Breaking Stock Market and Financial News

Justice Department asks for 90 days to review agreement with Baltimore

Top Reuters News - Tue, 04/04/2017 - 11:46
(Reuters) - The U.S. Justice Department on Monday asked a federal court for 90 days to review an agreement reached with Baltimore for the city to enact a series of police reforms in how officers use force and transport prisoners, court documents showed.

About 48,000 China-made kids hooded sweatshirts, girl's bomber jackets recalled for choking hazard

MarketWatch Market Pulse - Tue, 04/04/2017 - 11:19

About 48,000 Kids Korner children's fleece zipper-hooded sweatshirts and girls bomber jackets sold over the last couple months are being recalled, because of a choking and laceration hazard. The sweatshirts and jackets, made in China and imported by Fred Meyer Inc. in Oregon, were sold at Fred Meyer, Kroger Co. , Smith's and Fry's Marketplace stores from February through March, for between $7 and $10, according to the U.S. Consumer Product Safety Commission. "The zipper pull can detach from the sweatshirt, posing choking and laceration hazards to children," the CPSC's recall notice stated. The sweatshirts were sold in 18 prints and colors in sizes ranging from 9 months to your size 7, and the bomber jackets had a front zipper, two front pockets and knit ribbing around the wrists and waist.

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SeaDrill's stock suffers record plunge, to record low after bankruptcy warning

MarketWatch Market Pulse - Tue, 04/04/2017 - 10:44

SeaDrill Ltd.'s stock was on track to suffer its biggest-ever one day loss Tuesday, as the oil drilling services company's warning that bankruptcy may be imminent sent the stock plunging to a record low. The stock traded at an all-time low of $1 in morning trade, down 40% from Monday's close. The stock's record high close was $47.78 on Sept. 18, 2013. That would be the biggest percentage decline since the stock went public in September 2005, topping the previous record decline of 30% on Jan. 31, 2017. The selloff comes as the company announced a debt restructuring deal, which will likely result in shareholders receiving a "minimal recovery for their existing shares." The stock has plummeted 71% year to date, while the SPDR Energy Select Sector ETF has lot 7.8% and the S&P 500 has gained 5.2%.

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Teva's Huntington's disease drug approved Monday, second drug ever approved for chorea

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

Teva Pharmaceutical Industries Ltd. got its Huntington's disease drug approved by the Food and Drug Administration late Monday. The drug, Austedo, is the second drug ever approved for chorea, the writhing movements nearly all Huntington's disease patients experience. Austedo should be available in the U.S. in the next three weeks, Teva said. The drug is expected to cost about $60,000 a year, below the $152,000-a-year list price of Xenazine, the first drug approved for chorea, and the $96,000-a-year price of generic Xenazine, according to Leerink analyst Jason Gerberry, who lauded Austedo's price tag as "sensible." Still, commercial expectations for the drug are "relatively modest," according to Bernstein analyst Ronny Gal, adding that the company needs more drug successes for investor sentiment to improve. Austedo, though it carries black box warnings like competitor Xenazine, has slightly better label information, including lesser rates of depression and suicide ideation and no language warning doctors about heightened suicide risk, noted EvercoreISI analyst Umer Raffat. Raymond James analyst Elliot Wilbur called the Monday approval a "big win" but noted that investors have been concerned about Teva's blockbuster multiple sclerosis drug Copaxone. Teva shares slumped 0.2% in Tuesday morning trade, compared with a 0.14% slump in the S&P 500 . Teva shares have declined 14.9% over the last three months, compared with a 3.7% rise in the S&P 500.

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'A Little Life' author Hanya Yanagihara named editor of New York Times' style magazine

MarketWatch Market Pulse - Tue, 04/04/2017 - 10:29

The New York Times said on Tuesday that Hanya Yanagihara, the author of the novel "A Little Life," will be the next editor of T Magazine, the New York Time's style magazine. "Given her creativity and breadth of experience, Hanya will elevate T's distinct and provocative storytelling to a level that explores global culture and enriches each part of the T experience, in print and digitally," said New York Times Executive Editor Dean Baquet. In addition to authoring two novels, Yanagihara has served as editor-at-large at Conde Nast Traveler and deputy editor of T Magazine. In 2015 "A Little Life" was named to the shortlist for the Man Booker Prize for fiction and the National Book Award for fiction. T Magazine, which publishes 11 times a year, focuses on fashion, style, art, literature, design, interior and travel. Shares of New York Times Co. have gained more than 14% in the last 12 months, as the S&P 500 index has increased nearly 14%.

