Breaking Stock Market and Financial News

Dow skids nearly 170 points at its intraday low as stock-market slide gathers steam

MarketWatch Market Pulse - Tue, 11/14/2017 - 10:17

The Dow Jones Industrial Average slipped firmly lower on Tuesday, adding to a recent downtrend in equity benchmarks as investors await updates on tax reform. The Dow was down about 130 points, or 0.5%, at 23,297, hitting a low of 23,271, or down 168 points at its lows of the session. The S&P 500 index slipped 0.5% at 2,572, while the Nasdaq Composite Index retreated 0.4% at 6,729. All three benchmarks opened in negative territory and were negative for the month of November. According to FactSet data, the Dow was off 0.3% in November, the S&P 500 was down 0.2%, while the Nasdaq was looking at a 0.1% decline over that period. November has traditionally been a period for stock market buying as professional investors set up their portfolios for 2018.

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Services boost U.S. producer prices; underlying inflation firming

Top Reuters News - Tue, 11/14/2017 - 09:57
WASHINGTON (Reuters) - U.S. producer prices rose more than expected in October, driven by a surge in the cost of services, leading to the biggest annual increase in wholesale inflation in over 5-1/2 years.

Democrats to question Sessions on Russia contacts

Top Reuters News - Tue, 11/14/2017 - 09:54
WASHINGTON (Reuters) - U.S. Attorney General Jeff Sessions will face a barrage of questions from Democrats in the House of Representatives on Tuesday over whether he lied about communications between President Donald Trump's election campaign and Russian representatives.

Hariri says to return to Lebanon in next two days: Twitter

Top Reuters News - Tue, 11/14/2017 - 09:47
BEIRUT (Reuters) - Saad al-Hariri, Lebanon's prime minister who resigned from his post on Nov. 4, said on Monday he was fine and would return to Lebanon in the next two days.

U.S. stocks open lower as investors await clarity on taxes, watch central bankers

MarketWatch Market Pulse - Tue, 11/14/2017 - 09:31

U.S. stocks traded lower at the open on Tuesday, as Wall Street looked to the latest developments in the Republican Party's efforts to reform U.S. tax policy. Central bankers were also in focus, with Federal Reserve Chairwoman Janet Yellen joining her European and Japanese counterparts in a panel discussion that could offer clues into the path for interest rates. The Dow Jones Industrial Average fell 0.3%, or 66 points, to 23,374. The S&P 500 lost 8 points, or 0.3%, to 2,577. The Nasdaq Composite Index was down 22 points, or 0.3%, to 6,736. Among specific stocks, Home Depot Inc. fell 1% after reporting its third-quarter results, while Dick's Sporting Goods Inc. sank 6.8% after giving a disappointing 2018 outlook.

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GameStop CEO J. Paul Raines to take medical leave

MarketWatch Market Pulse - Tue, 11/14/2017 - 09:27

GameStop Corp. said Tuesday it has named Daniel DeMatteo as interim chief executive, replacing J. Paul Raines, who is seeking medical treatment after a reoccurrence of a previously disclosed illness. Raines had a cancerous tumor removed from his brain in 2014. DeMatteo, a co-founder of the company, has previously served as CEO and in other executive roles. Shares were flat premarket, but are down 36% in 2017, while the S&P 500 has gained 15%.

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Cohn says he's confident House will pass tax bill this week

MarketWatch Market Pulse - Tue, 11/14/2017 - 09:05

Gary Cohn, the director of the White House National Economic Council, said Tuesday he's confident the House of Representatives will pass its tax-cut bill before members leave for a Thanksgiving break later this week. Speaking at a Wall Street Journal conference, Cohn also said he's assuming the Senate Finance Committee will pass its version of a tax bill this week. Cohn stuck to a year-end target for passing a tax bill, saying "We have to get taxes done this year." The administration's next priority after tax reform is an infrastructure bill, Cohn said.

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Hasbro-Mattel combination would create heightened negotiating power: Fitch

MarketWatch Market Pulse - Tue, 11/14/2017 - 08:52

If Hasbro Inc. acquired Mattel Inc. , not only would it combine the two biggest toy companies in the world, it would enhance the unified company's negotiating power with retailers, according to Fitch Ratings. Wal-Mart Stores Inc. would continue to be the biggest customer with $2 billion in sales. At the end of fiscal 2016, Wal-Mart, Toys R Us and Target Corp. accounted for about 19%, 10% and 8% of combined sales, respectively. "These retailers are constantly encouraging high levels of competition among suppliers, demanding innovative new products and exclusive products, leading to price reductions, and product delivery with shorter lead times," wrote Fitch's consumer companies analyst Ellen Itskovitz in a note. "Fitch expects a merged entity would have improved negotiating power and can weather the complex retail landscape more effectively." Fitch also thinks the merger would bring together the strength in girls' toys that Mattel has with the boys' toys strength at Hasbro. Mattel shares are down 36% for the year so far, but up 20.7% for the week to date. Hasbro shares are up 24.5% for 2017 to date and up 5.9% for the week to date. The S&P 500 index is up 15.5% for 2017 so far.

