×

Wall Street wary despite global rally on 31-year low on pound

IN THE NEWS TODAY

U.S. stock futures were drifting this morning, amid in a global market rally. Stocks in Europe, particularly in the U.K., were surging as the British pound fell to a 31-year low over Brexit impact fears. Wall Street lost ground Monday, but closed off the lows. (CNBC & Reuters)

Oil was lower this morning, as an increase in Iranian exports seemed to overshadow the perceived benefits of the upcoming OPEC-led production cut. Iran's shipments matched the 2011 peak before sanctions. U.S. crude gained nearly 1.2 percent on Monday. (Reuters)


Shares of Deutsche Bank, which were strongly higher Friday but under serious pressure recently, rose in European trading this morning, despite no settlement yet with the U.S. Justice Department over investigations related to mortgage securities. (CNBC)

JPMorgan chief Jamie Dimon gave Deutsche Bank a vote of confidence, telling CNBC the German lender is going to be fine. Dimon also went after Hillary Clinton for criticizing the U.S. banking culture in the wake of the Wells Fargo (WFC) secret account scandal.

Political risks scared companies off inking deals so far this year, according to Dealogic, except for Chinese and Japanese firms that hunted U.S. and European targets. In the first nine months of 2016, global M&A volumes slipped 22 percent to $2.55 trillion. (CNBC)

Hillary Clinton holds a 46 percent to 40 percent lead over Donald Trump, according to latest NBC News|SurveyMonkey weekly tracking poll. Libertarian Gary Johnson is down slightly with 9 percent and Green Party candidate Jill Stein holds steady with 3 percent.

Trump drew criticism for remarks on Monday that many interpreted as reinforcing a stigma that veterans who suffer from post-traumatic stress disorder are weak. Trump's supporters responded by saying the comments were badly taken out of context. (USA Today)

Following last week's first presidential debate and this coming Sunday's second meeting of Donald Trump and Hillary Clinton, their running-mates Mike Pence and Tim Kaine meet in their only vice presidential tonight. (USA Today)

WikiLeaks founder Julian Assange is promising "significant" disclosures on subjects including the U.S. election and Google in the coming weeks as the organization marks its 10th anniversary. (AP)

In a sharp deterioration of relations, the U.S. has suspended diplomatic contacts with Russia over Syria, while Moscow halted cooperation on a joint program for disposal of weapons-grade plutonium. (AP)

The most powerful Atlantic storm in almost a decade, Hurricane Matthew, was coming ashore this morning in Haiti, potentially delivering yet another devastating humanitarian disaster. Forecasters said the chances of a U.S. hit were increasing. (NBC News)

Google's big October event is today, rumors suggest a ton of new hardware announcements, including new Pixel smartphones, Google Home, the Amazon Echo competitor, and an evolution of the Chromecast, its streaming video device. (Tech Crunch)

David Foster, who helped develop the Amazon Kindle and Kindle Fire tablet, joined Google as vice president of product engineering in its hardware group. Foster is expected to lead hardware development for Google's new branded line of smartphones. (The Information)

Alphabet's (GOOGL) Google could face fines of up to 10 percent of the company's annual global revenue for formal charges from European regulators. Documents show regulators there want to establish a pattern of breaking EU antitrust rules. (WSJ)

Netflix (NFLX) shares were steadyin the premarket this morning, after closing 4 percent higher on Monday, on chatter that Disney (DIS) could be looking to buy the streaming video company. (CNBC)

Within hours of its new Marketplace launch, some Facebook (FB) users were selling drugs, sex, and weapons. The social network apologized for a technical issue that prevented the identification of posts that violate its community standards. (USA Today)

BY THE NUMBERS

No government economic reports are out today, but there's a double-dose of Fed-speak, with Richmond Fed President Jeffrey Lacker, a nonvoting member this year, at 8 a.m. ET and Chicago Fed President Charles Evans, a policy voter next year, at 8 p.m. ET.

Borrowing by small U.S. firms rose in August, partly because the month had more business days than July, and the percentage of firms late on repaying existing loans also increased, new data showed.

Manhattan real estate sales fell 19 percent in the third quarter compared with the prior year, as wealthy individuals from the U.S. and overseas pulled back their spending. Discounts were up and the inventory of houses listed jumped 11 percent.


STOCKS TO WATCH

Astrazeneca (AZN) said its heart drug Brilinta failed to show a benefit over an older blood thinner in treating patients with serious circulatory problems in their legs.

Ericsson (ERIC) is cutting 3,000 jobs and 900 consultants in Sweden. The cuts will come primarily from the telecommunications network equipment maker's sales, production, and R&D teams.

Cypress Semiconductor (CY) is cutting about 500 jobs, or 8 percent of its workforce. The company will take a charge of $40 million to $50 million related to severance payments in the third and fourth quarters.

Salesforce (CRM) is buying data startup partner Krux for about $700 million in cash and stock. Krux provides companies with information to hone their marketing and advertising.

WATERCOOLER

Sports fans say their final goodbyes to Arnold Palmer at a public ceremony today in his hometown of Latrobe, Pennsylvania. Palmer. The golf great was 87 when he died last month after heart complications. (USA Today)