Markets and Business News Review

Europe's Billion-Dollar Startups Are Calling For A Stock Option Shakeup

Oliver Smith, Forbes Staff https://www.forbes.com/sites/oliversmith/ — Thu, 28 Nov 2019 16:11:46 -0500

Stripe, Revolut and TransferWise are among the billion-dollar startups founded in Europe calling for a shakeup today in how stock options are awarded across the continent.

How Long Would It Take To Travel From One End Of The Universe To The Other At Light Speed?

Quora, Contributor https://www.forbes.com/sites/quora/ — Tue, 06 Aug 2019 11:30:00 -0400

If the universe is 93 billion light years in diameter, how long would it take to travel end to end at light speed? This question was originally answered on Quora by Jack Fraser.

Siemens Buys Low Code Mendix, The Digital Factory Race Climbs Higher

Tue, 06 Aug 2019 02:00:00 -0400

German industrial engineering company Siemens has bought the originally Dutch (now US located) ‘low code’ company Mendix for US$ 730 million in cash. There is no formal ‘face off’ going on between Siemens and GE, but many publications have often openly labelled the two firms as rivals.

Android Circuit: Samsung Galaxy Note 9 To Launch August 9th, On Sale Late August, Here Are The New Features

Ewan Spence, Contributor https://www.forbes.com/sites/ewanspence/ — Sat, 03 Aug 2019 16:28:23 -0400

This week’s Android Circuit includes the release date of the Galaxy Note 9, new leaked features of Samsung’s phablet, how to unlock the Galaxy S10, the OnePlus 6 breaks records, the notched Pixel 3 leaks, Nokia smartphones reaching the Top Ten, and how Spotify can wake you up in the morning.

Blue Apron stock soars as news of Beyond Meat menus sparks a round of short covering

Tue, 16 Jul 2019 14:58:34 -0400

Shares of meal-kit company Blue Apron Inc. rallied Tuesday, after the company said it would start adding Beyond Meat Inc.’s plant-based proteins to its menus starting in August, sparking a round of short covering.

Trump Today: Trump turns up trade pressure on China as he threatens Google probe

Tue, 16 Jul 2019 14:57:46 -0400

President Donald Trump on Tuesday turned up fresh pressure on China over trade with the U.S., as he vowed to “take a look” into allegations that Google’s work with Beijing is treasonous.

Earnings Outlook: Intel earnings: What to expect

Tue, 16 Jul 2019 14:56:37 -0400

Intel Corp. may have a better-than-expected June-ending quarter at the expense of next quarter as PC sales rose partly in anticipation of upcoming tariffs in the ongoing U.S. trade war with China.

What Could Drive A Drop In Alcoa's Q2 2019 Earnings?

Tue, 16 Jul 2019 14:45:00 -0400

Alcoa (NYSE: AA) is expected to release its Q2 2019 results on July 17, 2019, followed by a conference call with analysts. Alcoa’s revenue base has been shrinking over the last four quarters, with Trefis estimating the trend to continue in Q2 2019. The market expects the company to report total ...

Market Snapshot: Stocks slip after Trump says ‘a long way to go’ on trade and investors digest bank earnings

Tue, 16 Jul 2019 14:44:41 -0400

U.S. stocks retreat Tuesday as investors digest trade war talk and a trio of bank earnings, a day after major equity indexes eked out a round of fresh all-time closing highs Monday

How a Tax Loophole Is Helping Silicon Valley Workers Save Millions

Paul Sullivan — Tue, 16 Jul 2019 14:44:16 -0400

A little-known tax break allows some start-up employees who own company stock to avoid paying taxes on up to $10 million when they sell their shares.

Blue Apron beefs up menu with Beyond Meat, shares surge 60%

Tue, 16 Jul 2019 14:43:34 -0400

Blue Apron Holdings Inc's beleaguered stock surged 60% on Tuesday after the meal-kit subscription service said it would add Beyond Meat Inc's plant-based burgers to its menu, betting on a growing market for premium meat alternatives to attract new customers.

The Fed: Fed’s Kaplan says inflation likely to stay low even with economy near ‘full employment’

Tue, 16 Jul 2019 14:43:25 -0400

The chief of the Dallas Federal Reserve on Tuesday said inflation is likely to remain low because of vast changes in the economy wrought by new technologies that have severed the historical link between wages and prices.

Senators grill Facebook on its plans for Libra cryptocurrency

Tue, 16 Jul 2019 14:42:11 -0400

Facebook Inc is "delusional" to believe people will trust it with their money, a U.S. senator said on Tuesday as lawmakers from both sides of the aisle grilled the social media company on its plans for a digital currency at a hearing on Tuesday.

Senators grill Facebook on its plans for Libra cryptocurrency

Tue, 16 Jul 2019 14:42:11 -0400

U.S. SEC chief says he has not discussed Libra with Facebook

Tue, 16 Jul 2019 14:41:11 -0400

A top U.S. financial market regulator said on Tuesday he has not discussed with Facebook its Libra currency proposal, nearly a month after the social media giant announced the project.

U.S. SEC chief says he has not discussed Libra with Facebook

Tue, 16 Jul 2019 14:41:11 -0400

A top U.S. financial market regulator said on Tuesday he has not discussed with Facebook its Libra currency proposal, nearly a month after the social media giant announced the project.

Earnings Outlook: Microsoft earnings: Trillion-dollar valuation is banking on continuing cloud growth

Tue, 16 Jul 2019 14:35:46 -0400

Growth of Microsoft Corp.’s cloud service Azure will be key in determining whether the software giant maintains its leading trillion-dollar market cap after its earnings report.

Netflix earnings: No more ‘Friends,’ but plenty of new enemies are on the way

Tue, 16 Jul 2019 14:35:24 -0400

It’s the calm before the competitive storm when streaming video giant Netflix Inc. is scheduled to report second-quarter financial results Wednesday after the market’s close.

Boeing 737 Max’s Problems Force Ryanair to Cut Back Its Growth Plans

Amie Tsang — Tue, 16 Jul 2019 14:34:50 -0400

The budget airline had ordered 58 of the troubled aircraft, but it now expects to take delivery of 30 at most.

Earnings Outlook: Snap earnings: Investors need to see clear signs of a turnaround

Tue, 16 Jul 2019 14:34:29 -0400

Snap shares have soared this year on expectations that the company is finally turning its business around, and the Snapchat maker will be looking to prove that narrative with its next earnings report.

Plenty of Reasons to Like Match Group Stock

Tue, 16 Jul 2019 14:33:00 -0400

Match Group stock could reclaim record highs next month

Tax Guy: Why seniors should avoid the temptation to sell their investment property — even if it’s soared in value

Tue, 16 Jul 2019 14:29:29 -0400

Selling could trigger a big — but avoidable — tax bill.

Tax Guy: What the IRS doesn’t tell you about self-employment taxes

Tue, 16 Jul 2019 14:28:49 -0400

Many taxpayers get confused about whether they owe the 15.3% self-employment tax.

Earnings Outlook: UnitedHealth stock has bounced back after a rough first quarter. Will its positive streak continue?

Tue, 16 Jul 2019 14:28:06 -0400

Investors are keeping an eye on UnitedHealth’s earnings report, which often acts as a bellwether for investor sentiment for the sector for rest of the earnings season.

Earnings Results: J&J stock falls despite earnings beat and guidance boost

Tue, 16 Jul 2019 14:27:40 -0400

Shares of Johnson & Johnson fell Tuesday afternoon, despite the company reporting second-quarter earnings and revenue that soundly beat Wall Street expectations.

JPMorgan beats profit estimates but shows signs of pressure

Tue, 16 Jul 2019 14:27:39 -0400

JPMorgan Chase & Co reported a quarterly profit that beat estimates on Tuesday as higher interest income and consumer lending offset lower activity at its trading desks.

The MarketWatch Q&A: How Barbara Corcoran of ‘Shark Tank’ turned a $50,000 investment into $30 million

Tue, 16 Jul 2019 14:27:30 -0400

The ‘Shark Tank’ investor tells MarketWatch that she hates spending money on clothes, doesn’t believe in resumes and won’t put her money behind anyone with ‘low energy.’

Upgrade: All the ways Gen X is financially wrecked

Tue, 16 Jul 2019 14:27:10 -0400

New study shows that Gen Xers have dramatically increased their debts in recent years.

Global stocks fall, U.S. yields rise on retail sales data

Tue, 16 Jul 2019 14:22:31 -0400

A gauge of global equities fell on Tuesday and U.S. Treasury yields climbed as a stronger-than-anticipated report on retail sales raised the possibility the Federal Reserve could move towards a less dovish stance.

Go Broke or Go Home Bachelorette Parties

Rhiannon Picton-James — Tue, 16 Jul 2019 14:15:19 -0400

What happens when friends are consumed by wanting their bachelorette parties to be picture perfect at any cost? Credit cards are maxed out and debt rises. Instagram wedding envy wins the day.

Democratic presidential hopefuls spend heavily on digital ads, staff

Tue, 16 Jul 2019 14:14:23 -0400

The crowded field of Democratic presidential hopefuls has spent heavily on digital advertising, investing early in ads that may bring more name recognition and help raise money, according to disclosures filed late on Monday.

Lotus showcases first pure electric sports car

Tue, 16 Jul 2019 14:11:38 -0400

British sports car maker Lotus revealed its pure electric "hypercar" on Tuesday, the first completely new vehicle to be launched under the stewardship of Chinese firm Geely which acquired a majority stake in 2017.

The Margin: ‘I hope you lose’: Even many ‘Game of Thrones’ fans don’t think the show deserves all these Emmy nominations

Tue, 16 Jul 2019 14:10:30 -0400

The overall fan reaction was as mixed for the HBO hit’s record-setting Emmy nominations as it was for the show’s final season.

Sterling falls after Tory rivals harden Brexit stance

Tue, 16 Jul 2019 14:09:30 -0400

Pound down nearly 1% as Johnson is accused of living in ‘fantasy’ world

Five things to look for in Netflix's second-quarter report

Tue, 16 Jul 2019 14:06:30 -0400

When Netflix Inc reports second-quarter earnings on Wednesday, a big question is how the streaming giant will handle a slew of new competitors barging in to its territory.

Metals Stocks: Gold prices end lower; silver rallies to highest finish since February

Tue, 16 Jul 2019 14:06:25 -0400

Gold prices ended lower on Tuesday, after a rise in U.S. retail sales contributing to a stronger U.S. dollar. The upbeat retail sales number, however, also lifted prices for silver, brightening the metal’s industrial demand prospects.

‘The Next Chapter in the Evolution of the Open Workplace’

Jane Margolies — Tue, 16 Jul 2019 14:05:59 -0400

Designers are adding elements like walls on wheels and movable pods into office spaces to provide more flexibility.

‘Waitress’ to Close in January 2020

Gabrielle Debinski — Tue, 16 Jul 2019 14:04:30 -0400

The crowd-pleasing musical, with its popular score by Sara Bareilles, will wrap up after four years on Broadway.

Key Words: Disney heiress ‘livid’ after going to one of her family’s theme parks undercover

Tue, 16 Jul 2019 14:03:52 -0400

Abigail Disney said distressed workers told her about “foraging for food in other people’s garbage.”

Jeffrey Epstein was a PR master at managing his reputation — here’s why his online manipulations wouldn’t work today

Tue, 16 Jul 2019 13:58:50 -0400

A reputation-repair program for a prominent person convicted of criminal wrongdoing can easily cost more than $100,000.

3 Stock Market Strategists Have Overlapping Outlooks for the Rest of 2019

Jon C. Ogg — Tue, 16 Jul 2019 13:56:29 -0400

Many investors and market technicians have said over the years and decades that it’s healthy for the stock market to sell-off and experience corrections. The problem with that, even if everyone agrees that the Great Recession was far from a healthy sell-off or correction, is that the panic unnerves much of the public and keeps them on the sidelines. The sell-offs in late 2018 and in May of 2019 felt far from healthy to many investors while they were happening, and it’s a good bet that much of the investing public did not sell at the high and jump back in at the bottom.

With the three major stock market indexes having hit all-time highs in July, the markets are dealing with a runaway bull market now that the V-bottom was 10 years ago and the S&P 500 is up 20% so far in 2019 alone. Some market strategists are making updates on their market views for the coming weeks and months ahead. Get ready to hear more about the “healthy correction” again.

Canaccord Genuity equity strategist Tony Dwyer has called out the recent gains as overbought, but while a pullback would be expected, he sees the markets still heading much higher later on in 2019. His report said:

The S&P 500 has reached into a level of overbought territory that suggests a period of consolidation and increased volatility may lie directly ahead. That said, our still positive core fundamental thesis, current valuation level, and intermediate-term tactical backdrop suggest any weakness should prove limited and temporary (<5%) and provide a more attractive entry point for a move toward our 2020 target of 3,350.

Michael Hartnett, Merrill Lynch’s chief investment strategist, released the firm’s July Global Fund Manager Survey. A total of 207 panelists with $598 billion in assets under participated in the survey. Cash levels were down to 5.2% from 5.6% but are still elevated, and 73% of those surveyed believe the business cycle is a top risk to market stability. Meanwhile, trade war risks were down 20 percentage points to just 36% of their surveyed members, while 69% of those surveyed expect a Federal Reserve rate cut in July.

Hartnett also outlined the global fund manager survey look at low inflation and a drop in earnings. The “rules and tools” noted the following:

relative value indicators are long bonds vs. equities;

emerging markets vs. developed markets;

defensives vs. cyclicals;

and tail risk rules are short Treasuries, VIX, and US high-yield bonds.

