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Updated: 2 hours 41 min ago

Tesla EPS estimates trimmed, revenue raised at Pacific Crest

2 hours 47 min ago

Telsa Inc.'s first-quarter deliveries are tracking in line to slightly below expectations, according to Pacific Crest, where analysts trimmed earnings-per-share estimates on Tuesday. "While Model 3 remains the sizzle in the stock for now, our longer-term bias remains more negative given that Model X demand continues to show up soft (>30% of future profit), Model S deliveries appear to be down y/y for three of the past four quarters, and Model 3 production ramp remains fraught with risk," analysts wrote in a note. Pacific Crest is raising its revenue estimates as it expects the number of total cars that are not subject to lease accounting has risen. But its core unit volume expectations have not changed and it lowered its EPS estimates due to higher research & development spending and higher interest expense from the company's recent convertible debt offering. The brokerage is now expecting fiscal first quarter EPS of 43 cents, down from a previous 50 cents. Revenue is expected to come to $2.277 billion, up from a previous $2.137 billion. Shares were down 0.5% premarket, but have gained 26% in the year so far, outperforming the S&P 500's 4.6% gain.

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RBS ups shareholder settlement offer before trial: report

3 hours 29 min ago

Royal Bank of Scotland Group PLC has proposed a 43.5 pence-per-share settlement with the RBoS Shareholder Action Group over the lender's cash call in 2008, said a Sky News report on Tuesday. That is up slightly from a 41.5p-per-share settlement reached by the U.K. bank with four other claimant groups, Sky noted. The RBoS Shareholder Action Group is the last remaining claimant seeking redress over the £12 billion ($15 billion) cash call that came before RBS collapsed into government control.

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Tesco fined £129 million for overstating profit view

7 hours 9 min ago

Tesco PLC has agreed to pay a fine of £129 million ($162 million) for overstating its expected profits in a trading statement in August 2014. The supermarket operator must also fulfill other requirements under the deferred prosecution agreement with the Serious Fraud Office announced Tuesday. In addition, Tesco has agreed to a finding of market abuse by the U.K.'s Financial Conduct Authority, the company said in a statement. As part of the deal with the FCA, Tesco has set up a compensation scheme for certain investors who bought stocks or bonds between 29 August and 19 September, 2014. The scheme will provide compensation of 24.5 pence per share purchased, plus interest of 1.25% per year for institutional investors or 4% a year for retail investors.

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Whole Foods traffic has fallen by 14 million customers and Kroger could benefit most, says Barclays

Mon, 03/27/2017 - 16:42

Whole Foods Market Inc. has experienced a 3% traffic decline over the last year and a half, or about 14 million customers, according to a Barclays note published Monday. Traffic has declined six consecutive quarters, according to their analysis. Barclays estimates that the loss is in the range of 9 million to 14 million transactions annually, with an average basket size in the range of $30 to $50. Kroger Co. , with $16 billion in natural and organic sales, has the "most meaningful overlap" with Whole Foods and stands to gain the most, the note said. Barclays calls the loss "staggering" because "as most retailers know, once traffic has been lost, those patterns rarely reverse." And nearly half of Kroger's stores (47%) are within three miles of a Whole Foods. More than half (51.8%) are within five miles. Analysts say it would be a headwind for Kroger if Whole Foods manages a turnaround. Whole Foods shares closed down 1.4% and are down 11.2% for the past year. Kroger shares closed Monday down 0.6% and are down 23.2% for the last 12 months. The S&P 500 index is up 15% for the past year.

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Elevate Credit sets price range after postponing IPO

Mon, 03/27/2017 - 16:39

Elevate Credit , which had postponed its initial public offering in January 2016, set a $12 to $14 price range for its offering Monday. Elevate plans to sell 7.7 million shares to raise up to $107.8 million. The venture-backed company is an online service that offers small loans and has been criticized for the high interest rates it charges. The stock has been approved to list on the New York Stock Exchange under the symbol "ELVT."

