Stocks Take a Mid-Week Breather

Charles Schwab: On the Market

Posted: 9/13/2017 4:15 PM ET

Stocks Take a Mid-Week Breather

U.S. stocks paused a bit from the recent two-day run, but still registered mild gains as another subdued inflation report hit the Street and participants await tomorrow's Bank of England monetary policy decision. Treasury yields continued to rise from multi-month lows and the U.S. dollar furthered its fresh advance. Geopolitical concerns seemingly continued to ease and cost assessments related to the aftermath of Hurricane Irma have been relatively favorable. Crude oil prices were higher and gold experienced a minor decline.

The Dow Jones Industrial Average (DJIA) increased 39 points (0.2%) to 22,158, the S&P 500 Index added 2 points (0.1%) to 2,498, and the Nasdaq Composite ticked 6 points (0.1%) higher to 6,460. In moderate volume, 820 million shares were traded on the NYSE and 1.9 billion shares changed hands on the Nasdaq. WTI crude oil rose $1.07 to $49.30 per barrel and wholesale gasoline moved $0.01 lower to $1.65 per gallon. Elsewhere, the Bloomberg gold spot price lost $9.90 to $1,321.92 per ounce, and the Dollar Index—a comparison of the U.S. dollar to six major world currencies—was 0.6% higher at 92.45.

American Airlines Group Inc. (AAL $47) lowered its Q3 guidance for the key industry metric of total revenue per available seat mile (TRASM) and pre-tax profit margin. The airline cited the impact of Hurricane Irma, which caused more than 5,000 flight cancelations amid closures at 40 airports in Florida and the Caribbean, including its hub at Miami International Airport. Shares traded higher after airline stocks took a hit leading up to Hurricane Irma's landfall and as early estimates of the economic cost impact have been less than projected.

Schwab's Chief Investment Strategist Liz Ann Sonders notes in her latest article, Trying to Reason with Hurricane Season: The Aftermath of "Harma", we expect to see a dip in economic activity in the short-term, followed by a boost associated with the recovery/rebuilding efforts, and the impact will unlikely dent the Fed's plans to continue monetary policy normalization. Read more on the Markets & Economy page at www.schwab.com and follow Liz Ann on Twitter: @lizannsonders.

CNBC reported that Nordstrom Inc. (JWN $48) is in talks with private equity firm Leonard Green & Partners regarding a buyout which would take the retailer private, per people familiar with the matter. Neither entity has commented on the report. Shares were nicely higher.

Centene Corp. (CNC $98) announced an agreement to acquire substantially all of the assets of privately-held health insurer Fidelis Care for $3.75 billion, subject to certain adjustments, allowing the company to enter the New York Market. CNC rallied.

Shares of Western Digital Corp. (WDC $86) fell after Toshiba Corp's (TOSYY $18) announcement to enter into a memorandum of understanding (MoU) to speed up talks regarding the sale of its memory chip unit with a rival group led by Bain Capital Private Equity LP. WDC said it was disappointed with Toshiba's actions. WDC is leading a group bidding to acquire Toshiba's chip unit.

Wholesale price inflation misses forecasts, mortgage applications jump

The Producer Price Index (PPI) (chart) showed prices at the wholesale level in August were up 0.2% month-over-month (m/m), versus the Bloomberg expectation to rise 0.3%, after July's unrevised 0.1% dip. The core rate, which excludes food and energy, rose 0.1%, compared to forecasts of a 0.2% advance and July's unrevised 0.1% decline. Y/Y, the headline rate was 2.4% higher, below projections of a 2.5% increase, and the core PPI rose 2.0% last month, south of estimates of a 2.1% gain. In July, producer prices were 1.9% higher and up 1.8% for the headline and core rates, respectively.

Tomorrow, the economic calendar will complete the picture of the August inflation landscape with the release of the Consumer Price Index, projected to rise 0.3% and 0.2% m/m for the headline and core rates respectively, accelerating from the 0.1% gains posted in July. Y/Y, prices are expected to be 1.8% and 1.6% higher respectively, after the 1.7% gains registered the month prior and below the Fed's target 2.0% rate. Stubbornly low inflation has caused expectations for another Fed rate hike this year to fade, but the Central Bank is still expected to announce the beginning of shrinking its gargantuan $4.5 trillion balance sheet following next week's monetary policy meeting.

As noted in the latest Schwab Market Perspective: A Preview of Coming Attractions?, how the Fed ultimately threads the needle and when it begins the process of unwinding its balance sheet will be closely watched and could result in times of increased market volatility. Read more on the Markets & Economy page at www.schwab.com and follow us on Twitter: @schwabresearch.

The MBA Mortgage Application Index jumped 9.9% last week, following the previous week's 3.3% gain. The increase came as an 8.9% rise in the Refinance Index was met with a 10.9% gain for the Purchase Index. The average 30-year mortgage rate declined 3 basis points (bps) to 4.03%.

Treasuries dipped, with the yields on the 2-year note and the 30-year bond ticking 2 bps higher to 1.35% and 2.79%, respectively, while the yield on the 10-year note advanced 3 bps to 2.19%. For analysis of the bond markets, see Schwab's Chief Fixed Income Strategist Kathy Jones' article, What's the Bigger Risk: Bond Market Bubble or Complacency?, on the Fixed Income page at www.schwab.com. Follow Kathy on Twitter: @kathyjones.

Bond yields and the U.S. dollar have rebounded this week from the former's November lows and the latter's levels not seen since early 2015, aided by eased geopolitical and domestic political concerns, as well as less-than-feared estimates of the economic cost impact of Hurricane Irma.

Schwab's Vice President of Legislative and Regulatory Affairs, Michael T. Townsend points out in his article, Debt Ceiling Deal Pushes Showdown in Congress to December, with the debt ceiling debate being extended to December, we continue to believe that tax reform won't get resolved until the first part of 2018. Read more on the Insights & Ideas page at www.schwab.com and follow us on Twitter: @schwabresearch.

Finally, Schwab's Chief Global Investment Strategist Jeffrey Kleintop, CFA, adds in his article, Missiles and Markets: An investor guide to geopolitical risks, investors should avoid overreacting to geopolitical developments and stick to their long-term financial plans. Read more on the International Investing page at www.schwab.com and follow Jeff on Twitter: @jeffreykleintop.

Tomorrow's domestic docket will also include weekly initial jobless claims, expected to have increased by 2,000 to a level of 300,000.

