Chrysler Readies IPO, Green Mountain Beats Expectations: Morning Buzzers
U.S. stock futures rose on Thursday morning after a report said that last week fewer Americans filed for jobless claims than forecast. Data from the U.S. Department of Labor released Thursday showed that applications for unemployment were at their lowest rate in two months last week, signaling that the economy and labor market are healing. The increases mean that the S&P 500 could bounce back from declines in trading on Wednesday. The continued improvement in the labor market could also push the Federal Reserve to begin cutting stimulus sooner than expected.
Futures at 8:30 a.m.: DJIA: +0.29%, S&P 500: +0.22%, Nasdaq: +0.34%.
Here’s your cheat sheet to what’s buzzing Thursday morning.
Green Mountain Coffee Roasters (NASDAQ:GMCR) is up in premarket trading as the maker of Keurig-brand single cup coffees and brewers posted higher-than-expected profit for the third quarter. Sales of Green Mountain’s K-Cups and single-cup brewers rose during the quarter, bringing in a profit of 89 cents per share for the quarter when analysts had expected the figure to be around 75 cents. Green Mountain has been working to offer more varieties of its K-Cups as grocery stores have begun introducing off-brand versions, Bloomberg reports.
Chrysler has added some more underwriters as the automaker prepares for an initial public offering that could come as soon as next month. Barclays (NYSE:BCS), Goldman Sachs (NYSE:GS), UBS (NYSE:UBS), and Morgan Stanley (NYSE:MS) are bookrunners for the listing. Those firms join lead underwriters JPMorgan Chase (NYSE:JPM) and Bank of America (NYSE:BAC), according to a report from Reuters. However, things could become complicated before the rumored December IPO, as Chrysler is jointly owned by Fiat (FIATY.PK) and the UAW health care trust for retired Chrysler employees, and the two parties have disagreed on the company’s value.
Cliffs Natural Resources (NYSE:CLF) is halting a $3.3 billion Canadian chromite mining project indefinitely, crushing hopes that Cliffs might be able to get the project on track, Reuters reports. The project was delayed in June due to difficulties with the Canadian government and regulators, but at that time, Cliffs still hoped that it could overcome those hurdles and proceed with the mining. Cliffs said it would be letting go of employees working on the project and close the exploration site.
Goldman Sachs Group (NYSE:GS) has lost a complicated bet it made on the foreign-exchange market, leading to a drop in revenue for the third quarter and forcing executives to defend the bank’s trading strategy. According to people familiar with the matter who spoke to The Wall Street Journal, a bet made on the value of the U.S. dollar versus the Japanese yen backfired on Goldman during the third quarter. When Goldman reported its third-quarter results last month, the company showed a drop in the revenue of its currency trading unit, and WSJ’s sources say the yen-dollar bet is what caused the slump.
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