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Red Hat shares rise on revenue beat, outlook

Mon, 03/27/2017 - 16:31

Red Hat Inc. shares rose in the extended session Monday after the software company's forecast for the year topped Wall Street estimates and it reported higher-than-expected revenue for the quarter. Red Hat shares advanced 3.8% to $85.30 after hours. The company reported adjusted fiscal fourth-quarter earnings of 61 cents a share on revenue of $629 million. Analysts surveyed by FactSet had estimated earnings of 61 cents a share on revenue of $618.6 million. For the year, Red Hat expects adjusted earnings of $2.60 to $2.64 a share on revenue of $2.72 billion to $2.76 billion. Analysts estimate earnings of $2.59 a share on revenue of $2.71 billion.

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Tesaro stock rises 6% on news that its ovarian cancer drug was approved by the FDA

Mon, 03/27/2017 - 16:24

Tesaro Inc. shares rose 5.9% in after hours trade Monday after the company said its ovarian cancer drug Zejula, also called niraparib, had been approved by the Food and Drug Administration. Zejula was approved for maintenance treatment of women with several kinds of recurrent ovarian cancer, including epithelial ovarian, fallopian tube, or primary peritoneal cancer, who have undergone chemotherapy. Zejula is the first of a class of cancer drugs called PARP inhibitors to gain approval without being limited to patients with certain biomarkers, such as a BRCA mutation. Tesaro also said Monday afternoon that it would be developing Zejula for metastatic ovarian, breast and lung cancers. Tesaro shares, which closed at $156.73 on Monday, have risen 14.7% over the last three months, compared with a 3.2% rise in the S&P 500 .

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Olive Garden parent company Darden Restaurants gains after earnings beat

Mon, 03/27/2017 - 16:23

Darden Restaurants Inc gained in late trading Monday after the parent company of restaurant chains including Olive Garden and LongHorn Steakhouse beat earnings expectations. The Orlando, Florida, company reported net income from continuing operations of $165.6 million, or $1.32 a share, on revenue of $1.88 billion in its fiscal third quarter, with more than $1 billion coming from Olive Garden. Analysts on average expected earnings of $1.27 a share on sales of $1.87 billion. The company also slightly raised its earnings expectations for the full year, to $3.95 to $4 a share from $3.87 to $3.97 a share. The stock topped $78 in late trading after closing with a 1.5% decrease at $75.58.

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Dow notches longest losing streak since August 2011

Mon, 03/27/2017 - 16:02

The Dow Jones Industrial Average fell for an eighth session on Monday, its longest losing streak since August 2011 as the market sentiment weakened following the health-care bill debacle last week. The failure of House Republicans to garner support for the the American Health Care Act also cast doubt on President Donald Trump's ambitious agenda to lower taxes and rollout fiscal stimulus. The Dow shed 45 points, or 0.2%, to end at 20,551 while the S&P 500 fell 2 points, or 0.1%, to close at 2,341. However, the Nasdaq Composite Index rose 11 points, or 0.2%, to finish at 5,840.

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Sears' stock soars after biggest shareholders boost stake

Mon, 03/27/2017 - 15:07

Shares of Sears Holding Corp. shot up 9.7% toward a 2-month high in afternoon trade Monday, after the troubled department store chain's largest shareholder disclosed that he bought more shares over the past few sessions. That came after the retailer's second-largest shareholder also boosted its stake. Chief Executive Edward Lampert said disclosed late Friday in a filing with the Securities and Exchange Commission that he bought 507,936 shares last week, to increase his stake to 31.84 million shares, or about 29.8% of the shares outstanding. He bought 327.879 shares on Wednesday at an average of $7.829, 178,109 shares at $8.072 and 19,948 shares at $8.3934. Late on Wednesday, Fairholme Capital Management disclosed that it bought 613,900 shares at a weighted average of $8.17 over the past three sessions, to bring the hedge fund's stake to 28.56 million shares, or 26.7% of the shares outstanding. The stock, on track to close at the highest level since Jan. 24, has gained 0.3% year to date, while the SPDR S&P Retail ETF has lost 6.4% and the S&P 500 has gained 4.6%.

