Breaking Stock Market and Financial News

Kellogg announces plan for 4% dividend hike to 54 cents a share, starting with Q3

MarketWatch Market Pulse - 10 hours 22 min ago

Kellogg Co. said Friday it is planning to increase its quarterly dividend by 4% to 54 cents a share, starting with the third quarter. The cereal company made the announcement as it declared a dividend of 52 cents a share payable June 15 to shareholders of record as of June 1. Shares were slightly lower Friday, and are down 4% in 2017, while the S&P 500 has gained 6.5%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Columbia Sportswear downgraded as store closures impact sales growth outlook

MarketWatch Market Pulse - 11 hours 5 min ago

Columbia Sportswear Co. was downgraded to hold from buy at Canaccord Genuity on Friday based on a slowdown at U.S. wholesale channels. Columbia Sportswear's price target was cut to $60 from $64. Canaccord upgraded Columbia Sportswear in September 2016 on the belief the company could achieve mid-to-high single-digit sales growth this year. However retail bankruptcies and store closures along with "still-cautious" fall ordering has softened the company's outlook, the note said. Columbia Sportswear Chief Executive Tim Boyle acknowledged that the closures, bankruptcies, liquidations and "ongoing efforts by U.S. retailers to rationalize their store fleets and square footage" are challenges in a late-Thursday earnings release statement. Long-term goals could also be in jeopardy since the "U.S. challenges appear structural." Columbia Sportwear reported first-quarter earnings late Thursday that beat expectations. Net income was $36.0 million, or 51 cents per share, up from $31.8 million, or 45 cents per share, last year. The FactSet consensus was 41 cents. Sales were $543.8 million, up from $525.1 million last year and ahead of the $535.0 FactSet consensus. The company expects 2017 sales growth of 3%, and EPS after non-controlling interest of about $2.72 to $2.82 per share. The FactSet consensus is $2.80. Columbia Sportswear shares are down 6.4% in Friday trading and down 7% for the past year. The S&P 500 index is up 15% for the last 12 months.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Carvana shares trading 13% below issue price in market debut

MarketWatch Market Pulse - 11 hours 14 min ago

Shares of Carvana Co. were trading at $13 Friday morning, 13% below its issue price, in the car company's debut on the New York Stock Exchange. Carvana sold 15 million shares at an issue price of $15 to raise $225 million. With that issue price, Carvana had a market cap of $2.1 billion. Wells Fargo Securities, Bank of America Merrill Lynch, Citigroup and Deutsche Bank Securities were the lead underwriters on the offering. Carvana has granted underwriters a 30-day option to buy up to 2.25 million additional shares.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Amazon still refuses to buy back its stock

MarketWatch Market Pulse - 11 hours 23 min ago

Amazon.com Inc.'s investors may not agree, but the e-commerce giant continues to believe their are better uses for its cash than to buy back its own shares. Amazon disclosed Friday in its quarterly 10-Q filing with the Securities and Exchange Commission that it didn't repurchase any of its shares during the first quarter. The stock surged 2.4% in morning trade toward a record high after first-quarter results, and has run up 25% year to date. Amazon has a $5 billion share repurchase program in place, with no fixed expiration, and said it will "continually evaluate opportunities" to repurchase common stock. But filings show it hasn't bought back any common stock since 2012, when it spent $960 million to buy back 5.3 million shares, which implies and average price of about $181.13. At current prices, Amazon's repurchase program could buy back up to 5.3 million shares, or about 1.1% of the shares outstanding. Amazon had $15.44 billion in cash and cash equivalents as of March 31, filings show. Separately, Amazon has never paid a cash dividend. Amazon shares have soared 56% over the past 12 months, while the S&P 500 has gained 15%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Syrian youth find freedom in Parkour

Top Reuters News - 11 hours 42 min ago
INKHIL, Syria (Reuters) - Leaping over bombed roofs and jumping through damaged window frames, a group of teenagers run and swing their way through buildings left dilapidated by six years of war in the southern Syrian town of Inkhil.

