Breaking Stock Market and Financial News

Google paying Apple billions to remain default search on iOS, analyst says

MarketWatch Market Pulse - Mon, 08/14/2017 - 14:49

Alphabet's Google is paying Apple billions of dollars a year to remain the default search engine on iOS devices such as the iPad and iPhone, according to a research note from Bernstein. Citing court documents that indicate Google paid Apple $1 billion in 2014, Bernstein analyst A.M. Sacconaghi Jr. made a case that the number will triple in fiscal 2017 to $3 billion. Because the payments to Apple are "nearly all profit," Sacconaghi said Google may account for 5% of the iPhone maker's total operating profit this year, and has accounted for 25% of operating-profit growth over the past two years. The analyst cautioned that at some point in the future Google could decide that its search business is secure and no longer needs to pay the licensing fee. But, as Apple's customer base continues to grow, as well as its search usage, Apple may be able to generate additional licensing revenue through "other advertising-intensive apps," according to the Bernstein note. Sacconaghi has a $175 price target for Apple stock, which is up 1.6% in late-afternoon trading. Google shares are up nearly 1%.

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Fed's Dudley wants to keep raising interest rates slowly

MarketWatch Market Pulse - Mon, 08/14/2017 - 14:23

New York Fed President William Dudley said Monday that he is in favor of continuing to slowly raise short-term interest rates even with inflation below the central bank's 2% target. In an interview with the Associated Press, Dudley listed two reasons to continue to raise short-term rates, saying financial conditions have eased even though the Fed has been tightening and the current level of short term rates is "pretty low." "I would be in favor of doing another rate hike later this year," if the economy performs as expected, Dudley said.

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U.S. shale oil output expected to rise by 117,000 barrels a day in September: EIA

MarketWatch Market Pulse - Mon, 08/14/2017 - 14:20

Shale crude-oil production from seven major U.S. oil plays is expected to see a monthly climb of 117,000 barrels a day in September to 6.149 million barrels a day, according to a monthly report from the Energy Information Administration released Monday. The report has shown increases in shale-oil output every month so far this year. Oil output from the Permian Basin, which covers parts of western Texas and southeastern New Mexico, is expected to see the largest climb among the big shale plays, with an increase of 64,000 barrels a day. September West Texas Intermediate oil continued to trade lower, down $1.02, or 2.1%, for the session at $47.80 a barrel, a few minutes before the settlement on the New York Mercantile Exchange.

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Nasdaq's broad rally tarnished as new lows exceed new highs

MarketWatch Market Pulse - Mon, 08/14/2017 - 13:54

Although the Nasdaq Composite's 1.3% surge Monday brought the technology friendly index within range of its record high, and more than 25% above its 52-week low, but the number of its components hitting new lows outnumbered those reaching new highs. The number of advancing stocks on the Nasdaq exchange outnumbered decliners by a 2,075-to-672 score, but the number of stocks hitting fresh 52-week highs trailed new lows by a 49-to-45 margin. Meanwhile, the Nasdaq Comp was 1.3% below its July 26 record close of 6,422.75, but 25.6% above its Nov. 4, 2016 52-week closing low of 5,046.37. On the NYSE, advancers led decliners by a score of 2,287 to 615, but new highs topped new lows by just 47 to 46. The Nasdaq Composite has now rallied 17.7% year to date, while the S&P 500 has gained 10.1%.

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Gold prices mark first loss in four sessions

MarketWatch Market Pulse - Mon, 08/14/2017 - 13:46

Gold prices on Monday finished lower for the first time in four sessions, as tensions between the U.S. and North Korea appeared to ease, the dollar strengthened and U.S. equities climbed--dulling investment demand for the precious metal. December gold fell $3.60, or 0.3%, to settle at $1,290.40 an ounce. Prices had tallied a gain of more than 2% over the past three sessions.

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'El Chapo' Guzman allowed to meet relative in U.S. jail: lawyer

Top Reuters News - Mon, 08/14/2017 - 12:55
NEW YORK (Reuters) - Joaquin Guzman, the Mexican drug lord known as "El Chapo" who is jailed awaiting trial in the United States, may meet with a relative to discuss ways to pay for his defense, a lawyer for Guzman said on Monday.

Trump calls racism 'evil' and says white supremacists are 'repugnant'

MarketWatch Market Pulse - Mon, 08/14/2017 - 12:50

President Donald Trump said Monday that "racism is evil," and announced a civil-rights investigation has been opened into the attack at a white-supremacist rally in Charlottesville, Va. Trump called out white supremacists and groups including the Ku Klux Klan as "repugnant." The president had been criticized for his initial statement about the incident, in which he said the altercations came from "many sides" of the event. One person was killed and nearly 20 were injured at the rally on Saturday.

