JPM - JPMorgan Chase & Co.
| Previous Close | 135.04 |
| Open | 134.63 |
| Bid | 134.78 x 800 |
| Ask | 134.79 x 800 |
| Day's Range | 134.51 - 135.46 |
| 52 Week Range | 91.11 - 135.78 |
| Volume | 3,918,066 |
| Avg. Volume | 10,683,376 |
| Market Cap | 422.311B |
| Beta (3Y Monthly) | 1.22 |
| PE Ratio (TTM) | 13.29 |
| EPS (TTM) | 10.13 |
| Earnings Date | Jan. 14, 2020 |
| Forward Dividend & Yield | 3.60 (2.67%) |
| Ex-Dividend Date | 2019-10-03 |
| 1y Target Est | 124.08 |
- Zacks
AutoZone, Oracle, Costco, Adobe Systems and JPMorgan are part of Zacks Earnings Preview
AutoZone, Oracle, Costco, Adobe Systems and JPMorgan are part of Zacks Earnings Preview
- Bloomberg
Xerox Woos HP Holders With $1.5 Billion Sales Growth Target
(Bloomberg) -- Xerox Holdings Corp. believes its proposed HP Inc. takeover would create as much as $1.5 billion in potential revenue growth, according a presentation to HP’s shareholders made public Monday.The printer maker outlined its case for a tie-up between the companies, arguing the combined firm will be worth about $31 a share to HP investors on a pro-forma basis. The merged entity will generate more than $4 billion in free cash flow in the first year before taking any synergies into account, according to the presentation, confirming a report in Bloomberg News.“The value of the transaction goes beyond economics. In consolidating industries, first movers not only win but also have an opportunity to reshape the competitive landscape in an enduring way,” John Visentin, Xerox’s chief executive officer, said in the presentation.Xerox has already said it believes the combination would create roughly $2 billion in synergies, which it argues could be achieved in 24 months. Those savings could be achieved through streamlining their operations by reducing the number of suppliers the combined company would use, cost reductions on information technology and reducing its real estate footprint, among other measures.The presentation for HP shareholders goes further, saying a merger of their operations would allow cross-selling and a unified platform for clients. That could yield an estimated $1 billion to $1.5 billion revenue growth, Xerox said.To get to this amount, Xerox says it has a three-year roadmap that includes generating $540 million to $750 million from pitching complementary products to existing clients, $50 million to $100 million from manufacturing and distribution efficiencies and $350 million to $400 million from integrating HP products into Xerox’s office-as-a-service offerings.It also said there could be $300 million to $400 million in growth from Xerox’s services and software and $150 million to $300 million from offering Xerox’s leasing options to HP customers. A representative for Xerox declined to comment, while a representative for HP couldn’t immediately comment.HP’s shares were little-changed at $20.50 at 9:58 a.m. Monday, while Xerox rose less than 1% to $37.99.HP last month rejected an unsolicited, cash-and-stock offer from Xerox worth $22 per share, arguing it undervalued the company and citing concerns about the health of its smaller rival’s business. Xerox said it planned to take its case straight to HP’s shareholders after the Palo Alto-based hardware maker refused to grant the mutual due diligence it requested.The presentation to be released publicly Monday is the first step in that effort, and Visentin will start meeting some HP shareholders this week to sell the plan. Xerox has asked for three weeks of mutual due diligence in order to validate its case for a tie-up, noting in the presentation it expects no financing conditions and no regulatory risks.JPMorgan Chase & Co. analysts said this month that a merger carried risks and could cause some near-term downside in both stocks. Their Dec. 3 note added that the deal would leave investors more exposed to “a declining printer business.”Activist investor Carl Icahn, who owns as stake in both companies, called on HP last week to push ahead with the talks, calling the deal a “no-brainer.” He accused the company’s directors and management of seeking to preserve their own jobs instead of protecting shareholders’ interests. He argued HP’s standalone plans amount “to little more than rearranging the deck chairs on the Titanic.”Icahn is Xerox’s largest holder with a nearly 11% stake in the Norfolk, Connecticut-based company. He also owns a 4.2% of HP, making him its fifth-largest holder, according to data compiled by Bloomberg.(Updates with details of presentation starting in first paragraph)To contact the reporter on this story: Scott Deveau in New York at sdeveau2@bloomberg.netTo contact the editors responsible for this story: Liana Baker at lbaker75@bloomberg.net, Fion Li, Ben ScentFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Bloomberg
Fiverr Languishes Below IPO Price as First Chance to Sell Nears
