Breaking Stock Market and Financial News

Dow, S&P 500 regain grip above 50-day moving average

MarketWatch Market Pulse - Tue, 04/25/2017 - 12:56

A two-day rally for the stock market has helped to propel U.S. equity benchmarks firmly above their 50-day moving average after closing below that level on April 12 for the first time since November. The S&P 500 index was more than 1.2% above its 50-day moving average of 2,360.20 in recent trade, while the Dow Jones Industrial Average was trading about 1.3% above its short-term average of 20,732.67, according to FactSet data. Both benchmarks edged above their short-term averages on Monday, Tuesday's rally has intensified that move. The Dow has gained 460 points, and the S&P 500 has surged about 40 points since Friday's close, as investors fear of global volatility eased following France's first-round election won by Emmanuel Macron, who's strong showing in a Sunday presidential vote helped to assuage fears that two anti-European Union candidates would make the final runoff. Early polls show Macron going into the second and final round of elections with a healthy lead over far-right candidate Marine Le Pen, who has threatened to pull France out of the EU. Better-than-expected earnings on Tuesday and President Donald Trump's promise to deliver the outline of a corporate tax-cut plan on Wednesday also has helped to fuel the recent sharp climb in global equities. Technical analysts tend to use moving averages to help determine an assets short-term or long-term trend. Meanwhile, the Nasdaq Composite Index touched a psychologically significant level, surpassing 6,000 for the first time ever.

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U.S. government shutdown threat recedes after Trump's wall concession

Top Reuters News - Tue, 04/25/2017 - 12:44
WASHINGTON (Reuters) - The threat of a U.S. government shutdown this weekend appeared to recede on Tuesday after President Donald Trump backed away from a demand that Congress include funding for his planned border wall with Mexico in a spending bill.

Trudeau vows to defend Canada interests as U.S. targets lumber, Canadian dollar falls

Top Reuters News - Tue, 04/25/2017 - 12:43
OTTAWA (Reuters) - Prime Minister Justin Trudeau vowed to stand up for Canadian interests on Tuesday after the United States imposed new tariffs on softwood lumber and trade tensions between the two countries escalated, sending the Canadian dollar to a 14-month low.

Uber plans to launch flying cars by 2020

MarketWatch Market Pulse - Tue, 04/25/2017 - 12:35

Uber Technologies Inc. plans to roll out flying cars with a pilot in the Dallas-Fort Worth area by 2020 and flights in Dubai at Expo2020, the company's chief product officer, Jeff Holden, said Tuesday. The goal is to cut in-transit time. In a live stream presentation from the Uber Elevate Summit, Holden said the company's models suggest flying cars could cost $1.32 per passenger mile, about the same rate as UberX, and later fall below the cost per mile of an owned vehicle. The flying-car option would eventually be available in the Uber app. Uber said it is working with aircraft manufacturers, including Aurora Flight Services and Pipistrel Aircraft, which are slated to build the flying cars using VTOL Technology, or technology for vertical take-off aircraft, and with real-estate companies in the two cities to build landing pads for the cars. Holden said he expects the number of cities with flying cars to grow rapidly. Uber has been piloting self-driving cars in cities across the U.S. but has run into regulatory difficulties, a hurdle it's also certain to face with flying vehicles. A startup backed by Alphabet Chief Executive Larry Page unveiled its flying car Monday, in a race with many other technology companies.

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Tupperware shares jump 12% after earnings beat and improved outlook

MarketWatch Market Pulse - Tue, 04/25/2017 - 12:30

Shares of food container maker Tupperware Brands Corp. surged more than 12% Tuesday, after the company reported stronger-than-expected earnings for the first quarter and raised its outlook for the rest of the year. The stock now stands at its highest level since Sept. 2014. Tupperware posted adjusted per-share earnings of $1.01, or 7 cents above the FactSet consensus. It had sales of $555 million, above the FactSet consensus of $532 million. Chief Executive Rick Goings said sales were driven by 9% growth in emerging markets, led by Brazil, China, Tupperware Mexico and Tupperware South Africa. That helped offset weakness in Indonesia, where sales fell 9%. Shares have gained 39% in 2017, while the S&P 500 has gained 6%.

