Breaking Stock Market and Financial News

Trump, Putin held a second, undisclosed meeting at G20 summit

Top Reuters News - Tue, 07/18/2017 - 18:07
WASHINGTON (Reuters) - U.S. President Donald Trump and Russian President Vladimir Putin held a second, previously undisclosed meeting at the G20 summit earlier this month in Germany, a White House official said on Tuesday.

Broadcom, Brocade merger delayed

MarketWatch Market Pulse - Tue, 07/18/2017 - 17:48

Brocade Communications Systems Inc. said late Tuesday the closing of its deal with Broadcom Ltd. has been delayed to give a U.S. government inter-agency committee more time to go over the proposed deal. Broadcom agreed to buy Brocade last year, and shareholders approved the deal in January. Earlier this week, however, following discussions with the U.S. Committee on Foreign Investment, the companies agreed to withdraw and re-file a voluntary notice to the committee to allow more time for a review. Once the committee accepts the notice, a new 30-day review period will start, and that may be followed by a 45-day investigation period, Brocade said. Shares of Brocade rose 0.2% in late trading and ended the day down 0.5%; shares of Broadcom rose 0.5% in the late session and ended the regular session up 0.8%. "Brocade and Broadcom have been and will continue to be actively engaged with CFIUS during its review of the proposed acquisition. There can be no assurances, however, that CFIUS will ultimately agree that the parties may proceed with the proposed acquisition," they said. The delay also affects Extreme Networks Inc. , which had agreed to buy Brocade's data-center networking business from Broadcom. Extreme said in a statement it expects to close its transaction with Broadcom within two to three business days of the completed acquisition of Brocade by Broadcom.

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Blue Apron is the worst-performing large IPO of 2017

MarketWatch Market Pulse - Tue, 07/18/2017 - 17:29

Shares of Blue Apron Inc. closed at their lowest level yet Tuesday, adding to the company's position as the worst performing IPO in 2017 among large issuers, according to Renaissance Capital, a manager of IPO-focused ETFs. Blue Apron shares have fallen 36% from its IPO price of $10, giving it the worst returns among IPOs that have a deal size of $100 million or greater so far this year, according to Renaissance. Blue Apron raised $300 million in its IPO. Also included in the category is Snap Inc. , which raised $3.4 billion in its March initial offering and has fallen 13% from its issue price. Blue Apron shares began trading on the New York Stock Exchange June 29, and along the way the stock has faced questions over its high customer-acquisition cost as well as increasing competition from Amazon Inc. Amazon has moved into the meal-kit space, with prepared meals already available for some Prime customers on its site. Blue Apron shares have fallen 3.5% in the past week, while the S&P 500 has stayed largely flat.

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Abercrombie & Fitch shares higher after hedge fund urges buyback

MarketWatch Market Pulse - Tue, 07/18/2017 - 17:20

Shares of Abercrombie & Fitch Co. rose more than 2% late Tuesday after hedge fund SLS Capital Management LLC made public a letter to the retailer's board of directors urging a share buyback and other measures to lift the stock. The board hasn't been "aggressive enough" in maximizing shareholder value, SLS said in the letter, which goes on to mention earlier letters to Abercrombie as well as meetings with management to urge a "Plan B" for the company. Given the current conditions, Abercrombie should be buying back stock and reducing its share count, it said. There's "a time in every company's life for buybacks and a time for dividends. With the stock trading at current valuations and a margin of safety from the value of non-core assets, this is the time for buybacks," SLS said. Abercrombie shares ended the regular session up 0.1%.

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Apple's stock reverses higher to post longest win streak in 3 years

MarketWatch Market Pulse - Tue, 07/18/2017 - 16:44

Shares of Apple Inc. erased an early loss to close up 0.3% Tuesday, to stretch its winning streak to eight sessions. That's the longest such streak since the nine-session stretch ending Aug. 25, 2014. The stock was down as much as 0.6% at the intraday low of $148.67 around 10:05 a.m. ET, the started rising to close just below its intraday high of $150.13. The stock has rallied 5.2% during its streak, but is still 4% away from the May 12 record close of $156.10. Apple's win streak matches that of the tech-heavy Nasdaq 100 , which has also gained for eight straight sessions, matching the eight-day win streak it managed seven weeks ago. Meanwhile, the Dow Jones Industrial Average has declined two straight days, and in three of the past eight sessions.

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Mitch McConnell: 'The man in the middle' of U.S. healthcare war

Top Reuters News - Tue, 07/18/2017 - 16:44
WASHINGTON (Reuters) - For seven years, U.S. Senator Mitch McConnell vowed to slay Obamacare if only his Republican Party controlled both chambers of Congress and the White House. Pull it out "root and branch," he pledged.

