Friday Financial Report
U.S. Exchange futures are down this morning, despite a generally positive day of earnings releases Thursday. Hong Kong’s exchange is closed for the trading today, as the city braces for a typhoon to hit. At 1:00pm the Baker-Hughes Rig Count will be released, which reports the number of active domestic oil rigs. The number indicates whether gross supply of domestic oil is increasing or decreasing, thus putting downward or upward pressure on oil prices, respectively. Jobless claims rose higher than expectations in September, likely stemming from Hurricane Matthew’s destruction along the east coast.
British American Tobacco (BTI) has made a $47 billion offer to takeover the remaining 58% stake in Reynolds American Inc. (RAI) to create the largest tobacco company in the world. This comes just a year after Reynolds purchased Lorillard Inc., which prompted U.S. regulators to demand the company’s consolidation of brands, resulting in the sell-off of four of their brands to Imperial Brands PLC. Since British American and Reynolds are already closely partnered (selling the Pall Mall brand in different markets, for example), their markets do not overlap, which may spare them from the scrutiny of regulators.
McDonald’s (MCD) beat earnings expectations this morning thanks to the power of chicken nuggets. The fast food retailer saw a 3.5% increase in sales at existing restaurants and grew its international sales by 3.3%, beating expectations of 1.5% and 1.8%, respectively. While the data is a saving grace for the restaurant chain, a full comeback remains to be seen, as franchisees complain about overly-deep discounting resulting in dangerously slim profit margins.
–SnoQap Team↑ Back to top