(Bloomberg) -- Fiverr International Ltd.’s initial zing has almost entirely faded since its June IPO, with the stock falling for six straight days to below its IPO price as insiders’ and early investors’ first chance to sell looms on Tuesday.The biggest stakeholders include Viola Private Equity’s Jonathan Kolber, Deer VII & Co., Accel London III Associates, Square Peg Group, and co-founder and chief executive officer Micha Kaufman, according to data compiled by Bloomberg. But post-IPO stock weakness, with shares off the June high of $44 by more than 52%, make it less likely shareholders will walk away.Fiverr chief Kaufman was unavailable to respond to queries.The operator of an online marketplace for software services had the fourth-best debut of this year’s 239 IPOs, rising a whopping 90% from offer to its first close. That ranks just behind Beyond Meat Inc., Adaptive Biotechnologies Corp., and Cortexyme Inc., each of which has done better hanging on to initial gains. Underwriters on the Fiverr IPO were JPMorgan, Citi, BofA, UBS, Oppenheimer, Needham, and JMP Securities.Analysts appear split, with four buy, three hold and no sell ratings on the stock, according to data compiled by Bloomberg. But with price targets ranging from $22 to $34, they seem to agree that debut highs are unlikely to be seen again anytime soon. To contact the reporter on this story: Crystal Kim in New York at ckim426@bloomberg.netTo contact the editors responsible for this story: Brad Olesen at bolesen3@bloomberg.net, Scott SchnipperFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Zacks
BB&T-SunTrust Merge to Form 6th Biggest Bank Truist Financial
Truist Financial, the sixth largest bank in the country, is likely to give significant competition of other big banks.
- Bloomberg
What Is Really to Blame for the Repo Market Blowup
(Bloomberg Opinion) -- The Bank for International Settlements — the central bank of central banks — has weighed in with its analysis of what went wrong in mid-September when the U.S. repurchase market all of a sudden dried up (for the first time in a decade). It looks like it has missed the point.While pointing the finger at a raft of different reasons and players, notably hedge funds, BIS doesn’t really answer the salient questions: Why haven’t the elevated funding rates that arose in September gone away and what can be done to prevent something like the original event from happening again?There are obvious quick fixes with which the U.S. Federal Reserve and Treasury have responded swiftly, such as ensuring extra liquidity on tax deadline or auction payment days. But the wider problem is that the post-crisis regulation of banks has become too rigid, and that is going to need addressing at some point.The repo market is the plumbing of the financial system where government securities are lent and borrowed for periods ranging from overnight to several months. This constant access to liquidity greases the wheels of government securities and the wider credit markets. Since the global financial crisis, cash has always been plentiful, so when repo rates all of sudden jumped as high as 10% in September, it was a rude awakening.The Fed has been in full firefighter mode ever since — along with the U.S. Treasury — to try to make sure the spike in rates isn’t repeated over the critical year-end funding period. But short-term liquidity is no substitute for a proper long-term fix. With a Dec. 16 tax payment day looming (a day on which cash is naturally drained from the banking system), and with the repo rate over the year end more than double the Fed rate of 1.5%-1.75%, this is not proving to be a temporary problem.It is in fact a confluence of systemic issues; it’s not just down to the too-swift reduction of the Fed’s bond holdings from the Quantitative Easing programs or a sudden abundance of new Treasury bonds for sale.Similarly trying to blame hedge funds for their arbitraging activities misses the point: This is meant to be the world’s most liquid money market. Extending the overnight secured repo market to longer-term dates could rapidly ease much of this funding bottleneck.The biggest four U.S. lenders own more than 50% of the Treasuries in the banking system but only one-quarter of all cash reserves. They have to hold this level of U.S. government bonds as high-grade collateral to satisfy regulatory requirements, but that restricts how much they offer into the repo market even when rates are temptingly high. This is a phenomenon that Jamie Dimon, JPMorgan Chase & Co’s chief executive officer, has been quick to point out. Another question is why the rest of the U.S. banking system has backed away from the repo market? Again, this is down to regulation and market structure, which has made the repo market a less efficient use of banks’ capital. Regulatory measures put in place by the Dodd-Frank Act need revisiting.To contact the author of this story: Marcus Ashworth at mashworth4@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Marcus Ashworth is a Bloomberg Opinion columnist covering European markets. He spent three decades in the banking industry, most recently as chief markets strategist at Haitong Securities in London.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
- Yahoo Finance
Stock Market Live Updates: Wall Street ends choppy week on a high note after 'wild' November jobs report
Headlines moving the stock market in real time.
