Breaking Stock Market and Financial News

Chipotle's stock rallies after upgrade on queso optimism, valuation

MarketWatch Market Pulse - Tue, 07/18/2017 - 08:52

Shares of Chipotle Mexican Grill Inc. rallied 1.1% in premarket trade Tuesday, after the fast casual Mexican restaurant chain was upgraded at Maxim Group, which cited optimism over the introduction of queso and valuation. Analyst Stephen Anderson raised his rating to buy from hold and raised his stock price target to $470, which is 20% above Monday's closing price of $392.00, from $440. Anderson has now swung to bullish from bearish (sell) on Chipotle in seven months. The upgrade comes a week before Chipotle reports second-quarter results. "We contend the introduction of queso--a Mexican cheese dip--which is now in test, will be an important catalyst for [Chipotle] in 2018," Anderson wrote in a note to clients. "We now argue the recent pullback in [Chipotle] shares, along with the potential for upside from queso, provide an opportunity for investors to participate in [Chipotle's] recovery." The stock has tumbled 16% over the past three months to close Monday at a 6 1/2-month low, while the S&P 500 has climbed 5.0%.

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Goldman Sachs' stock drop could be blamed for Dow futures decline

MarketWatch Market Pulse - Tue, 07/18/2017 - 08:25

Goldman Sachs Group Inc.'s stock fell 1% in premarket trade Tuesday, and could be to blame for the early decline in Dow industrials futures. The stock's price decline of $2.20 in the wake of second-quarter results would shave about 15 points of the price of the Dow Jones Industrial Average . E-mini Dow futures were recently down 13 points.

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Goldman's bond trading revenue slumps 40 percent

Top Reuters News - Tue, 07/18/2017 - 08:19
(Reuters) - Goldman Sachs Group Inc reported a 40 percent slump in bond trading revenue, mirroring a broader weakness in trading activity that has plagued big U.S. banks in the latest quarter.

Annaly Capital's stock tumbles on heavy volume after large share offering

MarketWatch Market Pulse - Tue, 07/18/2017 - 08:12

Shares of Annaly Capital Management Inc. tumbled 4.4% in premarket trade Tuesday, after the company announced a large public offering. Volume topped 4 million shares about 90 minutes before the open, making the stock the most actively traded in the premarket. Annaly, which invests in and finances residential and commercial assets, said late Monday it plans to sell 60 million shares of common stock, and grant the underwriters of the offering options to buy up to an additional 9 million shares. If the all the options are exercised, the number of shares outstanding would increase by about 6.8%. Annaly plans to use to proceeds from the offering to buy assets under its capital allocation policy and for general corporate purposes. The stock had run up 23% year to date through Monday, while the S&P 500 had gained 9.8%.

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Father calls for justice in Minneapolis police shooting

Top Reuters News - Tue, 07/18/2017 - 07:51
(Reuters) - The father of an Australian woman fatally shot by a Minneapolis police officer over the weekend called for justice on Tuesday hours after a local medical examiner ruled that her death was a homicide.

Imax in deal to open another seven theaters across China

MarketWatch Market Pulse - Tue, 07/18/2017 - 07:49

Imax Corp. , Imax China Holding Inc. and Shanghai Bestar Cinemas Management Co. Ltd. said Tuesday they have reached agreement for seven new Imax theaters to be opened across China. The new theaters will be located in multiplexes in Tier Two and Tier Three cities, with six to be opened this year and rest in 2019. Imax shares were not active premarket, but have fallen 35% in 2017, while the S&P 500 has gained 10%.

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Goldman Sachs stock slips as fixed income trading slides 40% in Q2

MarketWatch Market Pulse - Tue, 07/18/2017 - 07:49

Goldman Sachs Group Inc. on Tuesday reported net income of $7.89 billion in the second quarter, down 0.6% compared to a year ago, or $3.95 a share. That easily beat the Factset consensus of $3.38 per share. Net revenues in fixed income, currencies and commodities were 40% lower compared to a year ago, in a quarter marked by low volatility and sluggish activity, the firm said. Investment banking was 3% lower than in the year-ago period. But investing and lending activity surged 42% for the year. Shares fell in pre-market trading. The stock has lost about 4% in the year to date, even as the S&P 500 and the Dow Jones Industrial Average have gained nearly 10%.

