Wall Street is a bit weary this morning after stocks kicked off November with a rally that drove the S&P 500 (^GSPC) above the 2,100 level for the first time since August, and propelled the Dow (^DJI) back into positive territory for the year.
Auto sales still strong
October was another strong month for the auto industry as consumers continued to purchase larger vehicles amid low interest rates and oil prices.
General Motors (GM) led the race with a nearly 16% increase in sales last month on strong sales of its Chevrolet Silverado pickup. Fiat Chrysler (FCAU) logged a nearly 15% jump in sales, driven largely by demand for its Jeep brand. And Ford (F) posted a 13% gain in sales on robust demand for its Mustang, F-Series pickup and updated Edge SUV models.
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Video game match up
Activision Blizzard (ATVI) is buying King Digital Entertainment (KING), the company behind Candy Crush Saga for $5.9 billion. That translates to $18 a share in cash. The deal will arm the maker of Call of Duty and World of Warcraft with more access to the mobile gaming market.
Fitbit (FIT) is planning to sell 21-million shares in a secondary stock offering. Meanwhile, the maker of wearable fitness trackers raised its outlook for the holiday quarter after reporting stronger-than-expected earnings and revenue for the third quarter. Revenue jumped a whopping 168% from a year ago thanks to sales of new products such as Fit Surge and Charge.
AIG (AIG) posted weaker-than-expected earnings and revenue for the third quarter. AIG attributed most of the shortfall to lower income from certain investments and the volatile global markets. Separately, the company said it plans to restructure its business and reportedly plans to cut 20% or 300-to-400 senior management positions. This comes amid pressure from activist investors Carl Icahn and John Paulson, who have been calling for the company to break itself up.
Sprint (S) reported a wider-than-expected loss for its latest quarter. Revenue also missed forecasts falling 6% from a year earlier, even though it added phone customers for the first time in two years. Separately, the company said it plans on cutting $2 billion in costs in its next business year, starting next spring.
Kellogg (K) posted earnings per share that came in a penny above estimates, but revenue missed forecasts falling for the third straight quarter on weak sales of its breakfast foods…and a stronger dollar, which hurt sales overseas.
Vice channel coming
And more news from the media world - a Vice channel could be coming to your home soon. According to various reports, Vice - the millennial focused media company known for its edgy reporting and offbeat reporters, is close to finalizing a deal with A&E networks to rebrand one of its channels into a Vice TV channel. A&E had previously taken a $250 million stake in the company.
Amazon opens retail store
Finally - it’s said they killed the bookstore, but now Amazon (AMZN) is bringing one back. Call it poetic justice - but Amazon its opening its first ever brick and mortar store today in Seattle, called Amazon Books. The store will sell physical, actual books, but also provide an area for customer to try out Amazon’s various consumer electronic products.
