Breaking Stock Market and Financial News

Wal-Mart to take a charge associated with Sam's Club closures

MarketWatch Market Pulse - Fri, 01/12/2018 - 08:33

Wal-Mart Stores Inc. said it will take an approximately 14 cents-per-share discrete charge related to the Sam's Club reorganization that will result in the closure of 63 locations. The "vast majority" of the charge will be in the fourth quarter. After announcing a minimum wage increase and other benefits on Thursday, it was revealed that Sam's Club locations nationwide were closing. Twelve of the 63 shuttered stores will be converted to e-commerce fulfillment centers. There will be 597 clubs remaining. Sam's Club Chief Executive John Furner said the company is working to place as many displaced associates as possible to other locations. About 10,000 jobs will be affected, according to The Wall Street Journal. Wal-Mart will share additional information "as appropriate" when it reports quarterly results on Feb. 20, Wal-Mart shares are up 0.3% in Friday premarket trading and up 47.2% for the last year. The Dow Jones Industrial Average is up 28.6% for the past 12 months.

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GameStop's stock drops after revealing large charge related iPhone X-related woes

MarketWatch Market Pulse - Fri, 01/12/2018 - 08:31

GameStop Corp.'s stock tumbled 3.8% in premarket trade Friday, after the gaming products retailer reported a big jump in holiday sales, but said it would take impairment charges of $350 million to $400 million related to its technology brands business. The company said the charges were primarily a result of the negative impact of a longer upgrade cycle for new mobile devices and the changes made by AT&T Inc. to the compensation structure. For the nine-week holiday period ending Dec. 30, GameStop said total rose 10.6% to $2.77 billion and comparable-store sales increased 11.8%, as U.S. same-store sales jumped 18.7%. Within gaming, new hardware sales increased 38.3%, boosted by sales of the Nintendo Switch and the launch of Microsoft Corp.'s Xbox One X, while video game accessories sales grew 33.7% and pre-owned sales declined 8.1%. Technology brands sales fell 18.6%, given the limited availability of Apple Inc.'s iPhone X and changes in AT&T's compensation structure. The company said it expects 2017 earnings per share "near the middle" of the previously provided guidance range of $3.10 to $3.40 and same-store sales growth of between 4% and 6%. The has gained 2.4% over the past three months but has lost 19% the past 12 months. The S&P 500 has rallied 22% the past year.

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U.S. retail sales rise 0.4% in December, and CPI is up 0.1%

MarketWatch Market Pulse - Fri, 01/12/2018 - 08:31

WASHINGTON (MarketWatch) -- Sales at U.S. retailers rose 0.4% in December, a fourth straight monthly gain. The increase was a notch below the MarketWatch forecast of 0.5%, but sales for November and October were both revised higher. Excluding automobiles and gasoline, retail sales also rose 0.4% last month. The consumer price index, meanwhile, rose 0.1% in December, with four-fifths of the increase tied to the cost of housing. The increase matched the MarketWatch forecast.

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Wells Fargo shares slip 1.4% premarket after profit and revenue miss

MarketWatch Market Pulse - Fri, 01/12/2018 - 08:19

Wells Fargo & Co. shares slid 1.4% in premarket trade Friday, after the bank posted weaker-than-expected earnings for the fourth quarter. The bank said it had net income of $6.25 billion, or $1.16 a share, in the quarter, up from $5.27 billion, or 96 cents a share, in the year-earlier period. Revenue fell to $22.05 billion from $22.24 billion. The FactSet consensus was for EPS of $1.23 and revenue of $22.45 billion. Earnings were boosted by a net benefit from the tax bill signed into law in December, making Wells Fargo one of few banks not to take a charge. Wells Fargo has a net deferred tax liability instead of a deferred tax asset, which has caused other banks to write down part of their tax liability. The benefit came to $3.35 billion, or 67 cents a share, which was offset by $3.25 billion in pretax charges related to litigation costs. The bank also booked a pretax gain of $848 million related to the sale of Wells Fargo Insurance Services USA. Shares have gained 16% in the last 12 months, while the S&P 500 has gained 21%.