Oil falls as sources say API data show unexpected climb in U.S. crude supply

MarketWatch Market Pulse - Tue, 07/18/2017 - 16:43

The American Petroleum Institute reported Tuesday an unexpected climb of 1.6 million barrels in U.S. crude supplies for the week ended July 14, according to sources. The API data also showed a drop of 5.4 million barrels in gasoline supplies, while inventories of distillates were down 2.9 million barrels, sources said. Supply data from the Energy Information Administration will be released Wednesday morning. Analysts polled by S&P Global Platts expect the EIA to report a decline of 3 million barrels in crude inventories. August crude was at $46.25 a barrel in electronic trading, down from the contract’s settlement of $46.40 on the New York Mercantile Exchange.

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United Continental turns lower after beating expectations

MarketWatch Market Pulse - Tue, 07/18/2017 - 16:39

United Continental Holdings Inc. shares turned lower late Tuesday after the company reported second-quarter results above expectations. United said it earned $818 million, or $2.66 a share, in the quarter, compared with $1.78 a share in the year-ago period. Adjusted for one-time items, United said it earned $846 million, or $2.75 a share, compared with $2.61 a share a year ago. Revenue rose 6.4% to $10 billion in the quarter. Analysts polled by FactSet had expected adjusted earnings of $2.66 a share on sales of $9.97 billion. The company, under a cloud earlier this year after a passenger was forcibly removed from one of its flights after he refused to give up his seat, said it had implemented several changes in the quarter to improve customer experience, including reducing overbooking. Shares of United Continental ended the regular session down 1.1%.

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Dick's Sporting Goods launching price match program, closing Chelsea Collective stores

MarketWatch Market Pulse - Tue, 07/18/2017 - 16:35

Dick's Sporting Goods Inc. confirmed Tuesday that it is launching a price match program. According to the company's website, to qualify for the "price match guarantee" the item must be the same brand, model and color; the product must be immediately available at a retailer like Macy's Inc. , Amazon.com Inc. , Wal-Mart Stores Inc. or Kohl's Corp. ; and it must meet certain other criteria for eligibility. For example, markdown items aren't included. Dick's also announced that it will be closing its Chelsea Collective stores on August 6. Chelsea Collective was a fitness boutique for women that focused on apparel, shoes and accessories. There were just two stores open for two years. "We opened Chelsea Collective stores as a lab to more thoroughly understand the women's specialty athletic business. As the leases at both locations are expiring soon, we have concluded the very successful experiment," Dick's said in a statement. Dick's shares closed Tuesday down 2.5%, and are down 30.3% for the year so far. The S&P 500 index is up nearly 10% for the period.

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Vertex Pharma shares rally on cystic fibrosis drug study results

MarketWatch Market Pulse - Tue, 07/18/2017 - 16:34

Vertex Pharmaceuticals Inc. shares surged in the extended session Tuesday after the biotech drug maker announced positive results from clinical trials of its cystic fibrosis treatments. Vertex shares rallied 26% to $166.50 after hours. The company said data from clinical studies of its treatment candidates VX-152 and VX-440 showed an up to 12% average improvement in lung function in cystic fibrosis patients given the drugs. Cystic fibrosis is a genetic defect that causes an abnormal buildup of mucus in the lungs leading to chronic infection and progressive lung damage.

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S&P 500 and Nasdaq end at records, but Goldman's stock weighs on Dow

MarketWatch Market Pulse - Tue, 07/18/2017 - 16:32

The U.S. stock market ended mixed on Tuesday, but the Nasdaq Composite Index marked its first closing high since June, highlighting a remarkable rebound for the technology-laden benchmark since its early June swoon. But the overall market was weighed by a slump in some of the U.S.'s biggest banks led by a decline in shares of Dow-component Goldman Sachs Group Inc. . The price-weighted Dow Jones Industrial Average finished off 0.3%, but well off its lows of the session. The S&P 500 index closed at slight record, as gains in the consumer-discretionary and tech sectors , both up 0.5%, helped to offset a drop of 0.5% and 0.3% in energy and financials . Netflix's 13.5% share surge , after reporting better-than-expected results late Monday, also helped the media-streaming company post a record and powered the tech rally. Technology shares, which represent the largest component of the S&P 500, have been crucial to advance's in the broad-market benchmark, though valuations have been a main concern for market participants. Elsewhere, Tuesday's rally in risk assets, like tech names, belied some haven buying as the U.S. dollar slumped in the wake of reports that Republican lawmakers were nixing plans to push forward a Senate bill to repeal and replace the Affordable Care Act, otherwise known as Obamacare. One measure of the dollar, the ICE U.S. Dollar Index , traded around its lowest level since September, off 0.5%. Meanwhile, prices of gold , which is priced in dollars, jolted higher. The yield in the benchmark, 10-year Treasury note fell to 2.26%, signalling investors were buying bonds, pushing yields lower. The apparent failure of the health-care legislation is seen as delaying pro-growth policies espoused by President Donald Trump, which could boost the buck and push Treasury prices lower. Bond prices and yield move inversely.