Contrarians in the Merrill Lynch note would position themselves as follows:

higher growth and yields via long cyclicals – short cash;

long stocks – short Treasuries;

and long value – short growth.

Lastly, Credit Suisse has issued a market volatility bulletin. Despite upcoming earnings, Credit Suisse pointed out on Tuesday that the average single stock volatility has fallen to 21%, and it is now lower than the volatility readings at the start of the past five earnings seasons. The firm noted that the options market is essentially pricing the next few weeks to be a snooze, and Credit Suisse thinks that is a mistake.

As a reminder, the Dow’s return has been up 17% so far in 2019, versus 20.3% for the S&P 500 and almost 26% for the Nasdaq 100.

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Is More Weakness Ahead for MLPs With Q2 Earnings?

Wells Fargo tempers cost-cutting outlook

Tue, 16 Jul 2019 13:56:08 -0400

Wells Fargo & Co reported higher quarterly earnings on Tuesday, due in part to lower expenses, but the bank reined in its outlook for cost cuts to invest in improving its risk management.

Wall Street edges lower after mixed bank earnings, Trump comments

Tue, 16 Jul 2019 13:55:46 -0400

U.S. stocks were lower on Tuesday as results from big Wall Street lenders rekindled concerns about slowing profit growth in a low interest rate environment, while comments from President Donald Trump on trade also soured the mood.

Tesla drops cheapest Model X, S variants, cuts prices to simplify lineup

Tue, 16 Jul 2019 13:53:41 -0400

Tesla Inc has dropped the standard-range variants of its Model X and Model S from its product lineup and adjusted prices across its range, in a sales push that comes days after the U.S. electric vehicle maker reported record deliveries.

Tesla drops cheapest Model X, S variants, cuts prices to simplify lineup

Tue, 16 Jul 2019 13:53:41 -0400

Google activist Meredith Whittaker leaves company

Tue, 16 Jul 2019 13:53:11 -0400

AI researcher was one of the leaders of last year’s mass walkouts

U.S. Political Risks Spell Trouble For USD

Mark Rosenberg, Contributor https://www.forbes.com/sites/markrosenberg/ — Tue, 16 Jul 2019 13:53:00 -0400

Forward-looking highlights from GeoQuant's high-frequency political risk intelligence platform.

UAW president to GM: We invested in you, now invest in us

Tue, 16 Jul 2019 13:52:45 -0400

The UAW and General Motors Co on Tuesday formally kicked off contract talks, with the union's president calling on the automaker to keep open plants it has slated for closure and to invest in its workforce after the union helped it through a government-led bankruptcy a decade ago.

Europe Billed Its Answer to GPS as More Robust. It’s Been Mostly Down for Days.

Palko Karasz — Tue, 16 Jul 2019 13:51:56 -0400

The European Union sees the service as a way to end the bloc’s reliance on GPS, which the American military controls.

Von der Leyen survives tight vote to win EU top job

Tue, 16 Jul 2019 13:46:55 -0400

Hostility to German’s bid to succeed Jean-Claude Juncker as commission president

Gentrification ‘benefits local residents’

Tue, 16 Jul 2019 13:45:27 -0400

Influx of higher earners is not harmful, according to study of US neighbourhoods

What Is The Impact of Global Pharma Companies R&D Expenditure On Overall Drug Sales?

Tue, 16 Jul 2019 13:45:00 -0400

Globally, pharmaceutical companies spend billions of dollars on research & development for drugs, and many new compounds see the light of the day with necessary regulatory approvals, after going through various clinical trials. Roche Holding (NASDAQ:RHHBY), for instance, is one of the largest ...

Bitcoin falls below $10,000 after Facebook grilled on crypto plans

Tue, 16 Jul 2019 13:41:39 -0400

Bitcoin fell 8% on Tuesday, breaching $10,000 for the first time in two weeks after U.S. lawmakers grilled Facebook on its cryptocurrency plans, as political and regulatory scrutiny of digital coins intensifies.

Bitcoin falls below $10,000 after Facebook grilled on crypto plans

Tue, 16 Jul 2019 13:41:39 -0400

Rising Home Prices Keep Foreclosure Rates at Multi-Decade Lows

Paul Ausick — Tue, 16 Jul 2019 13:41:20 -0400

The share of home mortgage loan payments that are 30 days or more past due fell to 3.6% in April, its lowest level in more than 20 years. Month over month, the overall delinquency rate fell by 0.4 percentage points and declined by 0.7 points since April 2018. The foreclosure inventory rate fell from 0.5% to 0.4% year over year, its lowest for the month in at least 20 years.

The foreclosure rate remains below the average pre-crisis level of 0.6% as rising home values have driven homeowners’ equity to record levels, according to CoreLogic. As owner equity rises, the risk of foreclosure falls.

CoreLogic reported the data in its Loan Performance Insights report for April. Early-stage delinquencies, defined as 30 to 59 days past due, decreased from 1.8% to 1.7% year over year in April. The share of mortgages that were 60 to 89 days past due in April was 0.6%, unchanged compared with last year’s rate. According to CoreLogic, measuring early-stage delinquency rates is important for analyzing the health of the mortgage market.

The share of mortgages that transitioned from current to 30 days past due was 0.7% in April 2019, down 0.1 points compared to a year ago. This year’s rate remains below the transition rate of 1.2% just before the housing crisis struck and well below the peak rate of 2% in November 2008.

Serious delinquency rates (defined as 90 days or more past due) fell from 1.9% in April 2018 to 1.3% this past April, below the average for the pre-crisis period of 2000 through 2006. Serious delinquency rates declined in all 50 states during the month.

CoreLogic’s chief economist, Dr. Frank Nothaft, said, “Thanks to a 50-year low in unemployment, rising home prices and responsible underwriting, the U.S. overall delinquency rate is the lowest in more than 20 years. However, a number of metros that suffered a natural disaster or economic decline contradict this national trend.”

Frank Martell, president and CEO of CoreLogic, added, “The U.S. has experienced 16 consecutive months of falling overall delinquency rates, but it has not been a steady decline across all areas of the country. Recent flooding in the Midwest could elevate delinquency rates in hard-hit areas, similar to what we see after a hurricane.”

Mortgage rates on a 30-year fixed-rate loan remained flat at 3.95% on Monday as yields on the 10-year Treasury note dipped slightly to 2.09%.

Among the nation’s largest cities, New York and Miami have the highest rate of mortgages at least 30 days past due at around 5%. San Francisco had the lowest rate, 1.3%.

The states with the highest rates of mortgages at least 30 days past due are Mississippi, Louisiana, New York, Alabama and West Virginia, all with rates well above the national average of around 3.6%. The states with the lowest rates of mortgages at least 30 days past due are North Dakota, Idaho, Washington, Oregon and Colorado, all with rates of around 2% or below.

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How Many Children Live in Poverty in Your State

Project Syndicate: What’s driving right-wing populism? It’s both economic insecurity and the culture wars

Tue, 16 Jul 2019 13:41:18 -0400

Is it culture or economics? That question frames much of the debate about contemporary populism.

Goldman stands out from rivals with equities trading rebound

Tue, 16 Jul 2019 13:38:31 -0400

Growth helps offset drag of fixed income division ahead of CEO David Solomon’s strategic overhaul

Project Syndicate: The next president and Congress must build a better capitalism for all of us

Tue, 16 Jul 2019 13:36:27 -0400

The U.S. capitalist system needs a major revamp in order to tackle the climate crisis and unacceptably high levels of inequality.

Amazon offers $10 to Prime Day shoppers who hand over their data

Tue, 16 Jul 2019 13:36:16 -0400

Amazon.com Inc has a promotion for U.S. shoppers on Prime Day, the 48-hour marketing blitz that started Monday: Earn $10 of credit if you let Amazon track the websites you visit.

Amazon U.S. rivals get sales boost on Prime Day: Adobe

Tue, 16 Jul 2019 13:36:16 -0400

Several large U.S. retailers recorded higher sales on the first day of Amazon.com Inc's Prime Day shopping event as online shoppers also flocked to their websites, Adobe Analytics said on Tuesday.

Amazon offers $10 to Prime Day shoppers who hand over their data

Tue, 16 Jul 2019 13:36:16 -0400

Amazon.com Inc has a promotion for U.S. shoppers on Prime Day, the 48-hour marketing blitz that started Monday: Earn $10 of credit if you let Amazon track the websites you visit.

Amazon U.S. rivals get sales boost on Prime Day: Adobe

Tue, 16 Jul 2019 13:36:16 -0400

Several large U.S. retailers recorded higher sales on the first day of Amazon.com Inc's Prime Day shopping event as online shoppers also flocked to their websites, Adobe Analytics said on Tuesday.

Futures Movers: Oil moves sharply lower as Pompeo says Iran is ready to talk

Tue, 16 Jul 2019 13:36:15 -0400

Oil futures turn sharply lower Tuesday, following reports that U.S. Secretary of State Mike Pompeo said Iran is ready to enter negotiations over its missile program, easing concerns about tensions between Washington and Tehran that had put the flow of oil in the Middle East at risk.

Key Words: As backlash against Trump’s ‘go back’ comments builds, here’s Ronald Reagan’s ‘love letter to immigrants’

Tue, 16 Jul 2019 13:35:38 -0400

Ronald Reagan’s final speech as president has resurfaced across social media following Trump’s tweetstorm.

The Margin: ‘Well, this is awkward’ — Tiger Woods gets ghosted by Brooks Koepka

Tue, 16 Jul 2019 13:26:15 -0400

His storied career may finally be back on track after his massive win at the Masters earlier this year, but heading into this week’s British Open, Woods clearly isn’t feeling the love from Brooks Koepka, the world’s top ranked golfer.

Fintechs are best at improving their finances

Tue, 16 Jul 2019 13:23:57 -0400

Google activist quits, Gaia’s Lovelock on AI at 100, Nobe’s three-wheel EV

Facebook Cryptocurrency Plans Have a Problem: Facebook’s Reputation

Mike Isaac and Nathaniel Popper — Tue, 16 Jul 2019 13:23:16 -0400

Lawmakers raised broad concerns about the company’s Libra effort at a Senate hearing on Tuesday.

Oil falls as Iran tensions seen easing

Tue, 16 Jul 2019 13:22:03 -0400

Oil prices turned lower on Tuesday, falling by about $1 a barrel as U.S. President Donald Trump said progress has been made with Iran, signaling tensions could ease in the Mideast.

U.S. retail sales ease fears over economy; rate cut still seen

Tue, 16 Jul 2019 13:20:45 -0400

U.S. retail sales increased more than expected in June, pointing to strong consumer spending, which could help to blunt some of the drag on the economy from weak business investment.

Blue Apron’s bombed-out shares surge on Beyond Meat tie-up

Tue, 16 Jul 2019 13:19:40 -0400

Meal kit delivery company up as much as 70% on plans to offer meat-alternative burgers

Wall Street drifts from highs as US earnings flow in

Tue, 16 Jul 2019 13:19:25 -0400

Big banks beat profit expectations but warning signs grow

Tue, 16 Jul 2019 13:19:21 -0400

Three big U.S. banks reported strong earnings on Tuesday even as warning signs emerged that the playing field is beginning to tilt against the financial industry.

Netflix removes scene from ‘13 Reasons Why’ after link to suicides

Tue, 16 Jul 2019 13:15:29 -0400

Health experts connect series with rise in US teen deaths following show’s debut

Carbon credit costs soar as EU toughens green stance

Tue, 16 Jul 2019 13:12:43 -0400

Structural reforms and a bullish political backdrop have pushed prices to record highs

Buy This, Not That: Amazon gave away thousands of these devices free with purchase on Prime Day — and they’re still doing it today

Tue, 16 Jul 2019 13:09:54 -0400

This fabulous deal was ‘the trend of the year’ for Amazon Prime Day — and you can still get it

Key Words: Walmart CEO McMillon says the retailer has been playing ‘catch up’ in e-commerce

Tue, 16 Jul 2019 13:06:51 -0400

Walmart Chief Executive Doug McMillon discussed the retail giant’s digital progress and the competition, including Amazon.

Amlo makes economic mis-steps as Bolsonaro delivers reforms

Tue, 16 Jul 2019 13:06:49 -0400

Mexico’s populist agenda threatens Latin America’s second-largest economy

UAW head to GM: we invested in you, now invest in us

Tue, 16 Jul 2019 13:05:17 -0400

Netflix Readies For Q2 Earnings As Disney, Apple Pose Rising Threats

JJ Kinahan, Contributor https://www.forbes.com/sites/jjkinahan/ — Tue, 16 Jul 2019 13:03:00 -0400

Netflix (NFLX) shares have been riding high this year, up significantly more than the broader market. With its quarterly report on tap, NFLX faces more competition from companies like Disney (DIS), Apple (AAPL), and AT&T’s (T) WarnerMedia.

The Fed: Fed chief Powell says he thinks core inflation picked up a bit in June

Tue, 16 Jul 2019 13:00:07 -0400

Fed Chairman Jerome Powell said Tuesday that Fed officials think core PCE inflation was 1.7% in June, up from 1.6% in May. The government won’t release the data until the end of the month.

Senators criticize FTC's reported Facebook settlement

Tue, 16 Jul 2019 12:57:00 -0400

Three U.S. senators who have been frequent critics of U.S. tech giants wrote a letter to the Federal Trade Commission on Tuesday to criticize its reported settlement with Facebook Inc.

Deep Dive: 3 stocks that can make you money despite a trade war or recession

Tue, 16 Jul 2019 12:55:37 -0400

Brian Beitner of Chautauqua Capital Management names three companies he believes can easily navigate rough waters.