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Chao says White House eyeing late May for infrastructure package

MarketWatch Market Pulse - Tue, 04/04/2017 - 10:22

Transportation Secretary Elaine Chao told a group of chief executives on Tuesday that the White House is working on a legislative package for infrastructure development. "That would be probably in May - late May or something like that," Chao said. The audience includes the CEO of Skanska's U.S. building operation as well as chiefs of companies including Citigroup and JetBlue. Chao said the administration hopes to offer a package of a trillion dollars over 10 years to improve the "connectivity" of U.S. infrastructure. National Economic Council Director Gary Cohn said upgrading air traffic control is the most exciting thing the U.S. can do on infrastructure.

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Mercedes, Hyundai pull ads from "The O'Reilly Factor' after news of sexual harassment payouts

MarketWatch Market Pulse - Tue, 04/04/2017 - 10:13

Mercedes-Benz and Hyundai have pulled advertising from the Fox News show, "The O'Reilly Factor," after revelations that anchor Bill O'Reilly, or the network's parent, 21st Century Fox paid $13 million in settlements to five women who accused him of sexual harassment, according to media reports Tuesday. "Given the importance of women in every aspect of our business, we don't feel this is a good environment in which to advertise our products right now," Donna Boland, head of corporate communications for Mercedes-Benz, told CNN Money. Hyundai told the New York Times it made its decision because of the "recent and disturbing allegations." News Corp, which owns Dow Jones & Co., publisher of MarketWatch and the Wall Street Journal, and 21st Century Fox were part of the same company until 2013. 21st Century Fox shares were slightly lower Tuesday, but are up 14% in the year so far, while the S&P 500 has gained 5%.

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UPDATE: Caterpillar stock jumps as Goldman upgrades to Conviction Buy list

MarketWatch Market Pulse - Tue, 04/04/2017 - 09:55

Shares of heavy equipment maker Caterpillar Inc. rose 1% in early trade Tuesday, after Goldman Sachs added the stock to its Conviction Buy list and set a stock price target that's 30% above current trading levels. "We see an attractive combination of (1) structurally higher mid-cycle EPS, (2) exposure to underinvested machinery markets in the early stages of recovery, (3) management strategy transition towards improving returns on capital (vs. market share in the last cycle), and (4) a ~20% underweight average mutual fund position," analysts led by Jerry Revich said in a note. Goldman set a stock price target of $120. Shares are down 0.5% in the year so far, while the Dow Jones Industrial Average has gained 5.4% and the S&P 500 has gained 5%.

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Nasdaq Composite threatens to match longest losing streak in 3 months

MarketWatch Market Pulse - Tue, 04/04/2017 - 09:53

The Nasdaq Composite Index is on pace to log its longest stock-market skid--three straight sessions--in more than three months. The tech-heavy index's previous lengthiest slide was the three-day slump ended Dec. 30, according to FactSet data. The Nasdaq has been the best performing equity benchmark among the the S&P 500 index and the Dow Jones Industrial Average since President Donald Trump's election win on Nov. 8, up 13.5%, compared with 10.3% for the broad-market S&P 500 and a 12.6% rise in the Dow over the same period. The recent retreat in stocks and climb in price, pushing yields lower, of the 10-year Treasury note [TPI:BX:TMUBMUSD10Y] is being cited as evidence of a tapering of the so-called Trump trade, or euphoria sparked on the back of the president's promises of implementing a raft of pro-growth policies, like tax-cuts, infrastructure spending and deregulation.

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Apple suppliers upgraded on iPhone demand

MarketWatch Market Pulse - Tue, 04/04/2017 - 09:53

Shares of Apple Inc. suppliers Cirrus Logic Inc. and Skyworks Solutions Inc. were upgraded to overweight at Pacific Crest on Tuesday. Analyst Andy Hargreaves said checks with Apple's supply chain indicate a slight increase in orders for the fiscal fourth and first quarters. He believes Apple is providing early indications that it expects to order components for at least 100 million high-end iPhones in the second half of this calendar year. Pacific Crest increased its iPhone unit estimate to 50 million from 48 million for the fourth quarter and to 80 million from 78 million for the first quarter. Shares of Apple traded up 0.1% to $143.82 on Tuesday. They've gained 24% in the past three months, compared with a 3.5% increase for the Dow Jones Industrial Average . Shares of Skyworks soared 2.6% to $100.33, while Cirrus Logic's jumped 4% to $62.95.

