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Wednesday February 07, 2018

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Congressional Leaders Agree On Budget

Congressional Leaders Agree On Budget

Congressional leaders said Wednesday they have reached an agreement on a two-year budget deal, charting a path out of the long-running turmoil over spending and immigration that culminated in a government shutdown last month.

BOfA Hires Law Firm to Help Probe $292M Loss

AT&T Plans IPO for Its Latin American TV Business

Tronc Pushes Into Digital Future After LA Times Sale

Holder Warns Trump Risks Long-Term Damage to FBI, Justice Department

The agreement raises federal spending by almost $300 billion over two years above limits imposed by a 2011 budget law. If approved by the GOPcontrolled Congress, the deal would mark the triumph of defense hawks, who have pushed for higher military spending, over the dwindling number of conservatives focused on reducing the federal budget deficit.

The budget deal would raise military spending by $80 billion through the rest of fiscal year, which runs through September, and by $85 billion in fiscal year 2019, according to a congressional aide familiar with the agreement.

White House Aide Resigns Amid Abuse Allegations

Hasbro's Sales Fall as Star Wars Craze Cools

Congressional leaders also agreed to raise nondefense spending by $63 billion in this fiscal year and $68 billion the following year, according to the aide, addressing demands from Democrats, who had pushed for boosting domestic spending.

Fed's Dudley Says Stock Volatility Hasn't Changed Outlook

Breaking Silence on Market Moves, Trump Laments Sell On 'Good News'

Goldman Sachs in Talks With Apple to Finance iPhone Sales

BOfA Hires Law Firm to Help Probe $292M Loss

Bank of America Corp. has brought in an outside law firm to help examine a soured lending arrangement that led to a $292 million charge in last year's fourth quarter, according to people familiar with the matter.

Snapchat to Show Live Video Of NBC's Olympics Coverage

SpaceX Launches World's Biggest Rocket

The losses sprang from financing involving troubled South African firm Steinhoff International Holdings NV, the people said. Bank of America is trying to figure out if the losses, which surfaced at many big global banks, could somehow have been avoided, the people said.

Plus: Market Snapshot, Tomorrow's Calendar, Earnings Reports and Talking Points

The inquiry is being conducted by law firm Davis Polk & Wardwell LLP and began late last year, the people said. The law firm recently has interviewed Bank of America staff, some of the people added.

Market Snapshot

Stocks

U.S. stocks continued to swing Wednesday, extending one of their most volatile weeks in years as investors wonder how higher interest rates might affect the nearly nine-year old bull market. The Dow Jones Industrial Average and the Standard & Poor's 500 slipped into the red at the

close after registering gains for most of

Bank of America's board is being kept abreast of the inquiry, which is ongoing, some of the people said.

AT&T Plans IPO for Its Latin American TV Business

AT&T Inc. plans to separate most of its Latin American operations from its main business in an initial public offering that could raise billions of dollars for the U.S. carrier's core business. The company said Wednesday it had filed documents for an IPO for a

the session.

minority stake in DirecTV Latin America in the first half of this year.

Treasurys

U..S. government bonds weakened Wednesday following a two-day rally as a stock rout that pulled major indexes around the world lower showed signs of easing. The yield on the benchmark 10-year U.S. Treasury note was recently at 2.785%, according to Tradeweb, compared with 2.766% Tuesday.

The telecommunications company has spent months unsuccessfully searching for a buyer for its Latin American satellite-television operations, according to a person familiar with the process.

The unit includes millions of television subscribers in the Caribbean and in South America that AT&T inherited when it bought DirecTV in 2015. It also includes a 93% stake in Sky Brazil, a satellite provider. The division had 13.6 million connections that generated more than $5 billion of revenue last year.

Forex

The U.S. dollar rose as investors remained cautious in the aftermath of the recent spike in market volatility.

Commodities

Oil sold off sharply Wednesday after data showed U.S. production blasted above 10 million barrels a day last week. Oil prices have moved in alignment with other financial markets as they sold off in recent days. But even as stock markets have started to recover, U.S. crude futures are falling toward their lowest levels since the beginning of the year.