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IBM revenue continues to fall

MarketWatch Market Pulse - Tue, 07/18/2017 - 16:23

International Business Machines Corp. sales declined year-over-year for the 21st consecutive quarter, the tech company announced Tuesday, but the company's cloud revenue continued to grow. IBM reported profit of $2.3 billion, or $2.48 a share, on sales of $19.3 billion for its second quarter, with earnings falling 7% from the same quarter a year ago and revenue dropping 5%. After adjusting for acquisition- and retirement-related expenses, the company claimed earnings of $2.97 a share, up 1% from a year ago. Analysts on average expected adjusted profit of $2.74 a share on sales of $19.5 billion. Cloud revenue gained 15% from last year to $3.9 billion, and IBM maintained its outlook for the full year. Shares, which closed with a 0.7% gain at $154, declined about 2% after the results were announced.

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CSX shares rise after earnings beat, added buyback

MarketWatch Market Pulse - Tue, 07/18/2017 - 16:14

CSX Corp. shares rose in the extended session Tuesday after the railroad operator reported quarterly results above Wall Street estimates and expanded its share buyback program. Shares of CSX rose 3.1% to $56.32 after hours. The company reported adjusted second-quarter earnings of 64 cents a share on revenue of $2.93 billion. Analysts surveyed by FactSet had estimated earnings of 59 cents a share on revenue of $2.85 billion. CSX announced its board added another $500 million in share repurchase authorization, raising the current authorization to $1.5 billion.

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Netflix shares close at record high after strong Q2 subscriber gains

MarketWatch Market Pulse - Tue, 07/18/2017 - 16:07

Netflix Inc. shares closed up more than 13% at a record high on Tuesday, after the company reported solid second-quarter earnings on Monday. The streaming company, which had its best second quarter ever for subscriber additions, helped push the Nasdaq Composite index to a record close as well. Investors sent Netflix stock soaring after the company reported adding a surprising number of international subscribers that put its international base above its domestic base for the first time. Shares of Netflix have gained more than 48% in the year to date. By comparison, the S&P 500 index is up 10%, while the Dow Jones Industrial Average has gained more than 9% and the Nasdaq has gained nearly 18% in the year.

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U.S. banks pay up for big deposits as consumers get pennies

Top Reuters News - Tue, 07/18/2017 - 15:32
(Reuters) - Big U.S. banks are starting to pay corporations, financial firms and rich people more to hold on to their deposits, but ordinary consumers will have to wait longer to see more than a few pennies for every $100 they stash in their accounts.

Trump Jr., ex-campaign head given nod to testify in Congress: Senator

Top Reuters News - Tue, 07/18/2017 - 15:14
WASHINGTON (Reuters) - President Donald Trump's eldest son and his former campaign chairman have been given approval by a U.S. special counsel to testify publicly to Congress as part of investigations into Russian meddling in the 2016 election, the top Democrat on the Senate Judiciary Committee said on Tuesday.

MGM will acquire TV assets of 'Vanderpump Rules' producer Evolution Media

MarketWatch Market Pulse - Tue, 07/18/2017 - 14:10

The TV production and distribution arm of Metro-Goldwyn-Mayer said on Tuesday it's acquiring the assets of unscripted TV producer Evolution Media. Terms of the deal were not disclosed. Evolution Media's roster of shows include hit reality shows such as "The Real Housewives of Beverly Hills" and "Vanderpump Rules," which air on Comcast Corp.-owned NBCUniversal's Bravo. After the deal, the company will operate as Evolution Media, an MGM company, and founder and Chief Executive Douglas Ross will become the company's president. "Doug and [Alex Baskin, president of programming and development] have been creating and producing hit series for decades," said MGM TV head Mark Burnett in a statement. "These guys have talent and drive and will help our MGM Television 'hit machine' to continue to grow and grow." MGM hopes the acquisition will enhance its current roster of series, which include "Survivor" on CBS Corp. , "The Voice" on NBC, "Shark Tank" on Walt Disney Co.-owned ABC and "The Handmaid's Tale" distributed by Hulu -- a joint venture from Disney, Comcast, 21st Century Fox Inc. and Time Warner Inc. .

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U.S. prepares sanctions against senior Venezuelan officials: sources

Top Reuters News - Tue, 07/18/2017 - 14:09
WASHINGTON (Reuters) - The Trump administration is preparing sanctions against several senior Venezuelan officials, including the country's defense minister and a ruling party leader, for alleged human rights violations and could announce the measures as early as Tuesday, U.S. officials said.

Americans want U.S. goods, but not willing to pay more: Reuters/Ipsos poll

Top Reuters News - Tue, 07/18/2017 - 13:54
HARRISBURG, Pa. (Reuters) - Americans say they love U.S.-made goods. They are less enthusiastic, however, about paying a premium for them.

Gold settles higher for a third session

MarketWatch Market Pulse - Tue, 07/18/2017 - 13:50

Gold extended its streak of price gains into a third session Tuesday, finding support in the wake of weakness in the U.S. dollar as some downbeat economic data dulled the prospects for further interest-rate hikes by the Federal Reserve this year. August gold rose $8.20, or 0.7%, to settle at $1,241.90 an ounce.

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