Breaking Stock Market and Financial News

Best Buy's stock tumbles to pace S&P 500 decliners amid concerns over Amazon effect

MarketWatch Market Pulse - Mon, 07/10/2017 - 11:23

Shares of Best Buy Co. Inc. tumbled 7.2% in active morning trade Monday, enough to pace the S&P 500 decliners, amid increasing concerns over competition from Amazon.com Inc. . The electronics retailer's stock had been relatively immune to the Amazon effect, as the stock has climbed 11% over the past three months and 27% year to date, while the SPDR S&P Retail ETF had lost 7.7% over the past three months and 12% this year. But Recode reported Monday, citing "multiple sources," that Amazon has been hiring a number of people to offer free Alexa consultations and in-home product installations for a fee, which would compete with Best Buy's "Geek Squad" installation and repair service. The new services are currently available in seven West Coast cities, the Recode report said, and it appears a large expansion is in the works to some states including Florida, Texas and the New York area. Best Buy's stock volume topped 5.4 million shares within the first two hours after the open, already more than the full-day average of about 5.2 million shares. Amazon's stock rallied 1.4% in morning trade, and has rallied 9.4% over the past three months and 32% year to date.

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U.S households see spending up, job prospects improving: New York Fed survey

Top Reuters News - Mon, 07/10/2017 - 11:16
WASHINGTON (Reuters) - Consumers expect to boost spending in the months ahead and voiced confidence they are more likely to find a job and less likely to lose one in a strong labor market, the New York Federal Reserve reported Monday in its latest monthly survey of consumer expectations.

Amazon to create 1,500 new jobs in Florida with new fulfillment center

MarketWatch Market Pulse - Mon, 07/10/2017 - 10:38

Amazon.com Inc. said it will create 1,500 new jobs, with benefits, as it plans to open a new fulfillment center in Orlando, Florida. The new 850,000 square-foot center is expected to open in 2018, will be a "highly technological" workplace utilizing Amazon Robotics, and will "pick, pack and ship" small items such as books, electronics or consumer goods. "We very much appreciate the state and local elected leaders who have supported Amazon's arrival in Orlando and we look forward to bringing more jobs and investment to the state in the coming months," said Akash Chauhan, vice president of North America operations at Amazon. The new center will increase Amazon's workforce in Florida to 9,000. Amazon's stock rallied 1.1% in morning trade. It has run up 9.2% over the past three months, while the technology-heavy Nasdaq 100 Index has gained 4.5% and the S&P 500 has advanced 2.9%.

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Stocks open mostly lower; Nasdaq lifted as tech shares rise

MarketWatch Market Pulse - Mon, 07/10/2017 - 09:33

U.S. stocks opened mostly lower on Monday, though modest gains in the technology sector pushed the Nasdaq Composite into positive territory shortly after the opening bell. The S&P 500 was off by 2 points, or 0.1%, to 2,423. The Dow Jones Industrial Average slipped 32 points, or 0.2%, to 21,382. The Nasdaq Composite index was up by 2 points, or less than 0.1%, to 6,155. Among top gainers, HP Inc. shares jumped after analysts at Mizuho Securities upgraded the stock to buy from neutral and raised its target target.

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Quiet success for China at G20 as Xi avoids drama and spotlight

Top Reuters News - Mon, 07/10/2017 - 09:23
BEIJING (Reuters) - From U.S. anger over inaction on North Korea to a festering border dispute with India and the ailing Chinese Nobel laureate Liu Xiaobo, last week's G20 summit was strewn with minefields for China's President Xi Jinping.

Arconic stock surges after J.P. Morgan turns bullish

MarketWatch Market Pulse - Mon, 07/10/2017 - 09:20

Shares of Arconic Inc. surged 2.6% in premarket trade Monday, after the maker of aluminum products was upgraded at J.P. Morgan, citing improved valuation after the selloff in the wake of the Grenfell Tower fire. Analyst Seth Seifman raised his rating to outperform from neutral, but trimmed his stock price target to $28, which is 21% above Friday's closing price of $23.13, from $30. The stock had tumbled as much as 21% before bouncing slightly after the Grenfell Tower tragedy, amid reports the company produced the aluminum sheets and polyethylene which burned in the fire. "Grenfell Tower risk hard to assess, but probably manageable and perhaps ultimately zero," Seifman wrote in a note to clients. Despite the stock's recent selloff, it has soared 25% year to date, while the SPDR Materials Select Sector ETF has climbed 8.9% and the S&P 500 has gained 8.3%.

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Trump defends daughter Ivanka's seat at G20 table

Top Reuters News - Mon, 07/10/2017 - 09:13
WASHINGTON (Reuters) - U.S. President Donald Trump defended his daughter, White House adviser Ivanka Trump, on Monday after she raised some eyebrows over the weekend by taking his place at a table with world leaders at a G20 meeting.