Europe and Asia mixed

European equity markets pulled back modestly in late-day action to finish mixed, with the Stoxx Europe 600 Index finishing flat after posting five sessions of gains. Energy stocks traded to the upside as crude oil prices moved higher. However, mining issues finished lower amid weakness in industrial metals prices, bogging down U.K. stocks, along with caution ahead of tomorrow's monetary policy decision by the Bank of England (BoE). Ahead of the decision, U.K. employment growth topped forecasts for July, but wage growth lagged estimates, on the heels of yesterday's hotter-than-expected inflation statistics. Technology stocks were choppy after rallying into yesterday's Apple iPhone unveiling, which appeared to foster some concerns about the timing of when customers can place orders for the device. The euro and the British pound fell versus the U.S. dollar and bond yields in the region finished mixed. In other economic news, eurozone industrial production rose modestly in July to match expectations.

For a look at global investing, see Schwab's Jeffrey Kleintop's, CFA, article, U.S. vs international: what do earnings tell us about what may be ahead?, on the Markets & Economy page at www.schwab.com, and his video with Vice President of Trading and Derivatives, Randy Frederick, Is An Optimistic Outlook for Global Equities Warranted?, on the Insights & Ideas page. Follow Randy on Twitter: @randyafrederick.

Stocks in Asia finished mixed after a couple days of gains that came courtesy of eased geopolitical concerns and estimates suggesting the economic cost impact in the U.S. of Hurricane Irma will be smaller than expected. Tech stocks finished mixed as the markets digest Apple's new iPhone launch, with some expressing concerns over the late timing of pre-order and on-sale dates. Also, the markets awaited tomorrow's BoE monetary policy decision and inflation data in the U.S. Japanese stocks extending a string of gains as the yen held onto recent weakness, while Indian shares ticked higher, despite late reports from yesterday showing consumer price inflation was slightly hotter than expected and industrial production growth missed forecasts. Australian securities finished flat and South Korean equities declined. Mainland Chinese stocks nudged higher, while shares in Hong Kong declined. For analysis of the global markets, see Schwab's Jeffrey Kleintop's, CFA, article, What are fund flows telling us about trends and risks in the global stock market?, as well as his commentary, An important benefit to global investors is back after 20 years, on the Markets & Economy page at www.schwab.com.

The international economic calendar for tomorrow will lead with consumer inflation and employment data from Australia, retail sales and industrial production from China, industrial production and capacity utilization from Japan and wholesale prices from India. Limited releases from across the pond will include CPI from Italy and France, as well as the aforementioned Bank of England monetary policy decision.

Markets Add to Recent Gains

Charles Schwab: On the Market

Posted: 9/12/2017 4:15 PM ET

Markets Add to Recent Gains

U.S. equities added to their recent run, amid continued eased anxiety toward North Korea and the economic impact of Hurricane Irma. Financials also got a boost as Treasury yields continued to recover from multi-month lows, getting a lift from by an unexpected record high in U.S. job openings. The dollar also continued to rebound from multi-year lows, while crude oil and gold were modestly higher. News on the equity front focused on Dow member Apple, as the tech giant offered its latest products at a gathering at its newest headquarters.

The Dow Jones Industrial Average (DJIA) increased 62 points (0.3%) to 22,119, the S&P 500 Index gained 8 points (0.3%) to 2,497, and the Nasdaq Composite added 22 points (0.3%) to 6,454. In moderate volume, 767 million shares were traded on the NYSE and 1.7 billion shares changed hands on the Nasdaq. WTI crude oil rose $0.16 to $48.23 per barrel and wholesale gasoline moved $0.03 higher to $1.66 per gallon. Elsewhere, the Bloomberg gold spot price rose $4.07 to $1,331.61 per ounce, and the Dollar Index—a comparison of the U.S. dollar to six major world currencies—was 0.1% higher at 91.94.

Shares of DowDuPont Inc. (DWDP $69) were higher as the Street digested the announcement from the company formed by the merger of Dow Chemical and Dow member DuPont of changes to its spin-off plans of materials science and specialty products divisions.

Shares of Sage Therapeutics Inc. (SAGE $76) fell nearly 15% after the company announced disappointing results from a late-stage trial of its treatment of super-refractory status epilepticus.

Intercept Pharmaceuticals Inc. (ICPT $98) was sharply lower after the company sent a letter to doctors saying that injuries, organ failure and death tied to patients taking its treatment for liver disease, its main product, occurred when they took the drug more frequently than recommended. ICPT said this was reported to the Food and Drug Administration and it is working with the agency to reinforce dosing recommendations for patients with liver impairment.

Apple Inc. (AAPL $161) was in focus as the tech giant unveiled its latest line of products at an event at its new headquarters, including a new version of its AppleWatch, as well as the unveiling of the iPhone 8 and its high-end iPhone X. However, shares of AAPL finished lower, as some expressed concerns over the late timing of the iPhone X's pre-order and on-sale dates.

Job openings surprisingly post new record, small business optimism unexpectedly improves

The Labor Department's Job Openings and Labor Turnover Survey (JOLTS), a measure of unmet demand for labor, rose to a level of 6.17 million jobs available to be filled in July—a fresh record high—from June's downwardly revised 6.12 million level. The Bloomberg forecast called for a decrease to 6.00 million. The hiring rate ticked higher to 3.8% from June's 3.7% pace, and the separation rate remained at the prior month's 3.6% rate.

The National Federation of Independent Business (NFIB) Small Business Optimism Index for August rose to 105.3, from July's unrevised 105.2 level, versus the Bloomberg expectation of a decline to 104.8.

Treasuries were lower, as the yield on the 2-year note rose 1 basis point (bp) to 1.33%, while the yields on the 10-year note and the 30-year bond advanced 3 bps to 2.17% and 2.77%, respectively. For analysis of the bond markets, see Schwab's Chief Fixed Income Strategist Kathy Jones' article, What's the Bigger Risk: Bond Market Bubble or Complacency?, on the Fixed Income page at www.schwab.com. Follow Kathy on Twitter: @kathyjones.

Treasury yields continue to rebound from last week's drop that took them to levels not seen since November and the U.S. dollar has slightly extended its recovery from lows not seen since early 2015. Geopolitical and U.S. political concerns continue to fade as North Korea held off on further missile tests and Congress approved three-month extensions of government funding and the debt ceiling. Also, investor sentiment got a boost from early economic cost assessments of Hurricane Irma that appear less than feared.

