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Daily Scan: Beige book suggests economy strengthening; stocks end on positive note
Updated throughout the day
The stock market clawed back some of its losses Wednesday after the royal rout on Tuesday. Both the Dow Jones Industrials and the S&P 500 ended about 1.8% higher; the Nasdaq jumped 2.5%. Helping clinch the day's returns: The Federal Reserve's Beige Book -- a survey of local districts -- pointed to expansion, including "wage pressures" in several areas. That report overshadowed the initial ADP jobs numbers, up only 190,000 jobs in August, falling short of the 215,000 expected in the private sector. Factory orders were up for the second straight month, boosting manufacturing 0.4%. Crude oil inventories grew by 4.7 million barrels last week. U.S. crude imports were up by 656,000 barrels/day. The supply numbers weren't as bearish as some had expected, plus the Beige Book report helped lift crude prices to $46.
Here’s what else you need to know:
Chinese naval ships off Alaskan coast. Three Chinese combat ships, a replenishment vessel, and an amphibious ship moving toward the Aleutian Islands. It's the first time Chinese ships have been spotted in the area. Wall Street Journal
Hillz wins Puerto Rican support. New York City Council Speaker Melissa Mark-Viverito has endorsed Clinton for president, ahead of Clinton's first trip to Puerto Rico this weekend. Clinton supports the island declaring bankruptcy and restructuring its $58 million debt. CNN
Obama winning Iran deal. Maryland Democratic Senator Barbara Mikulski is backing President Obama's nuclear deal with Iran. Mikulski is the 34th vote, making it impossible for the GOP to kill the deal in Congress. Politico
Lego is world's biggest toy maker. The Danish Lego had a 23% sales increase for the first half of 2015, while Mattel was hit with a 5% drop. "The Lego Movie" as well as special sets for Star Wars, Jurassic Park, and others have boosted the toy maker to world domination. Financial Times (paywall)
Trouble ahead? China cracks down on "grey market" margin lending. Beijing is putting the kibosh on the non-bank market, estimated to be 1 trillion yuan ($160 billion). The goal may be to stop stock manipulation but the result could be a liquidity crisis. Reuters (h/t Quartz)
Beijing wouldn't let the stock market rain on its parade. That parade, of course, has long been in the making to mark the end of World War II. A stock market slump just wouldn't do. So Beijing worked its magic, turning a 4.7% collase on the Shanghai Composite into a 0.2% barely-there loss. Ditto the more volatile Shenzhen Composite, which trimmed its 4.8% drop to down 1.98%. Hong Kong’s Hang Seng Index and Japan’s Nikkei Average meanwhile, slipped 1.18% and 0.39% respectively.
China sharpens the competition to the World Bank. Sources say the Asian Infrastructure Investment Bank will not ask borrowers to privatize or deregulate -- unlike the World Bank. The