S&P 500, Dow open modestly higher; Nasdaq opens in record territory

MarketWatch Market Pulse - 12 hours 15 min ago

The tech-heavy Nasdaq Composite Index opened in record territory Friday after strong earnings from Google parent Alphabet Inc. helped lift the broader index. The S&P 500 [s spx] climbed 2 points, or 0.1%, to 2,391, while the Dow Jones Industrial Average was flat at 20,974. The Nasdaq [: comp] gained 20 points, or 0.3%, to 6,070. Shares of Alphabet , one of the index's largest components, rose after the company late Thursday reported strong quarterly earnings. Meanwhile, shares of Western Digital Corp. surged after the computer-data storage company reported late Thursday that its quarterly revenue and profits had topped forecasts.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Amazon's results weren't 'meaningful' enough for Raymond James to return to bullish stance

MarketWatch Market Pulse - 12 hours 43 min ago

Analyst Aaron Kessler at Raymond James, who downgraded Amazon.com Inc. ahead of the e-commerce giant's first-quarter report, said Friday that he is sticking to his view that the stock is fairly valued. After having a bullish rating on Amazon for two years, Kessler cut his rating to market perform on Tuesday. After Amazon reported late Thursday what Kessler called "largely in-line 1Q results," the stock surged 3.1% in premarket trade toward its 11th record close of the year. Kessler said he has a "positive fundamental view" on Amazon, but he believes Amazon "needs to begin to show more meaningful operating leverage--flat [year-over-year] in 1Q--for shares to move meaningfully higher." The stock has rallied 9.9% over the past three months, while the S&P 500 has gained 4.1%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Amazon's average stock target soars to $1,048.16

MarketWatch Market Pulse - 12 hours 45 min ago

Shares of Amazon.com Inc. soared more than 3% in premarket trade as analysts predicted gains for the stock following stronger-than-expected quarterly earnings. Roughly 15 price-target increases propelled the stock Friday morning, which increased the average target on its shares to $1,048.16, compared with $956.88 the day before the earnings report, according to a FactSet survey of more than 35 analysts. The average rating on the stock is the equivalent to buy. Shares of Amazon traded around $947.49 ahead of the market open, which puts the company on track for a $15 billion increase in its market valuation to $453 billion. That would inch Amazon stock closer than ever to Microsoft Corp. , the third most-valuable company in the S&P 500 behind Apple Inc. and Alphabet Inc. . Microsoft is set to open with a market cap of around $528 billion. As of Thursday's close, shares of Amazon has risen 10% in the past three months and 53% in the past year, outperforming the S&P 500 , which is up 4% in the past three months and 15% in the past year.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Amazon's most sought-after clothing brands include Nike, Adidas and Under Armour

MarketWatch Market Pulse - 12 hours 47 min ago

Amazon.com Inc. is the second largest U.S. apparel retailer, according to the latest analysis from Morgan Stanley, and athletic brands top the list of most frequently purchased. Nike Inc. , adidas AG , Hanes and Under Armour Inc. were the most sought-after brands, with at least 20% of respondents naming them. Morgan Stanley AlphaWise polled 1,000 adults aged 18 and over from April 4 to April 12. "We expect consumer expectations around seeing more dressier and formal attire brands to grow as Amazon's private label brands gain traction," analysts wrote in the Friday note. Nearly half of respondents (46%) purchased clothes from Amazon in the last year, second only to Wal-Mart Stores Inc. with 60%. And nearly half (47%) of likely Amazon apparel shoppers said they expect to buy more clothes from the e-commerce giant in the next 12 months and fewer pieces from other retailers. Analysts say Amazon's 2016 share gains came out of department stores and Target Corp. . Clothing sales at Amazon appears to be driven by Prime members, who are 1.5 times more likely than non-prime members to buy clothes from the site. Amazon shares are up 3% in premarket trading, and up 52.6% for the past year. The S&P 500 index is up 15.1% for the last 12 months.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Brazil cities paralyzed by nationwide strike against austerity

Top Reuters News - 12 hours 51 min ago
SAO PAULO/RIO DE JANEIRO (Reuters) - Nationwide strikes led by Brazilian unions to protest President Michel Temer's austerity measures crippled public transport in several major cities early on Friday across this continent-sized nation, while factories, businesses and schools closed.

