Here are five things you must know for Friday, Sept. 28:
1. — Stock Futures Slip as Third Quarter Wraps Up
U.S. stock futures fell on Friday, Sept. 28, the last trading day of the third quarter, and global stocks were mixed with a stronger U.S. dollar driving markets in Japan to a three-decade high.
The U.S. dollar index, which tracks the greenback against a basket of six global currencies, traded at 95.27, up 0.3%, following comments from Federal Reserve Chairman Jerome Powell, who told an audience in Washington that “there’s no reason to think that the probability of a recession in the next year or two is at all elevated.”
Contracts tied to the Dow Jones Industrial Average
Japan’s Nikkei 225 index ended Friday up 1.3% at 24,120.04. At one point during the session, the index surged more than 1.5%, taking the benchmark to its highest level since November 1991. The Nikkei gained 8.13% during the the third quarter.
The economic calendar in the U.S. on Friday includes Personal Income and Outlays for August at 8:30 a.m. ET, Chicago PMI for September at 9:45 a.m., and Consumer Sentiment for September at 10 a.m.
Earnings reports are expected Friday from Vail Resorts Inc. (MTN) .
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2. — Tesla Plunges After SEC Sues CEO Elon Musk
Tesla Inc. (TSLA) shares plunged 10.9% in premarket trading Friday after the Securities and Exchange Commission moved to oust billionaire founder and CEO Elon Musk amid charges of fraud.
The SEC said Musk made “false and misleading” statements on Aug. 7, when he told his 22.7 million Twitter followers that he had “funding secured” to take the electric vehicle company private at $420 a share. The SEC suit seeks to remove Musk as Tesla CEO and bar him from serving in a similar capacity at any other U.S. company. It also is seeking the return of “any ill-gotten gains” from the tweet and an undisclosed civil fine.
“This unjustified action by the SEC leaves me deeply saddened and disappointed,” Musk said in a statement. “Integrity is the most important value in my life and the facts will show I never compromised this in any way.”
The SEC’s action, which targets only Musk and not Tesla as a company, is separate from a criminal probe of Musk being carried out by the Department of Justice. Since it’s pursuing a civil case, the SEC isn’t seeking jail time.
The SEC’s suit, filed with a U.S. District Court in New York, claimed that Musk “had not even discussed, much less confirmed, key deal terms, including price, with any potential funding source.” It added Musk “knew or was reckless in not knowing” a series of tweets written on Aug. 7, was false and/or misleading.
3. — Boeing Gets $9.2 Billion Air Force Contract for Trainer Aircraft
Boeing Co. (BA) was awarded a $9.2 billion contract from the U.S. Air Force to make hundreds of trainer jets.
“The Air Force currently plans to purchase 351 T-X aircraft, 46 simulators, and associated ground equipment,” the Air Force said in a statement.
The T-X Trainer program will replace the Air Force’s half-century-old fleet of T-38 supersonic jets that have helped prepare fighter pilots for combat since John F. Kennedy was president, according to Bloomberg.
Earlier this week, Boeing won a $2.38 billion contract from the Air Force to build new helicopters.
4. — Google CEO Sundar Pichai to Meet U.S. Lawmakers
Sundar Pichai, CEO of Alphabet Inc.’s Google (GOOGL) , will meet Friday with Republican lawmakers, largely to discuss charges that the tech giant doesn’t treat conservatives fairly, USA Today reported.
Pichai’s private meeting in the offices of Republican House Majority Leader Kevin McCarthy will come just days after Google’s chief privacy officer was questioned by a Senate panel over the company’s exploration of a new search engine in China.
“Google has a lot of questions to answer about reports of bias in its search results, violations of user privacy, anti-competitive behavior, and business dealings with repressive regimes like China,” McCarthy said in a statement.
“I look forward to meeting with members on both sides of the aisle, answering a wide range of questions, and explaining our approach,” said Pichai, who also is expected to meet with White House economic adviser Larry Kudlow at Google’s request, USA Today reported.
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5. — Blue Origin Wins Rocket Engine Contract
Blue Origin, the rocket company owned by Amazon.com Inc. (AMZN) CEO Jeff Bezos, received a contract for his company’s BE-4 engines to power United Launch Alliance’s Vulcan Centaur, a new suite of rockets that will aim to better compete with Elon Musk’s SpaceX on price, CNN reported. The first launch is slated for 2020.