TOP STORIES
PRIVATE SECTOR JOBS ROSE BY ONLY 169,000 IN APRIL, ADP SAYS
Private-sector payrolls once again expanded at a mediocre pace
last month, increasing by just 169,000 jobs in April, said the
national employment report compiled by payroll processor ADP and
forecasting firm Moody's Analytics.
U.S. STOCKS TRADE LOWER
U.S. stocks fell after Federal Reserve Chairwoman Janet Yellen
drew attention to elevated valuations in the stock market. The Dow
Jones Industrial Average recently was down 80 points.
FRENCH PROSECUTORS LAUNCH PROBE OF J.P. MORGAN UNIT
French prosecutors have filed preliminary criminal charges
against a unit of J.P. Morgan Chase for its alleged complicity in
tax fraud, according to court documents reviewed by The Wall Street
Journal.
FED'S YELLEN SAYS FINANCIAL RISKS NOT CURRENTLY ELEVATED
Federal Reserve Chairwoman Janet Yellen said risks to financial
market stability are moderate at the moment although stock market
valuations appear somewhat elevated and some bond and loan markets
suggest investors may be taking excess risks.
PENTAGON WORRIES KEY IRAQI REFINERY COULD FALL TO ISIS
Pentagon officials said they are worried that a key Iraqi oil
refinery that is held by Iraqi commandos could fall to Islamic
State control in the coming days.
U.S. PRODUCTIVITY FALLS 1.9% IN FIRST QUARTER
U.S. worker productivity fell in the opening months of 2015, the
latest sign of sluggish economic growth at start of the year. The
productivity of nonfarm workers fell at a 1.9% seasonally adjusted
annual rate. Economists expected a 1.8% decline.
IMF'S LAGARDE SAYS REGULATORS NEED TO BOLSTER OVERSIGHT
The head of the International Monetary Fund warned that
regulators still need to bolster oversight of the financial system
to tackle excessive risk-taking, six years after the financial
crisis shocked the global economy.
ALEXION TO BUY SYNAGEVA IN $8.4 BILLION DEAL
Alexion Pharmaceuticals agreed to buy Synageva BioPharma in a
cash-and-stock deal valued at $8.4 billion, paying more than double
the market cap for the maker of rare-disease treatments. Alexion's
shares fell 9%; Synageva's shares surged 115%.
FAA JOINS WITH CNN, BNSF TO STUDY DRONE FLIGHTS
The Federal Aviation Administration is joining with companies
including CNN and BNSF Railway to study how to allow drone flights
in urban areas and beyond the sight of the devices' operators.
CHESAPEAKE ENERGY SWINGS TO LOSS ON WRITE-DOWN
Chesapeake Energy swung to a heavy 1Q loss of $3.78 billion as
the U.S. shale driller took a $3.6 billion write-down on some
properties amid tumbling oil and natural gas prices. Revenue fell
45.3% to $2.76 billion.
WENDY'S TO SELL BAKERY BUSINESS, 640 RESTAURANTS
Wendy's plans to sell its bakery business this month and sell
off 640 of its company-owned restaurants to franchisees. It also
reported a 1Q profit that narrowly topped Wall Street expectations,
through sales fell below views. Shares up 5%.
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Big Picture
PAIR OF ECONOMISTS LOOK FOR APRIL HIRING BONANZA
After getting burned by March's weak payroll number, the
consensus view for Friday's employment report is modest. Two
economists, however, are calling for a big gain in April payrolls,
writes Kathleen Madigan.
Heard on the Street
SIZING UP BIG BANK SYNERGIES
Whether you call it cross-selling, wallet-share, or revenue
synergies, this plank of universal bank strategy is a slippery
beast that has long been difficult to pin down in the real world.
But nowadays it is more than a plan, it is a justification for why
large global banks should continue to exist.