightly lower.

On Tuesday, the S&P closed higher for the fifth consecutive session, notching its longest winning streak since November. The Dow and Nasdaq ended with record closing highs in the previous session.

Market focus is largely attuned to global trade developments, as investors await more details about a preliminary trade agreement between the U.S. and China.

Late last week, President Donald Trump and Chinese officials announced that the world's two largest economies had agreed on a so-called "phase one" deal.

It is understood that Beijing agreed to billions of dollars in agricultural purchases from the U.S., while Trump said he would not move ahead with a new round of planned tariffs, among other items.

The deal, which is not yet signed, is set to be confirmed in the first week of January, according to U.S. Trade Representative Robert Lighthizer.

Corporate earnings

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiaWh0dHBzOi8vd3d3LmNuYmMuY29tLzIwMTkvMTIvMTgvc3RvY2stbWFya2V0LXdhbGwtc3RyZWV0LWludmVzdG9ycy1hd2FpdC11cy1jaGluYS10cmFkZS1kZXZlbG9wbWVudHMuaHRtbNIBbWh0dHBzOi8vd3d3LmNuYmMuY29tL2FtcC8yMDE5LzEyLzE4L3N0b2NrLW1hcmtldC13YWxsLXN0cmVldC1pbnZlc3RvcnMtYXdhaXQtdXMtY2hpbmEtdHJhZGUtZGV2ZWxvcG1lbnRzLmh0bWw?oc=5

2019-12-18 07:24:00Z
52780503674982

Fiat Chrysler and Peugeot Agree on Terms to Forge New Auto Giant - The New York Times

Fiat Chrysler and PSA of France said Wednesday that they had agreed to the terms of a merger that would create the world’s fourth largest automaker.

The companies said they had signed a binding agreement formalizing the merger, announced in October.

The accord brings Fiat Chrysler and PSA, the maker of Peugeot and Citroën cars, much closer to creating a carmaker bigger than General Motors. But there will remain the task of integrating the companies, a process that could take many months.

PSA has shown no sign of second thoughts about the merger even after Fiat Chrysler became the target last month of a racketeering lawsuit by G.M. The complaint asserts that Fiat Chrysler bribed United Auto Workers officials in contract negotiations to get an advantage over G.M. Fiat has called the suit “meritless.”

The accord confirmed that Carlos Tavares, the head of PSA, would be the chief executive of the new company, and that John Elkann, the chairman of Fiat Chrysler, would be the chairman. Mr. Elkann is a scion of Italy’s powerful Agnelli family, which has long controlled Fiat.

By combining, Fiat Chrysler and PSA will surpass Volkswagen as the market leader in Europe. Between them they will have more than 400,000 employees and sales worldwide of 8.7 million vehicles.

The companies could share the cost of developing electric cars and autonomous-driving technology, which world automakers expect to be crucial in the coming decades. Electric cars need to meet stricter emissions regulations in Europe to avoid steep fines.

“Our merger is a huge opportunity to take a stronger position in the auto industry as we seek to master the transition to a world of clean, safe and sustainable mobility,” Mr. Tavares said in a statement.

But analysts regard the two carmakers, which have not said what the new entity will be called, as an imperfect match. They share some weaknesses, including a dependence on the declining European market and the lack of a strong presence in China, the world’s largest car market by far.

The merger has the blessing of the French government, which earlier this year derailed an attempt by Fiat Chrysler to merge with Renault. PSA and Fiat have said they will not close any factories, pleasing political leaders, but analysts are skeptical that they can keep that promise when sales are under pressure around the world.

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiRmh0dHBzOi8vd3d3Lm55dGltZXMuY29tLzIwMTkvMTIvMTgvYnVzaW5lc3MvZmlhdC1jaHJ5c2xlci1wZXVnZW90Lmh0bWzSAUpodHRwczovL3d3dy5ueXRpbWVzLmNvbS8yMDE5LzEyLzE4L2J1c2luZXNzL2ZpYXQtY2hyeXNsZXItcGV1Z2VvdC5hbXAuaHRtbA?oc=5

2019-12-18 07:00:00Z
52780503095652

Stocks tread water as S&P 500 struggles for fourth straight record - MarketWatch

Stock indexes edged higher again Tuesday after all three major indexes scored records Monday in the wake of Friday’s preliminary U.S.-China trade announcement.

What are major indexes doing?

The Dow Jones Industrial Average DJIA, +0.15% rose 57 points, or 0.2% to 28,295, while the S&P 500 index SPX, +0.08% gained 4 points, or 0.1%, trade at 3,195 and the Nasdaq Composite Index COMP, -0.01% gained 3 points, or less than 0.1%, at 8,816.

