Federal Reserve Chairman Janet Yellen will answer economic questions in front of the US Senate today. Let’s hope they listen more than talk.
Terms of the big tobacco merger between Reynolds American (makers of Camels) and Lorillard (makers of Newports) are now known. Reynolds will pay $27.4 billion in cash and stock for Lorillard equaling $68.88 a share. In order to make the deal palatable to regulators, as we go from three to two major US tobacco companies, Reynolds will sell its Kool, Salem, Winston and blu eCigs brands to the British Imperial Tobacco Group. (CNBC)
JPMorgan Chase saw profits fall 8% to $5.99 billion as their bond trading desks saw less business and they do less securities trading. The bank says it continues to see an improving business climate that will help it improve results in coming quarters. (Reuters)
Goldman Sachs saw profits climb 5% to$1.95 billion as sales also increased 6%. Their trading desk income increased 20% over last year. Compensation was the banks largest cost during the last year at $3.9 billion up 6% from last year. (Wall Street Journal)
Drug and consumer product company Johnson & Johnson made a second quarter profit of $4.33 billion up over 13% from last year. Helping boost their bottom-line was strong sales of their new hepatitis C drug. (Reuters)