Good afternoon,
The S&P 500 has raced ahead 0.74% today as the Federal Reserve conducts its two-day policy meeting. On Wednesday, Fed Chair Janet Yellen will announce any policy decisions. For sometime, market participants were anticipating a rate hike in September. Economic numbers have been mixed and turmoil in China and Greece has cast some doubt on that scenario.
UPS slays earnings on overseas margin growth, volume. The company reported $1.35/share, up from $1.21 the 2014 second quarter, and well above the Wall Street consensus of $1.26/share. Ford and Pfizer also reported strong earnings. Disappointing investors: DuPont and Ingersoll-Rand. CNBC, MarketWatch
Comedian Jon Stewart had two private meetings with President Obama. The president requested the secret meetings in 2011 and 2014 before announcing controversial policies — during the budget fight and then during the Ukraine conflict with Russia. The tete-a-tetes reveal the extent of Stewart’s power and how the White House has wooed him. Politico
On board Tuesday: Twitter earnings! The microblogging platform is trading about one-third below its peak and it needs a CEO. Wall Street is expecting earnings of $0.05/share on revenues of $487.38 million. Also reporting today: Gilead Sciences, Yelp, Panera, Merck, and U.S. Steel, and Anadarko Petroleum.
The S&P/Case-Shiller House Price Index up 4.4% year-over-year in May. In a statement, David M. Blitzer, managing director, said home prices have been gaining about 4%-5% annually since 2013. Calculated Risk
Shanghai Composite manages to lose only 1.68% overnight after falling as much as 5%. Word is the pull back from the abyss was thanks to the China Finance Securities Corp., which has government approval to funnel money to brokerages. All on the Q.T. Shenzhen meanwhile also recouped some of its losses, ending the session down only 2.2%, while Hong Kong had a much better day as the Hang Seng Index managed to eke out a 0.62% gain. Over in Japan, the Nikkei Average slipped 0.1%.
BP posts loss on Gulf settlement, lower oil prices, reduced production in the Gulf of Mexico. The oil giant posted a $5.8 billion loss in the second quarter. Operating profits slumped to $494 million from $4.7 billion a year earlier. BP also wrote off $432 for exploration in Libya, where political instability has upended many businesses. New York Times (paywall)
Consultant tells clients to pull money from Carlyle Group hedge fund. Cliffwater LLC has told clients who account for $800 million, or 14%, of funds in Claren Road Asset Management to ask for their money back. The $4.9 billion unit of the private equity firm has had poor performance: It was down 4.9% in June and lost 10% in 2014. It’s not clear that Cliffwater clients will follow the advice. The next withdrawal date to request withdrawals by yearend is September 30. Wall Street Journal (paywall)
Start-up payments honey Stripe raises funds at $5 billion valuation. Investors include Visa and venture capital firm Kleiner Perkins Caufield. & Byers. Stripe helps businesses process their ecommerce transactions and is facilitating the buy button for advertisers on Facebook, Twitter, and Pinterest. The company raised less than $100 million. Wall Street Journal (paywall)
Apple Watch coming to Best Buy. We guess this means that exclusivity is no longer part of the marketing push for the iconic tech company. The No. 1 electronics retailer in the U.S. becomes the first to offer the timepiece outside an Apple Store. Reuters