Stocks rallied early yesterday, but rolled over late in the afternoon. This morning, they’re giving it the “old college try” again. Gold and silver are mixed, crude oil is a bit lower, and the dollar and Treasuries are flat.
It's Friday, the Federal Reserve meets next week, and we just got our last important economic report ahead of that gathering. June personal income came in a bit weak, while spending was in line. The core PCE inflation number embedded in the report was a bit hot (plus-0.2% versus a plus-0.1% forecast). But markets held their pre-data gains.
In a complex, $6.3 billion deal led by Apollo Global Management, International Game Technology (IGT) will sell its video and electronic gaming machine division and become a pure-play lottery company. Everi Holdings Inc. (EVRI), a maker of Bingo and slot machine products, will be merged into the new Apollo-led company headquartered in Las Vegas. IGT and EVRI shares surged on the news.
3M Co. (MMM)
On the earnings front, industrial conglomerate 3M Co. (MMM) showed that spending a year shedding jobs, spinning off its healthcare products division, and shifting its business focus paid off. The company beat second-quarter earnings estimates and raised its annual profit forecast, sending its shares up as much as 7%.
The 2024 summer Olympic Games are getting underway, but sabotage ahead of the opening ceremony has darkened the mood a bit. Perpetrators reportedly cut train-signaling cables and set coordinated fires early this morning, acts that disrupted rail systems that feed into Paris from elsewhere in France. Suspicion fell on Russia, whose athletes have been largely banned from the games due to the invasion of Ukraine. Authorities in German believe Russia spearheaded a similar railroad-focused sabotage act there in late-2022.
