Stock market news: Opening bell, October 2, 2018

Venezuela’s
President Nicolas Maduro speaks during the kick-off event for the
international trading of Petro, the cryptocurrency developed by
the Venezuelan government, in Caracas,
Venezuela.
Reuters/Carlos Garcia
Rawlins

Here is what you need to know. 

Trump’s new trade deal is just NAFTA “with some bells and
whistles.” “New deal, with a new name, but
aside from dairy access and some bells and whistles, hardly a
major rewrite that warranted so much wasted time over a 13-month
long period of negotiations,” David Rosenberg, chief economist at
Toronto-based Gluskin Sheff, said in a note sent out to
clients. 

Italy budget fears are spreading. Concerns
about the Italian government wanting to substantially
increase the country’s budget deficit, allowing it to finance
major new infrastructure projects and social welfare programs,
have prompted worries that rating agencies could be forced to
downgrade the country’s credit rating. 

The Indian Government has taken control of a shadow lender over
fears of loan-default contagion. The Indian
government has seized control of the shadow lender
Infrastructure Leasing & Financial Services over fears
its massive debt default will destabilize the
country’s financial system.  

Some of Wall Street’s biggest firms are already waving red flags
on the stock market’s newest sector. At least
four Wall Street firms are urging caution on the new
communication-services sector added by S&P Dow Jones Indices
and MSCI.

Business schools are seeing a decline in
applications. The number of applicants to
American business schools fell 7% in 2018, according to a
Graduate Management Admission Council report released Monday.

John Flannery is out as GE’s CEO. General
Electric removed Flannery after just over a year at the head of
the company, replacing him with Lawrence Culp Jr., a GE
board member and the former CEO and president of Danaher
Corporation. GE also said it would take a $23 billion writedown
related to its power business. 

Tesla adds a second tent at its Fremont
factory. A city building permit shows the
electric-car maker has built a tent that measures about 4,000
square feet that is meant to be used for “wrapping vehicles
to protect in transit.” 

Stock markets
around the world are under pressure. Hong
Kong’s Hang Seng (-2.38%) was hit hard in Asia and Europe’s STOXX
500 (-1.11%) is seeing sizeable losses. The S&P 500 is set to
open down 0.27% near 2,917.

Pepsi cuts
its earnings outlook. The beverage and snack
giant beat on both the top and bottom lines, but cut its
full-year earnings outlook to $5.65 a share ($5.70 previous) due
to a one percentage point headwind from foreign
exchange.  

US economic data is light. US auto sales will
be released throughout the day.