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Daily Scan: Stocks keep climbing up; Hillary reverses course and opposes TPP deal
Updated throughout the day
Good evening, U.S. stocks continued to rally Wednesday as healthcare companies rebounded. The Dow gained 0.7%. The S&P 500 was up 0.8%, and the Nasdaq grew 0.9%. Rising oil and low interest are the magic ingredients for the upbeat mood. Oil got desperately close to breaking $50/barrel, but ended just below $48/barrel. We'll see how that lasts as the quarterly earning seasons ramps up. Meanwhile, home mortgage applications surged 25% for the week ended October 2 ahead of regulatory changes; nonetheless home buyer applications are surprisingly low, experts say.
Here is what else you need to know:
Hillary Clinton does turnabout and opposes TPP. Clinton had supported the deal while in the Obama Administration but now says the agreement doesn't "meet the high bar [she] has set." The reversal also puts her at odds with Vice President Joe Biden, who may still be mulling a run for the Democratic nomination. Labor unions, as well as other Democratic presidential candidates, have opposed the deal. Politico
President Obama apologizes for the Kunduz airstrike. Obama called and directly apologized to Dr. Joanne Liu, president of Doctors Without Borders, for the airstrike in Afghanistan that left 12 medical staff members and at least 10 patients dead. Doctors Without Borders has called the airstrike a war crime, and an "attack on the Geneva Conventions." CNN
Deutsche Bank expects big losses. The German bank says it foresees a 6.2 billion euro loss when it reports its third-quarter earnings results on October 29. The board will recommend "a reduction or possible elimination" of its common-share dividend for 2015. Wall Street Journal
Central banks shed $123 billion in U.S. Treasurys, the most since 1978. The sales are a further sign of distress in emerging markets which once used trade surplus cash to purchase the debt. China sold an estimated $120 billion to $130 billion in August to prevent the yuan from tumbling further than it wanted. Traders suggest that the yield on the 10-year note has remained historically low because China was such a major buyer. Nonetheless, analysts say Treasury yields are unlikely to back up as domestic buyers are plentiful. Wall Street Journal (paywall)
AB InBev makes $104 billion bid for rival brewer in biggest deal of the year. SABMiller still isn't satisfied with the offer.Anheuser-Busch InBev, the world’s largest brewer, launched an improved offer for SABMiller on Wednesday, offering 42.15 pounds/share, up from its September offer of 38 pounds, for its largest rival to extend its reach into Africa and other markets. CNN Money
Dollar falls to upper 119 yen zone after BOJ stands pat. Some market players had expected the central bank to decide on additional easing that could weaken the yen. Nikkei
Trio wins Nobel Prize in chemistry.