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Caterpillar, McDonald's, Goldman contribute more than half of Dow's 230-point rally

MarketWatch Market Pulse - Tue, 04/25/2017 - 11:50

The Dow Jones Industrial Average enjoyed a triple-digit rise, with the bulk of the advance coming from the top four of its 30 components. Shares of Caterpillar Inc. were contributing about 45 points, McDonald's Corp's rise added about 45 points, Goldman Sachs Group Inc. shares of DuPont Inc. were each adding roughly 20 points to the blue-chip benchmark. The gains from that quartet make up more than half of the price-weighted Dow's 230-point rise in Tuesday action, and follow healthy quarterly reports from most of those names. Caterpillar DuPont {s: DD] and McDonald's reported quarterly results on Tuesday that topped Wall Street estimates. Goldman, meanwhile, reported results last week that disappointed investors' expectations, but the investment bank is benefiting from the anticipation of higher interest-rates ahead as improving economic sentiment bolsters expectations that the Federal Reserve will lift interest rates--a boon for bank shares. The S&P 500 index also was climbing, up 0.6%, at 2,388 and the Nasdaq Composite Index marked a milestone: surpassing the psychologically important level of 6,000 for the first time.

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Kmart Pharmacy lowers price of epinephrine auto-injector pens

MarketWatch Market Pulse - Tue, 04/25/2017 - 10:49

Kmart Pharmacy, a Sears Holdings Corp. company, said Tuesday that it has lowered the cost of Adrenaclick, a generic epinephrine auto-injector pen, to as low as $0 for insured patients and about $200 for patients paying cash for a two-pack. That compares to more than $642 for Mylan N.V.'s EpiPen, and $330 for Mylan's generic version, Kmart said. Sears shares are down more than 5% in Tuesday trading, and 33% for the past year. The company's shares are up 27.2% for the year to date while the S&P 500 index is up 6.6% for the period.

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Nike applies for patent for 'architecturally reinforced denim'

MarketWatch Market Pulse - Tue, 04/25/2017 - 10:39

Nike Inc. has submitted a patent application for an "architecturally reinforced denim" that the company describes as "a denim fabric with high tenacity and/or moisture management and/or stretch materials." Proportions of the materials may vary in order to "create different performance zones in the resulting garment." The fabric is designed with extreme sports athletes in mind, such as skateboarders and sandboarders who need specialized gear, but also want to be fashionable, the application said. Analysts at Instinet called the move "interesting" in a Tuesday note in light of the discussions they've had about the denim versus athleisure trend. Nike shares are up 9.3% for the year so far, but down 6.1% for the last 12 months. The S&P 500 index is up 6.7% in 2017.

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J. Crew to cut 250 jobs as part of reorganization

MarketWatch Market Pulse - Tue, 04/25/2017 - 10:15

J. Crew Group Inc. said Tuesday that it will cut 250 jobs primarily from its corporate headquarters as part of a reorganization of the company. About 150 full-time jobs and 100 open positions will be axed. The company expects about $30 million in annualized pre-tax savings and will take a $10 million first-quarter charge related to the cuts. The company has also announced a number of executive changes. Chief Financial Officer Michael Nicholson will also be responsible for the planning, merchandising, marketing and design functions of the J.Crew brand. Lisa Greenwald has been named chief merchandising officer for the J. Crew brand. She was previously the senior vice president of the Madewell brand. And Libby Wadle has been named the president of the Madewell brand. She was previously the president of the J. Crew brand. Somsack Sikhounmuong was recently named chief design officer for J. Crew, effective April 5, succeeding Jenna Lyons. The SPDR S&P Retail ETF is down 1.3% for the year so far while the S&P 500 index is up 6.8% for the period.

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A walk through western Mosul

Top Reuters News - Tue, 04/25/2017 - 09:38
IRAQ, Mosul (Reuters) - Inside are tattered curtains, crumbling walls and torn up floors. Outside is a near ghost town.

Dole Food Company to test the public market again

MarketWatch Market Pulse - Tue, 04/25/2017 - 09:33

Dole Food Company is testing the public market again and filed to go public Tuesday. The company filed for an offering of up to $100 million, likely a placeholder amount, and has not specified an exchange or stock symbol. Dole Food recorded $4.51 billion in revenue on top of a $23 million net loss in 2016. The company was taken private by its chief executive David Murdock in November 2013. Since being taken private, Dole says it has bought three new West Coast vessels, gaining greater control of the supply chain, and increased their acreage by 20%. Morgan Stanley, Bank of America Merrill Lynch and Deutsche Bank Securities are the underwriters on the offering.

