The big news comes from the presidential debate. It appears my inclinations to believe Trump would win were wrong. The market thinks Hillary won the debate, so it is rallying. It’s impossible to determine if this means Hillary will receive a boost in the polls. Considering the race was tied, a small boost would push her over the edge. Whichever candidate wins the election will not stop the credit cycle from rolling over, causing a recession. Default rates have been rising steadily, while corporate debt is slightly higher than 2008 levels. If you ignore the short term noise, there is no other objective conclusion to draw than 2016 will be the start of another recession.
Facebook Inc (NASDAQ:FB) was ordered by the Hamburg Commissioner for Data Protection and Freedom of Information that WhatsApp must cease data storage ad collection and delete already processed data on all German WhatsApp users. The following statement was made by the German government “After the acquisition of WhatsApp by Facebook two years ago, both parties have publicly assured that data will not be shared between them. The fact that this is now happening is not only a misleading of their users and the public, but also constitutes an infringement of national data protection law.”
FactSet Research Systems Inc. (NYSE:FDS) reported Q4 EPS of $1.69 which missed by 1 cent. Revenues were $287.3 million which is up 9.7% year over year missing expectations by $3.13 million. Annual subscription revenue grew 8.8% organically to $1.15 billion. Buy-side subscription growth was up 9% and sell-side subscription growth was up 7.6%. Q1 EPS guidance was $1.62-$1.66 which missed expectations for $1.72.
Oracle Corporation (NYSE:ORCL) and Visa Inc (NYSE:V) are partnering to create Visa Advertising Solutions. Oracle Data Cloud and Visa Advertising Solution are partnering to provide target segment recommendations and offers based on previous purchase actions, demographics, interests, and other data. Oracle made a statement about the deal: “Working together, we can combine Visa Advertising Solutions’ unmatched purchase data and merchant relationships with the Oracle Data Cloud’s data assets and expertise in building and measuring purchase-based audiences. This allows everyone from restaurants to retailers to improve the effectiveness of their advertising by establishing a direct link between digital ads and actual sales, whether these occurred online or in traditional brick and mortar locations.”