Morning Brief: Toys R Us goes out of business
Thursday, March 15, 2018
What to watch today
After opening higher on Wednesday, stocks sold off throughout the session and closed in the red for the second straight day.
The Dow, which fell 1%, or 248 points, led the day’s losses. The S&P 500 saw more meager losses of 0.6%, and the Nasdaq lost 0.2%. Meanwhile, yields at the long end of the Treasury curve continue to show signs of life with the 10-year hitting 2.8% on Wednesday.
On Thursday, markets will have a lighter economic and earnings calendar to contend with than in the previous two days, with initial jobless claims and a reading on manufacturing activity in the New York Fed’s region serving as economic highlights.
Among companies expected to report earnings Thursday are Dollar General (DG), Overstock.com (OSTK), Revlon (REV), and Rockwell Medical (RMTI).
Top news
Toys R Us goes out of business, leaving void for toy lovers: Toys R Us Inc., the iconic toy retailer, will shutter or sell its stores in the United States after failing to find a buyer or reach a deal to restructure billions in debt, putting at risk about 30,000 jobs. The closure is a blow to generations of consumers and hundreds of toy makers that sold their products at the chain’s U.S. stores, including Barbie maker Mattel Inc. (MAT), board game company Hasbro Inc. (HAS) and other vendors like Lego. [Reuters]
New chief economic adviser says China ‘has earned a tough response’: China can expect the U.S. to take a tough stance when it comes to international trade, Larry Kudlow, the newly appointed director of the National Economic Council, said Wednesday. President Donald Trump named Kudlow to the position Wednesday to succeed Gary Cohn. Kudlow’s first task will be to negotiate the administration around a ticklish issue over tariffs on steel and aluminum that Trump announced last week. [CNBC]
Senate backs bill relaxing post-crisis rules for smaller banks: The U.S. Senate passed legislation that would ease constraints on regional and community banks while mostly snubbing Wall Street, giving the finance industry its best chance in years of rolling back rules adopted in the wake of the 2008 crisis. The bipartisan bill crafted by Senate Banking Committee Chairman Mike Crapo frees smaller lenders from some of the toughest requirements of the Dodd-Frank Act, striking them from the ranks of banks deemed too-big-to-fail. [Bloomberg]
Largest US radio company iHeartMedia files for bankruptcy: IHeartMedia Inc. filed for Chapter 11 bankruptcy on Thursday as the largest U.S. radio station owner reached an in-principle agreement with creditors to restructure its overwhelming debt load. The company, which filed for bankruptcy along with some of its units, said it reached the agreement with holders of more than $10 billion of its outstanding debt for a balance sheet restructuring, which would reduce its debt by more than $10 billion. [Reuters]
Trump Organization lawyer sought to enforce hush agreement: A lawyer for the Trump Organization sought an order last month to stop porn star Stormy Daniels from talking about her alleged affair with President Donald Trump, according to documents provided by her attorney. The involvement of the Trump Organization lawyer is evidence Trump knew of the secret deal, according to Michael Avenatti, the lawyer for Daniels. [Bloomberg]
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