Does Beyond Meat Really Bring a New Life Jacket for Blue Apron?

Jon C. Ogg — Tue, 16 Jul 2019 12:55:15 -0400

Blue Apron Holdings Inc. (NYSE: APRN) saw such an incredible jump in its shares on Thursday that some investors might expect either a takeover of the company or that a full-blown turnaround was in the air. It turns out that the driving force behind the rally is Blue Apron featuring plant-based proteins from Beyond Meat Inc. (NYSE: BYND) in meal kits starting in August.

While this is not bad news at all, and while it is even good news on the surface, the movement in the shares may have some mechanical effects that are taking it above and beyond what might be expected from fundamental investors. That said, Blue Apron’s shares did rise substantially after a partnership was announced with Weight Watchers.

Blue Apron x Beyond Meat recipes will be included on Blue Apron’s signature Two-Serving Plan starting in August. They are specially crafted by the Blue Apron culinary team featuring the Beyond Burger. Customers already can begin placing orders for the new August recipes through Blue Apron’s website and mobile app.

Blue Apron has had to do many things to rekindle and keep the interest of investors. With the help of better-suited leadership, Blue Apron has even had to resort to a reverse stock split to avoid any delisting risk ahead. Most investors tend to view reverse stock splits as a sign of weakness, with more risks in the future, rather than viewing them favorable similar to traditional stock splits of the past.

Another mechanical issue around Blue Apron, despite the one-for-15 reverse split in mid-June, is that it remains heavily shorted. That last short interest was 1.767 million shares. Blue Apron would still be considered a penny stock without its reverse split that took effect on June 17.

Blue Apron will not release second-quarter results until the first week in August, and analysts care calling for revenues of $138.1 million, according to Refinitiv. It is still expected to post a loss of about $1.08 per share for the quarter. Its March quarter revenue was $141.9 million, and its revenues in the June quarter of 2018 were $179.5 million.

Perhaps the biggest question to ask is whether this halo-effect on the shares should be and whether the move is a “Beyond Meat” boost or just a changing trend within non-meat proteins. The veggie burgers and meatless protein products space is racking up competition fast, and there have been bean burgers and other veggie burgers on the market for more than two decades now.

After closing at $7.66 on Monday, Blue Apron shares were magically up 52% at $11.60 on Tuesday, and more than 11 million shares had traded hands as of about 12:30 p.m. on Tuesday. The split-adjusted 52-week trading range is $6.10 to $55.95, and its current market cap is $153 million.

Shares of Beyond Meat were last seen up 2.7% at $171.13 on Tuesday morning, with a market cap of $10.3 billion and a post-IPO trading range in 2019 of $45.00 to $201.88.

ALSO READ: Is More Weakness Ahead for MLPs With Q2 Earnings?

Linda Kozlowski, chief executive officer of Blue Apron, said with the news:

We know a growing number of customers are interested in plant-based proteins, whether as an alternative to meat, a desire to explore a new ingredient, or an opportunity to make more sustainable food choices. We are proud to introduce Beyond Meat products to our menu, beginning with its flagship Beyond Burger. Blue Apron recipes are designed to evoke a sense of discovery and, as a meal kit partner, we have a unique opportunity to teach our customers how to cook a wide variety of cuisines with plant-based protein.

Ethan Brown, Beyond Meat founder and CEO, said:

We’re thrilled to partner with Blue Apron to empower consumers to prepare and enjoy delicious Beyond Burgers at home. The Beyond Burger delivers the delicious taste, texture, and juiciness of a beef burger but comes with the added nutritional and environmental benefits of consuming plant-based meat.

Here’s exactly where you should retire — based on what’s important to you

Tue, 16 Jul 2019 12:53:51 -0400

Tell MarketWatch what you want in retirement, and we’ll tell you where to live.

In systemic breach, hackers steal millions of Bulgarians' financial data

Tue, 16 Jul 2019 12:52:49 -0400

Bulgaria's finance minister apologized to the country on Tuesday after admitting hackers had stolen millions of taxpayers' financial data in an attack that one researcher said may have compromised nearly every adult's personal records.

How Many Children Live in Poverty in Your State

Evan Comen — Tue, 16 Jul 2019 12:51:05 -0400

Throughout the United States, 18.4% of Americans under age 18 — a total of 13.4 million children — live in poverty, one of the highest child poverty rates of any developed nation.

Children born into poverty are likely to continue to live in impoverished circumstances as adults. In a 2017 study from the US Partnership on Mobility from Poverty that tracked 18,000 individuals since 1968, researchers found that only 16% of children who spent a majority of their childhoods in poverty were living above the poverty line between the ages of 25 and 30. Poverty in America also disproportionately affects minority families and exacerbates existing socioeconomic inequalities along racial lines.

States with higher childhood poverty rates tend to perform poorly in other socioeconomic factors, such as lower educational attainment rate, higher unemployment, and higher rates of food insecurity, all of which can ultimately lead to worse health outcomes and lower life expectancy. These are places where poverty is causing bad diets.

According to a 2019 report from the National Academies of Sciences, Engineering and Medicine, the lower productivity, higher crime rates, and worse health outcomes that result from child poverty cost the United States between $800 billion and $1.1 trillion a year.

To help reduce child poverty, the federal government provides parents of children under 17 with the child tax credit — a tax cut worth up to $2,000 per dependent. If taxes owed are lower than the credit, families can receive up to $1,400 per child. Some states offer their own version of the child tax credit that matches some proportion of the federal tax cut. Several of the states with their own credit programs — Colorado, California, and New York — are states where welfare supports the most poor families.

To identify how many children live in poverty in your state, 24/7 Wall St. reviewed data from the U.S. Census Bureau’s 2017 American Community Survey. Childhood poverty refers to the share of children under the age of 18 living in households with incomes below the poverty threshold. The poverty threshold varies by family size and composition. In 2017, the Census Bureau poverty threshold for a family of three with one child under 18 years old was $19,730.

Click here to see how many children live in poverty in your state

Tech executives head to Capitol Hill for antitrust hearing

Tue, 16 Jul 2019 12:50:18 -0400

Executives from tech giants Apple Inc, Amazon.com Inc, Facebook Inc and Alphabet's Google go before the House Judiciary Committee's antitrust panel Tuesday to discuss competition in online markets.

Tech executives head to Capitol Hill for antitrust hearing

Tue, 16 Jul 2019 12:50:18 -0400

Executives from tech giants Apple Inc, Amazon.com Inc, Facebook Inc and Alphabet's Google go before the House Judiciary Committee's antitrust panel Tuesday to discuss competition in online markets.

When Big Tobacco Invoked Eric Garner to Fight a Menthol Cigarette Ban

J. David Goodman — Tue, 16 Jul 2019 12:46:44 -0400

Corporate lobbyists are increasingly highlighting the concerns of black New Yorkers to support their clients’ causes.

Tuesday’s Biggest Biotech Movers

247chrislange — Tue, 16 Jul 2019 12:45:46 -0400

Tuesday was a breakout day for a few biotech companies that saw solid gains. With the markets at all-time highs, these companies could help push things higher.

24/7 Wall St. has picked a few of those standouts from Tuesday to highlight. We have included information about each company, as well as recent trading activity and the consensus analyst price target.

Melinta Therapeutics Inc. (NASDAQ: MLNT) shares jumped on Tuesday after the firm reported preliminary and unaudited financial results and provided a corporate update for the second quarter.

One of the main highlights was that the U.S. Food and Drug Administration (FDA) recently accepted for priority review a supplemental New Drug Application (sNDA) for Baxdela (delafloxacin) seeking to expand the current indication to include adult patients with community-acquired bacterial pneumonia. The FDA has assigned a Prescription Drug User Fee Act (PDUFA) action date (proposed review deadline) of October 24, 2019.

Shares of Melinta traded up about 6% to $4.43, in a 52-week range of $1.62 to $31.45. The consensus price target is $11.00.

Atara Biotherapeutics Inc. (NASDAQ: ATRA) shares dipped after the firm announced an updated development plan for the Phase 3 tab-cel (tabelecleucel) program for patients with Epstein-Barr virus-associated post-transplant lymphoproliferative disease (EBV+ PTLD).

Based on Atara’s recent discussions with the FDA, the company plans to initiate a tab-cel biologics license application (BLA) submission for patients with EBV+ PTLD in the second half of 2020.

Shares of Atara were down about 14% at $15.60, in a 52-week range of $15.52 to $43.95. The consensus price target is $42.29.

AvroBio Inc. (NASDAQ: AVRO) shares pushed higher after the company announced the first kidney biopsy result and additional positive data from two ongoing clinical trials of its AVR‑RD‑01 investigational gene therapy in Fabry disease. To date, eight patients have been dosed in the trials: three patients in the Phase 2 FAB-2011 trial and five patients in the Phase 1 FACTs2 trial.

Dr. Mark Thomas of the Department of Nephrology at Royal Perth Hospital and Clinical Professor at the University of Western Australia Medical School, the lead investigator for the FAB-201 trial, noted:

I believe today’s data indicate that AVR-RD-01 is substantially reducing the build-up of Gb3 substrate in kidney tissue to potentially effective clearance levels. This, along with the sustained reduction in Gb3 and lyso-Gb3 in plasma observed to date, could translate into substantially improved patient outcomes over the current standard of care.

Shares of AvroBio were last seen up about 17% at $19.20, with a 52-week range of $11.85 to $53.70. The consensus analyst target is $39.00.

ALSO READ: Is More Weakness Ahead for MLPs With Q2 Earnings?

As New Space Race Beckons, Astronauts Face Identity Crisis

David W. Brown — Tue, 16 Jul 2019 12:44:39 -0400

With the private sector moving aggressively into space, NASA is no longer the only game in town for would-be space travelers.

The Technical Indicator: Charting a break to ‘clear skies’ territory, S&P 500 sustains rally atop 3,000 mark

Tue, 16 Jul 2019 12:44:25 -0400

Technically speaking, the S&P 500 has reached record territory, confirming its uptrend with a strong third-quarter start, writes Michael Ashbaugh.

Tesla gets rid of cheaper Model S, Model X options

Tue, 16 Jul 2019 12:39:23 -0400

The latest tweak in Tesla Inc.’s vehicle lineup sees cheaper Model S and Model X models vanish and a lower-price Model 3.

Is More Weakness Ahead for MLPs With Q2 Earnings?

Jon C. Ogg — Tue, 16 Jul 2019 12:36:39 -0400

If one segment within energy would like to avoid further weakness, the master limited partnerships (MLPs) might want to see some growth or stability. This segment is not supposed to have direct exposure to oil and gas prices, and it is supposed to offer high income and distributions by acting as a toll-road collector rather than having exploration and production exposure in oil and gas.

The problem with MLPs is that many distributions had to be cut or eliminated during the hard times, and MLPs have in general not seen a major price recovery, even though oil has recovered handily. It’s almost as if oil and gas investors in MLPs are sometimes taking on much of the downside risk in the industry without the upside, just to get those beneficial distributions.

Credit Suisse has an updated view on its midstream and MLP earnings for the second quarter, and the firm is suggesting that a defensive tone could emerge. The firm’s Spiro Dounis and research team are largely expecting weaker sequential results driven by lower natural gas liquid (NGL) and natural gas prices, increased operating expenses and slower producer activity. Commodity prices continued to decline and producers continued to slow activity in the name of free cash flow during the second quarter. The firm expects management teams to remain constructive, and they do not see any retrenchment in capital plans.

Perhaps the only good news here in this view is that Credit Suisse does believe the consolidation trend will continue.

Credit Suisse has revised target prices for several names with a bias to the downside, largely driven by lower expected production growth, re-contracting risks due to competing projects and even from an expected round of equity issuances. Stronger expected margins drive a price target revision to the upside.

Additional data from the Credit Suisse report has been included on the largest MLPs and entities inside that long report.

Altus Midstream Co. (NASDAQ: ALTM) was reiterated as Outperform with an $8 target price. It is a pure-play, Permian midstream C-corp, anchored by Apache Corporation’s gathering, processing and transportation assets at Alpine High. Altus also owns options in five gas, NGL and crude oil pipeline projects from the Permian Basin.

Antero Midstream Corp. (NYSE: AM) was reiterated as Neutral and the target price was lowered to $14 from $15. With a prior closing price of $11.54 a share, it has a yield of about 10.7% and a $5.9 billion market cap.

BP Midstream Partners L.P. (NYSE: BPMP) was reiterated with an Underperform rating and a $15 target price. Its prior closing price was $16.13. It has a yield of about 7.9% and a $1.7 billion market cap.

Cheniere Energy Inc. (NYSEARCA: LNG) was reiterated with an Outperform rating and an $81 target price, compared with a prior closing price of $68.48. It has a $17.6 billion market cap.

Cheniere Energy Partners L.P. (NYSEARCA: CQP) was reiterated as Underperform with a $39 target price. With a prior closing price of $43.65, it has a yield of about 5.5% and a $21.2 billion market cap.

DCP Midstream L.P. (NYSE: DCP) was reiterated with an Outperform rating and a $39 target price. With a prior closing price of $31.15, it has a yield of about 9.9% and a $4.5 billion market cap.

Delek Logistics Partners L.P. (NYSE: DKL) was reiterated as Underperform with a $30 target price. The prior closing price was $32.00, and it has a yield of about 10.0% and a $787 million market cap.

24/7 Wall St.
Revisiting American Water Works as a Stock to Own for the Next Decade

J&J warns of hit from generic drugs in third quarter, shares fall

Tue, 16 Jul 2019 12:36:10 -0400

Johnson & Johnson on Tuesday boosted its 2019 sales forecast amid robust demand for its cancer drugs, but warned that competition from generic and copycat drugs could impact its third-quarter results, sending shares down 1.4% in noon trading.