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NewLink Genetics Corp. stock drops 28% on mid-stage results for melanoma drug

MarketWatch Market Pulse - Tue, 04/04/2017 - 09:48

NewLink Genetics Corp. shares dropped as much as 27.7% in morning trade Tuesday after the company released interim results for a phase 2 trial for advanced melanoma. The company's indoximod was being tested in combination with Merck's Keytruda. NewLink Genetics said that data on 60 patients found an objective response rate of 52% and a disease control rate of 73%, with rates slightly higher among patients with non-ocular melanoma, at a 59% objective response rate and an 80% disease control rate. Though the company described the results -- which it is presenting at the American Association for Cancer Research's annual meeting on Tuesday -- as impressive and emphasized that the cancer drug combination was well tolerated overall, investors questioned how much of an effect the company's drug had relative to Merck's Keytruda alone and compared NewLink Genetics negatively to Incyte Corp. , which is also developing an IDO inhibitor and is working with Merck. NewLink Genetics shares were valued at $18.40 as of Tuesday morning. The company's shares have surged 63.8% over the last three months, compared with a 3.8% rise in the S&P 500 .

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Staples's stock soars after WSJ report of buyout talks

MarketWatch Market Pulse - Tue, 04/04/2017 - 09:47

Shares of Staples Inc. soared 13% to a 3 1/2-month high in morning trade Tuesday, after The Wall Street Journal reported that the office supply retailer was exploring a possible sale of the company. The stock, which traded at the highest level since Dec. 21, saw volume spike to 5.1 million shares within the first 15 minutes after the open, compared with the full-day average of 6.8 million shares. The WSJ report said Staples was in early talks with buyout firms, following the failed attempt to merge with rival Office Depot Inc. last year. The report said that based on typical takeover premiums, Staples could be valued at roughly $7 billion or more. The stock has now climbed 7.7% year to date, while Office Depot shares have gained 6.2% and the S&P 500 has tacked on 5.3%.

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Conn's stock rockets 27% after company reports better-than-expected earnings

MarketWatch Market Pulse - Tue, 04/04/2017 - 09:43

Shares of furniture retailer Conn's Inc. rocketed 27% Tuesday, marking its biggest one-day gain since September of 2011, after the company posted a surprise adjusted profit for the fourth quarter and better-than-expected revenue. The Texas-based company said it had a net loss of $0.1 million, or breakeven on a per-share basis, for the quarter, after income of $1.1 million, or 3 cents a share, in the year-earlier period. Adjusted per-share earnings came to 5 cents, compared with a FactSet consensus for a loss of 12 cents. Revenue of $433 was ahead of the FactSet consensus of $431 million. The company said it expects same-store sales to fall in the mid-teens in the first quarter of fiscal 2018. Shares are down 15% in the year so far, while the S&P 500 has gained 5%.

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Stocks fall as Trump prepares to meet with Chinese president later this week

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

Stocks opened lower on Tuesday amid intensifying anxiety about President Donald Trump's meeting with his Chinese counterpart, Xi Jinping, later this week. The S&P 500 index declined 4 points, or 0.2%, to 2,355, while the Dow Jones Industrial Average retreated 16 points, or 0.1%, to 20,626. The Nasdaq Composite Index shed 15 points, or 0.3%, to 5,880. Shares of Nvidia Corp. sold off after analysts at Pacific Crest turned bearish on the company, citing concerns about growth. Texas-based retailer Conn's Inc. saw its shares rocket higher after it posted better-than-expected earnings. Acuity Brands Inc. shares slumped after the company reported second-quarter results. Trump is expected to meet with Xi at Mar-a-Lago, Trump's estate in Palm Beach, Fla. The two-day meeting begins Thursday. Some are worried about the potentially tense meeting, as Trump has repeatedly accused China of unfair trading practices and currency manipulation.

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U.S. trade deficit falls as exports hit two-year high

Top Reuters News - Tue, 04/04/2017 - 09:18
WASHINGTON (Reuters) - The U.S. trade deficit fell more than expected in February as exports increased to a two-year high and slowing domestic demand weighed on imports.

