- MarketPulse

MarketWatch, a leading publisher of business and financial news, offers users up-to-the minute news, investment tools, and subscription products.

Pentagon delays Trump's big military parade until at least 2019

1 hour ago

The Defense Department said late Thursday that President Donald Trump's planned military parade in Washington for Veterans Day would be postponed until at least 2019. Pentagon spokesman Col. Rob Manning said the White House and the Defense Department "have now agreed to explore opportunities in 2019," the Associated Press reported. Earlier in the day, it was reported that the cost estimate for the parade had skyrocketed to $92 million -- about $80 million over the original estimated budget. Trump has called for a grand parade featuring all branches of the military, but critics have called the plan a waste of money.

Powell to address interest-rate policy in 'changing economy' at Jackson Hole

5 hours ago

Federal Reserve Chairman Jerome Powell's speech at the annual Jackson Hole symposium will be about "monetary policy in a changing economy," the central bank said Thursday. Powell will deliver his remarks on Friday, Aug. 24, at 10 a.m. Eastern.

Nvidia's stock falls 5% as weak crypto-mining sales ding outlook

5 hours ago

Nvidia Corp. shares fell in the extended session Thursday after the graphics-chip maker's results topped Wall Street views but their revenue outlook did not as cryptocurrency mining sales weakened. Nvidia shares fell 5.6% after hours, following a 0.6% decline to close the regular session at $257.44. For the third quarter, Nvidia estimates revenue of $3.19 billion to $3.32 billion, but analysts surveyed by FactSet expect revenue of $3.34 billion. "Our revenue outlook had anticipated cryptocurrency-specific products declining to approximately $100 million, while actual crypto-specific product revenue was $18 million," said Chief Financial Officer Colette Kress in a statement. "Whereas we had previously anticipated cryptocurrency to be meaningful for the year, we are now projecting no contributions going forward." The company reported second-quarter net income of $1.1 billion, or $1.76 a share, compared with $583 million, or 92 cents a share, in the year-ago period. Adjusted earnings were $1.94 a share. Revenue rose to $3.12 billion from $2.23 billion in the year-ago period. Analysts polled by FactSet had estimated $1.85 a share on revenue of $3.1 billion.

Nordstrom shares rally after company beats earnings, raises outlook

5 hours ago

Shares of Nordstrom Inc. jumped more than 12% in the extended session Thursday after the retailer beat second-quarter expectations, raised its guidance for the year, and made progress in online sales. Nordstrom said it earned $162 million, or 95 cents a share, in the quarter, compared with $110 million, or 65 cents a share, in the same period in fiscal 2017. "The increase was driven primarily by higher sales volume, a lower effective tax rate and the impact of the new revenue recognition standard" as it related to the timing of Nordstrom's anniversary sale, the company said in a statement. Revenue rose 7.1% to $4.07 billion, compared with $3.79 billion a year ago. Analysts polled by FactSet had expected earnings of 86 cents a share on sales of $3.97 billion in the quarter. Comparable-store sales increased 4%, Nordstrom said, with digital sales up by 23% in the quarter. Digital sales represented 34% of second-quarter sales, up from 29% a year ago. Nordstrom raised its full fiscal-year sales outlook to between $15.4 billion and $15.5 billion, from a previous estimate of $15.2 billion and $15.4 billion. It forecast EPS between $3.50 and $3.65 a share for the year, from an earlier outlook between $3.35 and $3.55 a share. The analysts surveyed by FactSet expect EPS of $3.46 for the year. Shares ended the regular session up 0.8%.

Applied Materials stock falls after earnings beat, weak guidance

5 hours ago

Applied Materials Inc. shares fell 3.7% in the extended session Thursday after the company beat on the top and bottom line but issued weaker-than-expected guidance for the fiscal fourth quarter. The chip and display maker reported fiscal third-quarter net income of $1.17 billion, or $1.17 a share, compared with $925 million, or 85 cents a share, in the year-ago period. Adjusted for items related to acquisitions and taxes, among other things, earnings were $1.20 a share. Revenue rose to $4.47 billion from $3.74 billion in the year-ago period. Analysts surveyed by FactSet had estimated adjusted earnings of $1.17 a share on revenue of $4.43 billion. For the fiscal fourth quarter, analysts expect adjusted earnings of $1.17 a share on sales of $4.46 billion. The company said it expects earnings adjusted for completed acquisitions and stock-based compensation of 92 cents to $1 a share and sales of $3.85 billion to $4.15 billion. Applied Materials stock closed down 0.2% to $47.43 during the regular session, as the S&P 500 index gained 0.8%.