Heeding The Call For Better Technology, Dollars Flow Into 911 Communications

Mergermarket, Contributor https://www.forbes.com/sites/mergermarket/ — Tue, 16 Jul 2019 12:35:00 -0400

Tech companies looking to serve first responders are benefiting from cloud, 5G and Internet of Things.

Today, in efficient markets

Tue, 16 Jul 2019 12:28:25 -0400

Blue Apron bounces on Beyond Meat tie-up.

Germany's Scholz sounds alarm on cryptocurrencies such as Facebook's Libra

Tue, 16 Jul 2019 12:26:56 -0400

German Finance Minister Olaf Scholz said on Tuesday regulators must ensure that cryptocurrencies such as Facebook's planned digital coin Libra do not threaten financial stability and consumer privacy.

Don’t Scoff at Influencers. They’re Taking Over the World.

Kevin Roose — Tue, 16 Jul 2019 12:25:23 -0400

As social media expands its cultural dominance, the people who can steer the online conversation will have an upper hand.

Market Extra: Trump says ally and tech investor Thiel ‘believes Google should be investigated for treason’ and he will ’take a look’

Tue, 16 Jul 2019 12:22:59 -0400

President Donald Trump says his administration will “take a look” at allegations made by Silicon Valley venture capitalist Peter Thiel that Google-parent Alphabet Inc. has been infiltrated by the Chinese government.

Upgrade: This couple retired at 31 with $1 million — Here’s exactly how much they earned, spent and saved to do it

Tue, 16 Jul 2019 12:22:38 -0400

Want to retire early? How “going against the grain” allowed this FIRE couple to ditch their jobs and travel the world.

The Seltzer Bubble

Sheila Marikar — Tue, 16 Jul 2019 12:22:31 -0400

Demand for sparkling water is higher than ever. So is supply.

Wall Street slips after mixed bank earnings, Trump comments

Tue, 16 Jul 2019 12:22:03 -0400

U.S. stock indexes edged lower on Tuesday as results from Wall Street's big lenders rekindled concerns about banks coming under pressure to boost profits when the Federal Reserve is seen cutting interest rates as early as this month.

Goldman Sachs profit beats estimates, boosted by strong equities trading

Tue, 16 Jul 2019 12:20:59 -0400

Goldman Sachs Group Inc reported a stronger-than-expected quarterly profit on Tuesday as the Wall Street investment bank benefited from increased stock trading.

Bernie Sanders is riding in a caravan to Canada with diabetics to get more affordable insulin

Tue, 16 Jul 2019 12:20:56 -0400

Some Americans with diabetes rely on donated insulin from people they meet on Facebook because they can’t afford to spend hundreds of dollars per vial.

Facebook’s Libra cryptocurrency project gets blistering reception from Senate

Tue, 16 Jul 2019 12:11:23 -0400

Facebook Inc.’s controversial Libra cryptocurrency project encountered a blistering reception from the Senate Banking Committee Tuesday morning despite assurances from the social-media giant that it will comply with banking regulations and offer secure transactions.

Bayer shares up 1.8% trade after U.S. Roundup rule

Tue, 16 Jul 2019 12:08:52 -0400

Shares in German chemicals company Bayer rose 1.8% in early trade on Tuesday after a U.S. judge slashed a damages award Bayer owes a California man who blamed its Roundup weed killer for his cancer.

U.S. retailers gain online shoppers on Amazon's Prime Day: Adobe

Tue, 16 Jul 2019 12:04:26 -0400

Several large U.S. retailers recorded higher sales on the first day of Amazon.com Inc's Prime Day shopping event as online shoppers also flocked to their websites, Adobe Analytics said on Tuesday.

U.S. retailers gain online shoppers on Amazon's Prime Day: Adobe

Tue, 16 Jul 2019 12:04:26 -0400

Several large U.S. retailers recorded higher sales on the first day of Amazon.com Inc's Prime Day shopping event as online shoppers also flocked to their websites, Adobe Analytics said on Tuesday.

NewsWatch: Stocks waver, Dow hits new intraday high as investors parse trio of bank earnings

Tue, 16 Jul 2019 12:00:09 -0400

U.S. stocks steady early Tuesday morning with investors digesting a trio of bank earnings after major equity indexes eked out a round of fresh all-time closing highs Monday

Amazon Prime Day will showcase one-day delivery

Tue, 16 Jul 2019 11:59:18 -0400

Amazon’s one-day delivery capabilities will be part of a successful Prime Day event.

Global stocks slip, U.S. yields rise on retail sales data

Tue, 16 Jul 2019 11:55:41 -0400

A gauge of global equities edged lower on Tuesday and U.S. Treasury yields climbed as a stronger-than-anticipated report on retail sales raised the possibility that a second rate cut by the Federal Reserve this year could be pushed back by several months.

United Airlines and American Airlines cancel more flights as the fallout from the Boeing 737 Max grounding continues

Tue, 16 Jul 2019 11:53:55 -0400

Flight cancellations as a result of the situation are now extending into the fall months.

Oil steadies as U.S. supply ramps up after storm

Tue, 16 Jul 2019 11:53:53 -0400

Oil prices steadied on Tuesday, paring gains as U.S. offshore crude production resumed after Hurricane Barry and tensions between the U.S. and Iran were seen easing.

Wall Street finds blockchain hard to tame after early euphoria

Tue, 16 Jul 2019 11:49:08 -0400

Two years ago Nasdaq Inc and Citigroup Inc announced a new blockchain system they said would make payments of private securities transactions more efficient. Nasdaq Chief Executive Adena Friedman called it "a milestone in the global financial sector."

Wall Street finds blockchain hard to tame after early euphoria

Tue, 16 Jul 2019 11:49:08 -0400

Resilient nickel rallies through macro noise

Tue, 16 Jul 2019 11:48:30 -0400

Looming Indonesia ban and strong Chinese demand help metal hit 11-month high

The Secret Of NIM; Results From JPMorgan And Wells Fargo Confirm Bank Profits Have Peaked

Jim Collins, Contributor https://www.forbes.com/sites/jimcollins/ — Tue, 16 Jul 2019 11:47:57 -0400

While the mainstream financial media focused on Jamie Dimon's bullish comments on the state of the U. S consumer, analysts should have been focusing on the lower profitability implicit in the guidance released by Dimon and his team.

Netflix agrees to edit suicide scene from ‘13 Reasons Why’ — after teen suicides spiked in months after Season 1 premiere

Tue, 16 Jul 2019 11:47:48 -0400

The television series, launched in 2017, chronicles the life of a teenage girl who decided to take her own life.

IMF chief Christine Lagarde resigns following ECB nomination

Tue, 16 Jul 2019 11:45:34 -0400

Factbox - Blockchain projects: A status update

Tue, 16 Jul 2019 11:45:14 -0400

Banks, exchange operators and other companies are investing billions of dollars to find uses for blockchain, a digital ledger used by cryptocurrencies like bitcoin.

Factbox - Blockchain projects: A status update

Tue, 16 Jul 2019 11:45:14 -0400

Banks, exchange operators and other companies are investing billions of dollars to find uses for blockchain, a digital ledger used by cryptocurrencies like bitcoin.

Italy court acquits former Monte dei Paschi finance chief in fraud case

Tue, 16 Jul 2019 11:42:08 -0400

An Italian court on Tuesday acquitted Monte dei Paschi di Siena's former finance chief Gianluca Baldassari and 11 others of charges related to an alleged fraud scheme at the bank.

JPMorgan profit beats estimates on lending strength; net interest margin dips

Tue, 16 Jul 2019 11:40:32 -0400

JPMorgan Chase & Co reported a better-than-expected quarterly profit on Tuesday as higher interest income and buoyant consumer lending offset lower activity at its trading desks.

Health Exchange: Dealing with these two simple health issues in early adulthood can help prevent heart disease when you’re older

Tue, 16 Jul 2019 11:37:33 -0400

A new study in the Journal of the American College of Cardiology analyzed more than 36,000 people.

Bills targeting China's Huawei introduced in U.S. Congress

Tue, 16 Jul 2019 11:36:27 -0400

Members of the U.S. Senate and House of Representatives introduced bills on Tuesday to keep tight restrictions on Huawei Technologies Co Ltd, amid concern about President Donald Trump's easing of restrictions on the Chinese firm.

Bills targeting China's Huawei introduced in U.S. Congress

Tue, 16 Jul 2019 11:36:27 -0400

Wheelchairs, blood sugar monitors and other Prime Day HSA-eligible deals

Tue, 16 Jul 2019 11:35:41 -0400

Tax-free savings on stuff you’ll end up buying anyway

Blue Apron beefs up menus with Beyond Meat burgers, shares rise 33%

Tue, 16 Jul 2019 11:30:38 -0400

Blue Apron Holdings Inc said on Tuesday it would include Beyond Meat Inc's plant-based burgers on its menus next month, betting on a multi-billion-dollar meat alternative market to lure new customers.

Cofco arm secures $2.1bn loan tied to sustainability performance

Tue, 16 Jul 2019 11:29:20 -0400

The largest ever credit facility for a commodity trader comes amid growth in green finance

New York City can ban ads inside Ubers, Lyfts: U.S. appeals court

Tue, 16 Jul 2019 11:28:54 -0400

A federal appeals court on Tuesday said New York City can ban advertising inside vehicles driven for companies such as Uber and Lyft, handing a victory to the millions of passengers who it said find such ads "extremely annoying."

Livability: Why you should chuck it all and move to Alaska

Tue, 16 Jul 2019 11:22:56 -0400

This family left everything they knew behind to go to Alaska — it was the best decision they ever made.

Time for the ECB to admit its policy arsenal is exhausted

Tue, 16 Jul 2019 11:20:33 -0400

Further rate cuts or bond-buying will benefit fixed-income investors but nobody else

What To Expect From Bank of America's Q2 2019 Results

Tue, 16 Jul 2019 11:15:00 -0400

Bank of America will report its Q2 2019 earnings on 17th July. Consensus figures points to a 3% growth in revenues year-on-year to $23.25 billion, and a 13% increase in EPS figure to $0.71. Per Trefis, Bank of America’s stock has a fair value of $35, which is 15% higher than the market price.

Buy This, Not That: Want better sleep? Here’s the No. 1 bed pillow for under $50, according to experts

Tue, 16 Jul 2019 11:14:20 -0400

You won’t believe the disgusting things crawling on your bed pillow. It’s time to replace it.

Paul Brandus: 50 years after Apollo, does America have the right stuff to join the new space race?

Tue, 16 Jul 2019 11:10:20 -0400

Fifty years after the Apollo landing on the Moon, Paul Brandus asks if Americans can come together to conquer space again.

Did BNY Mellon's Net Interest Margin Figure Reverse Its Declining Trend In Q2?

Tue, 16 Jul 2019 11:10:00 -0400

Bank of New York Mellon will report its Q2 2019 earnings on 17th July. Consensus figures points to a 5% decline in revenues y-o-y to $3.93 billion, and an 8% drop in EPS figure to $0.95. Per Trefis, BNY Mellon’s stock has a fair value of $53, which is about 20% higher than the current market price.

Market Extra: Rate cut with stock market at all-time highs? It’s been done before — but here’s what’s different

Tue, 16 Jul 2019 11:05:22 -0400

A look back at history shows that the Fed has been willing to cut rates with stocks at or near all-time highs in the past, but it’s a phenomenon that hasn’t been seen in more than 20 years. And the Fed has never moved to ease when unemployment stood below 4%.

Europe Joins U.S. Companies Moving Out Of China

Kenneth Rapoza, Contributor https://www.forbes.com/sites/kenrapoza/ — Tue, 16 Jul 2019 11:05:07 -0400

Countries like Portugal are making clothes again as China's position as go-to manufacturer wanes quickly.

What to Expect When Bank of America Reports Wednesday

247chrislange — Tue, 16 Jul 2019 11:05:00 -0400

Bank of America Corp. (NYSE: BAC) is scheduled to release its second-quarter financial results before the markets open on Wednesday. The consensus estimates are calling for $0.71 in earnings per share (EPS) and $23.23 billion in revenue. The same period of last year reportedly had $0.63 in EPS and $22.76 billion in revenue.

Bank of America is one of the top 10 banks repurchasing stock in the coming years. This megabank said that its board of directors approved plans for the company to return as much as $37 billion to common stockholders over the next four quarters in dividends and common stock repurchases. The bank plans to increase its quarterly common dividend by 20% to $0.18 per share.

It also has been authorized to repurchase roughly $30.9 billion in its common shares, and it would include approximately $0.9 billion in repurchases to offset shares awarded under employee stock options during the same period.

Excluding Tuesday’s move, Bank of America had performed more or less in line with the broad markets, with its stock up about 18.6% year to date. In the past 52 weeks, the stock was actually up only 1.6%.

A few analysts weighed in on Bank of America ahead of the report:

JPMorgan has an Overweight rating with a $29.50 price target.
BMO Capital Markets has an Outperform rating and a $37 target.
Berenberg Bank has a Hold rating with a $30 price target.
Atlantic Securities has a Neutral rating.
Jefferies has a Hold rating with a $32 target price.

Shares of Bank of America traded down less than 1% on Tuesday to $29.09, in a 52-week range of $22.66 to $31.91. The consensus price target is $33.13.