- Reuters
JPMorgan banker testifying for cartel prosecutors says there was no agreement
A prosecution witness in an Australian criminal cartel case against Citigroup Inc and Deutsche Bank AG said on Friday that the banks never colluded, but that he helped a regulator build its case to get immunity. The testimony from former JPMorgan Chase & Co markets head Jeff Herbert-Smith in court is a blow to the prosecution, which is relying on JPMorgan to support a case that the three global investment banks engaged in criminal cartel behaviour in a A$2.5 billion share issue for Australia and New Zealand Banking Group in 2015. The Australian Competition and Consumer Commission (ACCC), which brought the charges, accuses Citi and Deutsche and their client, Australia's fourth-largest bank, of withholding details of the sale to support the stock's price.
- Investing.com
Stocks – Wall Street Rises Modestly Ahead of Jobs Report
Investing.com – Stocks managed to rise for a second day in a row Thursday ahead of release of the important U.S. jobs report.
- Zacks
Chesapeake Jumps 16% on $1.5B Term-Loan Facility Securement
With term-loan proceeds, Chesapeake (CHK) will finance its tender offer for unsecured notes that were issued by its affiliates.
- Zacks
Major Regional Bank Stocks Outlook Rosy on Decent Loan Rise
Major Regional Bank Stocks Outlook Rosy on Decent Loan Rise
- Business Wire
JPMorgan Chase, Envestnet l Yodlee Sign Agreement to Increase Customers’ Control of Their Data
JPMorgan Chase (NYSE: JPM) announced today an agreement with leading data aggregator Envestnet l Yodlee to help protect customers’ financial data. The agreement will give Chase customers more visibility and control as they use financial apps.
- Market Exclusive
Market Morning: More OPEC Cuts, GM LG Battery Team-Up, Germany Sputters, Repo Confusion
Further OPEC Production Cuts On the Way? OPEC is meeting in Vienna today and on the docket is more production cuts. There is higher uncertainty than usual regarding whether OPEC members are all on the same page regarding production cuts, or whether any of them will break away from Saudi Arabia’s de facto leadership of […]The post Market Morning: More OPEC Cuts, GM LG Battery Team-Up, Germany Sputters, Repo Confusion appeared first on Market Exclusive.
- Reuters
Ex-JPMorgan banker began Australia regulator contact two years before Citi, Deutsche cartel charges
JPMorgan Chase & Co began internal discussions that would lead to immunity from prosecution over a troubled Australian capital raising two years before two rivals were charged with criminal cartel behaviour, a court heard on Thursday. A former JPMorgan banker gave the timeline as the first witness to testify in a legal battle that is being closely watched by investment bankers around the world because it may change the way they are permitted to conduct capital raising. All but JPMorgan were charged last year with withholding details of the sale process to investors.