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Turkey says citizens traveling to United States face risk of arbitrary arrest

Top Reuters News - Fri, 01/12/2018 - 08:08
ANKARA (Reuters) - Turkey has warned its citizens against travel to the United States, saying Turks face the risk of arbitrary arrest and should take precautions if they do decide to travel.

Trump to get first presidential medical exam amid questions about fitness

Top Reuters News - Fri, 01/12/2018 - 08:03
WASHINGTON (Reuters) - Donald Trump has his first medical exam as U.S. president on Friday after a week in which his mental fitness for the job has come under intense scrutiny.

JPMorgan profit beats on higher interest rates; debt trading down

Top Reuters News - Fri, 01/12/2018 - 07:51
(Reuters) - JPMorgan Chase & Co , the biggest U.S. bank by assets, reported a higher-than-expected quarterly profit on Friday as gains in net interest income offset a slowdown in trading revenue.

J.P. Morgan Chase's CIB revenue falls below expectations, weighed by weak fixed income results

MarketWatch Market Pulse - Fri, 01/12/2018 - 07:33

Shares of J.P. Morgan Chase & Co. slipped 0.3% in premarket trade Friday, after the banking giant reported fourth-quarter results, which showed corporate and investment banking (CIB) revenue falling well below expectations. Although overall adjusted earnings per share, which excluded a large negative impact from tax legislation, and net revenue beat expectations, CIB revenue fell 12% to $7.48 billion, below the FactSet consensus of $7.91 billion, as net income fell 32% to $2.3 billion. Within the group, banking revenue rose 10% to $3.1 billion, boosted by 10% growth in investment banking revenue. But markets and investor services revenue tumbled 22% to $4.4 billion, weighed down by a 26% decline in markets revenue. Within markets, fixed income markets revenue plunged 34% and equity markets revenue was flat. The stock has rallied 15.5% over the past three months through Thursday, while the SPDR Financial Select Sector ETF has climbed 10.9% and the Dow Jones Industrial Average has run up 12.0%.

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Merkel strikes deal with social democrats, opening way to new German government

Top Reuters News - Fri, 01/12/2018 - 07:26
BERLIN (Reuters) - Chancellor Angela Merkel struck a deal with Social Democrat (SPD) rivals on Friday to open government coalition talks, easing months of uncertainty that has undermined Germany's global role and raised questions about her political future.

Facebook shares drop nearly 4% premarket after changes favoring friend posts ahead of business

MarketWatch Market Pulse - Fri, 01/12/2018 - 06:58

Facebook shares are down nearly 4% in premarket trading Friday as investors react to news the social media giant is making major changes to its news feed that may come at the expense of ad dollars. Facebook said late Thursday it will now prioritize personal posts from family and friends over videos and posts from businesses and news media. In a blog post, CEO Mark Zuckerberg said the sweeping changes are being made to "encourage meaningful interactions between people," even as he acknowledged it may hurt the company's bottom line. Last quarter, the company took in $10.14 billion in ad revenue from 6 million customers, mostly small- and medium-sized businesses. Facebook has come under criticism over the content of its news feed in recent years, including its role in spreading disinformation around the presidential election.

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China cracks down on foreign companies calling Taiwan, other regions countries

Top Reuters News - Fri, 01/12/2018 - 06:37
SHANGHAI (Reuters) - China's aviation authority on Friday demanded an apology from Delta Air Lines for listing Taiwan and Tibet as countries on its website, while another government agency took aim at Inditex-owned fashion brand Zara and medical device maker Medtronic Plc for similar issues.

Search for survivors of devastating California mudslide enters third day

Top Reuters News - Fri, 01/12/2018 - 06:34
MONTECITO, Calif. (Reuters) - The search for survivors from a devastating Southern California mudslide that has killed at least 17 people moved into its third day on Friday, with some 700 rescue workers expecting to find more dead victims.