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Venezuela's Maduro seeks to capitalize on Trump's military threat

Top Reuters News - Mon, 08/14/2017 - 12:42
CARACAS (Reuters) - While U.S. Vice President Mike Pence travels to Latin America tamping down concern over his boss's threat of possible military action in Venezuela, the country's leader Nicolas Maduro sought to capitalize on local outrage by holding an "anti-imperialist" protest on Monday.

California to sue Trump administration over sanctuary policy

Top Reuters News - Mon, 08/14/2017 - 12:38
SAN FRANCISCO (Reuters) - California plans to file a lawsuit against the U.S. Department of Justice over federal restrictions on some law enforcement grants to so-called sanctuary cities, a spokesperson for California's attorney general office said on Monday.

Intuitive Surgical's 3-for-1 stock split seen as a 'positive sign'

MarketWatch Market Pulse - Mon, 08/14/2017 - 12:07

Shares of Intuitive Surgical Inc. surged 2.3% in midday trade Monday, in the wake of the announcement of a 3-for-1 stock split. The stock was now within 1% of its July 20 record close of $971.73. After Friday's closing bell, the company said if approved by shareholders at a special meeting on Sept. 22, the stock would begin trading on a split-adjusted basis on Oct. 6. Raymond James analyst Lawrence Keusch said that although the stock split does not generate any economic value, he believed it was a "positive sign" for the developer of robotic-assisted surgical platforms because "it could be argued that the event signals confidence in the company's fundamental prospects." In addition, Keusch said that since the number of stock splits have declined meaningfully over the past 20 years, Intuitive Surgical's "may help raise the company's profile," especially among retail investors. The stock has run up 52% year to date, while the SPDR Health Care Select Sector ETF has rallied 15% and the S&P 500 has gained 10%.

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Stock market rally helps S&P 500, Nasdaq clamber back above a bullish trend line

MarketWatch Market Pulse - Mon, 08/14/2017 - 11:49

A broad stock-market rally on Monday was driving the S&P 500 index and the Nasdaq Composite back above a short-term trend line that helps to underscore bullish sentiment in an asset. Both the S&P 500 and the Nasdaq Composite indexes were trading above their 50-day moving averages, after slipping below those levels last week in downbeat trade underpinned by escalating worries that verbal clashes between North Korea and the U.S. would result in military conflict. The S&P 500 index was up 1% at 2,465, trading above its 50-day moving average of 2,448.79, according to FactSet data. The Nasdaq, meanwhile, was up 1.2% at 6,331.08, compared with its 50-day MA of 6,272.10. A three-session dive last week pushed the indexes below their short-term averages for the first time since July 11. Market technicians tend to pay attention to moving averages to help determine bullish or bearish momentum in an asset. However, looking at the S&P 500 and Nasdaq Composite's trend line to determine momentum may come into more doubt because it has failed to be followed by a bearish slump as typically would be expected when the gauges dip below their short-term trend lines. Overall, stocks were attempting to claw back from last week's losses, which represented the worst weekly drop for U.S. stock market in months. Most recently, the Dow Jones Industrial Average was trading 0.7% higher in late-morning trade at 22,006. The Dow has managed to hold above its 50-day MA at 21,566.50, despite the ugly weekly downturn.

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Tesla's newly issued bonds are trading at par

MarketWatch Market Pulse - Mon, 08/14/2017 - 11:31

Tesla Inc.'s newly issued bonds were trading at par Monday, according to MarketAxess, unchanged from their issue price late Friday. The company sold $1.8 billion of eight-year notes in its first sale of pure debt. Tesla has issued convertible bonds, which convert into equity and are supported by the company's stock price. Tesla's shares have soared 70.2% in 2017 amid excitement about its new Model 3 sedan, a $35,000 electric vehicle aimed at the mass market. The S&P 500 has gained 10.2% in the year so far.

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Bank-related ETF on track for best daily pop in 6 weeks

MarketWatch Market Pulse - Mon, 08/14/2017 - 10:27

A popular way to wager on the financials sector on Monday was on pace for its best daily rise in about six weeks, according to FactSet data. The Financial Select Sector SPDR ETF, which closely tracks the S&P 500's financials sector was gaining 1.24%, with all of its components in positive territory in late-morning trade, putting the financials-focused fund on track for its best one-day climb since July 3. Notably, shares of Goldman Sachs Group Inc. , among the larger components in the ETF, and Citizens Financials Group Inc. were leading the charge, up at least 2%. The rally in financials helped to power a 0.9% climb in the broad-market S&P 500 and coincided with a global rebound in equities. The Dow Jones Industrial Average was up 0.6%, and the Nasdaq Composite Index gained 1.1%. Gains in the banking sector come even as the 10-year benchmark yield hovers around historic lows at 2.21%. Higher yields tend to be bullish for financials loan business, but doubts that the Federal Reserve will lift interest rates and unwind its $4.5 trillion balance sheet has kept rates. Sluggish inflation and recent tensions between North Korea and the U.S. has amplified the slump in yields.