- Bloomberg
Software Developer JFrog Hires Banks for 2020 IPO
(Bloomberg) -- JFrog Inc., a technology company that makes tools for software developers, has hired Morgan Stanley and JPMorgan Chase & Co. to lead its initial public offering next year, according to people familiar with the matter.JFrog could seek a valuation of $2 billion or more in a U.S. listing, said the people, who asked not to be identified because the matter is private.Plans for an IPO aren’t final and JFrog could decide to remain private, the people said.Representatives for JFrog, Morgan Stanley and JPMorgan declined to comment.JFrog was co-founded in 2008 by former Israeli Air Force Major Shlomi Ben Haim, who remains its chief executive officer, according to the company’s website. The Sunnyvale, California-based company raised $165 million in a funding round last year that included investors Insight Venture Partners, Spark Capital, Battery Ventures and Dell Technologies Capital, according to a statement.Software companies have delivered some of this year’s best IPO returns thanks to their steady business models. Globally, shares of companies such as Zoom Video Communications Inc., Crowdstrike Holdings Inc. and Datadog Inc. have risen an average of 38% from their IPO offer prices this year, according to data compiled by Bloomberg.IPOs this year by consumer-facing internet-related companies including Uber Technologies Inc. and Lyft Inc. haven’t fared as well. Shares of those companies have fallen an average of 7.5% from their offer prices, the data show.To contact the reporter on this story: Crystal Tse in New York at ctse44@bloomberg.netTo contact the editors responsible for this story: Liana Baker at lbaker75@bloomberg.net, Michael Hytha, Matthew MonksFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Simply Wall St.
Should You Think About Buying JPMorgan Chase & Co. (NYSE:JPM) Now?
Let's talk about the popular JPMorgan Chase & Co. (NYSE:JPM). The company's shares led the NYSE gainers with a...
- Business Wire
Three out of Four Small Businesses in Miami Turn a Profit Yet Many Have Limited Cash Buffers, According to New JPMorgan Chase Institute Research
Today, the JPMorgan Chase Institute released new research, showing the correlation among characteristics like home values, college education and the racial, ethnic, and foreign-born composition of Miami communities and significant factors of small business financial health. Given data from a sample of 52,000 businesses operating in all 178 Miami ZIP codes and a panel sample of 32,000 Miami small businesses active in 2013, the JPMorgan Chase Institute determined that, three out of four small businesses in Miami turn a profit, yet many have limited cash liquidity.
- Bloomberg
JPMorgan Fund Cuts Tencent as Slowdown Hampers Comeback
(Bloomberg) -- A top-performing JPMorgan fund focused on emerging-market stocks trimmed its bet on Tencent Holdings Ltd., selling shares of what was its largest holding in July as the Chinese technology company struggles to stage a comeback.JPMorgan Chase & Co.’s $6.5 billion Emerging Markets Equity Fund, which outperformed 94% of peers this year, reduced its position in Tencent by 14% as of Oct. 31, data compiled by Bloomberg show. Shares of Tencent, the largest company in Hong Kong’s Hang Seng Index by market capitalization, fell to a nine-month low on Oct. 30. JPMorgan declined to comment.Tencent has been trying to recover from 2018 losses after a nine-month Chinese freeze on game approvals gutted its most profitable business last year. Yet the stock dropped 16% in U.S. dollar terms from an April high as China’s economic slowdown weighed on efforts to revive growth. Even so, 50 of the 57 analysts tracked by Bloomberg recommend investors buy the stock.While trimming its Tencent exposure, its fifth-biggest holding, the JPMorgan fund boosted wagers on Budweiser Brewing Company APAC Ltd., ITC Ltd. and Bank Rakyat Indonesia Persero Tbk PT, the data show. The fund also added 2% to its position in Alibaba Group Holding Ltd., currently its top holding.(Updates to add chart)\--With assistance from Sofia Horta e Costa and Stephen Tan.To contact the reporter on this story: Andres Guerra Luz in New York at aluz8@bloomberg.netTo contact the editors responsible for this story: Carolina Wilson at cwilson166@bloomberg.net, Alec D.B. McCabe, Philip SandersFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Bloomberg
U.S. Yields Will Sink to 1.2% as Recession Hits, SocGen Says