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WOW Air offering flights between Chicago and Iceland for $99

Mon, 03/27/2017 - 15:04

WOW Air said Monday that it will begin service between Chicago's O'Hare International Airport and Iceland's Keflavik Airport on July 13. Tickets are on sale beginning Monday for $99, with service between O'Hare and Keflavik to be offered on Mondays, Wednesdays, Thursdays and Saturdays. For $149, passengers can travel to 23 other cities, including London, Paris and Berlin. WOW already offers transatlantic service from a number of U.S. cities including New York, Pittsburgh, Boston and Washington, D.C., as well as western cities including San Francisco. The NYSE Arca Airline Index is up 25.2% for the past year, while the S&P 500 index is up 15% for the period.

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Oil settles lower as producers fail to calm oversupply concerns

Mon, 03/27/2017 - 14:47

Oil prices settled lower Monday as meeting of major crude producers over the weekend failed to calm concerns over global supplies. The Organization of the Petroleum Exporting Countries told member nations to uphold their production cut agreements, but traders worry that the producers will find less incentive to cut as output from the U.S., which isn't part of the pact, rises. May West Texas Intermediate crude fell 24 cents, or 0.5%, to settle at $47.73 a barrel-giving back nearly all of the nearly 0.6% gain it registered Friday.

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Cellect Biotech stock rises 71% after announcing successful stem cell transplant procedure

Mon, 03/27/2017 - 14:43

Cellect Biotechnology Ltd. ADR shares rose 71.3% in heavy volume after the company said on Monday that it had completed the first stem cell transplant procedure in an early/mid-stage clinical trial. The Israel-based biotech said the transplant had been conducted in a patient with blood cancer, as part of a clinical trial looking at how well Cellect's technology works to prevent life-threatening rejection disease, which occurs in up to half of stem cell transplant procedures, according to Cellect. Trading volume as of Monday afternoon was nearly 47 times the company's 30-day average volume. Cellect shares were valued at $10.73 as of Monday afternoon. Shares have risen 283.2% over the last three months, compared with a 3.0% rise in the S&P 500 .

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Spicer says August target date for tax reform but depends on consensus

Mon, 03/27/2017 - 14:34

White House press secretary Sean Spicer said Monday that Treasury Secretary Steven Mnuchin has identified August as a target date for tax reform but added consensus is needed for a major policy overhaul. Spicer said various groups would want "a ton of input" and "part of this is going to be dependent on the degree to which we can come to consensus on a lot of big issues." Trump has said he wants to focus on tax reform following the failure of the health-care bill last week.

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NFL approves Raiders' move from Oakland to Las Vegas

Mon, 03/27/2017 - 14:34

National Football League owners approved the Oakland Raiders' move to Las Vegas from Oakland on Monday, the Raiders confirmed in a news release Monday. News reports said that 31 of the 32 NFL teams voted to allow the move, with the Miami Dolphins as the lone holdout. Nevada has approved $750 million in public money to build a new stadium in Las Vegas for the franchise, with another $650 million coming from Bank of America Corp. after initial backer Sheldon Adelson, chief executive and chairman of Las Vegas Sands Corp. , departed the project. Davis, the son of former Raiders owner Al Davis, thanked Adelson in the announcement and pleaded with fans in the Bay Area to support the Raiders as they play in Oakland the next two seasons while the Las Vegas stadium is built. "The Raiders were born in Oakland and Oakland will always be a part of our DNA," Davis's statement read. "We know that some fans will be disappointed and even angry, but we hope that they do not direct that frustration to the players coaches and staff."