Tronc Pushes Into Digital Future After LA Times Sale

After months of turmoil at Tronc Inc., the newspaper publisher has agreed to sell its flagship title, the Los Angeles Times, and invest the proceeds in a digital push.

Tronc said Wednesday it has reached an agreement to sell the Los Angeles Times, San Diego Union-Tribune and a group of smaller California newspapers for $500 million in cash to former board member and billionaire biotech investor Dr. Patrick Soon-Shiong. Dr. Soon-Shiong is buying the publications through his Nant Capital investment fund and will assume $90 million in pension liabilities in the deal.

The deal gives the company cash to double down on investments in digital growth. Tronc carried a market cap of $607.5 million as of market close on Tuesday.

Thursday's Calendar

1:00 p.m. Patrick Harker speaks at National Association of College and University Business Officer event 1:30 p.m. U.S. Weekly Export Sales 1:30 p.m. 02/03 Unemployment Insurance Weekly Claims Report - Initial Claims 2:00 p.m. FRB Minneapolis President Neel Kashkari speaks at Pierre, SD, town hall event 2:45 p.m. Bloomberg Consumer Comfort Index 3:30 p.m. 02/02 EIA Weekly Natural Gas Storage Report 5:00 p.m. World Agricultural Supply & Demand Estimates (WASDE) 5:00 p.m. Jan Monthly U.S. Retail Chain Store

Sales Index 7:00 p.m.

The properties sold generated $470 million in sales for Tronc for the year ended in September, the company said. The transaction is expected to close in the first half of this year.

Holder Warns Trump Risks Long-Term Damage to FBI, Justice Department

Former Attorney General Eric Holder warned that President Donald Trump's attacks on top officials at the Federal Bureau of Investigation and Justice Department are undermining the credibility of law-enforcement agents investigating and prosecuting criminal cases.

Mr. Holder, who spent six years as attorney general under Democratic President Barack Obama, said that rank-and-file FBI agents testifying in court cases could face undue skepticism following the scorn aimed at the nation's top law-enforcement agencies.

"I would hope that the president would rethink the way in which he has attacked career people in the FBI, career people at the Justice Department, the career people in our intelligence community, and think about the way in which he has spoken about his attorney general," Mr. Holder said Wednesday.

White House Aide Resigns Amid Abuse Allegations

WASHOne of President Donald Trump's top advisers, White House staff secretary Robert Porter, said Wednesday that he has resigned his position amid allegations that he was abusive toward his ex-wives.

7:00 p.m. SEC Closed Meeting 9:30 p.m. Foreign Central Bank Holdings 9:30 p.m. Money Stock Measures 9:30 p.m. Federal Discount Window Borrowings N/A Deadline for new funding deal to avert U.S. Govt shutdown, after short shutdown last month

Mr. Porter denied many of the allegations, which were first reported by .

His sudden departure marks the exit of one of the most enduring and influential voices in the West Wing. As staff secretary, Mr. Porter was the gatekeeper of paper flowing in and out of the Oval Office, a particularly crucial position under Chief of Staff John Kelly, who has sought to limit access to Mr. Trump.

Hasbro's Sales Fall as Star Wars Craze Cools

Hasbro Inc. posted an unexpected drop in fourth-quarter revenue as sales of Star Wars-related toys fell, slowing down after three straight years of new releases for the franchise.

Earnings Reports

expected Thursday

Company (stock)

FactSet EPS Mean

Estimate

Assurant Inc. (AIZ)

4Q/1.60

BCE Inc. (BCE)

4Q/0.60

Beacon Roofing Supply Inc. (BECN)

1Q/0.55

BorgWarner Inc. (BWA)

4Q/1.01

Bright Horizons Family Solutions (BFAM)

4Q/0.69

Bristow Grp Inc. (BRS)

3Q/(.65)

Broadridge Fincl Solutions Inc. (BR)

2Q/0.54

Bruker Corp. (BRKR)

4Q/0.48

Callidus Software Inc. (CALD)

4Q/0.11

Cambrex Corp. (CBM)