Dow jumps 400 points, logs best gain in 4 months as Walmart and easing trade fears ignite a rally

5 hours ago

The Dow Jones Industrial Average enjoyed its best day in about four months as a rally in shares of retailing giant Walmart Inc. and an apparent easing of China-U.S. trade tensions helped to support a broad rally on Wall Street. The Dow gained about 400 points, or 1.6%, at 25,559, registering its best one-session rise since April 10, the S&P 500 index rose about 22 points, or 0.8%, at 2,840. All 11 sectors of the broad-market index finished in positive territory, led by a 1.5% gain in consumer-staples and financials , up 1.3%. The S&P 500 posted its best one-day climb since July 25. The technology-laden Nasdaq Composite Index , meanwhile, gained 0.4% at 7,807. Walmart's surge was the big story of the day, with retailing giant and Dow component rising 9.3% and contributing nearly 60 points to the price-weighted Dow, after it reported better-than-expected quarterly results, underscoring the health of the consumer. The enthusiasm around corporate results and an agreement by China and U.S. officials to meet later in the month to discuss easing their animosities on trade helped to overshadow concerns about the Turkish lira , which had underpinned recent fretting about a currency crisis and a possible contagion effect from the country. Those fears had dragged stocks solidly lower on Wednesday.

Federal judge rules that FTC doesn't have strong enough evidence in claims against AT&T's DirecTV

7 hours ago

A federal judge ruled on Thursday that the Federal Trade Commission doesn't have strong enough evidence to back its claim that AT&T Inc. subsidiary DirecTV engaged in deceptive advertising of its satellite TV service, according to the Wall Street Journal. The FTC was seeking nearly $4 billion in restitution, alleging in 2015 that DirecTV had advertised a discounted 12-month pay-TV plan but didn't make it clear to consumers they were actually signing up for a two-year contract and that prices could increase. AT&T shares have fallen 15% so far this year, while the S&P 500 has gained 6.3%

J.C. Penney's bonds slammed by wider-than-expected loss, weak outlook

7 hours ago

Bonds issued by troubled department store chain J.C. Penney Co. Inc. fell sharply Thursday, after the company reported a wider-than-expected loss and slashed its outlook. The news sent its stock down 25% and put it on track for its worst-ever decline and a record low. Against that background, the company's 6.375% notes that mature in October of 2036 were trading at 52.928 cents on the dollar to yield 13.300%, or at a yield spread of 1,026 basis points over Treasurys, making them the biggest decliner among high-yield issuers on the day, according to trading platform MarketAxess. J.C. Penney's 7.125% notes that mature in November of 2023 were trading at 79.875 cents on the dollar to yield 12.466%, according to MarketAxess. The longer-dated 7.400% notes that mature in April of 2037 were trading at 52.298 cents on the dollar to yield 15.122%, or at a yield spread of 1,209 basis points over Treasurys.

Boeing's stock rallies after UBS turns bullish, adds over 100 points to Dow's price

7 hours ago

Shares of Boeing Co. powered up 4.5% in afternoon trade Thursday, bouncing after a month-to-date drop of 6.9%, after UBS analyst Myles Walton upgraded the aerospace and defense giant, saying recent concerns over supplier issues and a trade war with China has created "attractive buying opportunities." Walton raised his rating to buy from neutral, and boosted his stock price target to $515, which is 49% above current levels, from $357. "We believe [Boeing] shares carry the best upside in the sector with much of the cash growth and margin expansion story set to be unlocked...," Walton wrote in a note to clients. "Our proprietary fleet intentions survey and our [Department of Defense] program manager, along with our defense revenue teardown and interactive company model done in conjunction with the UBS Evidence Lab all support our positive bias." The stock's price gain of $14.83 added about 101 points to the Dow Jones Industrial Average's price, which was up 421 points.

Wendy's shares rise 3% after announcing sale of Arby's stake, $100 million buyback program

7 hours ago

Wendy's Co. shares rose 3.1% in Thursday trading after it announced the sale of its 12.3% ownership interest in Inspire Brands, owners of Arby's and Buffalo Wild Wings, for $450 million. Wendy's said the sale will give it the flexibility to invest in its brand. And the burger chain has authorized a new $100 million share repurchase program, in addition to the current $175 million current authorization that expires March 3, 2019. Wendy's shares are up 12.2% for the year to date while the S&P 500 index has gained 6.4% for the period.

Omarosa releases audio of Lara Trump offering $15,000 a month to join campaign after firing

7 hours ago

Omarosa Manigault Newman on Thursday released audio she recorded of Lara Trump, a campaign adviser and the daughter in law of the president, offering her $15,000 a month to join the campaign after she was fired from the White House, making the same salary. "It sounds a little like, obviously, that there are some things you've got in the back pocket to pull out. Clearly, if you come on board the campaign, like, we can't have... Everything, everybody positive, right?" Lara Trump says on the audio played on MSNBC. Lara Trump mentions that mostly small-dollar donors would pay her salary. "I saw this as an attempt to buy my silence," Manigault Newman said on MSNBC. In a statement, Lara Trump said the entire family was concerned for her. "We still wanted her on our team because we cared so much about her personally. That's why I reached out to offer her a position with the 2020 Trump Campaign before we knew anything about the gross violations of ethics and integrity during her White House tenure," she said.