Euro jumps to 3-year high above $1.21 after German lawmakers agree on coalition blueprint

MarketWatch Market Pulse - Fri, 01/12/2018 - 05:16

The euro jumped to its highest level against the dollar since early 2015 on Friday after German lawmakers agreed on a coalition blueprint, more than three months after the country's general election. The euro bought $1.2118, trading around its highest level since early January three years ago, according to FactSet data. The shared currency bought $1.2034 late Thursday in New York. The pop came after reports Chancellor Angela Merkel's conservative CDU party and Martin Schulz's center-left SPD after all-night talks agreed to a blueprint for formal coalition negotiations. The Germans voted in a general election on Sept. 24, where Merkel's party came out with the most votes, but fell short of an outright majority. Merkel first tried to form a coalition with the Greens and the FDP, but turned to the social democrats after those talks collapsed. The SPD was also in a coalition with the CDU in the previous government, but had vowed not to take on the role as junior partner again.

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Merkel's conservatives, SPD agree German coalition blueprint: sources

Top Reuters News - Fri, 01/12/2018 - 05:10
BERLIN (Reuters) - German Chancellor Angela Merkel's conservatives and the Social Democrats (SPD) agreed after all-night talks on Friday to a blueprint for formal coalition negotiations, party sources said, raising prospects of an end to months of political uncertainty.

Uproar over crackdown on cryptocurrencies divides South Korea

Top Reuters News - Fri, 01/12/2018 - 05:06
SEOUL (Reuters) - With a tech-savvy population quick to adopt the latest gadgets and a young generation facing dim prospects in the conventional workplace, South Korea has been a fertile ground for virtual currencies.

Dow industrial futures jump 100 points as dollar sags

MarketWatch Market Pulse - Fri, 01/12/2018 - 05:03

U.S. stock futures were indicating a stronger open for Wall Street on Friday, keying off a sharply weaker U.S. dollar, said analysts. Dow Jones Industrial Average futures jumped 102 points, or 0.4%, to 25,658, while S&P 500 futures rose 5.75 points, or 0.2%, to 2,775.25. Nasdaq-100 futures gained 11.25 points, or 0.2%, to 6,738.25. The jump in stock futures coincided with news that German lawmakers had reached a deal on a ruling coalition. That news sent the euro flying to three-year highs against the dollar, which weakened across the board. Investors will get important updates on U.S. consumer price inflation and retail sales later on Friday.

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Trump cancels Britain trip, blames Obama for 'peanuts' London embassy deal

Top Reuters News - Fri, 01/12/2018 - 04:31
LONDON (Reuters) - U.S. President Donald Trump canceled a trip to London scheduled for next month to open a new embassy, blaming Barack Obama for selling off the old one for "peanuts" in a bad deal.

China's imports from North Korea plummet in December, lowest for four years

Top Reuters News - Fri, 01/12/2018 - 02:45
BEIJING (Reuters) - China's imports from North Korea plunged in December to their lowest level in dollar terms since at least the start of 2014, with trade curbed by U.N. sanctions aimed at persuading North Korea to abandon its ballistic missile and nuclear weapons programs.

Trump cancels UK visit, says will not unveil new U.S. embassy

Top Reuters News - Fri, 01/12/2018 - 02:00
(Reuters) - U.S. President Donald Trump canceled a visit to London scheduled for early this year, saying he was disappointed with the "Obama administration having sold" the U.S. embassy in the British capital.

Twenty-one hours and counting: German coalition talks drag on

Top Reuters News - Fri, 01/12/2018 - 00:27
BERLIN (Reuters) - German Chancellor Angela Merkel's conservatives and Social Democrats (SPD) worked through the night on Thursday to resolve differences on taxes, migration and other issues blocking formation of a new "grand coalition" government.

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