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Lockheed Martin's stock rallies toward record high after earnings beat, raised outlook

MarketWatch Market Pulse - Tue, 07/18/2017 - 07:45

Shares of Lockheed Martin Corp. rallied 2.3% in premarket trade Tuesday toward a record high, after the aerospace and defense contractor reported second-quarter results that beat expectations and raised its full-year outlook. Net profit fell to $942 million, or $3.23 a share, from $1.02 billion, or $3.32 a share, in the same period a year ago. Earnings per share from continuing operations was $3.23, above the FactSet consensus of $3.11. Revenue rose to $12.69 billion from $11.58 billion, topping the FactSet consensus of $12.43 billion, as beats by the aeronautics, rotary and mission systems and space systems segments offset a miss in the missiles and fire control business. For 2017, the company raised its EPS outlook to $12.30 to $12.60 from $12.15 to $12.45 and lifted its revenue outlook to $49.8 billion to $51.0 billion from $49.5 billion to $50.7 billion. The stock has rallied 15.4% year to date through Monday, while the SPDR Industrial Select Sector ETF has climbed 11.5% and the S&P 500 has gained 9.8%.

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UnitedHealth profit rises above expectations while sales grew in line

MarketWatch Market Pulse - Tue, 07/18/2017 - 07:11

Shares of UnitedHealth Group Inc. erased earlier premarket gains to trade down 0.5% Tuesday, after the health care coverage giant reported second-quarter profit that beat expectations while sales were in line. Net profit increased to $2.28 billion, or $2.32 a share, from $1.75 billion, or $1.81 a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to $2.46, above the FactSet consensus of $2.38. Revenue rose to $50.05 billion from $46.49 billion, compared with the FactSet consensus of $50.03 billion. Premium revenue rose to $39.6 billion from $36.4 billion, above the FactSet consensus of $39.4 billion, while products revenue fell to $6.4 billion from $6.6 billion, missing the FactSet consensus of $6.7 billion. Services revenue of $3.8 billion, up from $3.3 billion a year ago, topped expectations of $3.7 billion. For 2017, the company raised its adjusted EPS outlook to $9.75 to $9.90 from $9.65 to $9.85. The stock has rallied 16.4% year to date through Monday, while the SPDR Health Care Select Sector ETF has climbed 15.8% and the Dow Jones Industrial Average has gained 9.5%.

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Harley-Davidson shares slide 5% premarket after company lowers full-year guidance

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

Harley-Davidson Inc. shares fell 4.9% in premarket trade Tuesday, after better-than-expected earnings for the second quarter were overshadowed by lowered guidance for the year. The motorcycle maker said it had net income of $258.9 million, or $1.48 a share, in the second quarter, down from $280.4 million, or $1.55 a share, in the year-earlier period. Revenue fell to $1.77 billion from $1.86 billion. The FactSet consensus was for EPS of $1.38 and revenue of $1.59 billion. Retail motorcycle sales fell 6.7% in the quarter and were down 9.3% in the U.S. "Given U.S. industry challenges in the second quarter and the importance of the supply and demand balance for our premium brand, we are lowering our full-year shipment and margin guidance," Chief Executive Matt Levatich said in a statement. The company is now expecting to ship 241,000 to 246,000 motorcycles to dealers worldwide in 2017, down 6% to 8% from 2016. Previous guidance was for full-year shipments to be flat to down modestly. For the third quarter, it expects to ship 39,000 to 44,000 motorcycles, down 10% to 20% from 2016. Full-year operating margins are expected to be down about 1 percentage point. Capex guidance is unchanged at $200 million to $220 million. Shares are down 11% in 2017 through Monday, while the S&P 500 has gained 10%.

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Johnson & Johnson tops profit estimates, but sales fall short

MarketWatch Market Pulse - Tue, 07/18/2017 - 06:59

Johnson & Johnson shares rose 0.6% premarket after the company beat profit estimates for its second quarter, but fell short on sales. The consumer goods company said it had net income of $3.8 billion, or $1.40 a share, in the second quarter, down from $3.9 billion, or $1.43 a share, in the year-earlier period. Excluding one-time charges, per-share earnings came to $1.83, ahead of the FactSet consensus of $1.79. Sales rose to $18.8 billion from $18.5 billion, below the FactSet consensus of $18.9 billion. The company raised its guidance for the full year and now expects sales of $75.8 billion to $76.1 billion. The current FactSet consensus is for full-year sales of $75.7 billion. The company set EPS guidance for the year of $7.12 to $7.22 a share, compared with a FactSet consensus of $7.11. The stock is up 15% in 2017, while the Dow Jones Industrial Average has gained 9.5% and the S&P 500 has gained 10%.