24/7 Wall St.
President Trump’s Huawei Pivot Could Be Huge for 3 Top Semiconductor Companies

IBM's Cloud Business Likely To Gain Prominence Ahead Of The Red Hat Deal Closure

Tue, 16 Jul 2019 11:05:00 -0400

IBM reports its Q2 results on Wednesday, July 17. The company’s Q1 had beat consensus expectations on EPS despite coming in lower than consensus expectations on revenue. Per Trefis, IBM shares have a fair value of $145, which is slightly ahead of the current market price.

U.S. Bancorp Expected To Report Strong Performance Across Divisions For Q2

Tue, 16 Jul 2019 11:00:00 -0400

U.S. Bancorp reports its Q2 2019 earnings on Wednesday, 17th July. Consensus figures points to a 2% growth in revenues year-on-year to $5.73 billion, and a 5% increase in EPS figure to $1.07. Per Trefis, U.S. Bancorp’ stock has a fair value of $56, which is 5% higher than the current market price.

The extinction rebellion should not be streamed

Tue, 16 Jul 2019 10:58:04 -0400

If you’re going to quit air travel for the sake of the planet, you should also quit Netflix and Youtube.

Outside the Box: Think your income is too high to contribute to a Roth? Think again

Tue, 16 Jul 2019 10:53:33 -0400

It’s like found money for your retirement.

Wall Street muted after mixed bank earnings

Tue, 16 Jul 2019 10:42:36 -0400

U.S. stock indexes treaded water on Tuesday as Wall Street's big banks swung between gains and losses after their quarterly results drew mixed reactions from investors.

T Rowe Price latest fund manager to cover research costs globally

Tue, 16 Jul 2019 10:42:04 -0400

Move comes amid overhaul to $15bn investment research business prompted by Mifid II

Strong U.S. retail sales boost economic outlook

Tue, 16 Jul 2019 10:40:30 -0400

U.S. retail sales increased more than expected in June, pointing to strong consumer spending, which could help to blunt some of the drag on the economy from weak business investment.

U.S. manufacturing output climbs for second month in June

Tue, 16 Jul 2019 10:40:30 -0400

U.S. manufacturing output accelerated in June, climbing for the second straight month, thanks in large part to increased production of motor vehicles and parts.

U.S. business inventories rise moderately in May

Tue, 16 Jul 2019 10:40:30 -0400

U.S. business inventories rose moderately in May as sales rebounded, suggesting that inventory accumulation could have been a drag on economic growth in the second quarter.

Senate opens hearing into Facebook plans for Libra cryptocurrency

Tue, 16 Jul 2019 10:39:58 -0400

U.S. lawmakers from both sides of the aisle were set to grill Facebook Inc on its cryptocurrency plans on Tuesday, as the project continues to draw intense scrutiny from financial regulators and politicians across the globe. Facebook is fighting a rearguard action to get Washington onside after it shocked regulators and lawmakers with an announcement on June 18 that it was hoping to launch a new digital coin called Libra in 2020.

Senate opens hearing into Facebook plans for Libra cryptocurrency

Tue, 16 Jul 2019 10:39:58 -0400

Brazil fintech Nubank takes aim at small business owners

Tue, 16 Jul 2019 10:38:40 -0400

Brazilian financial startup Nu Pagamentos SA is planning to launch digital accounts for small business owners, expanding its product portfolio beyond individuals, it said in a statement on Tuesday.

Hackers steal millions of Bulgarians' financial records: tax agency

Tue, 16 Jul 2019 10:33:01 -0400

Hackers have stolen the financial data of millions of Bulgarians from the country's tax agency, the government said on Tuesday, in an attack that one researcher said may have compromised nearly every adult's personal records.

The Personal Computer Industry Loses a Key Components Distributor

Jon C. Ogg — Tue, 16 Jul 2019 10:31:18 -0400

Arrow Electronics Inc. (NYSE: ARW) is about to make a change that does not sound all that promising for the personal computer space. The company has thousands of products it distributes in electronic components and computer products, and along with weaker preliminary results for its second quarter of fiscal 2019, the company announced a planned wind-down of its personal computer and mobility asset disposition business.

While this was not a full earnings report, the company cited deteriorating demand conditions in the global components business for its weakness. The company called out its efforts as taking decisive actions to preserve profits while the company maintains its engineering and value-added capabilities. Distributing and aggregating components for customers and suppliers within industrial and commercial markets requires a large effort, and Arrow currently has 349 different locations that serve customers in more than 80 countries.

Arrow now expects to report total second-quarter 2019 sales of about $7.30 billion. The Refinitiv consensus estimate was calling for $7.55 billion in sales. The global components sales were approximately $5.25 billion, and global enterprise computing solutions sales were about $2.05 billion.

The company is expecting a loss in the second quarter after items, but normalized earnings from operations are now being put in a range of $1.50 to $1.62 per share. Refinitiv’s consensus estimate is $1.91 ahead of this news. Arrow noted that the revised second-quarter expectations exclude approximately $78 million of sales and $78 million of after-tax losses from the personal computer and mobility asset disposition business.

The big news from Arrow Electronics is that the company has decided to close its personal computer and mobility asset disposition business. The previous results had been included within its global components business, and it has begun notifying employees of the coming exit. Arrow also plans to close this business in Sweden, Belgium and the United Kingdom.

Arrow plans to focus its efforts on next-generation technologies such as artificial intelligence, smart cities, vehicles and automation.

Michael J. Long, board chair, president and chief executive officer of Arrow Electronics, said:

After careful market analysis indicating that business dynamics have changed since we entered this market, we have decided to wind down operations at our personal computer and mobility asset disposition business. This will allow us to continue to focus on our cross-enterprise strategy to enable next-generation technologies such as artificial intelligence, industrial automation, smart cities and vehicles.

The wind-down of its personal computer and mobility asset disposition business will incur an expected charge of roughly $115 million, including an estimated $75 million noncash impairment charge and $40 million future cash expenditure primarily related to personnel and other exit and disposal costs. Arrow Electronics expects to cease operations and have the remaining wind-down of the personal computer and mobility asset disposition business completed by the end of 2019.

Revenues of $23.3 billion in 2015 and $26.55 billion in 2016 grew to $26.55 billion in 2017 and then to $29.67 billion in 2018. Analysts had been looking for revenues to reach $30.2 billion in 2019 and $30.6 billion in 2020.

Arrow shares had been down as much as 6% in Monday’s after-hours trading session, but the stock was down almost 3% at $67.00 on Tuesday morning after the market digested the news.

24/7 Wall St.
President Trump’s Huawei Pivot Could Be Huge for 3 Top Semiconductor Companies

Wells Fargo posts higher profit on cost controls, rise in loans

Tue, 16 Jul 2019 10:28:46 -0400

Wells Fargo & Co reported higher quarterly profit on Tuesday despite flat revenue as the bank benefited from lower costs.

Jeffrey Epstein wants to pay bail of $77 million to be put under house arrest at his Upper East Side mansion

Tue, 16 Jul 2019 10:28:35 -0400

Epstein’s proposed bail package could theoretically get 6,000 defendants out of jail.

Jeffrey Epstein’s $56 million mansion could become a real-estate nightmare

Tue, 16 Jul 2019 10:27:36 -0400

What happens to the value of homes tainted with scandal?

Arby’s Has an Answer to Plant-Based Meat: A Meat-Based Carrot

David Yaffe-Bellany — Tue, 16 Jul 2019 10:27:31 -0400

Amid rising demand for beef alternatives, major restaurant chains remain skeptical. One has vowed never to offer them, while others are taking a wait-and-see approach.

Economic Report: Import prices fall in June by the most in six months; more evidence of falling inflation

Tue, 16 Jul 2019 10:24:50 -0400

The cost of imported goods fell in June by the steepest amount in six months, reflecting lower oil prices and a weaker global economy wracked by U.S.-China trade tensions.

Why Facebook’s Libra coin could become a big pain in your wallet

Tue, 16 Jul 2019 10:24:11 -0400

U.S. lawmakers will question Facebook executives about their plans for the cryptocurrency in two hearings this week.

Johnson & Johnson Slides By With Q2 Earnings

247chrislange — Tue, 16 Jul 2019 10:20:37 -0400

When Johnson & Johnson (NYSE: JNJ) reported its most recent quarterly results before the markets opened on Tuesday, the pharmaceutical giant said it had $2.58 in earnings per share (EPS) and $20.6 billion in revenue for its second quarter. The consensus estimates had called for $2.46 in EPS and $20.29 billion in revenue. In the same period of last year, it posted EPS of $2.10 on $20.83 billion in revenue.

Consumer worldwide operational sales, excluding the net impact of acquisitions and divestitures, grew 2.3% year over year to $3.54 billion. This was driven by beauty products and over-the-counter products, including upper respiratory and analgesic products.

Pharmaceutical worldwide operational sales, excluding the net impact of acquisitions and divestitures, grew 4.4% to $10.53 billion.

Worldwide Medical Devices operational sales, excluding the net impact of acquisitions and divestitures, grew 3.2% to $6.49 billion. This was driven by the growth of electrophysiology products in the Interventional Solutions business, endocutters and international energy products in the Advanced Surgery business.

Alex Gorsky, board chair and chief executive, commented:

We delivered solid second-quarter underlying sales growth and strong earnings growth that enables us to make investments in innovation to accelerate performance in each of our businesses. Our pipelines continue to progress with the launch of new products and several regulatory submissions and approvals, which positions us well to deliver the next wave of transformational products and solutions. I am proud of our talented colleagues across Johnson & Johnson who continue to deliver significant healthcare advances to improve the lives of patients and consumers around the world.

Shares of Johnson & Johnson traded down 1.5% to $132.58 Tuesday morning, in a 52-week range of $121.00 to $148.99. The consensus price target is $149.17.

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Economic Report: Retail sales pop again in June in good sign for consumer-driven U.S. economy

Tue, 16 Jul 2019 10:19:34 -0400

Sales at U.S. retailers rose solidly in June for the fourth month in a row, pointing to a strong rebound in consumer spending in the second quarter that suggests the economy is not as fragile as the Federal Reserve apparently believes.

U.S. manufacturing ‘is in recession,’ Fed’s data show

Tue, 16 Jul 2019 10:18:35 -0400

Manufacturing slumped in the three months ended in June for the second straight quarterly decline, the Federal Reserve said Tuesday.

Wall Street opens slightly lower after mixed bank reports

Tue, 16 Jul 2019 10:17:15 -0400

U.S. stocks opened slightly lower on Tuesday as bank shares fell after a batch of mixed quarterly reports from Wall Street lenders JPMorgan Chase, Goldman Sachs and Wells Fargo.

Encore: The money in your 401(k) and IRA accounts doesn’t belong entirely to you

Tue, 16 Jul 2019 10:16:02 -0400

People with higher incomes might be less prepared for retirement than they think.

Stocks to watch: AG Barr, Burberry, ITV, Aston Martin, Rightmove

Tue, 16 Jul 2019 10:10:31 -0400

Ryanair’s capacity cuts help support hopes of ticket ‘price inflection’ this winter, Raymond James says

New York City can ban ads inside Uber, Lyft vehicles: U.S. appeals court

Tue, 16 Jul 2019 10:10:30 -0400

A federal appeals court on Tuesday said New York City can ban advertising inside vehicles for companies such as Uber and Lyft.

Japan Cites ‘National Security’ in Free Trade Crackdown. Sound Familiar?

Ben Dooley — Tue, 16 Jul 2019 10:09:02 -0400

Tokyo has moved to limit exports of chemicals to big South Korean chip makers like Samsung, citing vague threats to Japan’s security. Seoul says a political dispute is the real reason for the move.

Domino's shares slide as same-store sales disappoint

Tue, 16 Jul 2019 10:07:05 -0400

Domino's Pizza Inc reported its slowest U.S. same-store sales growth in at least three years in the second quarter, driving shares lower and raising doubts about its strategy for fighting off competition from delivery apps.

Add Up The Parts: The iShares Edge MSCI USA Value Factor ETF Could Be Worth $92

ETFChannel, Contributor https://www.forbes.com/sites/etfchannel/ — Tue, 16 Jul 2019 10:06:00 -0400

For the iShares Edge MSCI USA Value Factor ETF, we found that the implied analyst target price for the ETF based upon its underlying holdings is $92.18 per unit.

U.S. retail sales increase solidly in boost to economy

Tue, 16 Jul 2019 10:03:43 -0400

U.S. retail sales increased more than expected in June, pointing to strong consumer spending, which could help to blunt some of the drag on the economy from weak business investment.

‘Rhino bond’ breaks new ground in conservation finance

Tue, 16 Jul 2019 10:03:28 -0400

Investment returns linked to rise in population of the horned herbivore

A major new study suggests it’s possible to avoid developing dementia — 5 ways to reduce your risk

Tue, 16 Jul 2019 10:03:06 -0400

The study was published Monday by scientists at the University of Exeter and presented at the Alzheimer’s Association International Conference 2019 in Los Angeles.

Economic Report: Home builder confidence, up 1 point in July, still lags 2018

Tue, 16 Jul 2019 10:00:04 -0400

Sentiment among residential construction firms rose slightly in July as somewhat more favorable conditions emerged in the housing market.

The Ring doorbell is one of Amazon Prime Day’s hottest deals

Tue, 16 Jul 2019 09:54:16 -0400

Google searches for the Wi-Fi-enabled video doorbell spiked as Amazon bundled it with the Echo Dot at a record low price.

Domino’s Pizza Sees Slower Sales Growth

Jon C. Ogg — Tue, 16 Jul 2019 09:51:27 -0400

Some restaurant chains seem as though they can grow forever. After a while, even the greatest growth stories will start to see normalized growth begin to takeover. That transition period can be a very painful experience for shareholders who have to watch the shares adjust from hyper-growth to normalized growth. Domino’s Pizza Inc. (NYSE: DPZ) is seeing that normalization in growth come to fruition and its shares are paying a price.