ClubCorp's stock rockets after $1.1 billion buyout deal with Apollo Global

MarketWatch Market Pulse - Mon, 07/10/2017 - 08:55

Shares of ClubCorp Holdings Inc. rocketed 31% toward a 4-month high in active premarket trade Monday, after the golf and country clubs owner and operator announced over the weekend a deal to be acquired for $1.1 billion by private-equity firm Apollo Global Management. Under terms of the deal, Apollo will pay $17.12 in cash for each ClubCorp share outstanding, which is 31% above Friday's closing price of $13.10. "With the support of the Apollo funds, we are confident that ClubCorp will be able to continue building on its success by providing its members with unrivaled experiences at its clubs," said ClubCorp Chairman John Beckert. "This transaction represents the culmination of our review of strategic alternatives and achieves our goal of enhancing value for shareholders." Trading volume topped 1.8 million shares more than 30 minutes before the open, which is already nearly 4 times the full-day average, and enough to make the stock the most actively traded in the premarket. The stock had tumbled 15% year to date through Friday, while the S&P 500 has gained 2.9%.

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Lions Gate's Starz network doubles content available through its app

MarketWatch Market Pulse - Mon, 07/10/2017 - 08:50

Lions Gate Entertainment Corp.'s premium cable network Starz said on Monday that content on its subscription-based app has more than doubled, growing by 125% since the network launched the stand-alone platform. The company also said it plans to add 40% more films and TV series by the end of 2017. On Monday it also said it has deepened its kids and Spanish-language content offerings. Starz kids programming has grown tenfold since the app was launched, and its Spanish-language content is expected to reach more than 700 movies and TV shows by the end of the year. Starz's app users don't need to subscribe to the channel via cable. Shares of Lions Gate have gained more than 3% in the year to date, while the S&P 500 index is up more than 8%.

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Barnes & Noble appoints chief operating officer

MarketWatch Market Pulse - Mon, 07/10/2017 - 08:46

Barnes & Noble, Inc. has appointed Carl Hauch, formerly chief operating officer at CityMD, as its vice president of stores, the company said Monday. Hauch starts immediately and will be in charge of retail stores, including driving sales and developing talent. He reports to Demos Parneros, chief executive of Barnes & Noble. Shares of Barnes & Noble have gained 5.7% in the past month, while the S&P 500 has loss 0.3%.

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Facebook's Oculus cuts price of virtual reality set, matching rival

Top Reuters News - Mon, 07/10/2017 - 08:40
SAN FRANCISCO (Reuters) - Oculus, the virtual reality company owned by Facebook Inc, is temporarily cutting the price of its hardware, as the industry tries to figure out why the technology for immersive games and stories has not taken off among consumers.

Costco's stock falls after analyst downgrades on concerns negative sentiment will trump strong fundamental

MarketWatch Market Pulse - Mon, 07/10/2017 - 08:38

Shares of Costco Wholesale Corp. fell 0.6% in premarket trade Monday, after the membership-based warehouse retailer was downgraded at BMO Capital, which cited concerns that investor sentiment has soured as a result of perceived competition from Amazon.com Inc. . Analyst Kelly Bania cut the rating to market perform after being at outperform since January 2015, and slashed the stock price target to $160, which is 3.8% above Friday's closing price of $154.11, from $185. Bania stressed that the downgraded was not a call on Costco's fundamental outlook, which remains "strong." Bania said the "weak" stock reaction to "impressive" June same-store sales data suggests "investor sentiment, driven by Amazon fears, may continue to overshadow strong fundamentals." The stock has fallen 2.5% since the June data was released to close Friday at a 7-month low. "Despite Costco's significant price gap to Amazon...we believe near-term sentiment and fear of the long-term impact of Amazon on Costco's business--whether or not justified by fundamentals--could continue to create an overhang on [Costco] shares," Bania wrote in a note to clients. Costco's stock has dropped 10.0% over the past three months, while the SPDR S&P Retail ETF has lost 5.7%, Amazon shares have climbed 7.9% and the S&P 500 has gained 2.9%.

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Abercrombie & Fitch's stock plunges after terminating potential buyout talks

MarketWatch Market Pulse - Mon, 07/10/2017 - 08:21

Shares of Abercrombie & Fitch Co. plunged 11% toward a three-month low in premarket trade Monday, after the specialty apparel retailer said it terminated discussions regarding a potential buyout deal. "After a comprehensive review of all relevant factors, with the assistance of our financial advisor, the A&F Board of Directors determined that the best path to enhance value for stockholders is the rigorous execution of our business plan," said Executive Chairman Arthur Martinez. "We believe in the prospects for our business and the opportunities for our brands." The company had said in May that it had started preliminary discussions with several parties regarding a potential deal. The stock had edged up 1.3% year to date through Friday, but had fallen 36% over the past 12 months. In comparison, the SPDR S&P Retail ETF had slipped 8.5% over the past year while the S&P 500 had rallied 13.9%.

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Iraq's Abadi to declare Mosul victory, few pockets of resistance

Top Reuters News - Mon, 07/10/2017 - 08:07
MOSUL (Reuters) - Iraqi Prime Minister Haider al-Abadi was set to declare victory over Islamic State in Mosul on Monday as only a few dozen militants put up resistance in the city that was the capital of their self-declared caliphate for the past three years.