4Q/1.12

Canada Goose Hldgs Inc. (GOOS)

3Q/0.37

Cardinal Health Inc. (CAH) 2Q/1.15

Carlisle Companies Incorporated (CSL)

4Q/0.97

CBL & Associates Ppties Inc. (CBL)

4Q/0.18

CBRE Grp Inc. Class A (CBG)

4Q/0.92

Cemex SAB de CV Sponsored ADR (CX)

4Q/0.14

Civitas Solutions Inc. (CIVI) 1Q/0.16

Columbia Sportswear Company (COLM)

4Q/1.15

Computer Programs and Syss (CPSI)

4Q/0.46

Control4 Corp. (CTRL)

CoreSite Realty Corp. (COR)

4Q/0.35 4Q/0.46

The maker of Monopoly, Nerf guns and Disney Princess dolls posted a 2% sales decline during the key holiday quarter, well short of the company's forecast for sales growth of between 4% and 7%.

In addition to disappointing Star Wars sales, Chief Executive Brian Goldner blamed the shortfall on weakness in Europe and disruption from the Toys "R" Us Inc. bankruptcy.

Hasbro's Star Wars sales bump appears to be waning as the Walt Disney Co.-owned movie franchise has begun churning out new movies annually following a decadelong hiatus. On Tuesday, Disney announced plans for additional Star Wars films.

Mr. Goldner noted that the intergalactic series' return in 2015 came with pentup demand and a long window ahead of the movie's release to sell toys.

Fed's Dudley Says Stock Volatility Hasn't Changed Outlook

Federal Reserve Bank of New York leader William Dudley said Wednesday the stock market's wild swings over recent days haven't changed his assessment of the economy and monetary policy.

"Having a bump like this has virtually no consequence in my view to the economic outlook," Mr. Dudley said at an event held by the European American Chamber of Commerce and Thomson Reuters in New York. "My outlook hasn't changed because the stock market is a little bit lower than it was a few days ago. It's still up sharply from where it was a year ago."

But he suggested central bankers should monitor the situation.

Breaking Silence on Market Moves, Trump Laments Sell On 'Good News'

President Donald Trump broke his silence Wednesday on the stock market's recent volatility, arguing that good news on Main Street shouldn't be a cause for concern on Wall Street.

"In the 'old days,'" when good news was reported, the Stock Market would go up. Today, when good news is reported, the Stock Market goes down," Mr. Trump tweeted. "Big mistake, and we have so much good (great) news about

(COR)

Corium Intl Inc. (CORI)

1Q/(.39)

Corporate Office Ppties Trust (OFC)

4Q/0.26

Coty Inc. Class A (COTY) 2Q/0.23

CSW Induss Inc. (CSWI) 3Q/0.29

Determine Inc. (DTRM)

3Q/(.12)

Domtar Corp. (UFS)

4Q/0.81

DXC Tech Co. (DXC)

3Q/1.98

Edgewell Personal Care Co. (EPC)

1Q/0.57

eGain Corp. (EGAN)

2Q/(.04)

Elevate Credit Inc. (ELVT) 4Q/0.12

Ellie Mae Inc. (ELLI)

4Q/0.25

EMC Insur Grp Inc. (EMCI) 4Q/0.67

Ensign Grp Inc. (ENSG)

4Q/0.40

Expedia Inc. (EXPE)

4Q/1.15

FireEye Inc. (FEYE)

4Q/(.01)

First American Fincl Corp. (FAF)

4Q/0.91

FleetCor Tech Inc. (FLT) 4Q/2.33

Fortive Corp. (FTV)

4Q/0.78

Gaming and Leisure Ppties Inc. (GLPI)

4Q/0.45

Genesee & Wyoming Inc. Class A (GWR)

4Q/0.75

Glu Mobile Inc. (GLUU)

4Q/(.03)

Goodyear Tire & Rubber Company (GT)

4Q/0.76

Green Plains Inc. (GPRE) 4Q/(.15)

Green Plains Partners LP (GPP)

4Q/0.48

Grp 1 Automotive Inc. (GPI) 4Q/1.90

GrubHub Inc. (GRUB)