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U.K. inflation slows unexpectedly in June

MarketWatch Market Pulse - Tue, 07/18/2017 - 06:09

The pace of U.K. inflation eased unexpectedly in June, a data release Tuesday from the Office of National Statistics showed. The Consumer Prices Index was 2.6%, compared with an expected reading of 2.8% and a level of 2.9% in May. The slowing in inflation was driven by a drop in prices for motor fuels and certain recreational and cultural items, the ONS said. Consumer inflation with owner-occupiers' housing costs factored in was also at 2.6% in June, the first drop in the CPIH rate since April 2016. The British pound fell to $1.3029 after the inflation release, after hitting an intraday high of $1.3107 earlier in the session.

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House Republicans unveil 2018 budget with tax reform instructions

Top Reuters News - Tue, 07/18/2017 - 05:06
WASHINGTON (Reuters) - Republicans in the U.S. House of Representatives took a first step toward tax reform on Tuesday, with the release of a fiscal 2018 budget plan that would allow a tax reform package to pass the U.S. Congress without support from Democrats.

Dollar slides as Senate GOP ditches health care repeal-and-replace bill

MarketWatch Market Pulse - Tue, 07/18/2017 - 03:10

The U.S. dollar dropped against major rivals Tuesday, with selling picking up after Republican leaders in the Senate late Monday ditched their effort to repeal and simultaneously replace much of the Affordable Care Act. Senate lawmakers will instead vote in the coming days on a bill to unravel most of the ACA, popularly known as "Obamacare," and look likely to leave any replacement to a later date. The ICE Dollar Index was down 0.4% at 94.75, driving down to levels not seen since last September. "It seems markets are losing confidence that President Trump will be able to deliver on his promised plans," said FXTM chief market strategist Hussein Sayed, in a note. "With tax reforms now likely to face huge uncertainties and economic data signaling slowing economy, it will only be a matter of time before U.S. corporate earnings take a U-turn, thus ending the equities rally."

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Russia, after U.S. meeting on diplomatic row, says ready to retaliate

Top Reuters News - Tue, 07/18/2017 - 02:48
MOSCOW (Reuters) - Russia's Foreign Ministry said on Tuesday Moscow reserved the right to take retaliatory measures against the United States after a meeting in Washington ended without a deal on returning seized Russian diplomatic property.

New life in U.S. housing market not evident in big bank results

Top Reuters News - Tue, 07/18/2017 - 01:16
(Reuters) - The U.S. housing sector has seen prices, sales and financing applications soar lately as more buyers entered the market for the first time, but those trends were hard to see in big banks' mortgage businesses during the second quarter.

More hospital closings in rural America add risk for pregnant women

Top Reuters News - Tue, 07/18/2017 - 01:12
Bay Minette, Alabama (Reuters) - Dr. Nicole Arthur, a family practice physician, was trained to avoid Cesarean deliveries in child-birth, unless medically necessary, because surgery increases risks and recovery time.

Trump says Iran complying with nuclear deal but remains dangerous threat

Top Reuters News - Mon, 07/17/2017 - 22:45
WASHINGTON (Reuters) - President Donald Trump's administration on Monday declared that Iran was complying with its nuclear agreement with world powers, but warned that Tehran was in default of the spirit of the accord and that Washington would look for ways to strengthen it.

Asian shares edge down, dollar skids on circumspect Fed

Top Reuters News - Mon, 07/17/2017 - 21:02
TOKYO (Reuters) - Asian shares stepped back from more than two-year highs on Tuesday while the dollar sagged on growing expectations that the Federal Reserve will take a more cautious approach to raising interest rates.

Two Republican senators join opposition to revised healthcare bill

Top Reuters News - Mon, 07/17/2017 - 20:52
WASHINGTON (Reuters) - Republican Senators Jerry Moran and Mike Lee announced their opposition on Monday to a revised Republican healthcare bill, delivering a serious blow to the legislation.

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