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U.S. stocks open higher on strong earnings; Nasdaq tops 6,000

MarketWatch Market Pulse - Tue, 04/25/2017 - 09:32

U.S. stocks opened higher on Tuesday, with the Dow seeing a particularly strong gain as several key components reported better-than-expected quarterly results. The Dow Jones Industrial Average rose 0.7%, or 147 points, to 20,911. The S&P 500 climbed 5.7 points, or 0.2%, to 2,380. The Nasdaq Composite Index rose 21.5 points to 6,006, an advance of 0.4%. The Nasdaq hit a new intraday record and topped 6,000 for the first time ever. Among the biggest companies to report results on Tuesday, McDonald's Corp climbed 3.2% while Caterpillar Inc. jumped 6.4%. Both topped forecasts in their results, while Caterpillar also raised its full-year outlook. The day's gains were broad, with 10 of the 11 S&P 500 sectors up on the day. The top performing sector of the day was materials, which rose 0.1%.

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Mexican peso falls to 1-month low as Trump tweets support for border wall

MarketWatch Market Pulse - Tue, 04/25/2017 - 09:12

The dollar surged on Tuesday against the Mexican peso after President Donald Trump tweeted that he remains committed to building a wall along the Mexican border. The dollar rose 1.4% to 18.99, its strongest level in a month, after trading at 18.73 late Monday in New York. On Monday, Trump told a group of reporters that he would drop his demand that funding for the border wall be included in a funding bill that must be passed by the weekend to avert a government shutdown. Instead, he said, his administration will return to the issue in September.

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Amazon downgraded on stock price concerns ahead of earnings report

MarketWatch Market Pulse - Tue, 04/25/2017 - 08:52

Shares of Amazon.com Inc. slipped 0.2% in premarket trade Tuesday, bucking a strong rally in the broader market, after Raymond James downgraded the ecommerce giant, citing concerns over valuation ahead of first-quarter results. Analyst Aaron Kessler cut his rating to market perform, after being at outperform the past 13 months. Kessler said with the stock near his previous price target of $925, he believed the shares were "fully valued," especially since investment levels are expected to remain elevated, earnings expectations appear aggressive and the belief price cuts and increasing competition will reduce the potential upside for Amazon's cloud business. "At current levels, we believe Amazon will need to begin to show greater operating leverage for shares to move meaningfully higher and reach our bull case," Kessler wrote in a note to clients. "Specifically, we would like to see improved margins/less losses for international, shipping costs, Prime Video." Amazon is scheduled to report results after Thursday's close. The stock has soared 21% year to date through Monday, while the S&P 500 has gained 6%.

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Freeport-McMoRan reports first-quarter earnings, revenue misses

MarketWatch Market Pulse - Tue, 04/25/2017 - 08:40

Freeport-McMoRan Inc. shares rose nearly 1% in premarket trade Tuesday after the company swung to a profit, though it missed earnings and revenue expectations. Earnings for the latest quarter were $306 million, or 16 cents per share, compared with a loss of $4.1 billion, or a loss of $3.35 per share in the year-earlier period. Adjusted earnings-per-share were 15 cents, compared with the FactSet consensus of 16 cents. Revenue rose to $3.3 million from $2.3 million, compared with the FactSet consensus of $3.5 million. Freeport-McMoRan shares have dropped 25.9% over the last three months, compared with a 3.3% rise in the S&P 500 .

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Ryder shares slide 6% after earnings miss, lowered outlook

MarketWatch Market Pulse - Tue, 04/25/2017 - 08:18

Shares of Ryder System Inc. tumbled 6% in premarket trade Tuesday, after the fleet management company posted weaker-than-expected earnings and lowered its outlook for the full year. Ryder said it had net income of $38.3 million, or 71 cents a share, in the first quarter, down from $56.2 million, or $1.05 a share, in the year-earlier period. Adjusted per-share earnings came to 82 cents, below the FactSet consensus of 84 cents. Revenue rose to $1.7 billion from $1.6 billion, matching the FactSet consensus. The results "came in at the bottom end of our forecast range, driven by weaker than expected rental demand, which is consistent with the soft freight environment," Chief Executive Robert Sanchez said in a statement. "In addition, used vehicle sales results were slightly below plan, due to modestly lower pricing." The company lowered its full-year EPS outlook to $3.90 to $4.20 from a prior forecast of $4.78 to $5.08. It cut its adjusted EPS forecast to $4.25 to $4.55 from a prior range of $3.10 to $5.40. Shares have gained 6% in 2017, while the S&P 500 has gained the same amount.