The S&P 500 set a new intraday high early Tuesday.

On Monday, the Dow rallied 100.51 points, or 0.4%, to end at 28,235.89, and the S&P 500 advanced 22.65 points, or 0.7%, to finish at 3,191.45. The Nasdaq Composite finished at 8,814.23, a gain of 79.35 points, or 0.9%.

What’s driving the market?

Stocks traded higher Tuesday after the S&P 500 and Nasdaq indexes logged their third straight record closes the day before, while the Dow saw its first record finish since Nov. 27 as equities rose in quiet trade following the announcement late last week of a partial, or “phase-one,” U.S.-China trade deal.

Read: Why Wall Street sees the stock market on the verge of a ‘melt-up’

Helping maintain bullish momentum was housing and industrial production data that showed these areas of the U.S. economy accelerating in November. Home builders increased new construction at an annual pace of 1.365 million in November, an increase of 3.2% from October’s pace and above the 1.356 million expected by economists polled by MarketWatch.

Data on U.S. November industrial production and capacity utilization showed a 1.1% increase in November, the largest monthly increase in two years, after the end of the General Motors GM, +0.17%  strike, but below the 1.2% rise expected by economists.

And job openings rose to 7.3 million in October from about 7 million in September, though below the 7.6 million openings last year. The rate at which Americans quit their jobs held steady at 2.3%.

“Housing has been on a tear,” Mike Loewengart, vice president of investment strategy at E-Trade said in a email. “Home builder sentiment reached 20-year highs yesterday and housing starts and building permits far exceeded expectations this morning. Housing is an economic bellwether and its recent strength is further encouraged by the strength we’ve seen in manufacturing as those two industries are typically related.”

Some on Wall Street worried that trade optimism could be on the wane however, as the deal announced to the public was light on specifics. “US stocks could start feeling trade optimism fatigue as we near the holidays,” wrote Edward Moya, senior market analyst at Oanda, in a note.

“Expectations are now for the US and China to finalize the phase-one deal in the first week of January. As lawyers review the text, it seems this deadline could get pushed even further as not all the terms have been agreed upon,” he added. “President Trump wants talks to begin for the phase-two deal, but that does not seem on anyone’s radar.”

The U.S. says China agreed to increase imports of goods in 2020 and 2021 by a total of $200 billion more than the total in 2017, including about $40 billion of U.S. farm goods. The deal also includes Chinese action to protect American intellectual property and vague assurances not to manipulate its currency.

Meanwhile, U.S. Congressional negotiators agreed a $1.3 trillion federal spending deal Monday. Congress is expected to pass the legislation this week ahead of Friday’s government shutdown deadline.

Some underlying support for stocks was also tied to last Thursday’s U.K. election, which saw the Conservative party led by Prime Minister Boris Johnson score a decisive victory, which soothed fears the country could leave the European Union without a trade deal in place. Those worries were revived Tuesday, however, after Johnson signaled he would rule out any extension of an end-of-2020 deadline for reaching agreement on an EU-U.K. trade deal.

See: Boris Johnson seeks to rule out Brexit delay beyond 2020

European equities were lower, with the U.K.’s FTSE 100 UKX, -0.04%  off 1%.

What companies are in focus?

Shares of Dow component Boeing Co. BA, +0.86%  were up 0.1% after confirming late Monday it would suspend production of its 737 MAX jetliner. Boeing shares slumped more than 4% on Monday after The Wall Street Journal reported the company was considering such a move.

Shares of Eli Lilly & Co. LLY, +2.59%  rose 2.3% after the drugmaker provided an upbeat financial outlook for the year ahead.

Shares of Bed Bath & Beyond BBBY, +6.06%  might also be in focus after the company said six senior executives, including its chief merchandising officer and chief marketing officer, will depart ahead of the announcement of a new plan by Chief Executive Mark Tritton in early 2020. Shares gained 5.2% Tuesday.

Navistar International Corp. NAV, -7.57%  reported a decline in fiscal fourth-quarter net earnings and revenue that fell more than analysts expected, while providing a downbeat outlook for 2020 on Tuesday morning. Shares were down 7.5% Tuesday.

Shares of Micron Technology Inc. MU, +0.20%  rose 0.2% Tuesday after Wedbush Securities analyst Matt Bryson upgraded the stock to outperform from neutral, one day after a Susquehanna raised its rating on the stock.

Apple AAPL, +0.40%  shares rose 0.5%, even after Rosenblatt Securities estimated total sales in China were down 30% in November on a year-over-year basis.

