Morning Brief: Investors eye possible Disney, 21st Century Fox deal

Wednesday, December 6, 2017

What to watch today

As markets move closer to Friday’s all-important jobs report, investors will get the second-biggest piece of labor market news on Wednesday. At 8:15 a.m. ET, data provider ADP will release its November reading private payroll growth which is expected to show 190,000 jobs were added to the private sector during the month.

On the earnings side, headlines on Wednesday should come from Broadcom (AVGO) and apparel retailer American Eagle (AEO).

Investors will also keep an eye on the media space, as Disney (DIS) shares fell just less than 3% on Tuesday after CNBC’s David Faber reported that Disney and 21st Century Fox are close to a deal that would see Disney acquire Fox’s TV production assets, and potentially its regional sports networks and other properties. Fox’s news and broadcast assets are not expected to be involved in the deal, which Faber said could be announced as soon as next week.

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Top news

As selloff hits stocks, some investors point to Jerusalem: Investors watching the selloff that enveloped Asian markets Wednesday saw a host of reasons, ranging from profit-taking to the continued drop in technology stocks. But one matter was prominent for some commentators: President Donald Trump’s plan to formally declare Jerusalem as Israel’s capital. [Bloomberg]

Trump could join Obama in the $1 trillion deficit club: The budget deficit is headed back toward trillion-dollar territory. With no changes in U.S. fiscal policy, the nonpartisan Congressional Budget Office forecasts an annual deficit of $1.027 trillion in 2022, as federal revenue fails to keep pace with the ballooning costs of Social Security, Medicare and Medicaid. But if the Republican tax cuts and other policies go into effect soon, which seems likely, Uncle Sam could face another trillion-dollar deficit while President Donald Trump is still in his first term. [Yahoo Finance]

Plan to prevent banks from seducing regulators dies under Trump:  A high-profile plan to prevent federal watchdogs from getting too cozy with banks they are supposed to police has been scrapped by President Donald Trump’s newest Wall Street regulator. [Bloomberg]

Bitcoin climbs to $12,000 as futures move closer to reality:  Bitcoin surpassed $12,000 for the first time amid speculation that the widespread use of futures will help lead to digital currencies being viewed as a legitimate asset class for mainstream investors. [Bloomberg]

UPS warns of delivery delays: United Parcel Service Inc. is struggling to handle the surge in shipments from online shoppers, resulting in delivery delays early in the critical holiday season and prompting the carrier to a push drivers to work extra hours. [The Wall Street Journal]

Yahoo Finance Originals

A wildfire consumes a home Tuesday, Dec. 5, 2017, in Ventura, Calif. Raked by ferocious Santa Ana winds, explosive wildfires northwest of Los Angeles and in the city’s foothills burned scores of homes Tuesday and forced the evacuation of tens of thousands of people. (AP Photo/Jae C. Hong)

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The Morning Brief provides a quick rundown on what to watch in the markets, top news stories, and the best of Yahoo Finance Originals.