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Nvidia shares jump 3.8% as Canaccord raises price target to $190 from $180

MarketWatch Market Pulse - Mon, 08/14/2017 - 10:20

Nvidia Inc. shares jumped 3.8% Monday, after Canaccord Genuity analyst Matthew Ramsay raised his stock price target to $190 from $180, or 17% above its current trading level. The graphics chip maker beat profit and sales expectations by wide margins, and raised its revenue outlook for the year, when it reported fiscal second-quarter results late Thursday. The stock, however, slumped on the news, as investors appeared to view the numbers as not quite strong enough to justify the 30% rally it had enjoyed in the last three months. "In the short term, shares were priced to perfection and we believe Friday's pullback will prove the entry point many investors have been looking for," Ramsay wrote in a note. "With the strong growth drivers intact and while acknowledging Y/Y growth compares will toughen in coming quarters, we reiterate our BUY rating and raise our price target from $180 to $190. BUY the pullback," said Ramsay. Nvidia stock has gained 52% in 2017, while the S&P 500 has gained 10%.

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Hulu chooses Amazon Web Services as cloud provider for platform

MarketWatch Market Pulse - Mon, 08/14/2017 - 10:12

Media streaming service Hulu Inc. chose Amazon Web Services as its cloud provider and used it to support the launch of its live TV service, Amazon said Monday. Hulu launched its live TV service in May 2017 and said it teamed up with the AWS cloud platform to support the addition of more than 50 live channels. Using AWS helped the company avoid breaks in service, even with "rapid spikes in viewership and traffic," according to the press release. Other media services on AWS include Amazon Video, Netflix Inc. , BBC and Spotify.

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Merck CEO resigns from Trump council after Charlottesville

Top Reuters News - Mon, 08/14/2017 - 09:53
(Reuters) - Merck & Co Inc Chief Executive Kenneth Frazier resigned from U.S. President Donald Trump's American Manufacturing Council on Monday, saying he was taking a stand against intolerance and extremism.

Goldman, Apple's stock rise adds more than 40 points to Dow 's early rally

MarketWatch Market Pulse - Mon, 08/14/2017 - 09:51

The Dow Jones Industrial Average on Monday was on track for its best gain in six weeks, with a jump in components Apple Inc., and Goldman Sachs Group doing the heavy lifting in early trade for the benchmark. Goldman's 2% share climb alone was contributing more 30 points to the price-weighted blue-chip gauge, while those for Apple Inc. and Boeing Co. adding a combined 20 points. Monday's rally follows one of the worst weeks for the U.S. equity benchmarks in weeks amid escalating tensions between North Korea and the U.S. However the war of words between the countries has abated somewhat, providing some room for stocks to bump higher. Overall, the Dow was up 128 points, or 0.6%, at 21,985. A close at its current level would represent the best daily rise for the Dow since July 3, according to FactSet data. The S&P 500 index climbed 0.8% at 2,461, while the Nasdaq Composite Index rose 1% to 6,317.

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Snap shares wither more as filings show some investors bailing

Top Reuters News - Mon, 08/14/2017 - 09:43
NEW YORK (Reuters) - Snap Inc shares fell 4 percent on Monday after U.S. securities filings showed some funds dissolving their stakes in the social media company and another brokerage lowered its price target on the stock.

Dow jumps 130 points at the open as North Korea tensions ease

MarketWatch Market Pulse - Mon, 08/14/2017 - 09:35

U.S. stock benchmarks rallied at the open on Monday, as a recent aversion to assets considered risky on the back of fears about tensions between the U.S. and North Korea receded somewhat. The Dow Jones Industrial Average rose 0.6% at 21,986, led by a 1.6% jump in shares of Goldman Sachs Group Inc. . The S&P 500 index advanced 0.7% at 2,457, buoyed by a 1.1% surge in the financials sector , and the Nasdaq Composite Index rose 0.9% at 6,311. The rebound in equities follows a one of the worst weeks in stock benchmarks in months and after a weekend of violence in Charlottesville, Va., which was the scene of angry protests centered on a white-supremacist rally that left one person dead. In corporate news, shares in Tesla Inc. rose nearly 2% higher after Baird analyst Ben Kallo, a longtime Tesla bull, hiked his price target for the electric-car maker's stock to $411 from $368.

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Target acquires transportation tech company, Grand Junction

MarketWatch Market Pulse - Mon, 08/14/2017 - 09:33

Target Corp. said Monday that it is acquiring transportation technology company Grand Junction. The move is one more step in an effort to deliver packages to customers more quickly and efficiently, according to a statement from Target's chief supply chain and logistics officer Arthur Valdez. Grand Junction is based in San Francisco, and provides a platform to manage local deliveries through a network of 700 carriers. Grand Junction is currently working with Target on its same-day delivery pilot in New York City. Once the deal closes, Grand Junction employees will become Target staffers. Financial details about the acquisition were not disclosed. Target shares are up 1.1% in Monday trading, but down 23% for the year so far. The S&P 500 index is up 9.8% for 2017 to date.

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