Domino’s is still largely considered as a pizza chain, but the food delivery and takeout giant has diversified its menu in recent years to increase its opportunity for sales. The food company reported that same-store sales rose by only 3% in the second quarter, down almost four percentage points from the second quarter in 2018.

The $811.6 million that was reported in revenues was up from $779.4 million in the second quarter of 2018, but it was less than the $837 million or so expected by analysts.

Net income of $92.4 million came to $2.19 in earnings per share. That compared to estimates of $2.02 in earnings per share and was up from $77.4 million (or $1.78 per share) a year earlier.

Domino’s blamed the revenue shortfall on a decline in U.S. company-owned revenue as the company already was selling 59 company-owned locations to franchisees.

The company’s internally owned and operated domestic same-store sales rose by just 2.1%, about one point slower than expected. Domestic franchise same-store sales rose 3.1%, and that was basically 1.5 points short of what had been expected. Domino’s reported that its international same-store sales rose just 2.4% outside of the currency impact.

The company reported that its second-quarter global net store growth was 200 stores, or 42 net new U.S. stores and 158 net new international stores.

Ritch Allison, Domino’s chief executive officer, said:

It was a good second quarter, particularly for global unit growth, as we continue to seek balanced retail sales growth through the blend of same store sales and store growth. As a work-in-progress brand, we are constantly striving to improve in needed areas, execute our long-term strategy and build toward Dominant #1 – a goal I continue to feel we are built to achieve.

Heading into earnings, Domino’s shares had generated a positive return of about 9.4% so far in 2019. That might sound impressive on most years, but the S&P 500 is up about 20% year to date. Domino’s shares were down more than 6% in early trading indications, but the shares were down 4% at $258.80 within about 10 minutes of trading on Tuesday. Its 52-week range is $231.28 to $305.34, and its consensus analyst target was $305.85 ahead of the earnings report.

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Oil steadies as U.S. supply concerns ease but Iran tensions loom

Tue, 16 Jul 2019 09:47:04 -0400

Oil prices steadied on Tuesday as a resumption of production in the Gulf of Mexico after Hurricane Barry and a boom in U.S. supply from shale oil countered tensions in the Middle East.

The Moneyist: I treated my girlfriend to a vacation for paying off her car loan — how do I teach her to be more financially responsible?

Tue, 16 Jul 2019 09:46:05 -0400

‘Are these major red flags or is it just a matter of financial literacy?’

Retail Sales Strength in June Should Be Positive Step for Q2 GDP

Jon C. Ogg — Tue, 16 Jul 2019 09:45:19 -0400

While the monthly reporting on retail sales can be rather volatile, this is an important economic component considering that close to 70% of U.S. gross domestic product (GDP) is tied into consumer spending. U.S. retail sales rose more than expected in June with stronger consumer spending. The U.S. Department of Commerce issued a 0.4% gain in June, while the preliminary report from May was revised lower to a 0.4% gain from the 0.5% gain initially reported.

Econoday had a consensus estimate of just 0.1% for June, and Reuters also was calling for a 0.1% gain in June. For the reading on the annualized basis, retail sales were up by 3.4% versus June of 2018.

There is a core reading on retail sales that excludes automobiles, gasoline, building materials and food services. This figure was up by 0.7% in June, and May’s core reading was revised to 0.6% from a preliminary report of a 0.4% gain.

There was a 1.7% gain for the non-retailers, which is Amazon and other online and catalog sales, which have been a continued drag on traditional retail sales.

Considering strong increases in May and April, June’s better-than-expected retail sales level should have a positive backdrop for second-quarter GDP due at the end of this month. That would help to blunt some of the very weak retail sales data from the first quarter of 2019.

Along with a slowing global growth story, the U.S. economy is dealing with a weaker business investment environment, and it was dealing with an inventory overhang that had helped to prop up GDP in the first quarter from the building of inventories. While the retail sales increase is a net positive for GDP, the number is not very likely to move the needle on the expectation that the Federal Reserve and Chair Jerome Powell will lower interest rates on the July 31 announcement by the Federal Open Market Committee.

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Big Banks Beat: Consumer Business Strength Helped Results, But Rate Environment Tough

JJ Kinahan, Contributor https://www.forbes.com/sites/jjkinahan/ — Tue, 16 Jul 2019 09:44:00 -0400

Big bank earnings today seem to show strong consumer health, but mixed results in trading. Meanwhile, retail sales for June were well above Wall Street’s expectations, maybe another sign of consumer strength.

Blue Apron beefs up menus with Beyond Meat burgers, shares rise

Tue, 16 Jul 2019 09:42:38 -0400

Blue Apron Holdings Inc said on Tuesday it would include Beyond Meat Inc's plant-based burgers on its menus from next month, a bet on the growing popularity of meat alternatives that sent the meal kit delivery firm's shares up 11%.

Beware of unsolicited packages after Amazon Prime Day — they could be part of a scam

Tue, 16 Jul 2019 09:42:22 -0400

People across the country have reported receiving dozens of packages or more from Amazon that they never ordered.

Factbox: Airlines count the cost of Boeing 737 MAX grounding

Tue, 16 Jul 2019 09:41:24 -0400

Some international airlines have reported tentative schedules for when they expect their Boeing 737 MAX up in the air again. More than 300 Boeing 737 MAX 8 and MAX 9 passenger planes were taken out of service after two fatal crashes in Indonesia and Ethiopia, within 5 months, killed 346 passengers.

The grim reality of millennials who rely on their parents for money: ‘I pay for lunch at work and I pay for my Netflix account’

Tue, 16 Jul 2019 09:32:51 -0400

Why it’s time to cut millennials some slack for being financially dependent on their parents.

Next Avenue: 4 ways to turn your passions into retirement income

Tue, 16 Jul 2019 09:30:59 -0400

Enjoy your favorite activities and interests in retirement while bringing in extra money.

Outside the Box: 3 lifestyle choices that are probably making you miserable

Tue, 16 Jul 2019 09:27:47 -0400

These tweaks can make you happier — and they don’t cost anything.

China seen in no hurry to end trade war with U.S. after comments by Commerce Minister

Tue, 16 Jul 2019 09:26:40 -0400

China may not be in any hurry to reach a trade deal with the U.S. if comments by China’s Commerce Minister Zhong Shang are any guide.

Bond Report: Treasury yields leap after stronger-than-expected retail sales

Tue, 16 Jul 2019 09:25:33 -0400

Treasury yields jump Tuesday after a key update of consumer spending shows the economic health of U.S. households remains in bright shape.

Vodafone launches 5G in Germany, challenges D.Telekom on price

Tue, 16 Jul 2019 09:18:50 -0400

Vodafone said on Tuesday it was launching 5G services in Germany, taking on Deutsche Telekom by offering cheaper deals and reaching more cities than the market leader that went live last week.

Wall Street set for subdued open after mixed bank reports

Tue, 16 Jul 2019 09:18:23 -0400

U.S. stock indexes were set for a muted open on Tuesday after a set of mixed quarterly reports from Wall Street banks JPMorgan Chase, Goldman Sachs and Wells Fargo.

Outside the Box: The business lesson from Apollo 11 that we shouldn’t forget

Tue, 16 Jul 2019 09:13:16 -0400

NASA didn’t get us to the moon on its own.

The Conversation: 5 innovations the Apollo moon program brought that changed our life on Earth

Tue, 16 Jul 2019 09:13:01 -0400

Thank the Apollo moon program for the GPS you use every day.

Are Wells Fargo Earnings Good Enough for Investors?

247chrislange — Tue, 16 Jul 2019 09:10:02 -0400

Wells Fargo & Co. (NYSE: WFC) released its second-quarter earnings report before the opening bell on Tuesday. The mega bank said that it had $1.30 in earnings per share (EPS) and $21.6 billion in revenue. The consensus estimates had called for $1.15 in EPS and revenue of $20.94 billion. In the same period of last year, it said it had EPS of $0.98 and $21.55 billion in revenue.

During the latest quarter, average loans were $947.5 billion, down $2.6 billion from the first quarter. Period-end loan balances were $949.9 billion.

Total average deposits for the quarter were $1.3 trillion, up $6.9 billion from the prior quarter, primarily due to higher retail banking deposits reflecting increased promotional activity, partially offset by lower Wealth and Investment Management deposits.

Book value per common share was $40.10 and tangible book value per share was $33.68.

In terms of its segments, Wells Fargo reported as follows:

Community Banking revenues were flat year over year at $11.81 billion.
Wholesale Banking revenues decreased by 1.8% to $2.79 billion.
Wealth and Investment Management revenues increased 2.5% to $602 million.

Allen Parker, interim CEO, commented:

In second quarter 2019, we recorded strong earnings and continued to make progress on our top priorities: focusing on our customers and team members; meeting the expectations of our regulators; and continuing the important transformation of our Company. The commitment of our team members to provide outstanding customer service was reflected in higher customer experience survey scores from our branches, continued growth in primary consumer checking customers, and an increase in referred investment assets as a result of the partnership between our Wealth and Investment Management team and our Community Banking team. During the second quarter, we formed a new Strategic Execution and Operations Office that will focus on achieving operational excellence across our businesses to enable us to execute more effectively on our regulatory priorities and further drive our transformation.

Shares of Wells Fargo closed Monday at $46.71, in a 52-week range of $43.02 to $59.53. The consensus price target is $51.12. Following the announcement, the stock was down about 0.6% in early trading indications Tuesday.

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Beat the System: Donald Trump is right about bitcoin

Tue, 16 Jul 2019 09:08:38 -0400

President Trump is right to say that cryptocurrencies have no fundamental value, writes Brett Arends.

Peter Morici: Facebook’s Libra threatens the dollar’s international status

Tue, 16 Jul 2019 09:08:13 -0400

Properly managed, Libra could replace the dollar as the currency of choice for legitimate international transactions, writes Peter Morici.

Why the big tech stocks are now contrarian buys

Tue, 16 Jul 2019 09:07:46 -0400

It feels weird to say this, but Facebook, Amazon, and Apple have become — dare we say it? — contrarian plays.

Peek Under The Hood: The iShares U.S. Healthcare ETF Has 11% Upside

ETFChannel, Contributor https://www.forbes.com/sites/etfchannel/ — Tue, 16 Jul 2019 09:07:00 -0400

For the iShares U.S. Healthcare ETF, we found that the implied analyst target price for the ETF based upon its underlying holdings is $217.51 per unit.

Capital Confidential: Whispers from U.K. business and politics

Tue, 16 Jul 2019 09:04:56 -0400

Welcome to Capital Confidential—a weekly diary column featuring the best tidbits from around the U.K.’s business and political landscape from MarketWatch sister publication Financial News.

Ryanair halves 2020 growth plans on Boeing MAX delays

Tue, 16 Jul 2019 09:03:02 -0400

Ryanair has halved its growth plans for next year due to delays in deliveries of Boeing's grounded 737 MAX jet, lifting shares in rival European airlines which had feared a surge in new capacity would drag down ticket prices.

Softbank's Arm Holdings eases upfront license costs

Tue, 16 Jul 2019 09:02:07 -0400

Arm Holdings, the British chip technology firm whose designs underlie mobile phone chips, is changing its licensing model to pursue a bigger customer base as more devices become connected to the internet.

Top Analyst Upgrades and Downgrades: AFL, Agilent, Allergan, Barrick Gold, Cognex, Hilton, Lloyds, MetLife, Slack, Wingstop and More

Jon C. Ogg — Tue, 16 Jul 2019 09:00:29 -0400

Stocks were indicated to open marginally higher on Tuesday as the earnings floodgates have begun to open. The bull market is now well over 10 years old, and 2019 has seen very strong stock market gains, with the indexes all having touched new all-time highs. Investors should be considering exactly how they want their portfolios and assets positioned for the second half of 2019 and beyond.

24/7 Wall St. reviews dozens of analyst research reports each day of the week. Our goal is to find new ideas for traders and long-term investors alike. Some of the daily analyst calls cover stocks to buy. Other calls cover stocks to sell or to avoid.

We have provided these calls in a quick-hit summary for easy reading, and additional comments and trading data have been added on some of the calls. The consensus analyst price targets and other valuation metrics are from the Refinitiv (Thomson Reuters) sell-side research service.

These are the top analyst upgrades, downgrades and initiations seen on Tuesday, July 16, 2019.

Aflac Inc. (NYSE: AFL) was downgraded to Underperform from In-Line at Evercore ISI.

Agilent Technologies Inc. (NYSE: A) was downgraded to Neutral from Buy at Merrill Lynch, just a day after Barclays downgraded it to Equal Weight from Overweight. Shares closed down 1.54% at $70.55 after Monday’s cautious call and were indicated down another 1.1% at $69.75 after this new downgrade. The 52-week trading range is $61.01 to $82.27, and the consensus target price is $83.07.

Allergan PLC (NYSE: AGN) was downgraded to Market Perform from Outperform at Bernstein.

Barrick Gold Corp. (NYSE: GOLD was downgraded to Equal Weight from Overweight at Barclays, but the price target was raised to $18 from $15 in the call. Shares closed down 1% at $16.34 ahead of this call and were indicated down 0.5% at $16.25 afterward. Barrick Gold has a 52-week trading range of $9.53 to $16.68 and a consensus target price of $15.79

Carrizo Oil & Gas Inc. (N(NASDAQ: CRZO) was up 1.9% at $10.70 after a merger with Callon, and now MKM Partners downgraded it to Neutral from Buy and cut the target price to $11 from $19.