Amazon's stock could rocket another 35%, analyst says

MarketWatch Market Pulse - Tue, 04/04/2017 - 09:18

Amazon.com Inc.'s stock could rocket more than 30% from current, based on the potential of the e-commerce giant's burgeoning advertising business, said analyst Daniel Salmon at BMO Capital Markets. Salmon reiterated his outperform rating while raising his price target to $1,200, which is 35% above Monday's record closing price of $891.51. He said Amazon is his new top pick in the media and internet space, given the "significant emerging opportunity" in advertising. He believes Amazon's ad business will reach $3.5 billion in revenue this year, up 65% from last year, and could eventually be worth about $150 billion as it is poised to take market share from Alphabet Inc.'s Google and Facebook Inc. . "A key point of differentiation for Amazon is the massive amount of consumer purchase data it possesses," Salmon wrote in a note to clients. "We believe this large repository of consumer purchase data offers tremendous targeting and re-targeting opportunities for brands." The stock, which has closed at record highs the past four sessions, slipped 0.2% in premarket trade. It has soared 19% year to date through Monday, while the S&P 500 has gained 5.4%.

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Onconova Therapeutics stock surges 18% on positive pre-clinical data for cancer drugs

MarketWatch Market Pulse - Tue, 04/04/2017 - 09:08

Onconova Therapeutics Inc. stock surged as much as 18% in premarket trade Tuesday after the company said its two cancer drugs had positive pre-clinical results. Onconova shares were valued at $3.01 as of Monday's close. One drug, ON 123300, was found in a model to work as well as Pfizer Inc.'s Ibrance, and could lead to less infection susceptibility, the company said. The other drug, ON 150030, showed promising results in relapsed and refractory Acute Myeloid Leukemia, the company said. Both results were presented on Monday at the American Association for Cancer Research's annual meeting. Onconova shares have surged 30.3% over the last three months, compared with a 3.9% rise in the S&P 500 .

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Ralph Lauren closing stores, cutting jobs and exploring retail concepts as part of restructuring

MarketWatch Market Pulse - Tue, 04/04/2017 - 09:06

Ralph Lauren Corp. said in a Tuesday filing that it is closing its Fifth Avenue New York City Polo store, reducing its workforce, and taking other measures as part of a company restructuring. Merchandise at the Fifth Avenue Polo location will be integrated into other New York City stores. Ralph Lauren will continue to operate seven locations and its flagship Polo Bar Restaurant in New York. The company did not specify how many job cuts would take place, and expects further store and office location closures. It expects $140 million in annualized expense savings from the various measures, and will take total estimated charges of $370 million. The company is also exploring new retail concepts, including new store formats, a restructuring of the current digital formats and further leveraging Ralph's Coffee. Ralph Lauren shares are inactive in premarket trading, and down 13.3% for the past year. The S&P 500 index is up 14.2% for the last 12 months.

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AMAG Pharmaceuticals stock surges 4% after closing $50 mln licensing agreement for menopause drug

MarketWatch Market Pulse - Tue, 04/04/2017 - 08:54

AMAG Pharmaceuticals Inc. stock surged 4.4% in premarket trade Tuesday after the company said a previously-announced U.S. licensing agreement with Endoceutics Inc. for a menopause drug has closed. The drug, Intrarosa, is a steroid hormone intended for women in menopause experiencing moderate to severe pain during intercourse, which could affect 14 million to 25 million women, according to AMAG Pharmaceuticals. The drug is the only medication for the condition that doesn't have a safety warning on its label, AMAG Pharmaceuticals said. At least half of patients with symptoms of the condition have unmet treatment need, the company said. Intrarosa was approved in November of last year and the licensing deal was first announced February 14, with an expected U.S. launch in mid-2017. AMAG Pharmaceuticals plans to pay $50 million to Endoceutics upon closing, according to its 10-K, along with common stock, up to $10 million upon delivery of launch quantities of the drug, $10 million a year from the close, tiered royalties and potential sales milestone payments. Privately-held Endoceutics Inc. and AMAG Pharmaceuticals plan to also develop the drug for female sexual dysfunction in post-menopausal women. AMAG Pharmaceuticals shares have plummeted 35.1% over the last three months, compared with a 3.9% rise in the S&P 500 .

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Kate Spade shares sink more than 12% after talks with Coach slow

MarketWatch Market Pulse - Tue, 04/04/2017 - 08:53

Kate Spade & Co. shares sank 12.7% in Tuesday premarket trading, on track to open at a seven-week low, after reports the fashion and accessories company needs more time to consider a buyout bid from Coach Inc. . Reuters reported late Monday that Kate Spade needs a few more weeks to negotiate a potential sale offer Coach made last week. Kate Spade said in February that it was exploring strategic alternatives. Kate Spade shares are down 8.5% for the past year, but are up 22.1% for the year so far. Coach shares are inactive in premarket trading, but up 16% for the year to date. And the S&P 500 index is up 5.4% for the year to date.

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