4Q/0.31

Hanesbrands Inc. (HBI)

4Q/0.52

Hartford Fincl Svcs Grp Inc. (HIG)

4Q/0.76

HNI Corp. (HNI)

4Q/0.42

Hologic Inc. (HOLX)

1Q/0.50

Hortonworks Inc. (HDP)

4Q/(.25)

Hub Grp Inc. Class A (HUBG)

4Q/0.52

Immunomedics Inc. (IMMU) 2Q/(.12)

Imperva Inc. (IMPV)

4Q/0.27

Intellipharmaceutics Intl Inc. (IPCI)

4Q/(.07)

IRSA Propiedades Comer Sp ADR (IRCP)

2Q/1.72

KB Fincl Grp Inc. Sponsored ADR (KB)

4Q/1.29

Kellogg Company (K) KKR & Co. L.P. (KKR) Knoll Inc. (KNL) LCI Indus (LCII)

4Q/0.96 4Q/0.52 4Q/0.42 4Q/1.16

the economy!"

The stock market has been on a wild ride in recent days amid concerns about a pickup in wage growth fueling inflation. The Dow Jones Industrial Average gained 567 points on Tuesday after falling 1,175 points Monday in the largest-ever single-day point drop. It advanced again Wednesday, up around 300 points as of late morning.

Goldman Sachs in Talks With Apple to Finance iPhone Sales

As Apple Inc.'s investment bank, Goldman Sachs Group Inc. has raised tens of billions of dollars for the technology company. Now, Goldman wants to bank Apple's customers, too--with a ticket size of a few hundred dollars at a time.

The Wall Street firm is in talks to offer financing to shoppers buying phones, watches and other gadgets from Apple, people familiar with the matter said. Customers purchasing a $1,000 iPhone X could take out a loan from Goldman instead of charging it to credit cards that often carry high interest rates.

Talks between the tech giant and the investment bank are continuing and could still fall apart. A spokesman for Goldman declined to comment. Apple didn't respond to requests for comment.

The partnership would be a coup for Goldman as it tries to grow its new consumer bank. Better known as an elite adviser to corporations and governments, Goldman is embracing retail banking and plain-vanilla lending in pursuit of growth as some traditional areas of strength, namely trading, slump.

Snapchat to Show Live Video Of NBC's Olympics Coverage

Social-media app Snapchat is preparing to launch a tool to let television networks pipe snippets of live broadcasts directly into Snapchat, starting this Saturday with NBC's coverage of the Olympic Games in Pyeongchang, South Korea.

The move could forge closer ties between traditional TV networks and Snapchat's parent company Snap Inc., which has sought to sweep up the ad dollars that broadcasters are losing as young people spend more time on smartphones.

Snap has so far struggled to capture those TV dollars and prove it can build a much bigger audience, though on Tuesday it said it had reignited growth in revenue and users for the first time as a publicly traded company. On Wednesday, Snap's shares surged more than 40% to $19.75, its highest point in about eight months.

The deal with NBCUniversal -- which invested $500 million in Snap during the IPO -- is the latest example of Snap's push to stock up on TV content. Snap in the past has struck deals to air short-form shows like NBC News's "Stay Tuned," E! Entertainment's "Rundown" and a Snapchat version of ESPN's SportsCenter.

SpaceX Launches World's Biggest Rocket

Space Exploration Technologies Corp. successfully launched the Falcon

LCI Indus (LCII)

4Q/1.16

Lions Gate Entertain Class A (LGF.A)

3Q/0.25

Lions Gate Entertain Class B (LGF.B)

3Q/0.25

MakeMyTrip Ltd. (MMYT) 3Q/(.51)

Manchester United Plc Class A (MANU)

2Q/0.12

Manitowoc Company Inc. (MTW)

4Q/(.05)

Masco Corp. (MAS)

4Q/0.43

MAXIMUS Inc. (MMS)

1Q/0.76

MCBC Hldgs Inc. (MCFT) 2Q/0.32

Medical Ppties Trust Inc. (MPW)

4Q/0.24

Medidata Solutions Inc. (MDSO)