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McDonald's shares rise after earnings beat estimates

MarketWatch Market Pulse - Tue, 04/25/2017 - 08:10

McDonald's Corp. shares rose 2.6% in Tuesday premarket trading after the fast-food giant reported first-quarter earnings that beat consensus. Net income was $1.21 billion, or $1.47 per share, up from $1.12 billion, or $1.25 per share, last year. The FactSet consensus was $1.34. Revenue was $5.68 billion, down from $5.90 billion, but ahead of the $5.53 billion FactSet consensus. Global same-store sales rose 4%, and U.S. same-store sales increased 1.7%. U.S. same-store sales benefited from menu initiatives like the Big Mac and beverage value promotions. Same-store sales for the International Lead segment were up 2.8% driven by momentum in the U.K. and the Canada launch of All-Day Breakfast. And same-store sales for High Growth segment were up 3.8% led by China. McDonald's shares are up 10.3% for the year so far while the Dow Jones Industrial Average is up 5.1% for the period.

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Dow getting an 87-point boost from earnings, led by Caterpillar and 3M stock rallies

MarketWatch Market Pulse - Tue, 04/25/2017 - 08:05

The Dow Jones Industrial Average is getting a big boost from earnings reports Tuesday, as the shares of four components that reported first-quarter results could be adding about 87 points to the Dow's price. Caterpillar Inc.'s stock rallied $4.64, or 4.8%, ahead of the open, which would add about 32 points to the Dow, while 3M Co. shares rose $4.17, or 2.2%, and would add 29 points. Elsewhere, McDonald's Corp. shares climbed $2.37, or 1.8%, and would add about 16 points; DuPont & Co.'s stock was up $1.31, or 1.7%, and would tack on 9 points; Coca-Cola Co.'s stock gained 15 cents, or 0.4%, and would add 1 point. Dow futures were recently up 134 points.

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JetBlue shares rise after earnings beat estimates

MarketWatch Market Pulse - Tue, 04/25/2017 - 07:48

JetBlue Airways Corp. shares rose 3% in Tuesday premarket trading after the company reported first-quarter earnings that beat estimates. Net income was $85.0 million, or 25 cents per share, down from $207.0 million, or 61 cents per share, last year. The FactSet consensus was 22 cents. Total revenue was $1.60 billion, down from $1.62 billion last year and below the $1.62 billion FactSet consensus. Passenger revenue per available seat mile (RASM) was down 5.8% year-over-year to 10.68 cents, and operating expense per available seat mile (CASM) was down 4.8% to 11.81 cents. JetBlue sees a second-quarter capacity increase between 4% and 6% year-over-year. RASM is expected to increase between 3% and 6% compared with last year. And CASM excluding fuel is expected to grow between 4.5% and 6.5% in the second quarter. JetBlue shares are down 3% for the year so far, but up 6.8% for the last 12 months. The S&P 500 index is up 6% for 2017.

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Caterpillar shares soar after first-quarter earnings beat

MarketWatch Market Pulse - Tue, 04/25/2017 - 07:45

Shares of Caterpillar Inc. rose 6% in premarket trade Tuesday after the company beat first-quarter earnings expectations and issued an upbeat outlook. It reported net income of $192 million, or 32 cents per share, down from $271 million, or 46 cents per share, in the year-earlier period. Excluding restructuring costs, it reported earnings per share of $1.28. The FactSet consensus was for earnings per share of 63 cents. Revenue was $9.82 billion, up from $9.46 billion in the year-earlier period and above the FactSet consensus of $9.26 billion. Caterpillar raised its 2017 revenue outlook to $38 billion to $41 billion, above the FactSet consensus of $37.9 billion. It expects profit per share of $2.10 at the midpoint of sales or $3.75 excluding restructuring costs, compared to the FactSet consensus of $3.25. It expects higher restructuring costs for the year, amounting to $1.25 billion. Shares of Caterpillar have gained 4.4% month-to-date, compared to the S&P 500's gain of 0.5%.

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