Amid this backdrop, Schwab's Chief Investment Strategist Liz Ann Sonders notes in her latest article, Trying to Reason with Hurricane Season: The Aftermath of "Harma", Hurricanes Harvey and Irma, or "Harma," will unlikely dent the Fed's plans to continue monetary policy normalization. Read more on the Markets & Economy page at www.schwab.com and follow Liz Ann on Twitter: @lizannsonders.

Also, Schwab's Vice President of Legislative and Regulatory Affairs, Michael T. Townsend points out in his article, Debt Ceiling Deal Pushes Showdown in Congress to December, December is now suddenly jam-packed with the complex, time-consuming debate that was expected to happen this month. It is hard to imagine Congress dealing with those issues and a major tax reform bill at the same time. As a result, we continue to believe that tax reform won't get resolved until the first part of 2018. Read more on the Insights & Ideas page at www.schwab.com and follow us on Twitter: @schwabresearch.

Finally, Schwab's Chief Global Investment Strategist Jeffrey Kleintop, CFA, adds in his article, Missiles and Markets: An investor guide to geopolitical risks investors should avoid overreacting to geopolitical developments and stick to their long-term financial plans. Read more on the International Investing page at www.schwab.com and follow Jeff on Twitter: @jeffreykleintop.

Tomorrow, investors will get their first look at inflation data for the month of August with the release of the Producer Price Index (PPI), with the measure of prices at the wholesale level expected to have increased 0.3% m/m, while excluding food and energy, the core rate is forecasted to have risen 0.2% m/m. MBA Mortgage Applications will also be released.

Europe mostly higher as concerns recede but U.K. lags after inflation data

Most European equity markets extended a recent run, with bond yields in the region moving higher to bolster the financial sector and tech stocks heading to the upside ahead of today's expected iPhone unveiling later today. Global sentiment was aided by North Korean tensions continuing to fade, and estimates of the economic cost impact on the U.S. of Hurricane Irma being less than feared. The euro ticked higher versus the U.S. dollar, and the British pound rallied versus the greenback. Bank of England rate hike uncertainty flared-up ahead of this week's monetary policy decision as the nation reported hotter-than-expected August inflation figures. Brexit negotiations also remained in focus as U.K. Prime Minister Theresa May's plan passed a parliamentary hurdle. For a look at global investing, see Schwab's Jeffrey Kleintop's, CFA, article, U.S. vs international: what do earnings tell us about what may be ahead?, on the Markets & Economy page at www.schwab.com, and his video with Vice President of Trading and Derivatives, Randy Frederick, Is An Optimistic Outlook for Global Equities Warranted?, on the Insights & Ideas page. Follow Randy on Twitter: @randyafrederick. And for a look at Brexit talks, see our article, Brexit Begins: What's Next for the U.K.? on the Insights & Ideas page.

Asia extends yesterday's gains

Stocks in Asia tacked onto yesterday's gains, with global sentiment continuing to rebound as geopolitical concerns toward North Korea remained tempered despite the UN voting to increase sanctions against the nation. Also, early indications suggesting the U.S. economic impact of Hurricane Irma will likely be less than projected continued to aid the markets. Technology issues were also higher ahead of today's expected new iPhone launch by Apple. Japanese equities gained solid ground, as the yen extended its retreat from a recent rally, and stocks in Australia advanced, despite a decline in the nation's business confidence for August. Securities listed in India also increased ahead of reads on consumer price inflation and industrial production after the closing bell. India's CPI came in a bit hotter than expected for last month and the nation's industrial production rose by a smaller amount than anticipated in August. Meanwhile, markets in mainland China, Hong Kong and South Korea all rose. For analysis of the global markets, see Schwab's Jeffrey Kleintop's, CFA, article, What are fund flows telling us about trends and risks in the global stock market?, as well as his commentary, An important benefit to global investors is back after 20 years on the Markets & Economy page at www.schwab.com.

Tomorrow's international economic calendar will offer South Korea's unemployment rate, consumer prices and retail sales from Japan, India's trade balance, CPI from Germany and Spain, employment figures from the U.K. and industrial production from the Eurozone.

Eased Anxieties Help Stocks Rally

Charles Schwab: On the Market

Posted: 9/11/2017 4:15 PM ET

Eased Anxieties Help Stocks Rally

The U.S. equity markets rallied, courtesy of eased geopolitical concerns amid a pause in North Korean missile tests, and as early economic assessments of losses in the aftermath of Hurricane Irma are less than feared. Treasury yields continued to recover from multi-month lows, giving financials a boost, while the U.S. dollar also rebounded from multi-year lows. Crude oil prices were higher, while gold was solidly lower.

The Dow Jones Industrial Average (DJIA) jumped 260 points (1.2%) to 22,057, the S&P 500 Index was 27 points (1.1%) higher at 2,488, and the Nasdaq Composite rallied 72 points (1.1%) to 6,432. In moderate volume, 795 million shares were traded on the NYSE and 1.8 billion shares changed hands on the Nasdaq. WTI crude oil rose $0.59 to $48.07 per barrel and wholesale gasoline lost $0.02 to $1.63 per gallon. Elsewhere, the Bloomberg gold spot price dropped $18.97 to $1,327.62 per ounce, and the Dollar Index—a comparison of the U.S. dollar to six major world currencies—was 0.6% higher at 91.87.

Insurance stocks got a boost as the markets assessed the impact of Hurricane Harvey in Texas two weeks ago and Hurricane Irma that hammered the Caribbean and made landfall in Florida over the weekend. Early reports are suggesting Irma's costs will likely be less than feared as the storm has been downgraded to a tropical storm. Airlines and travel companies also found support.

Pilgrim's Pride Corp. (PPC $28) announced an agreement to acquire poultry and prepared foods supplier Moy Park from Brazil's JBS SA (JBSAY $5) for about $1.0 billion. PPC said the acquisition is expected to be immediately accretive to earnings per share. PPC finished lower.

Teva Pharmaceutical Industries Ltd. (TEVA $19) rallied nearly 20% after the generic drug company named Kare Schultz as its new Chief Executive Officer (CEO), the former CEO of Danish drugmaker H. Lundbeck (HLUYY $57). HLUYY was sharply lower.

Treasury yields and the U.S. dollar regaining footing

Treasuries were lower amid a dormant economic calendar, as the yield on the 2-year note increased 6 basis points (bps) to 1.32%, while the yields on the 10-year note and the 30-year bond gained 8 bps to 2.13% and 2.75%, respectively. For analysis of the bond markets, see Schwab's Chief Fixed Income Strategist Kathy Jones' article, What's the Bigger Risk: Bond Market Bubble or Complacency?, on the Fixed Income page at www.schwab.com. Follow Kathy on Twitter: @kathyjones.

