Updated throughout the day
August 17
The stock market ended modestly higher in light trading. Stocks initially dipped on a weaker-than-expected manufacturing report but took heart in robust numbers on housing. The S&P 500 finished 0.5% higher at 2,102.44. The Dow Jones Industrial Average finished 0.4% higher at 17,545.18, and the Nasdaq climbed 0.9% to 5,091.70. After the close, Urban Outfitters jumped nearly 5% to $33.90 after reporting robust earnings — $0.53/share, handily beating expectations of $0.49, on record sales.
Here’s what else you need to know:
IRS says hacks were much more extensive than originally reported. Hackers tried more than 600,000 times to infiltrate the tax statements of U.S. citizens, succeeding more than 300,000 times. Originally, the IRS reported that attackers had tried to breach the system 225,000 times, succeeding in about 50% of cases. Only a few thousand filed for fake refunds but the IRS believes that the attack was in preparation for the 2016 tax season. The vulnerability has been shut down. Wall Street Journal (paywall)
Northwestern football team loses bid to form union. The National Labor Relations Board rejected the petition from the university. However, the board didn’t give an opinion on whether the football players were employees — which means the team could re-visit the issue. Chicago Tribune
QVC is buying flash sales startup Zulily for a discount to the IPO price. The e-commerce company agreed to sell for $18.75/share, or $2.4 billion, a discount to the IPO price of $22. On its first day of trading, the stock had closed at $37.70/share. More recently, Zulily has disappointed investors and the stock has been trading between $10 and $15/share. Business Insider, Tech Crunch
Big Read: How three teenaged London girls abandoned their homes to join ISIS in Syria. A terrifying read. New York Times (paywall)
Manufacturing data in New York weaker than expected and stocks slip modestly. The New York Fed’s Empire State index nosedived from 3.86 in July to -14.92 this month. Economists had expected the index to rise to 5 but new orders and shipments dropped unexpectedly. Reuters
Homebuilder index edges up, as expected. The NAHB/Wells Fargo Housing Market Index hit 61 this month, up from 60 in July — a new 10-year high. Strength in the West and South propelled the index higher. National Association of Home Builders
GE homes in on E.U. deal. The European Union is expected to approve a $13.8 billion bid of GE for the French Alstom’s power business. It would mark GE’s biggest deal ever. Reuters
Chinese officials confirm cyanide in Tianjin. Anger over the Tianjin explosions have intensified recently after it was confirmed that several hundred tones of cyanide were held in two buildings within the blast zone. Around 3,000 soldiers were deployed to handle the dangerous chemicals. So far 112 have been confirmed dead; 95 people remain unaccounted for, including 85 firefighters. SCMP (paywall)
Greece might get debt relief. German Chancellor Angela Merkel says that she expects the IMF to be on board in Greece’s €86 billion bailout plan, hinting that the IMF’s conditions – debt relief, to be exact – will be met. The Guardian
Japanese GDP weaker than expected. Japanese quarter-on-quarter GDP growth came in at -0.4% today, slightly better than the -0.5% reading expected by economists. Year-on-year growth meanwhile came in 0.3% above forecasts. It wasn’t all good news though; exports and consumption – two highly important aspects of the Japanese economy – continued to fall. CNBC (video)
U.S. State Department sends warning to Chinese on foreign agents in U.S. The Obama administration is cracking down on Chinese operatives who are trying to repatriate nationals on charges of corruption. The covert operation, known in China as Operation Fox Hunt, strong-arms expats here, threatening their families. President Xi Jinping is slated to visit Washington, D.C., next month and it is likely tensions will be running high. The U.S. is convinced that China was behind a mammoth hacking of government personnel files and is also concerned about the recent human rights crackdown on the mainland as well as the abrupt devaluation of the yuan. New York Times (paywall)
ICYMI:
Buffett discloses new investments. Berkshire Hathaway added to its stake in Charter Communications, but also dropped its stakes in National Oilwell Varco and Phillips 66. The firm also invested in paint company Axalta Coating Systems. Reuters
Soros slashes China investments. Soros Fund Management sold off most of its stakes in Chinese companies Alibaba and Baidu. The firm bought an iShare ETF that tracks large-cap Chinese companies. Wall Street Journal
You won’t believe this:
Mailboxes go viral in Taiwan. Actually just a pair, damaged to perfection after a billboard fell on the pair during the recent typhoon. They now both lean in perfect symmetry and are now a tourist destination. The Verge
A museum dedicated useless inventions. Like transparent suitcases and a buttonhole from Napoleon’s vest. To get to the Nonseum, you’ll need to fly to Vienna and rent a car for the hour-long drive. It just might be worth it. The Local
Photo: EyeTunes