Cognex Corp. (NASDAQ: CGNX) was downgraded to Sell from Neutral and the target price was cut to $36 from $45 at Goldman Sachs. Shares were up 0.2% at $42.51 ahead of the call and down 4.4% at $40.65 afterward.

Freeport-McMoRan Inc. (NYSE: FCX) was raised to Equal Weight from Underweight at Barclays.

Hilton Worldwide Holdings Inc. (NYSE: HLT) was downgraded to Hold from Buy at SunTrust Robinson Humphrey.

Laboratory Corp. of America Holdings (NYSE: LH) was raised to Neutral from Underperform at Merrill Lynch.

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Revisiting American Water Works as a Stock to Own for the Next Decade

IBM lands AT&T contract worth ‘billions’

Tue, 16 Jul 2019 09:00:26 -0400

Chief executive Ginni Rometty says it is vindication of the value of recently acquired group Red Hat

NewsWatch: U.S. stocks set to tread water as investors parse trio of bank earnings

Tue, 16 Jul 2019 09:00:10 -0400

U.S. stock futures trade on either side of unchanged Tuesday morning while awaiting a trio of bank earnings of bank earnings which are likely to set the tone for the day, after major equity indexes eked out a round of fresh all-time closing highs Monday

Almost 40% of Amazon Workers Want a Union

Douglas A. McIntyre — Tue, 16 Jul 2019 08:53:34 -0400

Amazon.com Inc. (NASDAQ: AMZN) workers in Minnesota and Germany have gone on strike or walked out of their jobs during Prime Day, the e-commerce company’s 48-hour event created to trigger a surge in its sales and to promote its Prime program. The strikes are based on complaints that Amazon pays workers too little and works them too hard. New research shows that the problems are deep enough that 39% of Amazon workers want a union to represent them as they fight for better conditions.

Research firm Blind is an anonymous social network for working professionals. It taps a user base of tens of thousands of workers who are employed by America’s largest tech companies. Blind asked its user base for their opinions about unions. It received 2,985 answers to two questions: “Does your company need a union?” and “Do you work in the retail stores/distribution centers?” Some 39.1% of Amazon workers said yes to the first question, while 57.1% of Amazon retail and distribution center employees said they needed one.

Employees at a total of nine tech companies were asked these questions, including Amazon, Apple, eBay, Facebook, Google, Microsoft, Oracle and Uber. Among the corporations on the list, a recent study shows that Amazon is one of the most respected companies in the United States — these are the American companies with the best reputations.

It should come as no surprise that Amazon distribution workers believe they need a union more than Amazon workers as a whole. The Prime Day strikes are only one piece of evidence that they are poorly treated. The public was first exposed to the issue when The New York Times had a huge expose on the problem in August 2015. Amazon quickly reacted to the article, saying that its conclusions were incorrect. However, the problem has not gone away. Germany seems to be the place where Amazon workers are most reactive to the company’s treatment of factory workers. Protests against Amazon in Germany have gone on for years.

Amazon recently launched a program that will retrain as many as 100,000 of its U.S. workforce so that they can either have a chance to take higher-level jobs at Amazon or leave the company with better educations. Amazon said it will spend $700 million on the program. Some critics say Amazon workers would be better off if it simply raised what it pays its factory workers.

The Amazon distribution center problem will not go away. Whether its workers unionize is another matter, but the move to do so is growing, even though Amazon pays its employees well. The average pay for a full-time salaried worker at Amazon is $100,000 a year. For comparison, check out America’s highest-paying companies.

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DealBook Briefing: Tariffs Aren’t Offsetting the Trade War Pain

Tue, 16 Jul 2019 08:53:22 -0400

President Trump says his fight with Beijing is hurting China’s economy but generating billions for the U.S. That’s not entirely true.

Grocery Outlet’s off-price model is poised for growth — as long as the shelves stay stocked

Tue, 16 Jul 2019 08:47:07 -0400

Grocery Outlet Holding Corp. is poised for growth, according to Morgan Stanley analysts led by Simeon Gutman, as long as the off-price grocer can keep goods on the shelves.

Amazon workers strike to protest working conditions on Prime Day — labor union says ‘human beings are not robots’

Tue, 16 Jul 2019 08:46:33 -0400

Prime Day is pushing workers to protest unfair labor conditions, low-wages during Amazon’s biggest deal day of the year

Need to Know: Bond market on verge of tripping a signal that could lead to sharp sell-off

Tue, 16 Jul 2019 08:38:01 -0400

MarketWatch’s call of the day comes from the Leuthold Group, a Minneapolis investment research firm, which tracks the correlation between weekly percentage changes in the S&P 500 and the 10-year Treasury yield.

France to approve first crypto-issuers as new rules loom

Tue, 16 Jul 2019 08:35:47 -0400

France's financial watchdog is poised to approve a first tranche of cryptocurrency-related companies under new rules on digital coins, some of the first such regulations to be launched by a major economy.

Despite Earnings Beat, Are There Growth Concerns at Goldman Sachs?

247chrislange — Tue, 16 Jul 2019 08:35:45 -0400

Goldman Sachs Group Inc. (NYSE: GS) reported its most recent quarterly results before the markets opened on Tuesday. The investment house said that it had $5.81 in earnings per share (EPS) and $9.46 billion in revenue. That compares with consensus estimates of $4.89 in EPS and $8.83 billion in revenue, as well as the $5.98 per share and $9.4 billion posted in the same period of last year.

During the latest quarter, equities net revenues were $2.01 billion, the second-highest quarterly performance in four years. Assets under supervision increased $61 billion during the quarter to a record $1.66 trillion.

Book value per common share was $214.10, and tangible book value per common share was $203.05, both 2.4% higher compared with the end of the first quarter of 2019.

In terms of its segments, the firm reported as follows:

Investment Banking revenues decreased 9% year over year to $1.86 billion.
Institutional Client Services revenues decreased by 3% to $3.48 billion.
Investing & Lending revenues increased by 16% to $2.53 billion.
Investment Management decreased 14% to $1.59 billion.

David Solomon, board chair and chief executive, commented:

We’re encouraged by the results for the first half of the year as we continue to invest in new businesses and growth to serve a broader array of clients. Given the strength of our client franchise, we are well positioned to benefit from a growing global economy. And, our financial strength positions us to return capital to shareholders, including a significant increase in our quarterly dividend in the third quarter.

Shares of Goldman Sachs closed Monday at $211.58, in a 52-week range of $151.70 to $245.08. The consensus price target is $231.38. Following the announcement, the stock was up about 1% at $214.16 in early trading indications Tuesday.

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Earnings Preview: What To Expect From Microsoft On Thursday

Adam Sarhan, Contributor https://www.forbes.com/sites/adamsarhan/ — Tue, 16 Jul 2019 08:33:00 -0400

Microsoft is expected to report earnings of $1.21/share on $32.73 billion in revenue. Meanwhile, the so-called Whisper number is $1.25

Wells Fargo profit beats estimates on cost controls, rise in loans

Tue, 16 Jul 2019 08:31:16 -0400

Wells Fargo & Co beat analysts' estimates for quarterly profit on Tuesday, as the fourth-largest U.S. bank benefited from an uptick in lending and aggressive cost cutting.

Johnson & Johnson beats profit estimates on pharma strength, raises sales outlook

Tue, 16 Jul 2019 08:23:42 -0400

Johnson & Johnson raised its full-year sales forecast as demand for its cancer drugs Darzalex and Imbruvica helped it exceed estimates for second-quarter profit on Tuesday.

Ryanair says passenger total for current year may miss target

Tue, 16 Jul 2019 08:20:01 -0400

Ryanair expects to fly between 151 million and 153 million passengers in the year to March 31, 2020, Chief Executive Michael O'Leary said on Tuesday, down from an earlier forecast of 153 million passengers.

FA Center: This legendary Vanguard fund manager had the right stuff to beat the market

Tue, 16 Jul 2019 08:19:10 -0400

John Neff’s preparation and discipline gave Vanguard Windsor Fund a performance edge, writes Mark Hulbert.

Christine Lagarde Faces a New Challenge in Europe

Jack Ewing and Amie Tsang — Tue, 16 Jul 2019 08:19:08 -0400

She’s run the I.M.F. She’s a lawyer. She’s not an economist. Does that matter as she prepares to lead the European Central Bank?

The New York Post: CNN reports Assange met with Russians and hackers as he turned embassy in London into command post for election attack

Tue, 16 Jul 2019 08:18:11 -0400

Documents obtained by CNN reportedly detail how the WikiLeaks founder received in-person deliveries, potentially containing hacked materials from Russian operatives during sometimes hour-long meetings at Ecuador’s embassy in the British capital.

Demand for new designer's ranges lift Burberry sales and shares

Tue, 16 Jul 2019 08:17:32 -0400

Strong demand for designer Riccardo Tisci's new fashion ranges helped revenue at British label Burberry grow faster than expected in the first quarter, sending its shares soaring as a high stakes overhaul showed early signs of promise.

Ryanair CEO says confident in 'great' Boeing 737 MAX despite delays

Tue, 16 Jul 2019 08:17:12 -0400

Ryanair remains confident in the Boeing 737 MAX and believes the plane will be "warmly welcomed" by customers, Chief Executive Michael O'Leary said on Tuesday after he was forced to half the airline's 2020 growth plans due to the plane's grounding.

Bulgarian tax agency says hackers stole millions of financial records

Tue, 16 Jul 2019 08:15:31 -0400

Hackers have stolen the personal and financial data of millions of Bulgarians by breaking into the tax agency's systems, the government said on Tuesday.

Why JPMorgan Shares Fell After Q2 Results

Paul Ausick — Tue, 16 Jul 2019 08:15:30 -0400

JPMorgan Chase & Co. (NYSE: JPM) reported second-quarter 2019 results before markets opened Tuesday. The investment bank and financial services giant reported diluted earnings per share (EPS) of $2.82 on managed (adjusted) revenue of $29.57 billion. In the same period a year ago, the big bank reported EPS of $2.29 on managed revenue of $28.39 billion. Second-quarter results also compare to the consensus estimates for EPS of $2.50 on revenue of $28.91 billion.

The robust results were tempered by a change in the company’s full fiscal-year outlook. In a presentation accompanying its press release, JPMorgan said it expects net interest income for the fiscal year to come in at around $57.5 billion, a drop of $500 million from its prior estimate. The bank also said it expects adjusted expenses for the year to total less than $66 billion and net charge-offs to come in at around $5.5 billion.

Quarterly profits rose by 16% from $8.32 billion in the second quarter of 2018 to $9.65 billion. Net interest income totaled $14.5 billion, up 7%, driven by the impact of higher rates along with balance sheet growth and mix. The bank’s income tax benefit jumped to $768 million, up from an expense of $104 million in the prior quarter.

Noninterest revenue reached $15 billion, up 2% year over year. The bank attributed the year-over-year increase to “several notable items,” excluding which revenue would have been flat.

Provision for credit losses totaled $1.15 billion, a decrease of 5% year over year.

By divisions, net income in the consumer and community banking group rose by 22% to $4.17 billion, commercial banking net income fell by 8% to $996 million and asset management group net income fell 5% to $719 million for the quarter.

Corporate and investment banking group net income fell 8% to $2.94 billion and revenues were down 6% to $9.64 billion. Markets revenue of $5.4 billion was flat, including a one-time gain, without which revenue would have been down 6%.

Provision for credit losses in the group fell to zero, compared to $58 million in the prior-year quarter.

Bank CEO Jamie Dimon said:

We continue to see positive momentum with the U.S. consumer – healthy confidence levels, solid job creation and rising wages – which are reflected in our Consumer & Community Banking results.

The bank did not offer revenue or earnings guidance in its press release, but the consensus estimates call for third-quarter EPS of $2.50 on revenues of $28.63 billion. The EPS estimate for the 2019 fiscal year is $9.97 on revenues of $114.74 billion.

Shares traded down by about 1.7% in Tuesday’s premarket to $111.95. The 52-week trading range is $91.11 to $119.24, and the consensus 12-month price target was $118.80 before results were announced.

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President Trump’s Huawei Pivot Could Be Huge for 3 Top Semiconductor Companies

Mark Hulbert: Why stock-market investors should pay more attention to the underappreciated gold-platinum ratio

Tue, 16 Jul 2019 08:15:15 -0400

Researchers have found this ratio has a better track record for predicting the stock market’s direction than many of the more widely known valuation metrics.

Beat the System: Mira Sorvino is proof the rich and famous get the same bad investing advice as everyday Americans

Tue, 16 Jul 2019 08:14:10 -0400

Comments from this Hollywood star sum up the most common mistakes made when investing in the stock market.

Wells Fargo's quarterly profit rises 22%

Tue, 16 Jul 2019 08:08:59 -0400

Wells Fargo & Co reported a 22% increase in quarterly profit on Tuesday, helped partly by the fourth-largest U.S. lender's aggressive cost cutting.

Goldman Sachs profit beats expectations on equity trading, lending

Tue, 16 Jul 2019 08:06:31 -0400

Goldman Sachs Group Inc reported a better-than-expected quarterly profit on Tuesday as the Wall Street investment bank benefited from higher equity trading and an increase in lending to its wealthy clients and companies.

Want To Know Why The Stock Market Is At An All-Time High? Look At Bonds

Garth Friesen, Contributor https://www.forbes.com/sites/garthfriesen/ — Tue, 16 Jul 2019 08:00:00 -0400

The possibility of a lower positive expected return for stocks is better than the surety of a negative real return offered from most bonds.