(Bloomberg) -- Treasury 10-year yields may slide to a record low 1.2% by the end of next year as the U.S. enters a recession, according to Societe Generale SA.Benchmark 10-year Treasuries will probably rally as the Federal Reserve cuts interest rates by a full percentage point in the first half of 2020 to spur inflation, strategists including Subadra Rajappa wrote in a note.“The market is pricing in a Fed hold, but 10 years into this expansion, we see the Fed leaning toward a more accommodative stance,” the analysts wrote. “We expect a steady decline in Treasury yields in 2020.”Treasuries have led a global bond sell-off since September as the U.S. and China edged toward a partial trade deal, and expectations for the Fed to add to its three rate cuts this year fade. SocGen joins others, including Japan’s Asset Management One Co., in arguing that the recent optimism is misplaced.Asset Management One said last month that the Fed will end up lowering its interest rates toward zero due to structural changes in the economy and low inflation.Others are less certain yields will keep falling. JPMorgan Chase & Co. sees 10-year yields rising to 2.05% next year as global economic growth ramps up. Goldman Sachs Inc. is forecasting yields to hit 2.25% by end 2020.Rates markets are pricing in one 25 basis point Fed rate cut by the end of 2020, swaps data shows.Yield ReboundYields on 10-year Treasuries have rebounded about 40 basis points since touching a three-year low of 1.43% in September.They were up 1 basis points to 1.834% Tuesday. They had risen as much as 8 basis points on Monday on better-than-expected China factory data, before paring after a miss on U.S. manufacturing data.“Beyond the trade war noise, structurally, we see the risk of lower yields outweighing the risk of higher yields,” according to SocGen’s strategists. “‘We recommend investors remain on high alert and retain long duration positions in bonds outright and as a hedge against risk-asset exposure.”(Adds bank forecasts in sixth paragraph, swaps pricing in seventh)\--With assistance from Cormac Mullen.To contact the reporter on this story: Ruth Carson in Singapore at rliew6@bloomberg.netTo contact the editors responsible for this story: Tan Hwee Ann at hatan@bloomberg.net, Joanna OssingerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Bloomberg
Australia Keeps Rates on Hold at Record-Low 0.75%
(Bloomberg) -- Explore what’s moving the global economy in the new season of the Stephanomics podcast. Subscribe via Apple Podcast, Spotify or Pocket Cast.Australia’s central bank kept interest rates unchanged as three cuts since June inject new life into the property market and raise the prospect of improved household spending and home-building.Reserve Bank Governor Philip Lowe kept the cash rate at 0.75% Tuesday, in line with expectations of economists and money markets. He’s conserving his remaining conventional ammunition -- estimated at two more rate cuts -- to monitor the impact of earlier easing and recent government tax rebates.The lower cash rate has “boosted asset prices, which in time should lead to increased spending, including on residential construction,” Lowe said in a statement. “Lower mortgage rates are also boosting aggregate household disposable income which, in time, will boost household spending.”The RBA’s final meeting of the year sees policy makers no closer to reviving wage growth and inflation, trends that have bedeviled central banks worldwide. Australia’s economy has decelerated in the past 12 months as households limit spending, and sentiment remains weak despite the increased cash flow from interest rate and tax cuts.However, the economy has kept advancing on strong population growth and state government infrastructure spending to keep pace with swelling cities. Hiring has remained resilient in the face of slowing growth, though the labor market isn’t tight enough -- with unemployment at 5.3% -- to spur the kind of wage gains the RBA wants.What Bloomberg’s Economists Say“The key message from the RBA board’s December Statement is that it’s going to take time. And with the ‘long and variable lags in the transmission of monetary policy,’ the Board is in no rush to dole out the remaining 50bp of conventional policy ammunition unless needed. With the currency remaining supportive, and the turnaround in housing markets alleviating one downside for household consumption, time is on the RBA’s side. Until February at least.”James McIntyre, economistThe Australian dollar edged up to 68.42 U.S. cents at 3:45 p.m. in Sydney, from about 68.20 cents before the decision. Traders are pricing in a more-than-50% chance of a cut at the RBA’s next meeting in February, with prominent economists such as JPMorgan Chase & Co.’s Sally Auld and Westpac Banking Corp.’s Bill Evans also predicting easing then.The currency, which has declined about 16% since early last year, is helping policy makers by improving export competitiveness.