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Daily Scan: Stocks climb; McCarthy drops from House speaker race

By NexChange
Capital Markets

 

Updated throughout the day

October 8

Good evening, US stocks rose modestly Thursday after the Fed's meeting minutes showed how badly the central bank wants inflation to rise. The Dow gained 0.8%, the S&P 500 rose 0.9%, and the Nasdaq added 0.4%. Earnings season kicked off with a report from Alcoa Thursday. The aluminum company lost 3.8% in after-hours trading after its earnings and revenue fell short of expectations. Oil broke $50/barrel for the first time since July.

Here's what else you need to know:

Kevin McCarthy drops out of speaker race. House Majority Leader McCarthy was expected to succeed House Speaker John Boehner when he resigns at the end of October. McCarthy expressed skepticism that he would win the Speaker race outright, and didn't want to divide his Republican party further. The vote for speaker has now been delayed. CNN

Russian missiles fall in Iran. Four Russian missiles meant for Syrian antiregime forces fell short of the country and landed in Iran. Russia and Iran are allies in their support of Bashar al-Assad as leader of Syria. Wall Street Journal

Save the drama for your mama, Bill Gross. Gross is suing Pimco for $200 million. The Bond King says a "cabal" of executives drove him from the firm he founded so they could claim his bonus for themselves. Pimco's directors were "driven by a lust for power, greed, and a desire to imporve their own financial position and reputation." Gross left the firm in September 2014. The year before, his pay topped $300 million. Reuters

Chrysler Fiat averts strike. Again. The four-year contract affects 40,000 workers in the U.S. Last month workers rejected a deal. This new agreement also requires UAW member ratification. Reuters

Svetlana Alexievich wins Nobel Prize for literature. The chair of the Swedish academy called the work by the Belarussian author a “monument to suffering and courage in our time.” The Guardian

Dell reported in talks to buy storage company EMC. No price yet on the deal, but it is likely to exceed the $37 billion offer Avago Technologies made for Broadcom. Dell is valued at $50 billion. Reuters

Uber China is toast. Didi Kuaidi, Uber’s Beijing-based rival, scored a massive win against its San Francisco-based nemesis after it secured a license to operate private cars in Shanghai. This is a huge blow to Uber, not only because Shanghai is a major market, but also because other Chinese cities typically follow suit. Wall Street Journal (paywall)

Sony to sell stake in world’s largest music publisher. Sony, the embattled Japanese electronics giant, is selling its stake in Sony/ATV Music Publishing – which it co-owns with the estate of Michael Jackson. Sony/ATV owns the copyrights to songs from the Beatles, Marvin Gaye, and Taylor Swift, and i

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