DJ Global Equities Roundup: Market Talk

The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.

1842 ET - Jessica Simpson has moved a step closer to buying a majority stake in her namesake fashion line from bankrupt Sequential Brands Group Inc. The celebrity and her family have been in talks about buying the 62.5% of the collection -- which includes footwear, apparel and fragrances -- that they don't currently own for $65 million. The paperwork that includes those terms was filed Friday in the U.S. Bankruptcy Court in Wilmington, Del. The offer is subject to higher bids and court approval. Proposed terms also include a breakup fee of nearly $2 million and potential expense reimbursements of $400,000 if another buyer is selected. (becky.yerak@wsj.com; @beckyyerak)

1831 ET - Boeing is still working to determine why some of the valves on the propulsion system on its Starliner space capsule became stuck before a planned launch this past summer, according to a NASA statement Friday. However, the company has identified the "most probable cause" that caused the problem, NASA says. That likely cause isn't identified in the space agency's comment, which says the issue relates to interactions between oxidizer and moisture. Boeing is now taking corrective actions based on its findings, and plans additional testing of the spacecraft and components in the coming weeks. NASA and Boeing could try to fly the Starliner again "early" next year, the space agency adds. (micah.maidenberg@wsj.com; @MicahMaidenberg)

1821 ET - Chubb "still has robust excess capital for more accretive deals," Credit Suisse analyst Andrew Kligerman says, following the global insurer's $5.75B pact to acquire units from Cigna selling life, accident and supplemental insurance in Asia-Pacific countries including Indonesia, Korea and Thailand. The pact was announced late Thursday. Kligerman says Chubb has billions more it could put to work. The company will largely use cash on hand, but may ultimately issue up to $1.1B of senior notes to fund the purchase. Wells Fargo analyst Elyse Greenspan says "market should like CB putting its excess capital to work," as well as the fact that "they are able to do this transaction without having any impact on the buyback program." CB shares were up 2.5%. (leslie.scism@wsj.com)

1741 ET - In a pandemic-related development, Allstate says it will sell its headquarters in Northbrook, Ill., while planning to maintain "our strong presence" in the state. The auto and home insurer says the decision stems from its employees having "more choice about where they work and many are choosing to work from home." (leslie.scism@wsj.com)

1729 ET - The IPC stock index closes up 0.5% at 51136, leaving it up 0.2% in a week of ups and downs. The peso loses ground against the US dollar, trading at 20.71 versus 20.66 yesterday. Banorte maintains its year-end estimate of 53800 for the IPC while changing its exchange-rate forecast to 20.50 pesos per dollar from 20.20, predicting a volatile 4Q. "As volatility moderates, the MXN's carry attractiveness will again be a positive driver," Banorte says. In the week ahead, statistics institute Inegi reports August industrial production and the Bank of Mexico on Thursday publishes minutes to its Sept. 30 meeting in which it raised interest rates for the third time in a row. (anthony.harrup@wsj.com)

1720 ET - Texas governor Greg Abbott says he chatted with Elon Musk about Tesla's headquarters move to Austin. Musk announced yesterday that Tesla would move its offices from Palo Alto, Calif., to the Texas state capital. Abbott, a Republican, says: "Elon Musk and I have been discussing this relocation and the unmatched competitive advantages our state can offer... I look forward to working alongside Musk and Tesla to expand their presence here in Texas, spurring economic growth." (rob.copeland@wsj.com; @realrobcopeland)

1716 ET - Canadian stocks finish unchanged, led by modest gains from the energy sector. The benchmark S&P/TSX Composite Index was flat at 20416 and the blue-chip S&P/TSX 60 Index rises 0.1% to 1226. Great Panther Mining tumbles 4.9% after the company reported that 3Q production came in below expectations because of low ore tonnage from its Tucano mine. Class B shares of Alimentation Couche-Tard fell by 1.1% after the convenience-store operator agreed to buy back 6.4M Class B shares at a 2% discount to yesterday's closing price. In economic news, Statistics Canada says the Canadian economy added a net 157,100 jobs in September, following a 90,200 gain in the previous month. The unemployment rate fell to 6.9%. (kimberly.chin@wsj.com; @mskimberlychin)Tarcisio Freitas is Brazil's infrastructure minister. "Brazil Is 'ESG Eldorado' for Foreign Investors, Minister Says -- Market Talk," at 3:28 p.m. ET, misspelled Freitas's first name.

1605 ET - US stocks end a back-and-forth sesssion a bit lower following a disappointing jobs report. The US added 194,000 jobs in September, well below expectations, while the unemployment rate fell to 4.8% as some workers exited the labor force. Ten-year Treasury yields rise to 1.602% from 1.566% yesterday--breaking 1.6% for the first time since June--and oil adds another 1.3% to $79.35, finishing the week up 4.6% and at the highest level since October 2014. The Dow is a hair lower to 34746, the S&P 500 falls 0.2% to 4391 while the Nasdaq declines 0.5% to 14579. This leaves the Dow up 1.2% for the week and S&P 0.8% higher. (jonathan.vuocolo@wsj.com; @jonvuocolo)

1602 ET - The concession Brazil's 400-mile toll road known as Via Dutra, connecting the country's two largest cities, Sao Paulo and Rio de Janeiro, will be auctioned off on October 29 in a $2.7B, 30-year deal, as Latin America's largest economy seeks international investment. Dutra was privatized in 1996 as Brazil began to slowly move away from a state-controlled economy, in a contract that has survived several administrations and is now expiring. "We have learned a lot since then," Infrastructure Minister Freitas says. The new contract reduces investors' risk, which is expected to result in tolls falling by 35%, he says. (paulo.trevisani@wsj.com; @ptrevisani)

1543 ET - A tense political climate in Brazil makes it harder for foreigners to see the advantages of investing in the country's infrastructure, minister Tarcisio Freitas says. The country has been moving from one crisis to the next since the ground-shaking Carwash corruption probe began in 2014, followed by President Rousseff's impeachment in 2016 and the election of right-wing President Bolsonaro in 2019. Freitas says progress is being made, despite nearly constant rumors in local media of a supposedly imminent coup d'etat. "Contracts are being honored, public works are within schedule and new auctions are being held," he says. "There will be no coup." (paulo.trevisani@wsj.com; @ptrevisani)

1537 ET - Chilean prosecutors have opened a criminal investigation into President Sebastian Piñera amid allegations of wrongdoing tied to the sale of a stake in a mining project, a move that could add to public anger against the political establishment ahead of November's presidential election. Prosecutors said they will investigate whether bribery and tax crimes occurred during the sale of the Dominga mine project by Piñera's family during his first term from 2010 to 2014. Piñera denied wrongdoing after the contract, which was signed in the British Virgin Islands, was revealed in the Pandora Papers this week. He said he was not involved in the sale and had no knowledge of the deal. The president has faced a growing backlash against the political class that resulted in large protests in 2019. (ryan.dube@wsj.com; @duberyan)

(END) Dow Jones Newswires

October 08, 2021 18:42 ET (22:42 GMT)

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