Updated throughout the day
February 18, 2016 6:30 p.m. ET / February 19, 7:30 a.m. HKT
As oil goes, so goes the market. West Texas Intermediate futures erased its gains, ending down 0.45% at $30.63 on word that oil inventories had swelled. U.S. stocks followed, with the Dow Jones Industrials dropping 0.25% Thursday. The Nasdaq lost 1% and the S&P 500 fell about 0.5%.
Here’s what else you need to know:
The Pope slams Donald Trump on immigration stance. In a flight back from his trip to Mexico and Cuba, Pope Francis told reporters “A person who thinks only about building walls, wherever they may be, and not building bridges, is not Christian. This is not in the Gospel.” Wall Street Journal (paywall)
Clinton, losing grip on women voters, sees lead erode. Hillary Clinton now leads Bernie Sanders 53% to 42%, cutting her lead in the last month in half. In January, she led 59% to 34%. Clinton still commands more votes among minorities. Wall Street Journal (paywall)
Senate intelligence committee going after Apple. Chairman Richard Burr of North Carolina is reportedly working on a bill that would create criminal penalties for companies that won’t help federal agencies decipher encrypted communications. Apple has said that it won’t help the FBI hack a phone belonging to one of the San Bernardino attackers. Wall Street Journal (paywall)
Obama to head to Cuba. U.S. President Barack Obama will visit Cuba and meet with Cuban President Raul Castro in March, as part of continued efforts to break down barriers between the two countries. This will be the first presidential trip to Cuba in almost 90 years. Reuters
FBI raids United Development Funding HQ. UDF sponsors real estate investment trusts and other investment vehicles. UDF’s largest fund fell 54% before trading was stopped Thursday. The company’s lending is hyper concentrated, with 99% of the largest fund’s portfolio made up of loans made to Texas borrowers. The FBI has not yet commented on their UDF investigation. Wall Street Journal (paywall)
EU to clear Dell’s EMC deal. The computer manufacturer will get EU antitrust approval for its proposed $67 billion acquisition of EMC Corp, a data storage company. The official ruling will happen before the end of the month. Reuters
Walmart, Nestle fall short in 4Q. The giant U.S. retailer slumped 2% on the miss on earnings and said it wouldn’t grow sales in 2016. Walmart raised its dividend to $2.00/share from $1.96. Nestle also missed its sales target for the third year running. Business Insider/MarketWatch/Reuters
Asia, Europe mostly higher . Weaker yuan, higher oil prices were net pluses on Thursday. The FTSE 100 faded as commodity stocks Glencore, Anglo American, and BP tumbled. Japan’s Nikkei 225 rallied 2.3% and the Hang Seng climbed 2.3%. The Shanghai Composite edged up 0.16%.
Japanese trade plunges at record pace. Japanese imports and exports fell at their fastest pace since 2009. Japanese exports dove 12.9% year-on-year in January, worse than December’s 8% drop and well below the expected 10.9% slide. This is the biggest decline since October 2009. Imports meanwhile fell 18% year-on-year, roughly unched on December’s decline, but worse than the forecasted 15.8% slump. Financial Times (paywall)
Chinese CPI misses estimates. China’s consumer price index rose by 1.8% year-on-year in January, up two ticks from December’s 1.6% reading, but a hair short of the expected 1.9% climb. It’s still good, but it’s also short of Beijing’s 3% target. Producer prices meanwhile remain worryingly low. PPI fell 5.3% year-on-year in January, better than December’s -5.9% pace, and a touch lower than the expected 5.4% dive. ForexLive
Turkish paper identifies Ankara car bomb attacker as Syrian national. A Syrian national, identified from his fingerprints, carried out a car bomb attack next to military buses in Turkey’s capital, Ankara, that killed 28 people, the pro-government Yeni Safak newspaper said on Thursday. Reuters
Islamic State finds “diminishing returns” on Twitter. The Islamic State’s English-language reach on Twitter has stalled in recent months amid a stepped-up crackdown against the extremist group’s army of digital proselytizers, who have long relied on the site to recruit and radicalize new adherents, according to a study. Reuters
ICYMI
China worries cast shadow over Japan, Inc. Experts are apparently worried that the slowing Chinese economy and a volatile financial market may discourage Japan, Inc. from upgrading equipment during the current quarter. Weak Japanese consumer spending appears to be a cause for concern as well. Nikkei Asian Review
US attacks China ‘militarization’ in South China Sea dispute. Secretary of State John Kerry says Washington is seriously concerned about after reports Beijing has deployed surface-to-air missiles on a disputed island in the region. China dismissed the reports as “hype,” but said it had the right under international law to defend itself. BBC
Earnings roundup: T-mobile, Marriott, NVIDIA. T-Mobile nearly triples earnings as it adds 2.1 million subscribers. Competitive prices drew in new subscribers big time in the final quarter of 2015. Marriott International reported 4Q earnings after the close, and sharply ratcheted down the earnings outlook for its first fiscal quarter. And NVIDIA recorded recorded fourth quarter and full-year results, sending the stock 7% higher in after hours trading. Fortune/StockTwits/24/7WallSt
Ted Cruz edges out Donald Trump for GOP need for first time. In a new national poll, the Texas senator garnered 28% of support from likely voters vs. 26% for Trump. Florida Senator Marco Rubio came in third place with 17% and former Florida Governor Jeb Bush polled at a sickly 4%. Wall Street Journal (paywall)
You won’t believe this:
“Smoking kills more than Obama,” warns Russian anti-smoking poster. It’s the latest offering in an anti-Obama campaign, including one video that claims the U.S. president kills 875 people weekly. The Guardian
Australia town consumed by “hairy panic.” That would be a fast-growing tumbleweed clogging up homes in tiny Wangaratta, in Victoria’s northeast. Residents spend hours daily clearing the nasty infestation, which can reach roof height. BBC
Photo: Alexander Schimmeck