Treasury yields and the U.S. dollar rebounded from recent weakness that took the former to levels not seen since November and the latter to well over a two-year low, as risk aversion eases with North Korea holding off on another missile test and the impact of Hurricane Irma appears to less than feared. Downside pressure on bond yields and the greenback has come amid fading expectations of another Fed rate hike this year and as the euro surged in the wake of the European Central Bank's signal that it will likely begin discussions of tapering stimulus measures at its meeting next month

This sets the stage for this week's economic calendar to likely regain some focus, beginning with tomorrow's NFIB Small Business Optimism Index, forecasted to show a slight downtick to a level of 104.8 for August from the 105.2 posted in July, as well as the Job Openings and Labor Turnover Survey (JOLTS) report, with economists expecting the measure of unmet demand for labor to have fallen to 5.8 million jobs available to be filled in July from the 6.2 million registered in June. Stubbornly low inflation, which has kept Fed rate expectations hamstrung, will also be on display this week, courtesy of the releases of the Consumer Price Index (CPI) and Producer Price Index (PPI) for August. The all-important U.S. consumer will also garner attention as the markets digest the August retail sales report and the preliminary September University of Michigan Consumer Sentiment Index. The docket will also bring industrial production and capacity utilization.

As noted in the latest Schwab Market Perspective: A Preview of Coming Attractions?, action is about to heat up as summer comes to an end but investors should remain cool. Geopolitical threats, domestic politics, and Federal Reserve actions all have the potential to add to volatility and heightens the risk of a pullback or correction. But healthy economic growth and strong corporate earnings lead us to believe that the bull market has legs. Read more on the Markets & Economy page at www.schwab.com.

Europe and Asia higher as geopolitical concerns fade and Irma downgraded

European equity markets gained solid ground, with the lack of another missile test by North Korea easing geopolitical concerns, while assessments of the U.S. economic impact of Hurricane Irma were preliminarily reported to be less than estimated as it was downgraded to a tropical storm. Insurance and travel companies got a boost, while sentiment also found some support from upbeat data out of China and Japan. The euro gave back some of a recent surge to near a three-year high versus the U.S. dollar, while bond yields recovered to also bolster the financial sector. The British pound dipped versus the greenback ahead of this week's Bank of England monetary policy decision. In economic news, Italian industrial production rose more than expected. For a look at global investing, see Schwab's Chief Global Investment Strategist Jeffrey Kleintop's, CFA, latest article, U.S. vs international: what do earnings tell us about what may be ahead?, on the Markets & Economy page at www.schwab.com, and his video with Vice President of Trading and Derivatives, Randy Frederick, Is An Optimistic Outlook for Global Equities Warranted?, on the Insights & Ideas page. Follow Jeff and Randy on Twitter: @jeffreykleintop and @randyafrederick.

Stocks in Asia finished higher as North Korea held off on conducting another missile test, which is easing geopolitical concerns, while early reports of the impact of Hurricane Irma in the U.S. are suggesting the costs will be less than feared. Schwab's Jeffrey Kleintop, CFA, notes in his article, Missiles and Markets: An investor guide to geopolitical risks, investors should avoid overreacting to geopolitical developments and stick to their long-term financial plans. Read more on the International Investing page at www.schwab.com. Moreover, Japan posted much stronger-than-expected machine orders—a gauge of capital spending—for July, while China's CPI and PPI figures topped forecasts. Japanese equities rallied, with the yen giving back some recent gains, while stocks in China and Hong Kong rose, as sentiment also gets a boost from reports that the People's Bank of China intends to ease requirements for financial institutions. Meanwhile, markets in South Korea, Australia and India also advanced.

Tomorrow's international economic calendar will mostly focus on reports out of the U.K., with the island nation set to release CPI, PPI, housing prices and the Retail Price Index.

Stocks Mixed as Storms Eyed

Charles Schwab: On the Market

Posted: 9/8/2017 4:15 PM ET

Stocks Mixed as Storms Eyed

U.S. stocks traded mixed as the markets paid attention to developments pertaining to Hurricane Irma, while financials advanced as Treasury yields mostly rebounded from a recent drop. The U.S. dollar was again under pressure and a dip in crude oil prices pressured energy shares though tech listings led decliners. In other equity news, Equifax traded lower in the wake of its announced massive cybersecurity breach. Gold was lower.

The Dow Jones Industrial Average (DJIA) increased 13 points (0.1%) to 21,799, the S&P 500 Index was 4 points (0.1%) lower at 2,462, and the Nasdaq Composite decreased 38 points (0.6%) to 6,360. In moderate volume, 801 million shares were traded on the NYSE and 1.8 billion shares changed hands on the Nasdaq. WTI crude oil fell $1.61 to $47.48 per barrel and wholesale gasoline lost $0.01 to $1.65 per gallon. Elsewhere, the Bloomberg gold spot price was $2.49 lower at $1,346.74 per ounce, and the Dollar Index—a comparison of the U.S. dollar to six major world currencies—was nearly 0.4% lower at 91.33. Markets were lower for the holiday-shortened week, as the DJIA decreased 0.9%, the S&P 500 Index lost 0.6% and the Nasdaq Composite fell 1.2%.

Equifax Inc. (EFX $123) announced a cybersecurity incident potentially impacting approximately 143 million U.S. consumers, occurring from mid-May through July 2017. Data accessed primarily includes names, Social Security numbers, birth dates, addresses and, in some instances, driver's license numbers. In addition, credit card numbers for approximately 209,000 U.S. consumers, and certain dispute documents with personal identifying information for approximately 182,000 U.S. consumers, were accessed. The company added that it has found no evidence of unauthorized activity on Equifax's core consumer or commercial credit reporting databases. Shares finished sharply lower.

Kroger Co. (KR $21) reported Q2 earnings-per-share (EPS) of $0.39, in line with the FactSet estimate, as revenues grew 3.9% year-over-year (y/y) to $27.6 billion, above the projected $27.5 billion. Q2 same-store sales grew 0.7% y/y, versus the 0.4% rise that was anticipated. KR reaffirmed its full-year EPS outlook. Shares were under pressure, as analysts expressed concern about the heightened uncertainty in the food retail market as the company said it will no longer provide longer-term guidance "In this dynamic operating environment."

