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Daily Scan: JPMorgan hackers charged; Fidelity marks down Snapchat stake

By NexChange
Capital Markets


Updated throughout the day

November 10

The Nasdaq fell 0.2%, bouncing back slightly after a warning on Apple iPhone sales sent investors skittering. Apple's shares fell 3.2% Tuesday to $116.73. The Dow gained 0.2%, as did the S&P 500. Credit Suisse said supply chain orders were slowing, indicating a weakening in demand. On the earnings scene Tuesday: Homebuilders D.R. Horton rose 2.6% on strong earnings and Beazer Homes rallied 3.26% after it reported robust quarterly numbers. Financial information purveyor Markit was slightly lower after meeting profit expectations but the stock is up 26% in the last 12 months.

Here’s what else you need to know:

Three charged for massive financial hack. U.S. prosecutors charged one U.S. man and two Israeli men in relation to the cyber hack of JPMorgan, Fidelity, and other financial institutions between 2012 and 2015. The federal prosecutor called is "securities fraud on cyber-steroids." Charges include hacking and identity theft. BBC

Fidelity marks down Snapchat investment. Fidelity, one of the most high-profile investors in the four-year-old company, wrote down the value of its stake by 25% in the third quarter. Each share had been valued at $30.72 at the end of June, but fell to $22.91 valuation at the end of September. Financial Times

New York governor supports minimum wage demonstration. Gov. Andrew Cuomo plans to institute a $15 minimum wage for all state workers, making New York the first state to mandate a higher minimum wage for employees. Cuomo's actions came the day fast food workers across the country went on strike for a $15 hourly wage. New York Times (paywall)

Minneapolis Federal Reserve Bank names new president. Neel Kashkari, the man who led the controversial TARP program at the U.S. Treasury during the financial crisis, will replace Narayana Kocherlakota as president and CEO at the end of the year. The troubled asset relief program was used as a venue to bailout banks and major financial institutions. Kashkari, who is not an economist, worked at Goldman Sachs, making him the fourth of 12 presidents to join the Federal Reserve system. He also ran for Governor of California.  Wall Street Journal (paywall)

Ten-year notes going like hotcakes at $24 billion auction. The U.S. Treasury securities sold at a yield of 2.322%, the highest in five months. Foreign demand was robust at 60.5% and direct bidding rose to 14.3%, the highest in six months.   Wall Street Journal (paywall)

Died: Former West German Chancellor. Helmut Schmidt helped make West Germany an economic leader between 1974 and 1982. He was 96. Schmidt was a popular German personality, and was even given exemption from Germany's public smoking ban. The Guardian

Valeant call with investors, Take 2. The beleaguered pharmaceutical company held a call Tuesday morning, announcing that it will close specialty pharmacy Philidor by the end of January, which would hit sales of its dermatological drugs. The stock fell 7% after the call but is now marginally higher. Valeant's first call on October 26 didn't do much to help the stock either. Valeant has lost two-thirds of its value since August. CNBC

Catalonia votes to break from Spain. Separatists in the Catalonia regional parliament voted 72 to 63 to form their own European country. Madrid says "no way," but Catalonia, which has its own language and culture, says this is the start of an 18-month process that will include forming a Catalan tax authority and social security. NPR

Modigliani painting sells for $170.4 million. "Nu couché" fetched the second highest price ever paid for an artwork at an auction. The Christie's sale allayed worries that the art market might be getting soft. NBC News

Facebook likely to release news app Notify this week. The new app will let users know when their favorite news outlets have published articles. Partners include Vogue,  Mashable, Washington Post, and CNN. The Verge


Cameron warns EU over U.K. terms. Prime Minister David Cameron has said that Britain will question its commitment to the European Union if his demands for changes to the U.K.’s membership are rebuffed. Wall Street Journal (paywall)


You won’t believe this:

Seattle's gum wall gets cleaned. After more than 20 years of chewed gum being stuck to the wall at Pike Place Market, the bricks are beginning to break down from the sugar. But the tourist attraction won't be clean for long. Locals and officials hope tourists keep sticking their gum on the fresh canvas. BuzzFeed

Wheat farmers and cattle breeders beware. A new Google search function hints at new trends in the nation's food habits. Nationwide, gluten-free searches are surging. In New York City, veganism is No. 1. Vox

Photo: AdamPrzezdziek

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