Qualcomm says Apple to stop paying royalties, cuts profit forecast

Top Reuters News - 13 hours 25 sec ago
(Reuters) - Apple Inc has decided to withhold royalty payments to its contract manufacturers that are owed to Qualcomm Inc, until a legal dispute between the companies is resolved, the chipmaker said on Friday.

U.S. first-quarter growth weakest in three years as consumer spending falters

Top Reuters News - 13 hours 7 min ago
WASHINGTON (Reuters) - The U.S. economy grew at its weakest pace in three years in the first quarter as consumer spending barely increased and businesses invested less on inventories, in a potential setback to President Donald Trump's promise to boost growth.

Dollar advances vs. yen after GDP, employment costs data

MarketWatch Market Pulse - 13 hours 8 min ago

The dollar advanced against the yen on Friday while paring an earlier decline against the euro after preliminary data showed a modest expansion in U.S. economic growth during the first quarter. The dollar climbed 0.3% to 111.55 yen in recent trade, while the euro pared an earlier drop, buying $1.0926 in recent trade. The greenback traded at 111.26 yen and $1.0874 late Thursday in New York. The U.S. GDP expanded by 0.7% in the first quarter, just slightly below a consensus forecast of 0.8% from a survey of economists conducted by MarketWatch. Economic growth during the first quarter has been weak in recent years. Meanwhile, the employment cost index, a leading indicator for inflation, advanced 0.8% during the quarter, besting expectations for a 0.6% increase.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Chevron shares jump after profit beats estimates

MarketWatch Market Pulse - 13 hours 11 min ago

Chevron Corp. shares rose 2.2% in premarket trade Friday, after the oil major beat first-quarter profit expectations. Chevron said it had net income of $2.7 billion, or $1.41 a share, in the quarter, after a loss of $725 million, or 39 cents a share, in the year-earlier quarter. The net number includes a $600 million gain from the sale of an upstream asset. Revenue rose to $33.4 billion from $23.6 billion. The FactSet consensus was for EPS of 86 cents and revenue of $34.9 billion. Chief Executive John Watson said the company is making progress on cutting spending, with operating costs down abut 14% from the year earlier and capex down more than 30%. "Overall net oil-equivalent production in the first quarter increased 3 percent compared to the 2016 full year and we are on track to meet the 4-9 percent growth goal for 2017 before the effect of asset sales," Watson said. Shares are down 10.4% in 2017, while the S&P 500 has gained 6.7%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Amazon's stock surge to record high a $2.7 billion gain for Jeff Bezos

MarketWatch Market Pulse - 13 hours 25 min ago

Amazon.com Inc.'s stock surged 3.6% in premarket trade Friday, putting it on track to set an all-time high at the open, after the e-commerce giant reported better-than-expected first-quarter results. The stock changed hands at $951.64 ahead of the open, above Thursday's record close of $918.38 and above the April 5 record intraday high of $923.72. With about 490 million shares outstanding at the end of the first quarter, the stock's price gain of $33.26 would about $16.3 billion to Amazon's market capitalization. The gain would also add about $2.7 billion to founder Jeff Bezos's pocket, as he is the largest shareholder with about 80.9 million, or 17% of the shares outstanding, according to FactSet. The stock had run up 22% year to date through Thursday, while the S&P 500 had climbed 6.7%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Time Inc. board decides not to sell company, shares fall more than 19%

MarketWatch Market Pulse - 13 hours 26 min ago

Time Inc. on Friday said that after months of speculation with regard to whether the media company would be acquired, its board of directors has decided not to sell the company. Following the news, Time Inc. shares were down more than 19%. The company said the board had evaluated the expressed interests in the company, but has decided to continue its strategic plan. "We strongly believe in the future and potential of this company," said lead independent director John Fahey in a statement. He said the board has full confidence in Time Inc. Chief Executive Officer Rich Battista to execute on the company's strategic plan, which includes growth in digital audience and revenue led by branded native content and video, diversifying revenue across TV, over the top streaming, events, licensing and new products, as well as enhancing data, targeting and self-service programmatic advertising. "Time Inc. is a reinvigorated company uniquely positioned to succeed in the multi-platform media marketplace," Battista said in a statement. "The Company is better positioned to capitalize on this potential with its recent shift from a siloed, legacy publishing structure, to an integrated, enterprise platform structure." Shares of Time have gained more than 2% in the year to date and more than 22% over the prior 12-month period. By comparison, the S&P 500 index is up nearly 7% in the year and 15% in the last 12 months.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Bristol-Myers wins approval in China for oral treatment for chronic hepatitis C virus