Cesca Therapeutics shares jump 11% premarket after SynGen deal

MarketWatch Market Pulse - Mon, 07/10/2017 - 08:03

Cesca Therapeutics Inc. shares surged 11% in premarket trade Monday, after the provider of automated cell processing and point-of-care, autologous cell-based therapies said its wholly-owned unit ThermoGenesis Corp. has acquired assets from privately held SynGen Inc. Thermogenesis has acquired most of SynGen's assets, including cell processing platform technology, for 20% of its stock, plus $1 million in a one-time cash payment, in a deal that closed on July 7. Philip Coelho, co-founder and chief technology officer of SynGen, has become CTO of ThermoGenesis with immediate effect. Cesca has placed the assets of its blood and bone-marrow processing device business with ThermoGenesis, which will now operate its device business. "The continued evolution of personalized medicine, especially promising new oncology treatments such as CAR-T therapies, demand that target cell populations be harvested with increasing speed, purity and efficiency," Coelho said in a statement. Cesca shares are down 6.7% in 2017 through Friday, while the S&P 500 has gained 8%.

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TPG RE sets IPO terms to raise up to $231 million

MarketWatch Market Pulse - Mon, 07/10/2017 - 07:39

TPG RE Finance Trust disclosed Monday that it set terms for its proposed initial public offering, in which it plans to sell 11 million shares at a price between $20 to $21 a share to raise up to $231 million. If the underwriters exercise all the options to buy 1.65 million additional common shares TPG grants them to cover overallotments, the commercial real estate finance company could raise up to $265.65 million. The stock has been approved to be listed on the NYSE under the ticker symbol "TRTX." BofA Merrill Lynch, Citigroup, Goldman Sachs and Wells Fargo Securities are the lead underwriters. TPG's IPO will come at a time when the SPDR Real Estate Select Sector has gained 3.1% year to date through Friday, while the S&P 500 has advanced 8.3%.

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Trump's healthcare push faces trouble as Congress returns

Top Reuters News - Mon, 07/10/2017 - 07:37
WASHINGTON (Reuters) - President Donald Trump's effort to roll back Obamacare faced growing obstacles on Monday as Republicans who control the U.S. Senate remained divided over how to curb the costs of their proposed healthcare bill and prevent millions from losing coverage.

Cogeco unit to buy MetroCast cable systems from Harron Communications for $1.4 billion

MarketWatch Market Pulse - Mon, 07/10/2017 - 07:30

Canada's Cogeco Communications Inc. said Monday its Atlantic Broadband unit has agreed to buy all of the cable systems operating under the MetroCast brand name from Harron Communications LP for $1.4 billion in cash. MetroCast has a network of close to 236,000 homes and businesses in New Hampshire, Maine, Pennsylvania, Maryland and Virginia and serves 120,000 internet, 76,000 video and 37,000 telephony customers. The company is expecting to generate $230 million of revenue in 2017. "With this acquisition, we are increasing our customer base in attractive markets adjacent to the ones we currently serve," Cogeco Chief Executive Louis Audet said in a statement. The deal is expected to close in January of 2018 and will be financed secured debt provided by two banks and an equity investment by Caisse de dépôt et placement du Québec.

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Kala sets terms of IPO to raise up to $96 million

MarketWatch Market Pulse - Mon, 07/10/2017 - 07:21

Kala Pharmaceuticals disclosed terms for its proposed initial public offering, in which it will sell 6 million shares at a price between $14 to $16 a share to raise up to $96 million. If the underwriters of the offering exercise all of the options granted to buy 900,000 additional shares to cover overallotments, the developer of treatments for eye diseases could raise up to $110.4 million. The stock is expected to be list on the Nasdaq Global Market under the ticker symbol "KALA." J.P. Morgan, BofA Merrill Lynch, Wells Fargo Securities and Wedbush PacGrow are the lead underwriters. The stock is coming market at a time when the SPDR S&P Pharmaceuticals ETF has climbed 10.1% year to date through Friday, while the S&P 500 has gained 8.3%.

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Valeant pays down $811 million of term loans, shares rise

MarketWatch Market Pulse - Mon, 07/10/2017 - 07:08

Valeant Pharmaceuticals International Inc. shares jumped 1.2% in premarket trade Monday, after the company said it has paid down $811 million of senior secured loans, keeping it on track with its debt-reduction goals. The company said it used the proceeds of the recent sale of Dendreon Pharmaceuticals LLC to pay off the loans. "With this transaction, all mandatory amortization has been paid through 2019," the company wrote in a statement. Valeant has reduced its debt by more than $4.3 billion since the end of the first quarter of 2016. The company, which started on a debt reduction track after an accounting scandal that battered its reputation and led to the ouster of its longtime chief executive, said it still expects to pay down $5 billion in debt using the proceeds of asset sales and free cash flow within 18 months of August 2016. Shares have gained 12% in 2017, while the S&P 500 has gained 8.3%.

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