Stock market news today, Sept. 30, 2014: U.S. stock market futures were on the rise this morning, ahead of data updates on consumer confidence and home prices, and a speech by Federal Reserve Gov. Jerome Powell.
On Monday, U.S. markets slipped again as investors renewed concerns about civil unrest in Hong Kong, where the Chinese government fired tear gas at pro-democracy protesters in one of the largest political crackdowns in China since the Tiananmen Square protests 25 years ago.
Hong Kong and China have had two different political and economic systems since the United Kingdom ceded control in 1997. However, China is now intensifying efforts to stifle pro-democracy advocacy in the region. The iShares FTSE/Xinhua China 25 Index (ETF) (NYSE Arca: FXI) slipped 2.5% on the day.
Here's what else you should know to make your Tuesday profitable:
Tax Trouble: This morning, European Union regulators published a report that details the tax practices of Apple Inc. (Nasdaq: AAPL) and Fiat S.p.A. (OTCMKTS ADR: FIATY) and asserts that the companies are violating EU laws. The European Union said that Apple has been accepting sweetheart deals from the Irish government for nearly two decades, including multiple rounds of "illegal" state aid.
The Daily Deal: Shares of DreamWorks Animation SKG (Nasdaq: DWA) cooled in post-market hours, slumping more than 7.5%. Dreamworks stock surged 26% yesterday on news that The Hollywood Reporter announced that Japanese conglomerate Softbank Corp. (USA) (OTCMKTS: SFTBF), the parent company of Sprint Corp. (NYSE: S), could acquire the animation studio. Shares of Softbank slipped nearly 3% yesterday. Although The Wall Street Journal reports that talks have cooled, it is likely the two companies will reengage in conversations soon.
Repair Problems: U.S. automaker General Motors Co. (NYSE: GM) is in hot water this week on news that the number of deaths linked to faulty ignition switches rose by another two victims to 23. Since the inception of a compensation program linked to serious injuries or deaths, the program has received 867 claims for restitution since Aug. 1. According to Reuters, General Motors has set aside $400 million for compensation to victims. However, that fund could jump by another $200 million.
Auto Problems: Shares of Ford Co. (NYSE: F) slipped by more than 7% on news that the company slashed its 2014 and 2015 sales forecasts over concerns in the European markets. During an investor conference in Michigan on Monday, the company said it projects a pretax profit of nearly $6 billion in 2014, down from the range of $7 billion to $8 billion it had estimated earlier this year. The company also announced it projects a $1.2 billion loss in Europe this year.
Biotech Boom: Shares of Ambit Biosciences Corp. (Nasdaq: AMBI), surged more than 87% yesterday on news that the company will be purchased by Daiichi Sankyo Co. for nearly $315 million in cash. Meanwhile, shares of Catalyst Pharmaceuticals Partners Inc. (Nasdaq: CPRX) rose by more than 18% on positive news from its late-stage study on its Firdapse treatment. Catalyst said that it is planning to seek approval from the U.S. Food and Drug Administration for its drug targeting Lambert-Eaton myasthenic syndrome, an autoimmune disorder that attacks muscle strength.
Today's Economic Calendar: Today's schedule features the S&P Case-Shiller Index, a speech from Federal Reserve Gov. Jerome Powell, and the weekly ICSC-Goldman Store Sales index.
Earnings Reports: Stay tuned for earnings reports from Walgreen Co. (NYSE: WAG), TravelCenters of America LLC (NYSE: TA), S&W Seed Co. (Nasdaq: SANW), and Saba Software Inc. (OTC: SABA).
Full U.S. Economic Calendar September 30, 2014
ICSC-Goldman Store Sales at 7:45 a.m.
Redbook at 8:55 a.m.
S&P Case-Shiller HPI at 9 a.m.
Federal Reserve Gov. Jerome Powell speaks at 9:30 a.m.
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.