MarketWatch Market Pulse - 13 hours 28 min ago

Shares of Bristol-Myers Squibb Co. said Friday it has won approval from the China Food and Drug Administration for its oral treatment for chronic hepatitis C virus. The drug company said Daklinza in combination with Sunvepra will be China's first all-oral regimen for the disease. Daklinza has already been approved for use in combination with other agents. "The burden of HCV in China is extremely high, and now for the first time, we have an all-oral treatment option in the combination of Daklinza and Sunvepra, which is a significant step forward for patients and doctors alike," said Hui Zhuang, a professor at the Beijing University Medical School and a member of the Chinese Academy of Engineering, in a statement. HCV is the fourth most commonly reported infectious disease in China with about 10 million people currently suffering from it across the country. Bristol-Myer shares rose about 0.8% premarket, but are down 4.7% in 2017, while the S&P 500 has gained 6.7%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Royal Caribbean shares rise after share repurchase program announced, guidance raised

MarketWatch Market Pulse - 13 hours 30 min ago

Royal Caribbean Cruises Ltd. shares rose 2.5% in Friday premarket trading after the cruise company announced a $500 million share repurchase program and raised its full-year guidance. First-quarter net income was $214.7 million, or 99 cents per share, up from $99.1 million, or 46 cents per share, for the last year period. The FactSet consensus was 92 cents per share. Demand for the Caribbean drove earnings outperformance, the company said. Revenue was $2.01 billion, up from $1.92 billion last year and in line with the FactSet consensus. Royal Caribbean raised it full-year 2017 adjusted EPS guidance to a range of $7.00 to $7.20 from $6.90 to $7.10, based on first-quarter results. The FactSet consensus is $7.06. The company expects second-quarter adjusted EPS in the range of $1.60 to $1.65, ahead of the $1.43 per share FactSet consensus. Royal Caribbean shares are up 32.2% for the past year while the S&P 500 index is up 15.1% for the period.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Exxon stock rallies after earnings beat

MarketWatch Market Pulse - 13 hours 38 min ago

Shares of ExxonMobil gained 1.3% in premarket trade Friday after the company reported stronger-than-expected first-quarter earnings. The oil giant reported net income of $4 billion, or 95 cents, compared with $1.8 billion, or 43 cents, in the year-earlier period. Revenue for the period climbed to $63.3 billion from $48.7 billion last year. Analysts on average were calling for earnings of 88 cents on sales of $66.4 billion, according to a FactSet survey. The company attributed many of the gains to its upstream business, which saw earnings swing to a profit of $2.3 billion from a year-earlier loss of $76 million. Shares of Exxon have declined by 5% in the past three months and nearly 8% in the past year, underperforming both the S&P 500 and Dow Jones Industrial Average . The Dow, a 30-member index that includes Exxon, has gained 4.4% in the past three months and nearly 18% in the past year.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Extended Stay and ESH Hospitality secondary offering to raise $520.5 million

MarketWatch Market Pulse - 13 hours 38 min ago

Extended Stay America Inc. and ESH Hospitality Inc. said Friday an offering of 30 million paired shares has been priced and will raise about $520.5 million. The paired shares consist of a share of common stock of Extended Stay as well as a share of Class B common stock of ESH, which are attached and trade together as a paired share. The offer is being made by selling shareholders linked to Centerbridge Partners L.P., Paulson & Co. Inc. and The Blackstone Group L.P . The company will not receive any paired shares or any of the proceeds of the offering. Shares fell 4.3% premarket, but are up 10.5% in 2017, while the S&P 500 has gained about 6%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Pages