How are other markets trading?

The yield on the 10-year U.S. Treasury note TMUBMUSD10Y, -0.19%  fell 1.7 basis points to 1.873% Tuesday, after rising 7 basis points Monday.

Crude-oil prices were on the rise Tuesday, with West Texas Intermediate crude CLF20, +1.06%  for January delivery rising 57 cents, or 1% to $60.78 a barrel on the New York Mercantile Exchange. In precious metals, the price of an ounce of gold for February delivery GCG20, -0.05% lost 90 cents to trade at $1479.60 an ounce on Comex.

The value of the U.S. dollar edged higher relative to a basket its major trading partners, with the ICE U.S. Dollar index DXY, +0.15%  gaining 0.1%.

In Asia overnight, stocks closed higher, with the China CSI 300 000300, +1.36%  rising 1.4%, Hong Kong’s Hang Seng Index HSI, +1.22%  advancing 1.2% and Japan’s Nikkei 225 NIK, +0.47%  gaining 0.5%.

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiiQFodHRwczovL3d3dy5tYXJrZXR3YXRjaC5jb20vc3Rvcnkvc3RvY2staW5kZXgtZnV0dXJlcy1wb2ludC10by1zbGlnaHRseS1sb3dlci1zdGFydC1hZnRlci1hbm90aGVyLXJvdW5kLW9mLXdhbGwtc3RyZWV0LXJlY29yZHMtMjAxOS0xMi0xN9IBT2h0dHBzOi8vd3d3Lm1hcmtldHdhdGNoLmNvbS9hbXAvc3RvcnkvZ3VpZC82NTIzMjc3OC0yMDQ5LTExRUEtOTc3RS00ODhDNTlGNzM1MzU?oc=5

2019-12-17 15:17:00Z
52780503674982

U.S. industrial output rebounds sharply after end of GM strike - MarketWatch

Getty Images

A worker walks among rolls of semi-finished aluminum at the Alcoa aluminum factory.

The numbers: U.S. industrial production jumped 1.1% in November, the biggest gain in more than two years, the Federal Reserve reported Tuesday. The gain was close to Wall Street expectations of a 1.2% rise.

But for the past year, production in still down 0.8%. Output had been down in three of the past five months.

What happened: Manufacturing surged 1.1% in November, led by a 12.4% gain in production of cars and trucks and related parts. This is a rebound following the end of the United Auto Workers strike against General Motors GM, +0.35%   in October. Excluding motor vehicles and parts, total industrial output was up 0.5%, while manufacturing was up 0.3%, the Fed said.

The output of utilities rose 2.9% in November, while mining production was down 0.2%.

Capacity utilization jumped to 77.3% in November from 76.6% in the prior month. The capacity utilization rate reflects the limits to operating the nation’s factories, mines and utilities. It’s still below pre-recession levels, above 80%, that could fan production costs and prices.

Big picture: Economists think the GM strike is just transitory noise in the data. There are still deep issues facing the factory sector as businesses pull back investment plans and global trade flows shrink. Still, many economists are talking about how the factory sector is stabilizing.

Market reaction: Stock index futures held their gains after the data. The Dow Jones Industrial Average DJIA, +0.11%   rallied 100 points on Monday.

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiaWh0dHBzOi8vd3d3Lm1hcmtldHdhdGNoLmNvbS9zdG9yeS91cy1pbmR1c3RyaWFsLW91dHB1dC1yZWJvdW5kcy1zaGFycGx5LWFmdGVyLWVuZC1vZi1nbS1zdHJpa2UtMjAxOS0xMi0xN9IBT2h0dHBzOi8vd3d3Lm1hcmtldHdhdGNoLmNvbS9hbXAvc3RvcnkvZ3VpZC83ODE1QUYxQy0yMEQxLTExRUEtQTQwMC1FRDlDNDE4RDdFMEM?oc=5

2019-12-17 14:31:00Z
52780506470491

US manufacturing production rose more than expected in November - CNBC

A General Motors assembly worker moves a V6 engine, used in a variety of GM cars, trucks and crossovers, from the final assembly line at the GM Romulus Powertrain plant in Romulus, Michigan, August 21, 2019.

Rebecca Cook | Reuters

U.S. manufacturing output rebounded more than expected in November, as the end of an almost six-week strike at General Motors plants boosted auto production.

The Federal Reserve said on Tuesday that manufacturing production rose 1.1% last month after a downwardly revised 0.7% fall in October. Industrial output also rose 1.1% in November after a downwardly revised drop of 0.9% in October.

