Sentiment in the stock markets was weak on Friday, after Fed Chair Janet Yellen decided to take a "little bit more time to evaluate the likely impacts" of recent market volatility before acting on interest rates. Although low rates have helped fuel years of rising share prices, markets are drawing little comfort from the decision as many investors feel a rate hike would have signaled the central bank's confidence about economic growth. U.S. futures are all lower by about 1%.

Economy

Government bond yields across the globe are in party mode after the U.S. Federal Reserve kept interest rates unchanged in a nod to concerns about a weak global economy. The German 10-year yield - the eurozone benchmark - is down 8 bps to 0.69%, mirroring a similar move in U.S. Treasuries overnight. Equivalents in France, Spain, Italy and the U.K. fell even further, dropping 9-11 basis points, following Asian yields lower.

A last-ditch attempt to derail the Iran nuclear deal failed for a third time in the Senate on Thursday, clearing the way to implement the accord. By a 56-42 vote, the Republican-majority Senate fell short of the 60 votes needed to advance in the 100-member chamber. With no more Senate votes this week, the result ensured Congress will not pass a resolution that would have crippled President Obama's ability to waive many sanctions, including restrictions on energy exports and access to international finance. Crude futures -0.7% to $46.83/bbl.

With Puerto Rico projected to exhaust its liquidity later this year, Congress "must act now" to provide the island with access to restructuring, the U.S. Treasury Department said in a statement. Bills proposing that Puerto Rican municipalities be allowed to reorganize debts under Chapter 9 bankruptcy have been introduced in the House and Senate, but the idea has not gathered enough Republican support to advance further.

Greek polls are showing Syriza's Alexis Tsipras and New Democracy's Vangelis Meimarakis within spitting distance of each other, setting the stage for a cliffhanger vote on Sunday between the political left and right. Any winner will need to oversee the deep economic reforms required for an €86B bailout brokered in August, a recapitalisation of the country's banks and the unwinding of capital controls. The upcoming election is the country's third vote in 2015 and the fifth general election in six years.

Stocks

A federal appeals court has ruled that Apple (NASDAQ:AAPL) has the right to block Samsung (OTC:SSNLF) from using its patented inventions, such as slide-to-unlock, autocorrect and quicklinks, in a verdict that could have major consequences for the South Korean electronics maker's future. Since it was a split decision, Samsung said it would ask that the issue be considered by all active judges of the Federal Circuit, but if it does not win the appeal, it may be forced to tweak its software even in recent devices such as the Galaxy S6.

Separately, BlackBerry is banking a significant part of its turnaround strategy on its massive patent portfolio as it pivots to focus more on its software and enterprise business. "We have today about 44,000 patents. The good thing about this is that we also have one of the youngest patent portfolios in the entire industry," Chief Executive John Chen said at the Waterloo Innovation Summit. BlackBerry's (NASDAQ:BBRY) FQ1 software/licensing revenue rose 150% Y/Y to $137M, thanks to licensing deals with Cisco (NASDAQ:CSCO) and an unnamed company. FQ2 results arrive on September 25.

Texas Instruments plans to buy back shares worth up to $7.5B as part of a new repurchase program, in addition to the $1.8B remaining at the end of June from a previous plan. The new funds are good for repurchasing 15% of shares at current levels. The company also raised its quarterly cash dividend by 12% to $0.38 per share, which is payable on Nov. 16 to shareholders on record as of Oct. 30. TXN +1% premarket.

Qualcomm is slashing more than 1,300 full-time jobs in San Diego and hundreds more in other states as it revamps its business in the face of slower growth in the maturing smartphone market. A statement by President Derek Aberle says the company will provide outplacement help and severance packages. Qualcomm (NASDAQ:QCOM) revealed plans to slash its 31,300 global workforce by 15% in July and cut expenses by $1.4B annually.

Despite a recent $9.1B deal for Suddenlink and a $17.7B takover of Cablevision, Altice's (OTCPK:ATCEY) brash chief Patrick Drahi said he isn't done buying U.S. cable providers and may eventually want to acquire a mobile-phone company. Asked which cable operator he'd like to buy next, Drahi answered: "All of them, basically." Drahi, a serial acquirer in the past 22 months, is known for sending in a team of executives after each acquisition to cut costs on everything from software to staff.

The BBC is planning to launch a Netflix (NASDAQ:NFLX)-style subscription service in the U.S. next year, as part of an effort to go directly to audiences abroad and boost commercial returns by more than £30M a year. The service will not include programs that are currently shown on U.S. channels such as Top Gear and Doctor Who, but will rather be charged with "showcasing British actors, our program-makers - and celebrating our culture." NFLX -0.4% premarket.

Verizon will begin offering roaming wireless service in Cuba next week, becoming the first U.S. company to do so. Currently, visiting Americans must purchase plans through state-owned Empresa de Telecomunicaciones de Cuba to have cellular service on the island, or have a cellphone account in a third country. Verizon's (NYSE:VZ) news comes on the same day Cuba said its first ambassador to the U.S. since 1961 presented his credentials at the White House.

Almost a year following its record $25B IPO, Alibaba (NYSE:BABA) shares are back where they started. The stock, which saw a 76% surge in its first two months of trade, has been struggling from clashes with regulators over counterfeit goods, slower revenue growth and a furious summer selloff due to China's wobbly economy. A bearish column published in Barron's last weekend has not given the stock any better prospects. BABA closed down 1.9% yesterday at $65.96.

Thursday's Key Earnings

Adobe (NASDAQ:ADBE) -2.1% AH on light guidance and a management shake-up.
Rite Aid (NYSE:RAD) -10.7% on a profit fall and outlook cut.

Today's Markets

In Asia, Japan -2% to 18070. Hong Kong +0.3% to 21920. China +0.4% to 3098. India +1% to 26219.
In Europe, at midday, London -1.1%. Paris -2.6%. Frankfurt -2.5%.
Futures at 6:20, Dow -1%. S&P -0.9%. Nasdaq -0.9%. Crude -0.7% to $46.83. Gold +1.8% to $1136.70.
Ten-year Treasury Yield -6 bps to 2.15%

Today's Economic Calendar

10:00 Leading Indicators