Norway's Telenor CEO sees decision on 5G supplier in fourth quarter

Tue, 16 Jul 2019 07:59:53 -0400

Telenor expects to decide on its supplier of 5G technology in the fourth quarter of 2019, its CEO told Reuters, despite having as yet no clarification from Norwegian authorities as to whether Huawei can be one of them.

JPMorgan disappoints investors with drop in lending margins

Tue, 16 Jul 2019 07:47:30 -0400

Bank’s Wall Street business also under pressure

China looks to consumer to help economy weather trade war

Tue, 16 Jul 2019 07:46:29 -0400

Economists fear falling exports will hit factory jobs and undermine domestic demand

Cannabis Watch: Cannabis stocks rally after FDA says it will speed up effort to create rules for CBD

Tue, 16 Jul 2019 07:46:26 -0400

Cannabis stocks were mostly higher on Monday, after the U.S. Food and Drug Administration said it is expediting its effort to create a regulatory framework for CBD with plans to publish a report on its progress by early fall.

Goldman Sachs profit hit by weakness in trading, underwriting

Tue, 16 Jul 2019 07:41:08 -0400

Goldman Sachs Group Inc reported a 6% fall in quarterly profit on Tuesday as the Wall Street investment bank was hurt by muted fixed income trading activity and weakness in debt underwriting.

Why Wall Street Has Such High Expectations for Microsoft Earnings and Guidance

Jon C. Ogg — Tue, 16 Jul 2019 07:40:34 -0400

Microsoft Corp. (NASDAQ: MSFT) has again become the darling of the stock market. The Dow Jones industrial average component is the largest of all public companies, with a $1.06 trillion market cap, and its year-to-date gain in 2019 of over 36% currently has it in the running with Visa as the best-performing Dow stock of 2019.

Wall Street is gearing up for Microsoft’s fourth-quarter fiscal 2019 earnings report after the closing bell on Thursday, July 18. While much of the market can talk endlessly about valuations being stretched and can point out that many top companies can hide behind slowing global growth and China trade war risks, expectations remain high for Satya Nadella and team in Redmond.

The consensus forecast calls for $1.21 in earnings per share and $32.75 billion in revenues for the fourth quarter alone. That would compare to $1.13 EPS and $30.1 billion in revenues a year earlier. Refinitiv shows the coming quarter consensus estimates as $1.19 EPS on $32 billion in revenues, and fiscal year 2020 consensus estimates are $5.11 EPS and $138.7 billion in revenues.

Analysts have been talking up expectations for Microsoft shares ahead of earnings. The shares dipped from $130 at the start of May down to $120 or so as the “sell in May and go away” theme was strong, but Microsoft shares are now back above $138.75. That valued Microsoft at just over 27 times expected earnings for the entire next fiscal year.

With Microsoft still sitting on over $130 billion in cash and investments at the end of its most recent quarter, some investors are going to want to see Microsoft continue to chip away at that $72.5 billion in long-term debt while it keeps buying back stock (over $16 billion on buybacks in calendar year 2018 alone).

One huge potential score will be Microsoft wins the all-or-none JEDI $10 billion cloud deal with the Department of Defense. In some ways, Microsoft should be considered the only eligible company to handle the deal from a security aspect, but we are still talking about the government making a decision here.

in terms of Wall Street’s ratcheted up expectations, in July and June alone, Wells Fargo raised its target to $160 from $145, Cowen started coverage with a $150 target, Credit Suisse assigned a $145 target and Deutsche Bank raised its target to $155 from $145. In the past 48 hours, Nomura/Instinet raised its target price to $161 from $131.

Wedbush Securities issued a note on Monday (with a steadfast $155 price target) calling for Microsoft to post a solid beat across the board on both the top and bottom lines as cloud strength on Azure and Office 365 continue to be the fuel in the tank. They see Microsoft beating commercial cloud expectations by about 3% or more. Azure’s cloud momentum also was said to still be in its early days of playing out, Office 365 is providing growth tailwinds for the next 12 to 18 months at least and product initiatives are still playing out within its base of consumers and enterprises.

Merrill Lynch has maintained its $155 price objective, and in May it suggested that Azure could rise to nearly an $80 billion opportunity for Microsoft by 2025 (up from about $10 billion currently). It sees LinkedIn adding up to $7 billion or $8 billion in annual revenues by 2025 as well, considering its marketing solution. While Microsoft is expected to have its critical Xbox game consoles coming by 2020 to sustain the gaming community and developer interest, the firm views Xbox as becoming a less relevant growth driver for the next three to five years. All in all, Microsoft is shown to have a total addressable market of $500 billion in 2025 from five key growth engines and is only about 9% penetrated so far.

At $138.90 a share, Microsoft has a 52-week trading range of $93.63 to $139.54. Its consensus price target from Refinitiv was last seen at $144.25.

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Domino's Pizza U.S. same-store sales miss estimates, shares fall 6%

Tue, 16 Jul 2019 07:38:35 -0400

Domino's Pizza Inc on Tuesday reported second-quarter same-store sales at its U.S. outlets that grew slower than expected as it faced fierce competition from rival pizza chains and third-party delivery companies, sending its shares down about 6% before the bell.

JPMorgan profit beats estimates on strength in consumer banking

Tue, 16 Jul 2019 07:29:55 -0400

JPMorgan Chase & Co reported a better-than-expected quarterly profit on Tuesday as higher interest income and a modest increase in loans more than made up for lower activity at the bank's trading desks.

London markets climb as pound tumbles on fear of no-deal Brexit

Tue, 16 Jul 2019 07:29:10 -0400

London markets climbed on Tuesday as the pound continued to tumble on Brexit concerns despite strong U.K. wages growth.

Stock futures flat after JPMorgan results; Goldman Sachs, Wells Fargo eyed

Tue, 16 Jul 2019 07:20:20 -0400

U.S. stock futures were trading flat on Tuesday as investors parsed through the earnings report from JPMorgan Chase and awaited results from Wall Street banks such as Goldman Sachs and Wells Fargo.

Molson Coors stock dragged down by double downgrade

Tue, 16 Jul 2019 07:19:31 -0400

Shares of Molson Coors Brewing Co. dropped toward its lowest close in over 5 years Monday after a double downgrade at Bank of America Merrill Lynch, which said the beer brewer will likely have to spend more and make less to stem the decline in its beer brands.

Earnings Outlook: IBM earnings: What’s the plan for Red Hat?

Tue, 16 Jul 2019 07:18:17 -0400

International Business Machines Corp. has hailed its acquisition of Red Hat as a “game-changer,” but now it’s time for the tech giant to prove itself.

Barclays sees Carrefour-Casino merger as possible, pushing up Casino shares

Tue, 16 Jul 2019 07:15:49 -0400

Shares in French retailer Casino rose around 2% on Tuesday after Barclays said in a note that a tie-up with larger rival Carrefour could be a possibility "given the difficulties encountered by Casino's majority shareholder."

Earnings Watch: With trade tensions escalating, here are 5 things to know about this earnings season

Tue, 16 Jul 2019 07:15:20 -0400

The second-quarter earnings season will kick off in earnest next week, and investors should brace for bad news with all signs signaling a second straight decline that will confirm an earnings recession.

Earnings Outlook: AMD earnings: What to expect

Tue, 16 Jul 2019 07:14:13 -0400

Advanced Micro Devices Inc. is the chip maker to watch this earnings season as the company takes on Intel Corp. and Nvidia Corp. amid problems in the sector that are expected to show signs of improvement.

Senate to grill Facebook over plans for Libra cryptocurrency

Tue, 16 Jul 2019 07:10:48 -0400

U.S. lawmakers from both sides of the aisle are set to grill Facebook Inc on its cryptocurrency plans on Tuesday, as the project continues to draw intense scrutiny from financial regulators and politicians across the globe. Facebook is fighting a rearguard action to get Washington onside after it shocked regulators and lawmakers with an announcement on June 18 that it was hoping to launch a new digital coin called Libra in 2020.

Senate to grill Facebook over plans for Libra cryptocurrency

Tue, 16 Jul 2019 07:10:48 -0400

Cannabis Watch: Failed marijuana experiment slams Organigram earnings

Tue, 16 Jul 2019 07:09:33 -0400

Organigram Holdings Inc. said Monday that growing marijuana cost it nearly 50% more in cash and harmed its earnings last quarter because the cannabis company tried — and failed — to develop a more efficient growing technique.

Livongo Health IPO: 5 things to know about the digital-health startup

Tue, 16 Jul 2019 07:08:45 -0400

Livongo Health Inc., a digital-health startup that’s looking to help people manage chronic diseases, has set terms for its planned IPO.

Callon Petroleum’s takeover of Carrizo Oil & Gas reignites the energy M&A market

Tue, 16 Jul 2019 07:08:26 -0400

The latest Permian Basin play is a ‘merger of equals’ between Callon Petroleum and Carrizo Oil & Gas, the first after Chevron Corp. lost out in the battle for Anadarko Petroleum Corp.

Oil gains as Iran tensions outweigh U.S. supply boom

Tue, 16 Jul 2019 07:05:02 -0400

Oil prices rose on Tuesday as tensions in the Middle East outweighed the impact of a resumption of production in the Gulf of Mexico after Hurricane Barry and a boom in U.S. supply from shale oil.

JPMorgan profit rises 16% on tax gain

Tue, 16 Jul 2019 07:00:23 -0400

JPMorgan Chase & Co reported a 16% rise in quarterly profit as higher net interest income and a tax gain more than made up for lower activity at the bank's trading desks.

The Tell: Is the Fed on the verge of sparking a stock-market ‘melt-up’?

Tue, 16 Jul 2019 06:59:31 -0400

The Federal Reserve is almost certain to cut rates at the end of July — but don’t expect a melt-up, usually marked by a powerful rally followed by a substantial selloff, says Mark Haefele, global chief investment officer at UBS Global Wealth Management.

President Trump’s Huawei Pivot Could Be Huge for 3 Top Semiconductor Companies

247lee — Tue, 16 Jul 2019 06:55:45 -0400

Needless to say, the trade and tariff issues with China have been front and center now for well over a year, and most on Wall Street feel that President Trump and Chinese President Xi eventually will come to a broad agreement. One of the biggest issues to the Chinese was the addition of Huawei to the so-called Entity List back in May, as the U.S. Department of Commerce believed that Huawei was engaged in activities that are contrary to U.S. national security or foreign policy interest.

Recently, after the G-20 meetings in Osaka, Japan, the U.S. government agreed to lift a ban that would have prevented U.S. firms from selling hardware and software to the Chinese tech giant as part of ongoing trade talks between China and the Trump administration. In fact, the United States may approve licenses for companies to restart new sales to Huawei in as little as two weeks, according to U.S. Commerce Secretary Wilbur Ross.

That’s huge for three leading chip companies, as Huawei spent a massive $70 billion in 2018 buying components for use in their business, which provides telecommunications equipment and sells consumer electronics, including smartphones. Some $11 billion of that alone went to three top semiconductor companies based in the United States, and all are poised to get an immediate boost should shipments begin again soon.

We screened out 24/7 Wall St. research database, and stocks of all three companies have Buy ratings at multiple major U.S. brokerage firms and banks. Each is suitable for aggressive growth accounts.

Intel

This old-school leader in semiconductors continues to work hard to focus more on Internet of Things and data center cloud spending. Intel Corp. (NASDAQ: INTC) designs, manufactures and sells integrated digital technology platforms worldwide.

The company’s platforms are used in various computing applications, comprising notebooks, two-in-one systems, desktops, servers, tablets, smartphones, wireless and wired connectivity products, wearables, retail devices and manufacturing devices, as well as for retail, transportation, industrial, buildings, home use and other market segments.

Intel investors receive a solid 2.52% dividend. The Merrill Lynch analysts have a Buy rating with a $62 price target. The posted Wall Street consensus price objective is $51.52. The stock closed trading on Monday at $50.12 per share.

Micron Technology

This is a global leader in advanced semiconductor systems. Micron Technology Inc. (NASDAQ: MU) has broad portfolio of high-performance memory technologies, including DRAM, NAND and NOR flash, which are the basis for solid state drives, modules, multi-chip packages and other system solutions. The company’s memory chip solutions enable the world’s most innovative computing, consumer, enterprise storage, networking, mobile, embedded and automotive applications.

Micron and Intel have combined their 3D NAND technology for the world’s highest-density flash memory. Flash is the storage technology used inside the lightest laptops, fastest data centers and nearly every cell phone, tablet and mobile device.

With memory demand drivers remaining somewhat underappreciated, and with solid demand from end-markets such as data center, artificial intelligence, deep learning, “Big Data,” mobile and autonomous driving, Micron continues to execute well on its manufacturing roadmap despite recent issues.

The JPMorgan team has a Buy rating and a $50 target price, which is well above the $43.03 consensus target for the shares. The stock closed trading at $44.40 on Monday.

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Qualcomm

This stock has been very volatile over the past year. Qualcomm Inc. (NASDAQ: QCOM) designs, develops and supplies semiconductors and collects royalties on wireless handheld devices and infrastructure based on its dominant position in CDMA and other related technology patents.

In addition, Qualcomm provides systems software and components to wireless handset vendors and promotes applications and services that run on high-speed wireless networks. The company operates primarily through two segments: CDMA Technologies and Technology Licensing.

Shareholders of Qualcomm receive a hefty 3.31% dividend. The $105 Merrill Lynch price target for the stock compares with the consensus target last seen at $88.77. The stock closed most recently at $73.12 a share.

The ongoing trade negotiations with China likely will remain a roller-coaster ride, but with the Chinese economy slowing in the second quarter to 6.2% growth, which is the slowest since 1992, you can bet on more central bank stimulus, and perhaps renewed efforts to complete a trade agreement.