Target Corp. (TGT $57) found pressure after the retailer posted a blog about lowering prices on thousands of items in its stores.

Consumer credit and wholesale inventories rise 

Consumer credit, released in the final hour of trading, showed consumer borrowing expanded by $18.5 billion during July, above the $15.0 billion forecast of economists polled by Bloomberg, while June's figure was adjusted slightly lower to an increase of $11.8 billion from the originally reported $12.4 billion. Non-revolving debt, which includes student loans and loans for vehicles and mobile homes, rose $15.9 billion y/y, while revolving debt, which includes credit cards, increased by $2.6 billion.

Wholesale inventories (chart) were revised higher to a 0.6% month-over-month (m/m) gain for July, versus the Bloomberg forecast of an unrevised preliminary 0.4% increase. This was the third-straight month posting a 0.6% increase. However, sales dipped 0.1% m/m, after June's downwardly revised 0.6% gain, and compared to the expected 0.5% rise. The inventory-to-sales ratio—the amount of time it would take to deplete inventories at the current sales pace—ticked higher to a 1.30 months pace from June's 1.29 rate.

Treasuries finished mostly lower, with the yield on the 2-year note nearly unchanged at 1.27%, while the yields on the 10-year note and the 30-year bond gained 2 bps to 2.06% and 2.67%, respectively.

Treasury yields rebounded from a recent bout of pressure that had taken them to levels not seen since November, while the U.S. dollar continued to drop to lows not seen in over two years. Fed rate hike expectations for this year have slipped and the European Central Bank signaled that it is likely to unveil plans to dial back its stimulus measures at its meeting next month. Moreover, geopolitical and U.S. political uncertainties remain, while last week's Hurricane Harvey is being followed by a plethora of storms in the Atlantic, with Hurricane Irma continuing to track toward Florida.

Schwab's Chief Fixed Income Strategist Kathy Jones notes in her article, What's the Bigger Risk: Bond Market Bubble or Complacency?, we think bond yields are likely to rise from current levels as the economy continues to improve and the Federal Reserve tightens policy, but we don’t see a bubble in the market. Read more on the Fixed Income page at www.schwab.com, and for analysis of investing styles, see Schwab's Chief Investment Strategist Liz Ann Sonders' latest article, Radioactive II: Could the Tide Finally Be Turning for Active vs. Passive?, on the Markets & Economy page. Follow Kathy and Liz Ann on Twitter: @kathyjones and @lizannsonders.

In the final hour of trading, the economic calendar will bring the release of consumer credit, expected to show consumer borrowing was $15.0 billion during July, up from the $12.4 billion posted the month prior.

Europe battles back as data and currencies in focus, Asia mixed following data 

European equity markets overcame early losses and finished mostly higher, as financials gained ground with bond yields in the region rebounding from recent pressure. The euro was relatively calm after an extended rally to levels versus the U.S. dollar not seen in well over two years. The European Central Bank (ECB) and the markets have shown some concern regarding the euro's recent surge, which was amplified by yesterday's ECB monetary policy decision that signaled plans to scale back stimulus measures could come next month. Also, the outlook for the possibility of a Fed rate hike this year has become more cloudy to bolster gains for the euro. A mixed trade report out of China, softer-than-expected German export growth, mixed industrial/manufacturing production data out of France, and relatively favorable U.K. industrial/manufacturing production were also in focus. The British pound gained solid ground on the U.S. dollar, likely weighing on the U.K. markets. Amid this backdrop, see Schwab's Chief Global Investment Strategist Jeffrey Kleintop's, CFA, latest article, U.S. vs international: what do earnings tell us about what may be ahead?, on the Markets & Economy page at www.schwab.com, and his video with Vice President of Trading and Derivatives, Randy Frederick, Is An Optimistic Outlook for Global Equities Warranted?, on the Insights & Ideas page. Follow Jeff and Randy on Twitter: @jeffreykleintop and @randyafrederick.

Stocks in Asia finished mixed to close out the week, with data showing Chinese exports missed forecasts but imports—a potential sign of growth in domestic output—topped forecasts, while Japan's Q2 GDP growth was revised to a slower pace of acceleration from Q1. Also, currency volatility garnered attention, with the yen extending a rally as the U.S. dollar continued to drop, hitting the strongest level versus the greenback since November, while currencies in China strengthened to help developers and airlines, per Bloomberg. Global monetary policy uncertainty after yesterday's ECB decision and as Fed rate hike expectations slip is bolstering the volatility. Tensions toward North Korea continued to fester to keep sentiment on edge, along with the potential impact of a plethora of hurricanes in the Atlantic. Schwab's Jeffrey Kleintop, CFA, notes in his article, Missiles and Markets: An investor guide to geopolitical risks investors should avoid overreacting to geopolitical developments and stick to their long-term financial plans. Read more on the International Investing page at www.schwab.com. 

Weekly gain streak ends as storms, currencies, and yields garner attention

U.S. stocks failed to extend a weekly winning streak to three as a plethora of sources of market anxiety stymied conviction. Financials came under pressure as Treasury yields fell to November lows, while the U.S. dollar tumbled to levels not seen since early 2015. Global monetary policy uncertainty lingered, as Fed rate hike expectations for this year continued to fade, the ECB hinted that detailed discussions regarding tapering are set to commence, and the Bank of Canada unexpectedly hiked rates. Just as the markets were recovering from Hurricane Harvey's impact, Irma crushed the Caribbean and tracked toward Florida.

Geopolitical concerns remained as North Korea detonated a hydrogen bomb and was reportedly preparing another ICBM test, while U.S. President Trump continued to push for global trade renegotiations. Dysfunction on the domestic political front persisted as President Trump backed a Democratic bill lumping a short-term debt limit extension to avoid a government shutdown with Hurricane relief, which passed through Congress but appeared to make some Republican Congressional members uneasy. Upbeat global economic data was overshadowed, with upbeat services sector reports out of China, the eurozone, U.K. and the U.S. having little impact. Healthcare issues led to the upside, bolstered by a plethora of upbeat experimental drug trial results, and energy stocks moved higher as crude oil prices paused from a recent tumble.

Next week, while assessing the impact of Irma and grappling with the aforementioned uncertainties, the economic calendar will likely regain some focus. Stubbornly low inflation, which has kept Fed rate expectations hamstrung, will be on display courtesy of the releases of the Consumer Price Index (CPI) and Producer Price Index (PPI) for August. The all-important U.S. consumer will also garner attention as the markets digest the August retail sales report and the preliminary September University of Michigan Consumer Sentiment Index. The docket will also bring the NFIB Small Business Optimism Index, JOLTS Job Openings, and industrial production and capacityutilization.