Excluding motor vehicles and parts, overall industrial production and manufacturing output in November rose 0.5% and 0.3% respectively.

Economists polled by Reuters had forecast overall manufacturing output would rise 0.7% and industrial output would increase 0.8% in November. Production at factories still fell 0.8% in November on a year-on-year basis.

The United Auto Workers union reached a new four-year labor contract with General Motors in late October, ending a strike by about 46,000 workers with the No. 1 U.S. automaker.

The Fed's measure of the industrial sector comprises manufacturing, mining, and electric and gas utilities.

There was a 12.4% jump in the production of motor vehicles and parts in November. Overall, production rose 2.1% for consumer goods and 1.7% for business equipment, the Fed said. Utilities output increased 2.9% compared to a decline of 2.4% in the previous month.

The manufacturing sector, which makes up about 11% of the U.S. economy, has been weakened by a 17-month trade war between the United States and China.

Last Friday, the world's two largest economies announced a "Phase one" agreement that reduces some U.S. tariffs in exchange for increased Chinese purchases of American farm goods.

With overall industrial output rising, capacity utilization, a measure of how fully firms are using their resources, increased 0.7 percentage point to 77.3% in November from a downwardly revised 76.6% in October.

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiS2h0dHBzOi8vd3d3LmNuYmMuY29tLzIwMTkvMTIvMTcvdXMtaW5kdXN0cmlhbC1wcm9kdWN0aW9uLW5vdmVtYmVyLTIwMTkuaHRtbNIBT2h0dHBzOi8vd3d3LmNuYmMuY29tL2FtcC8yMDE5LzEyLzE3L3VzLWluZHVzdHJpYWwtcHJvZHVjdGlvbi1ub3ZlbWJlci0yMDE5Lmh0bWw?oc=5

2019-12-17 14:15:00Z
52780506470491

US housing starts rise more than expected, with permits at a 12-1/2-year high - CNBC

U.S. homebuilding increased more than expected in November and permits for future home construction surged to a 12-1/2-year high as lower mortgage rates continue to boost the housing market and support the broader economy.

Housing starts rose 3.2% to a seasonally adjusted annual rate of 1.365 million units last month, with single-family construction racing to a 10-month high and activity in the volatile multifamily sector increasing for a second straight month, the Commerce Department said on Tuesday.

Data for October was revised higher to show homebuilding rising to a pace of 1.323 million units, instead of advancing to a rate of 1.314 million units as previously reported.

Economists polled by Reuters had forecast housing starts increasing to a pace of 1.345 million units in November.

Housing starts jumped 13.6% on a year-on-year basis in November. Building permits increased 1.4% to a rate of 1.482 million units in November, the highest level since May 2007.

The housing market is regaining momentum after the Federal Reserve cut interest rates three times this year, pushing down mortgage rates from last year's multi-year highs. A survey on Monday showed confidence among homebuilders jumped in December to the highest level since June 1999.

But the scope for strong gains in the sector, which accounts for about 3.1% of the economy, is limited as builders complained they are "still underbuilding due to supply-side constraints like labor and land availability."

In addition to land and labor shortages, mortgage rates have backed up in recent weeks after the Fed signaled further rate cuts were unlikely. The U.S. central bank kept rates steady last week and indicated borrowing costs could remain unchanged at least until through 2020.

The 30-year fixed mortgage rate has risen to 3.73% from a year-low of 3.49% in early September, but is still below its peak of 4.94% in November 2018, according to data from mortgage finance agency Freddie Mac.

Residential investment rebounded in the third quarter after contracting for six straight quarters, the longest such stretch since the 2007-2009 recession. It is expected to contribute to gross domestic product again in the fourth quarter.

Single-family homebuilding, which accounts for the largest share of the housing market, increased 2.4% to a rate of 938,000 units in November, the highest level since January. Single-family housing starts rose in the West and Northeast but fell in the Midwest and the populous South.

Single-family housing building permits rose 0.8% to a rate of 918,000 units in November, the highest since July 2007.

Starts for the volatile multi-family housing segment increased jumped 4.9% to a rate of 427,000 units last month. Permits for the construction of multi-family homes rose 2.5% to a rate of 564,000 units.