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TJX shares sink after revenue, same-store sales miss

MarketWatch Market Pulse - Tue, 11/14/2017 - 08:52

TJX Cos. shares sank 3.9% in Tuesday premarket trading after the off-price retailer reported third-quarter revenue and same-store sales that fell below consensus. Net income for the quarter totaled $641.4 million, or $1 per share, up from $549.8 million, or 83 cents per share, for the same period last year. The FactSet consensus was $1. Revenue was $8.76 billion, up from $8.29 billion last year and below the $8.86 billion FactSet estimate. Same-store sales were flat, below the FactSet consensus for 2.4% growth. TJX Chief Executive Ernie Herrman said the hurricanes and warm weather hurt results. The hurricanes had an estimated 3-cent EPS impact in the quarter. For the fourth quarter, TJX expects EPS in the range of $1.25 to $1.27 and adjusted EPS in the range of $1.14 to $1.16. Same-store sales growth is expected to be 1% to 2%. The FactSet estimate is for EPS of $1.27 and same-store sales growth of 2.7%. TJX shares are down 5.8% for the year so far while the S&P 500 index is up 15.5% for the period.

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UCLA players depart China after Trump asked for Xi's help

Top Reuters News - Tue, 11/14/2017 - 08:44
MANILA/SHANGHAI (Reuters) - Three UCLA basketball players detained in China on suspicion of shoplifting were headed back to the United States on Tuesday after U.S. President Donald Trump said he had sought the help of Chinese President Xi Jinping in the case.

Apple's stock in danger of 4th straight fall, but RBC sees multiple earnings 'tailwinds'

MarketWatch Market Pulse - Tue, 11/14/2017 - 08:13

A sharp increase in Apple Inc.'s off-balance-sheet manufacturing and purchase commitments to a record $37.6 billion in fiscal 2017, up 31% from a year ago, potentially indicate a strong ramp for iPhone X, according to RBC Capital analyst Amit Daryanani. After an analysis of Apple's audited annual report filed with the Securities and Exchange Commission, Daryanani said the 8% decline in warranty accruals was "logical" given the iPhone X delay; a slight decline in operating margins in the U.S. reflect carrier discounts on new phones; and the 31% rise in vendor nonreceivables reflect component purchases by Apple for manufacturing licensee partners and overall inventory on Apple's balance sheet. Daryanani reiterated his outperform rating and $190 stock-price target, citing "multiple tailwinds" for EPS growth, including higher average selling prices for iPhone X, improved gross margins and potential tax reform. The stock slipped 0.1% in premarket trade, which puts it on track for a fourth straight decline since it closed at a record $176.24 on Nov. 8. The stock has climbed 8.8% over the past three months, while the tech-heavy Nasdaq 100 has rallied 6.9% and the Dow Jones Industrial Average has gained 6.6%.

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U.S. would welcome new EU sanctions on Iran: official

Top Reuters News - Tue, 11/14/2017 - 08:10
BRUSSELS (Reuters) - Any move by the European Union to impose new sanctions on Iran over its ballistic missile program and alleged involvement in Middle East conflicts would be "interesting and helpful", a U.S. administration official said on Tuesday.

CVS Health announces plan to add 5,000 apprentices by 2022

MarketWatch Market Pulse - Tue, 11/14/2017 - 08:09

CVS Health Corp. said Tuesday that it has set a goal of adding 5,000 apprentices by 2022. The new apprentice target coincides with the expansion of the program to seven new states, including Arizona, Hawaii, Massachusetts and Pennsylvania. A total of 18 states participate. Registered apprenticeships provide training in pharmacy care, prescription benefit management and other fields. CVS Health launched its apprenticeship program in 2005 for pharmacy technicians. Through 2017, it has had more than 4,700 join. CVS shares are down 9.4% for the year to date while the S&P 500 index is up 15.5% for the period.

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Switch shares slide 5% premarket after guidance disappointed investors

MarketWatch Market Pulse - Tue, 11/14/2017 - 07:52

Shares of data-center company Switch Inc. fell 5% in premarket trade Tuesday, extending late-session losses from Monday that came after its first quarterly earnings report since going public. Wells Fargo analyst Jennifer Fritzsche said it was a solid quarter, but investors may have been disappointed that the midpoint of its first revenue guidance implies a 0.7% sequential decline in fourth-quarter revenue. "We believe SWCH is being conservative in guidance and would anticipate the company to be toward the high-end of its revenue guidance targets," Fritzsche wrote in a note. "Our struggle with the name continues to be valuation driven." Switch stock is currently trading at about a 4 times premium to the average of data center REITs, she said. Wells Fargo has a market perform rating on the stock. J.P. Morgan analysts agreed that guidance was conservative, and said it was reiterating its overweight rating and $22 stock price target. The stock has gained 18% since going public at $17 and is up about 5% in the last month. The S&P 500 has gained 0.4% in the last month.