4Q/0.31

MEDNAX Inc. (MD)

4Q/0.83

Melco Resorts and Ent Sp Repr 3 Shs (MLCO)

4Q/0.23

Mettler-Toledo Intl Inc. (MTD)

4Q/5.93

MobileIron Inc. (MOBL)

4Q/(.03)

Mohawk Indus Inc. (MHK) 4Q/3.32

Monolithic Power Syss Inc. (MPWR)

4Q/0.80

Natl Retail Ppties Inc. (NNN)

4Q/0.31

NCR Corp. (NCR)

4Q/0.87

Neurocrine Biosciences Inc. (NBIX)

4Q/0.16

New Jersey Resources Corp. (NJR)

1Q/0.59

New York Times Company Class A (NYT)

4Q/0.29

Newpark Resources Inc. (NR)

4Q/0.03

News Corp. Class A (NWSA)

2Q/0.19

News Corp. Class B (NWS) 2Q/0.19

Nexeo Solutions Inc. (NXEO)

1Q/0.07

Nielsen Hldgs Plc (NLSN) 4Q/0.46

Nuance Commun Inc. (NUAN)

1Q/0.25

NuStar Energy L.P. (NS) 4Q/0.21

NuStar GP Hldgs LLC (NSH)

4Q/0.25

NVIDIA Corp. (NVDA)

4Q/1.15

Oaktree Specialty Lending Corp. (OCSL)

1Q/0.10

Old Dominion Freight Line Inc. (ODFL)

Organovo Hldgs Inc. (ONVO)

Patterson-UTI Energy Inc.

4Q/1.11 3Q/(.09)

Space Exploration Technologies Corp. successfully launched the Falcon Heavy rocket Tuesday on its initial test flight, marking another coup for founder Elon Musk.

The blastoff from Florida's Kennedy Space Center was closely followed by the global aerospace industry, and it capped multiple design changes, years of delays and a roughly $1 billion investment by SpaceX, as the company is commonly called.

With throngs of spectators on hand, the closely held Southern California company defied industry critics by flying the world's most powerful rocket since U.S. astronauts landed on the moon almost five decades ago.

The 230-foot rocket, which featured 27 engines with the combined thrust of some 18 Boeing Co. 747 jumbo jets, climbed into clear skies at 3:45 p.m. local time. It carried a Tesla roadster as a dummy payload and publicity stunt.

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From Dow Jones Wealth Management

Adviser Seeks To Forge Deep Relationships

By Alex Coppola

Darnel Bentz

- Senior vice president, Kayne Anderson Rudnick, Los Angeles

- Education: B.S. Arizona State University; MBA UCLA Anderson School of Management

- Professional designations: Chartered Mutual Fund Counselor (CMFC)

Background: For Mr. Bentz, personal hardship provided a window into the value of good financial guidance. When Mr. Bentz was in college, his father passed away and in the following months, he watched his mother struggle with the financial fallout of losing a spouse. From managing the proceeds from a life-insurance policy to reallocating her portfolio, she was left to make those decisions on her own. So in an effort to help her navigate the process, Mr. Bentz began taking more courses in finance. "The more I learned, the more I realized how many other people there were in situations like my mother who could use this kind of guidance," he says. Mr. Bentz began his career with Charles Schwab where he spent seven years before returning to school to pursue an MBA. After a stint as a sell-side analyst for KeyBanc Capital Markets, he joined Kayne Anderson Rudnick in 2013.

His practice: Kayne Anderson Rudnick manages $18.9 billion for high-networth families and institutions. Even before joining Kayne Anderson, the adviser had become familiar with the firm through his work managing money for the UCLA endowment; the university's business school is named for KAR co-founder John Anderson. As a senior wealth adviser, Mr. Bentz works with both individuals and nonprofit groups on investment strategy and wealth management. While his earlier professional roles leaned more toward stock

selection and modeling securities, his passion has long been in helping people. "I've always found helping individuals and families far more rewarding than writing research reports," he says. "When the opportunity presented itself to join a firm so invested in the goals and needs of their clients, I couldn't pass it up."

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