Breaking Stock Market and Financial News

Qorvo shares fall 4% on disappointing outlook

MarketWatch Market Pulse - Wed, 05/03/2017 - 16:30

Qorvo Inc. shares declined in the extended session Wednesday after the wireless components provider's outlook fell short of Wall Street estimates. Qorvo shares fell 4.1% to $65.28 after hours. The company forecast fiscal first-quarter earnings of 70 cents to 90 cents a share on revenue of $610 million to $650 million. Analysts surveyed by FactSet had estimated earnings of $1.02 a share on revenue of $698.4 million. For the fiscal fourth quarter, the company reported adjusted earnings of 85 cents a share on adjusted revenue of $624 million, while analysts had estimated 81 cents a share on revenue of $632 million.

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Tesla's revenue more than doubles, helped by record deliveries

Top Reuters News - Wed, 05/03/2017 - 16:29
(Reuters) - Electric-car maker Tesla Inc reported quarterly revenue that more than doubled and also trumped analysts' expectations, driven by record deliveries of its Model X sports utility vehicles and Model S sedans.

AIG shares gain on strong earnings, new buyback plan

MarketWatch Market Pulse - Wed, 05/03/2017 - 16:29

Shares of American International Group Inc. gained in Wednesday's extended session after the insurer posted better-than-expected earnings and announced a sizeable stock buyback package. AIG reported it swung to first-quarter earnings of $1.19 billion, or $1.18 a share, from a loss of $183 million, or 16 cents a share, a year earlier. Analysts surveyed by FactSet had forecast earnings of $1.07 a share. The company cited an improvement in operating results in its commercial and consumer businesses for the recovery in its bottom line. The AIG board also approved a new $2.5 billion stock buyback plan and declared a quarterly dividend of 32 cents a share. AIG shares rose 2.3% after hours.

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Facebook shares rise after first-quarter revenue beat

MarketWatch Market Pulse - Wed, 05/03/2017 - 16:26

Shares of Facebook Inc. rose 1% after hours Thursday after the company beat first-quarter revenue expectations. Facebook reported net income of $3.06 billion, or $1.04 per share, up from $1.74 billion, or 60 cents per share. The FactSet GAAP estimate was for 87 cents per share, while the non-GAAP estimate was for $1.12. Revenue was $8.03 billion, up from $5.38 billion and above the FactSet consensus of $7.83 billion. It reported 1.94 billion monthly active users and 1.28 billion daily active users, an increase of 18% and 17% year-over-year respectively. The FactSet consensus was for monthly active users of 1.91 billion and daily active users of 1.256 billion. Shares of Facebook have gained 32% year-to-date, compared to the S&P 500's gain of 6.7%. Facebook said it is no longer reporting non-GAAP numbers.

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MetLife beats profit estimates, but sales fall slightly short

MarketWatch Market Pulse - Wed, 05/03/2017 - 16:26

Metlife Inc. said Wednesday it had net income of $820 million, or 75 cents a share, in the first quarter, down from $2.2 billion, or $1.98 a share, in the year-earlier period. Adjusted per-share earnings came to $1.41, ahead of the FactSet consensus of $1.28. Revenue fell to $16.3 billion from $18.4 billion, below the FactSet consensus of $17.1 billion. Net earnings included $602 million after tax in net derivative losses related to changes in equity markets and interest rates, compared with $868 million of net derivative gains in the first quarter of 2016. "Rising equity markets and costs associated with repositioning our hedging strategies contributed to the net derivative losses," the company said in a statement. Investment income rose 14% to $5.196 billion from $4.559 billion. Shares rose immediately after the report, before turning flat. They are down 3.3% in 2017, while the S&P 500 has gained 6.7%.

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IAC earnings miss consensus but revenue tops forecast

MarketWatch Market Pulse - Wed, 05/03/2017 - 16:24

Media and internet services group IAC/InterActiveCorp. said its first-quarter earnings tripled to $26.2 million, or 29 cents a share, from $8.3 million, or 9 cents a share, though revenue fell 9% to $760.8 million. Analysts had expected earnings of 35 cents a share, but the company beat consensus of $717.4 million on revenue. Improved results at its Match Group unit helped offset declines in paid search traffic. The company, which announced it was buying Angie's List on Monday, expects adjusted EBITDA between $538 million and $618 million for the year.

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House passes bill funding government through September

MarketWatch Market Pulse - Wed, 05/03/2017 - 16:23

The House passed a bill on Wednesday that funds the government through September, as the White House and Democrats each touted provisions of the $1.1 trillion measure. Democrats hailed extra funding for the National Institutes of Health and Medicaid assistance for Puerto Rico, while also declaring victory over the exclusion of money for President Donald Trump's proposed border wall. The White House cited a $15 billion boost for defense and $1.5 billion for border security. The measure goes next to the Senate, which is expected to approve it.