As noted in the latest Schwab Market Perspective: A Preview of Coming Attractions?, action is about to heat up as summer comes to an end but investors should remain cool. Geopolitical threats, domestic politics, and Federal Reserve actions all have the potential to add to volatility and heightens the risk of a pullback or correction. But healthy economic growth and strong corporate earnings lead us to believe that the bull market has legs. Read more on the Markets & Economy page at www.schwab.com.

International reports due out next week that deserve a mention include: Australia—consumer confidence and employment change. China—CPI, PPI, lending statistics, retail sales and industrial production. India—trade balance, CPI, PPI and industrial production. Japan—machine orders and industrial production. Eurozone—industrial production, new car registrations and trade balance, along with German CPI. U.K.—CPI, PPI, employment change and Bank of England monetary policy decision.

Markets Mostly Flat, Discretionary Stocks Find Pressure

Charles Schwab: On the Market

Posted: 9/7/2017 4:15 PM ET

Markets Mostly Flat, Discretionary Stocks Find Pressure

U.S. stocks closed mostly flat as Dow member Walt Disney and Comcast announced warnings in regard to financial numbers this quarter and after the European Central Bank kept its monetary policy stance unchanged. The U.S. dollar touched on two-year lows and Treasury yields dropped. The potential destruction arising from Hurricane Irma added to the skittishness of the markets. Jobless claims jumped in the aftermath of Hurricane Harvey and Q2 productivity was revised higher. Crude oil and gold both rose.

The Dow Jones Industrial Average (DJIA) declined 23 points (0.1%) to 21,785, the S&P 500 Index was nearly unchanged at 2,465, and the Nasdaq Composite increased 5 points (0.1%) to 6,398. In moderate volume, 787 million shares were traded on the NYSE and 2.0 billion shares changed hands on the Nasdaq. WTI crude oil ticked $0.07 lower to $49.09 per barrel and wholesale gasoline lost $0.01 to $1.66 per gallon. Elsewhere, the Bloomberg gold spot price was $14.62 higher at $1,348.84 per ounce, and the Dollar Index—a comparison of the U.S. dollar to six major world currencies—was 0.8% lower at 91.55.

Shares of GoPro Inc. (GPRO $10) jumped after the wearable action camera maker announced that it expects revenue and gross margin for Q3 to be at the high end of its previously reported guidance, citing strong demand for its GoPro products.

RH (RH $72), the furniture company formerly known as Restoration Hardware, reported a Q2 loss of $0.28 per share, or earnings-per-share (EPS) of $0.65 ex-items, versus the FactSet estimate calling for EPS of $0.47, as revenues grew 14.0% year-over-year (y/y) to $619 million, compared to the forecasted $606 million. Q2 same-store sales rose 7.0% y/y, above the projected 5.8% increase. RH boosted its full-year EPS outlook after issuing Q3 profit guidance that easily beat expectations. Shares surged over 45%.

Dow member Walt Disney Co. (DIS $97) was under solid pressure after the company noted at the Bank of America Merrill Lynch 2017 Media, Communications and Entertainment Conference that its full-year EPS will be roughly in line with the last year's $5.72, versus the Street's expectation of $5.89.

At the same conference, Comcast Corp. (CMCSA $38) said Hurricane Harvey and competition has resulted in a loss of some video subscribers that will hit its financial numbers this quarter.

Eli Lilly and Co. (LLY $82) announced steps to streamline its operations to focus better on developing new medicines and improve its cost structure, including the reduction of its workforce by 3,500 positions. Shares finished higher.

Cabela's Inc. (CAB $61) rallied after a subsidiary of Synovus Financial Corp. (SNV $41) received regulatory approval to acquire certain assets and assume certain liabilities of World's Foremost Bank, a subsidiary of the camping, hunting and fishing gear chain.

Jobless claims boosted by Hurricane Harvey, Q2 productivity revised higher

Weekly initial jobless claims (chart) surged by 62,000 to 298,000 last week, well above the Bloomberg forecast of 245,000, with the prior week’s figure being unrevised at 236,000. The jump is being mostly attributed to the impact of Hurricane Harvey. The four-week moving average rose by 13,500 to 250,250, while continuing claims declined 5,000 to 1,940,000, south of estimates of 1,945,000.

Final Q2 nonfarm productivity (chart) was revised to a 1.5% rate of growth on an annualized basis, from the preliminary estimate of a 0.9% increase, and versus expectations of a 1.3% rise. Q1 productivity was unrevised at a 0.1% gain. Unit labor costs were adjusted to a 0.2% gain, from the initial report of a 0.6% increase, and versus the forecast calling for a 0.3% rise. Q1 labor costs were revised lower to a 4.8% increase.

Treasuries rose, as the yield on the 2-year note fell 4 basis points (bps) to 1.27%, while the yields on the 10-year note and the 30-year bond dropped 6 bps to 2.05% and 2.66%, respectively. Bond yields and the U.S. dollar were back under pressure after yesterday's modest rebound, with the former falling back to lows not seen since November and the latter trading at more than a two-year low. Geopolitical and domestic political uncertainties are lingering, while the markets are grappling with global monetary policy uncertainty as Fed rate hike expectations slip and the European Central Bank (ECB) left its monetary policy stance unchanged but noted that currency volatility needs to be monitored. Also, the markets are eyeing Hurricane Irma, which is tracking toward Florida on the heels of last week's Hurricane Harvey that damaged the Texas Gulf and disrupted the oil & gas markets.

Schwab's Chief Fixed Income Strategist Kathy Jones notes in her article, What's the Bigger Risk: Bond Market Bubble or Complacency?, we think bond yields are likely to rise from current levels as the economy continues to improve and the Federal Reserve tightens policy, but we don’t see a bubble in the market. Read more on the Fixed Income page at www.schwab.com, and for analysis of investing styles, see Schwab's Chief Investment Strategist Liz Ann Sonders' latest article, Radioactive II: Could the Tide Finally Be Turning for Active vs. Passive?, on the Markets & Economy page. Follow Kathy and Liz Ann on Twitter: @kathyjones and @lizannsonders.