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiVWh0dHBzOi8vd3d3LmNuYmMuY29tLzIwMTkvMTIvMTcvdXMtaG91c2luZy1zdGFydHMtYnVpbGRpbmctcGVybWl0cy1ub3ZlbWJlci0yMDE5Lmh0bWzSAVlodHRwczovL3d3dy5jbmJjLmNvbS9hbXAvMjAxOS8xMi8xNy91cy1ob3VzaW5nLXN0YXJ0cy1idWlsZGluZy1wZXJtaXRzLW5vdmVtYmVyLTIwMTkuaHRtbA?oc=5

2019-12-17 13:30:00Z
CAIiEEhvn9gEr-f_6ckmpWaRNkgqGQgEKhAIACoHCAow2Nb3CjDivdcCMIvwngY

Two men admit to working on illegal streaming sites that rivaled the size of Netflix and Hulu - CNN

Two computer programmers in Las Vegas pleaded guilty last Friday to criminal copyright charges after an FBI investigation revealed they had been working on two massive, illegal online streaming sites, iStreamItAll and Jetflicks, according to plea agreements.

iStreamItAll's content library featured more than 118,000 television episodes and nearly 11,000 movies, making it larger than Netflix (NFLX), Hulu or Amazon (AMZN) Prime, according to a release from the Justice Department.

Both iStreamItAll and Jetflicks had tens of thousands of paid subscribers and were designed to work on many different devices and platforms, "including myriad varieties of computer operating systems, smartphones, tablets, smart televisions, video game consoles, digital media players, set-top boxes and web browsers," the DOJ said, citing the two plea agreements.

Pirating has long been a major concern for leaders behind streaming companies. In a 2015 letter to shareholders, Netflix CEO Reed Hastings called piracy one of the company's "biggest competitors."

The world of streaming has changed significantly since then, but piracy may be an even bigger concern now that more legitimate players have entered and fragmented the market. Consumers now must subscribe to Disney+ if they want Disney movies and to Netflix if they want to watch popular original shows such as "Stranger Things." There are now scores of streaming services.

In 2017, 30 content creation companies, including Hulu, HBO, Amazon and others, formed an independent organization aimed in part at battling piracy (HBO shares CNN parent company WarnerMedia).

Darryl Julius Polo, 36, pleaded guilty to charges related to running iStreamItAll, according to the DOJ. The site featured a huge trove of copyrighted television shows and movies that it was not authorized to use, the DOJ said. Thousands of US users paid for subscriptions that allowed them to stream and download the illegal content.

Polo, who also goes by "djppimp," admitted in the plea agreement to using a computer program that ran 24/7 to scrape pirating sites from around the world, and then download, process and provide the illegal content on iStreamItAll. He would then send emails to potential users, urging them to cancel their subscriptions to legitimate streaming services and sign up with his instead, citing its massive library of content, the DOJ said.

As part of his plea agreement, Polo also admitted to running several other piracy services, including a site called SmackDownOnYou, and to working as a computer programmer for Jetflicks. He admitted to earning more than $1 million from his piracy operations.

The indictment of Polo and several other co-conspirators states that the harm caused by iStreamItAll to television and movie copyright holders, as well as to licensed streaming services, is estimated to be millions of dollars.

Polo pleaded guilty to one count of conspiracy to commit criminal copyright infringement, one count of criminal copyright infringement by distributing a copyrighted work being prepared for commercial distribution, one count of copyright infringement by reproduction or distribution, one count of copyright infringement by public performance and one count of money laundering, according to the DOJ.

In a separate proceeding, Luis Angel Villarino, 40, also admitted to working as a computer programmer for Jetflicks, the DOJ said. That site also used automated software programs and other tools to reproduce and stream tens of thousands of copyrighted TV shows and movies for tens of thousands of paid subscribers throughout the United States and Canada, the DOJ said. Villarino pleaded guilty to one count of conspiracy to commit copyright infringement.

Sentencing for both men is scheduled for March before federal judge TS Ellis III of the Eastern District of Virginia. Other defendants in this case are scheduled to go on trial on February 3.

Editor's note: This article has been updated to add missing context and attribution and to clarify information about the defendants.

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiUGh0dHBzOi8vd3d3LmNubi5jb20vMjAxOS8xMi8xNi90ZWNoL2lsbGVnYWwtc3RyZWFtaW5nLXNpdGVzLXNodXR0ZXJlZC9pbmRleC5odG1s0gFUaHR0cHM6Ly9hbXAuY25uLmNvbS9jbm4vMjAxOS8xMi8xNi90ZWNoL2lsbGVnYWwtc3RyZWFtaW5nLXNpdGVzLXNodXR0ZXJlZC9pbmRleC5odG1s?oc=5

2019-12-17 12:37:00Z
CAIiEKvskCKJ0_MYOpPSWokeJhIqGQgEKhAIACoHCAowocv1CjCSptoCMKrxrwU