Yahoo Finance Deutsche Bank fears subside on Wall Street
Wall Street is brushing off concerns about Deutsche Bank’s (DB) financial health for now.
All three major averages (^GPSC, ^DJI, ^IXIC) are sharply higher following a report that Germany’s largest lender is close to settlement with the US Justice Department for just $5.4 billion, that’s way less than initially requested. Deutsche Bank shares have been under pressure after the DOJ requested $14 billion to settle charges related to the sale of toxic mortgage securities before the financial crisis.
On the economic front, the Commerce Department reported that personal spending remained flat in August, while income rose 0.2%. While, the core PCE, the Federal Reserve’s preferred inflation measure, rose 0.2%.
Voting for remarriage
Media mogul Sumner Redstone and his daughter Shari want Viacom (VIAB) and CBS (CBS) to merge. They sent a letter to the boards of both companies pushing for a re-combination of the two companies that split apart in 2006. Why does this make sense?
Just say no
Salesforce.com (CRM) wants regulators to block Microsoft’s (MSFT) $26 billion acquisition of LinkedIn (LNKD). Salesforce says the deal would hurt competition by giving Microsoft too much control over LinkedIn’s huge pool of data. What are regulators likely to do?
Stocks to watch
Nutanix is making its Wall Street debut under the ticker NTNX. The cloud computing firm raised $238 million in its initial public offering Thursday night, selling roughly 15 million shares at $16 a piece. The higher-than-expected price tag values Nutanix at $2.2 billion dollars.
Costco (COST) shares were higher in early trading. The wholesale club chain delivered better-than-expected earnings for its fiscal fourth quarter. The company’s switch to Visa (V) from American Express (AXP) translated into lower fees, which helped offset a decline in food prices.
NXP Semiconductors (NXPI) shares added to Thursday’s nearly 17% gain in early trading following reports that Qualcomm (QCOM) is in talks to buy the Netherlands-based chip maker in a deal valued at more than $30 billion. The deal would help Qualcomm expand its reach beyond smartphones to automotive electronics, which has become a hot market for new chip technology.
