Morning Brief: Trump's revamped NAFTA deal is all about China

October 2, 2018 at 6:39 AM

Tuesday, October 2, 2018

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What to watch today

On Tuesday, earnings out of PepsiCo (PEP) will highlight the corporate calendar, with the beverage and snack maker reporting earnings per share of $1.59, topping expected earnings of $1.57 per share from Bloomberg. Paychex (PAYX) will be the other member of the S&P 500 reporting results.

Elsewhere on the earnings calendar, shares of Stitch Fix (SFIX) will be in focus after the stock dropped as much as 19% after hours following the company’s earnings.

Also, keep an eye on European energy giant Royal Dutch Shell (RDSB.L) , which announced Tuesday it’s moving ahead to develop a massive liquified natural gas (LNG) project in Canada. It’s the first major new LNG project to win approval globally in five years and it’s the largest energy investment in Canadian history. Shares were steady Tuesday.

And on the economic data side, no major data are set for release.

REUTERS/Kevin Lamarque TPX IMAGES OF THE DAY

We finally know what Trump wants on trade: With a crucial deal to revamp the North American Free Trade Agreement in place, a broader President Donald Trump strategy is finally coming into focus, after several months of fits and starts. And it’s not about Canada, Mexico, Europe or other friendly allies. It’s all about China. [Yahoo Finance]

Amazon to raise minimum wage for US employees: Amazon.com (AMZN) said on Tuesday it is raising its minimum wage to $15 per hour for all U.S. employees including full-time, part-time, temporary and seasonal employees, starting November 1. [Reuters]

Calpstrs-backed hedge fund makes bet on Papa John’s: Legion Partners, a hedge fund that was seeded by the California State Teachers’ Retirement System, now controls more than 5% of the struggling pizza chain Papa John’s (PZZA), according to a filing on Monday. [Bloomberg]

IPO market has never been this forgiving: Stock investors are welcoming money-losing companies into the public markets this year with open arms. About 83% of U.S.-listed initial public offerings in 2018’s first three quarters involve companies that lost money in the 12 months leading up to their debut, according to data compiled by University of Florida finance professor Jay Ritter. That is the highest proportion on record. [The Wall Street Journal]

Google’s top ad exec to leave for venture firm: The executive at the helm of Google’s juggernaut online advertising business is stepping down, a rare shake-up at the highest echelons of the search giant. Sridhar Ramaswamy, who has overseen ads at Google for the past five years, is taking a new role at venture-capital firm Greylock Partners. [The Wall Street Journal]

New head of Instagram named after co-founders’ exit: Adam Mosseri, the photo-sharing service’s current vice president of product, has been tapped as head of the platform. Mosseri takes the helm of Instagram a week following Instagram co-founders Kevin Systrom and Mike Krieger resignations. The co-founders’ departures were reported to have come amid tensions with Facebook (FB) CEO Mark Zuckerberg about the direction of the social media platform. [Yahoo Finance]