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Dick's Sporting Goods shares sink on weak 2018 outlook

MarketWatch Market Pulse - Tue, 11/14/2017 - 07:48

Dick's Sporting Goods Inc. shares sank 2.4% in Tuesday premarket trading after the athletic retailer announced a preliminary 2018 earnings per share decline of about 20%. Net income for the quarter totaled $36.9 million, or 35 cents per share, down from $48.9 million, or 44 cents per share, for the same period last year. Adjusted EPS was 30 cents, beating the 26-cents FactSet consensus. Revenue totaled $1.94 billion, up from $1.81 billion and ahead of the $1.89 billion FactSet estimate. E-commerce sales increased about 16% during the quarter, accounting for 10.3% of total sales. Same-store sales fell 0.9%, ahead of the 2.7% decline FactSet forecast. The company plans to invest in its private brands, e-commerce and other areas, according to a statement from Chief Executive Edward Stack. "Given these investments, continued gross margin pressure and approximately flat comp sales, we expect earnings per diluted share to decline by as much as 20% in 2018," he said. For full-year 2017, the company now expects EPS in the range of $2.95 to $3.07, and adjusted EPS of $2.92 to $3.04. The previous guidance was for EPS of $2.85 to $3.05 and adjusted EPS of $2.80 to $3.00. For the fourth quarter, Dick's expects EPS in the range of $1.05 to $1.17 and adjusted EPS in the range of $1.12 to $1.24. The FactSet consensus is for full-year EPS of $2.87 and fourth-quarter EPS of $1.11. Dick's shares are down nearly 57% for the past year while the S&P 500 index is up 19.4% for the period.

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Loxo announces $400 mln Bayer cancer partnership

MarketWatch Market Pulse - Tue, 11/14/2017 - 07:45

Loxo Oncology Inc. shares rose as much as 8% before declining nearly 3% in premarket trade on Tuesday after the company announced a $400 million partnership with Bayer AG to develop and commercialize two of its cancer therapies. Loxo is also eligible for up to $650 million in additional milestone payments for the two therapies, larotrectinib and LOXO-195; $25 million if a certain U.S. net sales level is met; tiered, double-digit royalties on net sales and up to $475 million in sales milestones. Under the agreement, Loxo will lead worldwide development activities and U.S. regulatory activities, while Bayer will lead regulatory activities outside the U.S. and global commercial activities, with the companies splitting global development costs and U.S. commercial costs and profits. Bayer will also book global revenues. Loxo shares have surged 12.4% over the last three months to $83.23, compared with a 4.8% rise in the S&P 500 and a 6.6% rise in the Dow Jones Industrial Average .

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Trump heads home with 'America First' ringing in Asian ears

Top Reuters News - Tue, 11/14/2017 - 07:37
MANILA (Reuters) - As Air Force One took off from Manila on Tuesday at the end of the longest trip to Asia by an American president in more than quarter of a century, at least two of the region's leaders had good reason to feel satisfied.

YogaWorks acquires four Atlanta studios

MarketWatch Market Pulse - Tue, 11/14/2017 - 07:16

YogaWorks Inc. said Tuesday that it has entered the Georgia market with the acquisition of four Infinity Yoga studios in Atlanta. This brings YogaWorks' total fleet to 66 locations. Infinity Yoga was founded in 2013. Current Infinity Yoga teachers and staff will remain on board, and the current schedule of classes and other events will continue as scheduled. Infinity Yoga will transition to the YogaWorks name in the coming months. YogaWorks shares are up 14.2% for the month so far, but down 33.6% for the last three months. The S&P 500 index is up nearly 5% for the last three months.

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Iran ends quake rescue operations, hungry survivors battle cold

Top Reuters News - Tue, 11/14/2017 - 07:10
ANKARA (Reuters) - Iranian officials said there was little chance of finding more survivors from the earthquake that shook parts of western Iran on Sunday, killing at least 450 people, and rescue operations had now been called off, state television said on Tuesday.

Sandy Hook victims' families to argue case in Connecticut Supreme Court

Top Reuters News - Tue, 11/14/2017 - 07:04
HARTFORD, Conn. (Reuters) - Connecticut's highest court is set to hear arguments on Tuesday in a closely watched case brought by the families of the victims of the 2012 Sandy Hook Elementary School shooting against the maker of the assault rifle used by the killer.

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