“The lower cash rate has put downward pressure on the exchange rate, which is supporting activity across a range of industries,” Lowe said. “Given these effects of lower interest rates and the long and variable lags in the transmission of monetary policy, the board decided to hold the cash rate steady.”The clearest impact of easing has been in east coast house prices. Annualized gains over the past three months in the Sydney and Melbourne markets are tracking in the mid-20% range.Analysts expect data Wednesday will show the economy expanded an annual 1.7% in the third quarter, well short of the estimated trend pace of 2.75%.Global OutlookOn the international front, the RBA said risks remain tilted to the downside but have “lessened recently.” The U.S. and China are trying to work out an initial agreement on trade, offering hope of an eventual settlement to their trade dispute.Lowe noted that the domestic consumption outlook is a key unknown.“Other sources of uncertainty include the effects of the drought and the evolution of the housing construction cycle,” he said.Lowe faces difficult decisions ahead. He has little rate ammunition remaining and the government is reluctant to boost fiscal spending as it tries to return the budget to surplus. The governor has laid out what an eventual Australian version of quantitative easing might look like, though he doesn’t expect the central bank will need to choose that path.His bet is that the interest rate and tax cuts, combined with rising house prices, will encourage consumers to loosen their purse strings. Comprising some 55% of the economy, consumption is key to sustained growth. A lift in mining investment also could drive faster expansion.The board agreed “it was reasonable to expect that an extended period of low interest rates will be required in Australia,” Lowe said. “The board is prepared to ease monetary policy further if needed.”(Updates with money market forecasts in seventh paragraph.)\--With assistance from Tomoko Sato and Garfield Reynolds.To contact the reporter on this story: Michael Heath in Sydney at mheath1@bloomberg.netTo contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net, Malcolm Scott, Michael S. ArnoldFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Bloomberg
Trump’s New Metal Moves Show There’s No Safety From ‘Tariff Man’
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. President Donald Trump’s decision to revive tariffs on metals from Brazil and Argentina highlights the risks to a U.S.-China trade deal and shows that “no one is safe from Tariff Man.”That’s according to Cowen analyst Chris Krueger, who had a few more take-aways from the levies: Currency wars are “alive and well,” he wrote in a note to clients, as Trump displays “grievance policy-making 101.” The renewed tariffs also underscore issues arising at the World Trade Organization next week, as an appeals panel will cease to function starting Dec. 11, rendering its dispute settlement system inoperative.The Brazil and Argentina actions, together with past threats of tariffs on Mexican goods for immigration issues and on Turkey for currency devaluation, offer “further examples of the deal default risk (and potential for loss of face) in dealings with the Trump administration,” Krueger wrote. “This is just one more arrow in the quiver for hawks in Beijing to try and shoot down a deal.”Krueger added that “there is not even a pretense of ‘national security’ with these tariffs.” The action is “ripe for retaliation and threatens to reshape currency relationships and the rules of the game for foreign exchange markets,” he said.While the “Brazil and Argentina tariff reintroductions are relatively minor,” Vital Knowledge’s Adam Crisafulli wrote separately in a note, “investors are worrying about precedent (and alarmed by Trump’s understanding of global FX markets and central bank policy that’s at best quite reductive).”Crisafulli added that “if Trump is about to embark on a campaign of tariffs aimed at countries accused of devaluing their currencies, there could be plenty more targets.” At the same time, he noted that Trump is “cognizant of November 2020 and the need to ensure a healthy economy for at least another 11 months” -- which means any trade initiatives “should stay minor.”To contact the reporter on this story: Felice Maranz in New York at fmaranz@bloomberg.netTo contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Steven FrommFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Bloomberg
U.S. Factories Extend Contraction as Index Misses Forecasts