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Viacom names Jim Gianopulos chief executive officer of Paramount Pictures film division

Mon, 03/27/2017 - 14:14

Viacom Inc. on Monday officially tapped former 20th Century Fox studio head Jim Gianopulos to run its floundering film business Paramount Pictures. It was reported last week that the studio was looking to bring in Gianopulos following the departure of former studio chief Brad Grey. Gianopulos will take the reins April 3 and will be tasked with getting Paramount Pictures back on track after a couple of years of disappointing box office performance. Paramount is a major fixture in the strategy Viacom's new CEO Bob Bakish laid out to help turn the company's different business segments around. Shares of Viacom's class B shares were up 2% intraday and have gained nearly 11% in the trailing 12-month period, while the S&P 500 index is up 15% during the same time frame.

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Gold ends at a 1-month high as traders shy away from risky assets

Mon, 03/27/2017 - 13:54

Gold futures ended higher Monday, as demand for assets perceived as risky waned and the U.S. dollar touched its lowest levels in four months after the Trump administration's failure to repeal and replace Obamacare. April gold rose $7.20, or 0.6%, to settle at $1,255.70 an ounce. That was the highest finish since Feb. 27, according to FactSet data.

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Apple's stock bounces sharply off early lows, as analyst boosts price target

Mon, 03/27/2017 - 13:50

Apple Inc.'s stock bounced sharply off earlier lows to post a 0.2% gain in afternoon trade Monday, with J.P. Morgan raising its price target to reflect a potential for a further 17% gain from current levels. The stock was down as much as 1.4% at the intraday low of $138.62, which was hit within minutes of the open, but was last trading just 0.4% below its March 20 record close of $141.46. J.P. Morgan analyst Rod Hall said he "materially" raised his fiscal 2018 earnings and unit sales estimates because of what he believes will be "high pent-up replacement demand heading into the 10th anniversary iPhone cycle this year." He said his analysis suggest the average relevant base unit age will be about 6.4 quarters at the end of September, the highest seen in four years following two years of weak replacement behavior. He boosted his fiscal 2018 earnings-per-share estimate to $4.43 from $4.23, and bumped up his unit sales forecast to 260 million units from 245 million units. Apple's stock has run up 22% year to date, while the Dow Jones Industrial Average has gained 3.9%.

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Pimco close to settling lawsuit brought by Bill Gross: WSJ

Mon, 03/27/2017 - 12:30

Pacific Investment Management Co. is close to settling for $80 million a lawsuit brought by founder and former Chief Executive Officer Bill Gross, according to The Wall Street Journal. Gross abruptly left Pimco in September 2014 for Janus Capital Group Inc., where he now manages a global unconstrained bond fund. Gross filed the lawsuit a year after his departure amid media reports portraying him as erratic, domineering and difficult to work with. Gross founded Pimco in the late 1970s and has been credited with building it into one of the world's most successful fixed-income investors. But an exodus of investor capital that followed his exit has since tarnished that reputation. In November, the Pimco Total Return Fund's two-decade long reign as the largest actively managed U.S. bond fund by assets ended.

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Stock sellers showing no signs of panic, NYSE's Arms Index suggests

Mon, 03/27/2017 - 11:13

Despite the stock market's broad selloff, there is no sign of panic selling, according to a volume-weighted breadth measure known as the Arms Index. The measure, which helps gauge selling intensity, was showing a 0.982 reading on the NYSE, where a reading of 1.000 suggests the intensity of buyers and sellers are in perfect balance. The number of declining stocks on the NYSE represents about 67% of the total, while volume in declining stocks is also about 66% of total volume. As panic hits, the volume in declining stocks tends to rise relative to the number of declining stocks, which will lift the Arms Index. Many technicians see a rise above 2.000 to suggest panic selling, that may be worthy of capitulation. Meanwhile, the Dow Jones Industrial Average was down 121 points, putting it on track to suffer the longest losing streak--8 sessions--since the eight-day stretch ending Aug. 2, 2011. The S&P 500 was down 0.5%.

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