Tomorrow, the U.S. economic calendar will deliver a read on wholesale inventories for July, expected to have increased 0.4% m/m, matching the rise seen in June, while in the final hour of trading, consumer credit will be reported and is expected to have expanded by $15.0 billion during July.

Europe mostly higher as ECB holds policy steady, Asia mixed amid China data

European equity markets traded mostly higher, despite the reaction in the currency markets after the ECB expectedly left its monetary policy stance unchanged. The euro jumped to highs not seen in over two years versus the U.S. dollar and bond yields in the region were lower to pressure financials and hamstring Italian and Spanish stocks. The markets scrutinized the customary press conference from ECB President Mario Draghi that followed the decision. He noted that the recent volatility in the currency markets is a source of uncertainty which requires monitoring for its impact on price stability, while reiterating that substantial policy accommodation is still needed. The ECB lowered its inflation outlooks for 2018 and 2019, while raising this year's GDP growth forecast and leaving its guidance for economic output in to following two years unchanged. As expected, he did not offer much on the timing of removing stimulus measures, noting that autumn may be when the groundwork for the process is detailed. The markets are anticipating next month's meeting to be the one when we get the ECB's plans for paring its stimulus measures. The euro's recent rally has been reported to be causing concern at the central bank and the markets appear to be surprised that Draghi did not offer more in terms stemming the euro's jump.

The British pound also gained ground on the greenback. In other economic news, German industrial production came in flat month-over-month in July, after falling 1.1% in June, and versus projections of a 0.5% gain. Eurozone Q2 GDP was revised higher to a 2.3% y/y pace, from the preliminary estimate of a 2.2% increase. For a look at global stock investing, see Schwab's Chief Global Investment Strategist Jeffrey Kleintop's, CFA, latest article, U.S. vs international: what do earnings tell us about what may be ahead?, on the Markets & Economy page at www.schwab.com, and his video with Vice President of Trading and Derivatives, Randy Frederick, Is An Optimistic Outlook for Global Equities Warranted?, on the Insights & Ideas page. Follow Jeff and Randy on Twitter: @jeffreykleintop and @randyafrederick.

Stocks in Asia finished mixed following yesterday's modest rebound in the U.S., aided by news that President Trump supported a package that included a short-term debt ceiling extension that appeared to ease political concerns somewhat. Market participants traded with some caution ahead of today's monetary policy decision from the ECB and with China expected to report trade and inflation data later this week. Japanese equities rose, with the yen paring a recent run, while South Korean stocks snapped a recent losing streak. Tensions toward North Korea had pressured the Korean markets but no new developments in the past couple days seems to be cooling concerns. Schwab's Jeffrey Kleintop, CFA, notes in his article, Missiles and Markets: An investor guide to geopolitical risks investors should avoid overreacting to geopolitical developments and stick to their long-term financial plans. Read more on the International Investing page at www.schwab.com. Shares trading in mainland China and Hong Kong traded lower. Australian securities finished flat after softer-than-expected reads on retail sales and the trade surplus, while Indian equities were little changed.

The international economic docket for tomorrow will include trade data, Q2 GDP and bank lending figures from Japan, home loans from Australia, trade data and labor costs from Germany and industrial and manufacturing production from the U.K. and France.

Financial Review

Carry On

Sinclair Noe — September 6, 2017

Podcast: Play in new window | Download (Duration: 13:15 — 7.6MB)

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DOW + 54 = 21,807
SPX + 7 = 2465
NAS + 17 = 6393
RUT + 2 = 1402
10 Y + .04 = 2.11
OIL + .55 = 49.17
GOLD – 5.90 = 1334.50

Top Cryptocurrencies

	Name	Symbol	Price USD	Market Cap	Vol.	Total Vol. %	Price BTC	Chg. % 1D	Chg. % 7D
	Bitcoin	BTC	4,535.4	$74.84B	$2.01B	33.87%	1	-1.17%	-1.56%
	Ethereum	ETH	326.69	$30.59B	$925.72M	15.61%	0.0713257	-3.16%	-14.52%
	Bitcoin Cash	BCH	626.82	$10.25B	$735.94M	12.41%	0.136414	-3.34%	6.35%
	Ripple	XRP	0.22301	$8.48B	$146.48M	2.47%	0.00004871	-3.23%	-2.85%
	Litecoin	LTC	78.720	$4.09B	$735.92M	12.41%	0.0170777	-3.38%	20.23%
	NEM	XEM	0.29171	$2.63B	$3.85M	0.06%	0.0000645	-3.47%	-6.32%
	Dash	DASH	339.22	$2.55B	$33.61M	0.57%	0.0745771	-3.04%	-8.44%
	IOTA	MIOTA	0.70690	$1.95B	$33.70M	0.57%	0.00015468	-4.40%	-20.62%
	Monero	XMR	118.70	$1.77B	$58.20M	0.98%	0.0259621	-3.50%	-13.37%
	Ethereum Classic	ETC	18.4400	$1.72B	$193.02M	3.25%	0.00397381	-4.45%	14.47%

The major stock indices did what they have been doing all year – shrugged off worries and continued the trend. In the background, the economy continues to slog along with good, not great growth. Companies continue to report good earnings.

Expectations for tax reform and infrastructure spending are diminishing but on the bright side we are not engaged in a nuclear war with North Korea, so it all kind of balances out. Bank of America Merrill Lynch, for one, thinks investors should be more confident on equities. The firm said in a research note that it recommends being bullish given that the first synchronized upswing in the global economy since 2007 is a strong tailwind for earnings.

By its reckoning, the firm figures that global corporate profits are running 13.5 percent higher than last year. That’s in line with the gain in the benchmark MSCI All-World Country Index, suggesting stock prices have not gotten ahead of themselves. To be sure, there are plenty of other issues on the horizon to worry about, but for now the trend is in place until something blows up.

In a rebuke to Republican leaders, Trump backed Democrats’ plan to support a deal that would fund Hurricane Harvey aid but only raise the debt ceiling for three months. Those two items would also be tied to a measure to keep the government open through the end of December, setting up a hugely complicated year end crush of must-pass items. Republicans would have preferred a longer extension to avoid another fight in December.

Democrats could use the opportunity as leverage to attach a provision aimed at codifying into law the Deferred Action for Childhood Arrivals program. Nothing signed yet, but it looks like the debt ceiling crisis has been kicked down the road for now. I’m not sure we can call it bipartisanship but it’s not a debt default.