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Tesla shares higher after wider Q1 loss, revenue beat

MarketWatch Market Pulse - Wed, 05/03/2017 - 16:21

Tesla Inc. shares rose 0.5% late Wednesday after the company posted a wider-than-expected adjusted quarterly loss but beat revenue expectations. The Silicon Valley car maker said it lost $330 million, or 2.04 a share, in the first quarter, compared with $282 million, or $2.13 a share, in the year-ago period. Adjusted for one-time items, Tesla reported a loss of $1.33 a share, compared with $1.46 a share a year ago. Revenue reached $2.7 billion in the quarter, compared with $1.15 billion a year ago. Analysts polled by FactSet had expected Tesla to report adjusted per-share loss of 82 cents on sales of $2.61 billion. Tesla kept its forecast of 47,000 to 50,000 vehicles delivered in the first half of the year, but shied away from a second-half prediction, saying it will wait after it starts producing the first handful of Model 3 sedans in July. The stock had ended the regular trading day down 2.6%.

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Square's stock jumps after Q1 results beat expectations, outlook raised

MarketWatch Market Pulse - Wed, 05/03/2017 - 16:15

Shares of Square Inc. surged 5.7% in after-hours trade Wednesday, after the credit card payment processing company's first quarter results beat expectations, and the company raised its full-year outlook. The net loss narrowed to $15.1 million, or 4 cents a share, from $96.8 million, or 29 cents a share, in the same period a year ago. The FactSet consensus was for a per-share loss of 8 cents. Total revenue rose 22% to $461.6 million, above the FactSet consensus of $451.5 million, while adjusted revenue jumped 39% to $204 million, to beat expectations of $193 million. The company raised its 2017 adjusted revenue outlook to $890 million to $910 million from $880 million to $900 million, and lifted its adjusted EPS outlook to 16 cents to 20 cents from 15 cents to 19 cents. The stock has soared 34% year to date through Wednesday, while the S&P 500 has gained 6.7%.

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Kraft Heinz shares slip after hours on earnings miss

MarketWatch Market Pulse - Wed, 05/03/2017 - 16:12

Kraft Heinz Co. shares declined in the extended session Wednesday after the food company's quarterly results fell short of Wall Street estimates. Kraft Heinz shares slipped 2.4% to $86.99 after hours. The company reported adjusted first-quarter earnings of 84 cents a share on revenue of $6.36 billion. Analysts surveyed by FactSet had forecast earnings of 86 cents a share on revenue of $6.46 billion. "Although our top line results in the first quarter reflect a slow start to the year, we remain on track with our key initiatives," said Bernardo Hees, Kraft Heinz chief executive, in a statement.

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Trump vows to broker Israeli-Palestinian peace, offers no new policies

Top Reuters News - Wed, 05/03/2017 - 16:06
WASHINGTON (Reuters) - President Donald Trump vowed on Wednesday to work to broker peace between Israel and the Palestinians as he hosted Palestinian President Mahmoud Abbas at the White House but offered no clues about how he could break the deadlock and revive long-stalled negotiations.

Stocks end mostly lower after Fed leaves rates unchanged

MarketWatch Market Pulse - Wed, 05/03/2017 - 16:05

U.S. stocks closed mostly lower Wednesday after the Federal Reserve left interest rates unchanged, as widely expected, and deemed a recent patch of economic weakness as temporary. The main indexes traded in a narrow range over the past several sessions, unable to break to new highs. The S&P 500 closed 3.06 points, or 0.1%, lower at 2,388.11. Earlier the index was pressured by losses in Apple Inc. , the largest company by market capitalization. But Apple recouped most of the losses to end only slightly lower. The Dow Jones Industrial Average closed virtually unchanged at 20,957.53. The Nasdaq Composite shed 22.82 points, or 0.4%, to 6,072.55, retreating from its record close set on Tuesday.

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IBM's credit rating downgraded at Moody's

MarketWatch Market Pulse - Wed, 05/03/2017 - 15:58

International Business Machines Corp.'s credit rating was downgraded to A1 from Aa3 Wednesday at Moody's, which predicted Big Blue would continue to be challenged despite making a number of investments to transform into a cloud-services company. Moody's said Big Blue's "high level of investments" during this transformation have "negatively impacted IBM's profitability and cash flow" and are expected to weigh on revenue growth and margins for a longer-than-expected period of time. Last week, IBM reported weaker-than-expected earnings, prompting a number of analysts to lower their 12-month price targets on the stock. Its quarterly sales were below Wall Street expectations, despite gains in its new Watson cloud services business. It also reported a 13% decline in profit. Shares of IBM fell 0.1% to $158.87 on Thursday. They've declined by nearly 10% in the past three months, vastly underperforming the Dow Jones Industrial Average and S&P 500 , which are up 5% and 4%, respectively.