(Bloomberg) -- Explore what’s moving the global economy in the new season of the Stephanomics podcast. Subscribe via Apple Podcast, Spotify or Pocket Cast.America’s industrial heartbeat remained faint in November as a measure of manufacturing contracted for a fourth straight month against a backdrop of weaker orders and subdued production. U.S. stocks headed for their worst decline in more than a month.The Institute for Supply Management data on Monday showed the factory purchasing managers’ index unexpectedly declined to 48.1, near the expansion’s low point, from 48.3. The median forecast in a Bloomberg survey of economists called for an improvement to 49.2. Readings below 50 indicate activity is shrinking.The figures show the manufacturing sector, while no longer in freefall, lacks upward momentum in an environment of corporate investment cutbacks, subdued global demand and a still-simmering U.S.-China trade war.“This episode of manufacturing weakness feels similar to the 2015-16 period, when a strong dollar and a soft global economy led to a mini-recesion in the factory sector rather than a full-blown economic downturn,” Stephen Stanley, chief economist at Amherst Pierpont Securities, said in a note. “The overall tone, while weak, is one of slogging through the mud rather than falling off a cliff.”In addition, factory gauges in China and Germany suggested the worst may be over for the sector. A global PMI out Monday from JPMorgan and IHS Markit rose to 50.3 in November from 49.8, representing the first expansion since April, as orders reached the highest level in 2019. The gain was partly due to the U.S. PMI also issued Monday by IHS Markit, which advanced to a seven-month high of 52.6 in November, contrasting with the ISM survey.That’s in line with a government report last week that business-equipment demand climbed in October by the most in nine months, which should help keep the U.S. expansion going amid tepid consumer spending.Still, the ISM’s measure of factory orders declined in November after consecutive gains and, at 47.2, matches the lowest readings of the expansion. While 20.5% of respondents -- the same as in October -- reported higher orders, the share indicating lower bookings increased by 2.7 points to 31.2%. These figures signal that the surprise jump in the government’s October reading for capital goods orders and shipments may not be sustained.Thirteen industries, including wood products, furniture, textiles and fabricated metals, reported that business shrank in November.A separate report from the Commerce Department on Monday gave another sign of possible economic weakness: Construction spending in the U.S. fell 0.8% in October from the prior month, compared with projections for a gain, and September’s figure was revised to a decrease from an increase. The value of private construction was at the lowest level in three years.Factory EmploymentThe ISM’s survey indicated a deeper decline in factory employment, while the gauge of order backlogs dropped to its lowest level since January 2016. That helps explain why factories can operate with leaner staffing. The group’s gauge of production, while rising for the first time since June, contracted for a fourth month.An ISM measure of exports, after expanding in October for the first time in four months, fell back into contraction. The imports gauge also signaled a contraction, albeit a milder one than a month earlier.The gauge of supplier deliveries was the only component above 50, indicating shipments of inputs are slowing.An index of prices paid contracted for a sixth straight month, a sign that weak demand is holding down inflation.(Updates with economist’s comment in fourth paragraph, construction spending in ninth.)\--With assistance from Kristy Scheuble, Jeff Kearns and Alex Tanzi.To contact the reporter on this story: Vince Golle in Washington at vgolle@bloomberg.netTo contact the editors responsible for this story: Scott Lanman at slanman@bloomberg.net, Vince GolleFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Zacks
Deutsche Bank (DB) Under DoJ Probe Over Danske Bank Scandal
Deutsche Bank (DB) under the U.S. Department of Justice ("DoJ") probe related to the Danske Bank money-laundering scandal.
- Investing.com
Premarket London: Ocado Issues Convertible Bonds to Fund Expansion
Investing.com -- Here is a summary of regulatory news releases from the London Stock Exchange on Monday, 2nd December. Please refresh for updates.
- Yahoo Finance
How 'The Irishman' could help Netflix win the streaming wars
Netflix's big bet on Martin Scorsese might pay off as the streaming giant drops 'The Irishman' after a limited theatrical release.