Debt ceiling jitters were particularly high Tuesday when the Treasury Department auctioned $20 billion of one-month bills at a rate of 1.30 percent, which was higher than the 1.23 percent yield on two-year Treasury notes. Those who were brave enough to buy at those rates saw the value of the bills soar today as the rate dropped to 1.02 percent.

On the stump for tax reform in North Dakota this afternoon, Trump repeated one of his favorite campaign claims: that Americans pay more in taxes than any other country. Except that’s not true.

In fact, the US ranks in the middle of the pack when compared with the roughly three dozen developed countries tracked by the Paris-based Organization for Economic Cooperation and Development. And our tax rate, is ranked fourth from the bottom, among the very lowest.

Stanley Fischer, the vice chairman of the Federal Reserve, announced today that he would resign in mid-October. Fischer joined the Fed’s board in 2014 after a distinguished career as an academic economist and an international policy maker.

Fischer brought a hawkish voice to Fed deliberations on monetary policy, arguing that the Fed should be raising interest rates more quickly, sparring with Janet Yellen, the Fed chair. But he provided reliable support for measures strengthening financial regulation.

Trump has not been in a rush to refill the Fed’s board. There were two vacancies when he took office, and a third seat opened in the spring. So far, the White House has put forward only one candidate, Randal Quarles, a Utah investor who was nominated in July.

Fischer’s departure is unlikely to shift monetary policy in the near term. The Fed is widely expected to announce after its next meeting in mid-September that it will begin to reduce its holdings of Treasuries and mortgage-backed securities.

The Federal Reserve’s latest Beige Book report, which collects and presents anecdotes on economic trends from policy makers’ business contacts around the country. All 12 Fed districts reported moderate to modest economic growth. Companies aren’t passing along higher input costs to consumers in the form of more expensive products and services. Instead, they’re accepting lower profit margins.

Most districts reported limited wage pressures and modest to moderate wage growth. The Fed said that consumer spending increased in most districts and that many contacts were becoming worried about a prolonged slowdown in the auto industry.

The Beige Book, based on information collected on or before August 28, said there was not enough time to gauge the full extent of the flooding from Hurricane Harvey.  The Atlanta and Dallas Fed banks reported the storm created broad disruptions to economic activity along the Gulf Coast.

Economic reports today show the trade deficit rose slightly in July, keeping the U.S. on track to post a larger gap in 2017 than in 2016. The deficit edged up to $43.7 billion in July from $43.5 billion in June.

A reading on services activity, meanwhile, came in better than expected, providing an added lift to the outlook for the health of the U.S. economy. ISM services were at 55.3 in August, compared with 53.9 in the prior period. A reading of at least 50 indicates expansion.

Hurricane Irma has hit a few islands in the Caribbean – including St. Martins and St. Thomas – and is now closing in on Puerto Rico. The imminent threat of a natural disaster comes as the territory deals with a massive economic disaster.

In May the commonwealth filed the biggest municipal bankruptcy in US history. Puerto Rico has $74 billion in debt, and another $50 billion in pension obligations on the books.

The Federal Emergency Management Agency already has about 400 people in Puerto Rico and the U.S. Virgin Islands to help with hurricane preparation and response. Puerto Rico will surely need and get federal assistance. A severe disaster could exacerbate some of the commonwealth’s adverse economic trends, including migration to the U.S. mainland.

The official forecast path shows that Irma’s center could track along or either side of the Florida peninsula. Where Irma turns north will be critical for determining what part of Florida experiences the most dangerous impacts from Irma. Regardless, conditions in South Florida may go downhill as soon as midday Saturday.

Irma is a Category 5 and it is a very large hurricane, wider than the state of Florida; so, despite the uncertainty in its track, there is a threat of rainfall flooding and strong winds capable of triggering power outages, downing trees and perhaps some structural damage will likely occur to some degree well inland from wherever Irma makes landfall into a swath of the Southeast early next week.

And just a side note; the NFL season kicks off Thursday night but I would like to nominate J.J. Watt as the league MVP. The Houston Texan defensive player put together a fund-raising effort for Hurricane Harvey relief, and he has already raised $27 million.

And while we’re at it, a tip of the hat to Oklahoma. The Sooner state has offered aid to burnt orange country. Volunteers from agencies in Oklahoma, such as the American Red Cross, Children’s Disaster Services, Convoy of Hope, Mercy Chefs, the Salvation Army, Southern Baptist Disaster Relief and Operation BBQ will be going to Texas.

Just in case you’re wondering – Operation BBQ is a real thing. It started in 2011, when Joplin Missouri was hit by a tornado.  Volunteers from competition BBQ teams from eight states answered the need to help feed displaced families, police, fire, National Guard and emergency personnel. They served over 120,000 meals over 13 days. Operation BBQ – you may know it by its other name: Ribs Sans Frontieres.

The Gap plans to close about 200 “underperforming” Gap and Banana Republic locations. There are currently about 2,000 Gap and Banana Republic stores worldwide, so the closures would likely impact about 10% of them. Gap declined to specify how many of each brands’ stores will close or where the soon-to-be shuttered stores are located.

One bright spot for Gap has been Old Navy – its less expensive clothing brand. When Gap reported earnings last month, Old Navy outperformed the other brands once again. While comparable sales at Gap fell by 1% and Banana Republic’s sales were down 5%, Old Navy saw a 5% increase.

The company added that it plans to continue making “significant” investments in its online operations, including in artificial intelligence technology. Shares of The Gap were up 7.4% today. Closing 200 stores and the stock jumps higher – no, it doesn’t make sense.

Restoration Hardware announced a forecast for third-quarter and full year adjusted earnings that flew past its previous expectations, sending its shares 30% higher in extended trading. The stock is heavily shorted and the big move looks like a short squeeze.

Intel has won a point in its antitrust battle with the European Commission — and the American technology industry may be feeling a little victorious as well. The Court of Justice of the European Union ordered a lower court on Wednesday to re-examine the 1.6 billion euro, or nearly $1.3 billion, fine imposed on Intel in 2009 for abuse of its dominant position in the computer chip market.

This does not mean Intel is in the clear, just getting a second chance to present their side of the case. The decision is considered a setback for the European Union antitrust authorities who have been investigating American tech giants like Google and Qualcomm.

T-Mobile upped the mobile phone carrier war on Wednesday, announcing an exclusive partnership to offer free Netflix Inc. subscriptions to T-Mobile One family plan customers.

The best selling electric car is the Nissan Leaf, and today, Nissan announced it has updated the car for the first time since it was introduced in 2010. The biggest change – a 200-mile range.