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Viacom shares fall more than 7%, leading broader media selloff

MarketWatch Market Pulse - Wed, 05/03/2017 - 15:22

Viacom Inc. shares were down more than 7% in afternoon trade on Wednesday, leading the broader media sector in an afternoon sell off. Following Viacom, shares of AMC Networks Inc. were down nearly 6% and 20th Century Fox Inc. shares fell more than 5%. Shares of Walt Disney Co. and Comcast Corp. were down more than 2%. There was no clear reason for the sell off, but Evercore ISI analyst Vijay Jayant attributed it to rearing cord-cutting fears, as the industry shifts focus to streaming. Earlier on Wednesday Hulu, which is jointly owned by Disney, Fox, Comcast and Time Warner, launched the beta version of its live TV service and Akamai Media reported poor revenue outlook due to continued weakness in its media business. Viacom will report second-quarter earnings on Thursday and is expected to post lower year-over-year profit at 59 cents per share with slightly improved revenue of $3.03 billion, according to FactSet. Shares of Viacom have gained more than 12% in the year to date, while declining nearly 5% in the last 12 months. By comparison, the S&P 500 index has gained nearly 7% in the year and 16% during the prior 12-month period.

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Exxon Mobil facing potential enforcement actions from DOJ, EPA over refinery fire

MarketWatch Market Pulse - Wed, 05/03/2017 - 15:05

Exxon Mobil Corp. disclosed Wednesday that the Department of Justice (DOJ) issued a notification concerning potential enforcement and possible settlement to its ExxonMobil Oil Corp. (EMOC) unit regarding potential violations of the Clear Air Act, and of the Environmental Protection Agency's (EPA) Chemical Accident Prevention provisions. The DOJ and EPA are seeking $100,000 in penalties and corrective actions. In a quarterly filing, Exxon said the DOJ and EPA contend that EMOC failed to identify hazards, failed to design a safe facility and failed to mitigate the consequences of a claimed accidental release related to a flash fire at the Beaumont, Texas refinery in April 2013. The stock, which rose 1.2% in afternoon trade amid a rise in oil prices, has lost 8% year to date, while the Dow Jones Industrial Average has gained 6.1%.

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Tillerson lays out Trump's 'America First' foreign policy to skeptical officials

Top Reuters News - Wed, 05/03/2017 - 15:03
WASHINGTON (Reuters) - U.S. Secretary of State Rex Tillerson on Wednesday outlined for Department employees how an "America First" agenda translates into foreign policy, but did not address the Trump administration's proposed budget cuts, which worry many diplomats.

Oil ends with a slight gain after two sessions of declines

MarketWatch Market Pulse - Wed, 05/03/2017 - 14:50

Oil prices finished with a slight gain on Wednesday, finding support following losses in the past two trading sessions. Data from the U.S. Energy Information Administration showed a weekly decline in domestic crude supplies, which was smaller than expected, and demand for gasoline over the past month remained weak. June WTI crude rose 16 cents, or 0.3%, to settle at $47.82 a barrel on the New York Mercantile Exchange.

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Fed holds interest rates steady, downplays economic weakness

Top Reuters News - Wed, 05/03/2017 - 14:41
WASHINGTON (Reuters) - The U.S. Federal Reserve kept interest rates unchanged on Wednesday and downplayed weak first-quarter economic growth while emphasizing the strength of the labor market, in a sign it was still on track for two more rate rises this year.

Agribusiness company Bunge shares slide 12% on weaker-than-expected earnings

MarketWatch Market Pulse - Wed, 05/03/2017 - 14:28

Shares of seeds, grains and fertilizer company Bunge Ltd. slid 12% Wednesday, after the company posted weaker-than-expected profit for the first quarter. Bunge said it had net income of $47 million, or 36 cents a share, in the quarter, down sharply from $235 million, or $1.60 a share, in the same period a year ago. Adjusted per-share earnings came to 35 cents, or half of the 70 cents consensus of analysts polled by FactSet. Sales rose to $11.1 billion from $8.9 billion, ahead of the FactSet consensus of $8.9 billion. "The slow pace of farmer selling in South America compressed margins in agribusiness and led to a lower than expected first quarter," Chief Executive Soren Schroder said in a statment. "Our teams managed risks, logistics and industrial operations well. Despite this difficult start, we continue to expect 2017 to be a year of solid year-over-year earnings growth, although below our prior expectations." The company is now expecting full-year earnings before interest and taxes at the agribusiness to range from $800 million to $925 million, the bulk of which is expected in the second half. Shares are down 7.5% in 2017, while the S&P 500 has gained 6.5%.

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Two dead, including suspect in Dallas-area college shooting: police

Top Reuters News - Wed, 05/03/2017 - 14:22
AUSTIN, Texas (Reuters) - A gunman who opened fire on Wednesday on a college campus in the Dallas suburb of Irving, Texas, apparently killed one victim and committed suicide, local police said.

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