FDA approves first rival generic EpiPen, sending Teva shares up 6%

8 hours ago

Shares of the U.S.-listed Teva Pharmaceutical Industries Ltd. surged 6.2% in extremely heavy Thursday afternoon trade after the company's generic version of the EpiPen allergic reaction treatment was approved by the Food and Drug Administration, making it the product's first true generic rival. Teva secured approval for both adult and child-appropriate dose levels of its generic epinephrine autoinjector. Shares of Mylan , which sells the EpiPen and a cheaper authorized generic version, slumped 0.5% in heavy trade, while rivals Amneal Pharmaceuticals Inc. and Adamis Pharmaceuticals Corp. had shares drop 3% and 7.5% respectively. The approval comes at a time of monthslong spot shortages of the EpiPen, the authorized generic and Amneal's generic Adrenaclick product, causing parents to worry about securing the products in time for back-to-school season. The new alternative should help protect against shortages as well as offer patients a lower-cost option, Food and Drug Administration Commissioner Scott Gottlieb said in a statement. The regulator also noted that generic versions of products like the EpiPen, called "combination products" because that are made up of both a drug and a device, can be more difficult to make. For Teva, which has sought a turnaround amid difficult competitive pressures in the U.S. generics market, the news comes as a reprieve. The FDA previously failed to approved its generic EpiPen in 2016. The entrant could also stymie the launch of another rival product, a pre-filled syringe from Adamis Pharmaceuticals; the company said last week that the commercial launch of the product would be at the discretion of its partner, Novartis' Sandoz unit . Teva shares have risen nearly 14% over the last three months, compared with a 4.4% decline in Mylan shares, a 4.5% rise in the S&P 500 and a 3.2% rise in the Dow Jones Industrial Average .

Trump says he's in 'no rush' on Nafta deal

8 hours ago

President Donald Trump said Thursday he's "no rush" to complete a new deal on the North American Free Trade Agreement after U.S. Trade Representative Robert Lighthizer said he was hopeful for a breakthrough in the next few days. At a cabinet meeting, Trump said he wants to make the right deal and "if we don't have a breakthrough, don't do the deal." The president also repeated he wants a federal lawsuit against companies supplying opioids, echoing a demand he made in March. Trump again said Pastor Andrew Brunson, whose detainment by Turkey has soured that country's relations with the U.S., is an "innocent man." Treasury Secretary Steven Mnuchin said extra sanctions are ready if Brunson is not released.

Dow surges 420 points, on pace for best day in more than 4 months on Walmart and easing trade tension

9 hours ago

U.S. stock-index benchmarks surged in early Thursday trade, as strong corporate earnings helped to overshadow Turkey's currency crisis and as China and the U.S. appeared set to resume trade talks. The Dow Jones Industrial Average was most recently up 427 points, or 1.7%, at 25,591, more than erasing its Wednesday losses, which was sparked by worries about emerging markets in light of a currency crisis in Turkish lira . The rally puts the benchmark on pace for its best one-day gain since April 10, according to FactSet data. China's commerce ministry will send a delegation to the U.S. later this month to resume trade talks, according to reports, which would mark the first such meeting since July. Elsewhere, the S&P 500 index was up 32 points, or 1.1%, at 2,850, while Nasdaq Composite Index advanced 1% at 7,848.

Cost estimate for Trump's military parade raised to $92 million: report

10 hours ago

The cost for President Donald Trump's planned military parade has been raised to an estimated $92 million, according to a CNBC report. That is $80 million more than initially projected, the network said, citing a defense official. The estimate includes security, transportation and costs for temporary duty of troops. The parade is slated for Nov. 10, according to the report.

Citi fined over $10 million by SEC over controls, supervision

11 hours ago

Citigroup will pay $10.5 million to settle two lawsuits from the Securities and Exchange Commission, one stemming from $81 million of losses due to trader mismarking and unauthorized proprietary trading and another from $475 million of losses due to fraudulently-induced loans made by a Mexican subsidiary. The SEC found that from 2013 to 2016, three Citigroup Global Markets Inc. traders, now fired, mismarked illiquid positions in proprietary accounts they managed, in two cases covering losses from widespread unauthorized trading. Citi failed to detect the traders' misconduct earlier because it had inadequate supervisory procedures and systems and did not independently verify the valuations of the mismarked positions. As for the Mexican loan, the SEC found that Banamex's $3.3 billion worth of loans to Oceanografia, S.A. were based on fraudulent invoices made to Pemex, and that Citi lacked the controls necessary to verify the invoices and missed numerous red flags. Citi did not admit or deny either finding.

Investors pull money from emerging markets in wake of Turkey turbulence: IIF

11 hours ago

The market turbulence in Turkey has "clearly weighed" on investor appetite for emerging market assets, with outflows of $1.4 billion since Aug. 9, the Institute of International Finance said Thursday. Most of the outflow has been in stocks, with a much smaller outflow of bonds. South Africa and China were hit hardest, the IIF said. There has also been a modest retrenchment in emerging market countries in Asia. In contrast, Brazil, Thailand and Qatar saw net inflows, the report said.

EIA report shows a slightly larger-than-expected weekly rise in U.S. natural-gas supplies

11 hours ago

The U.S. Energy Information Administration reported Thursday that domestic supplies of natural gas rose by 33 billion cubic feet for the week ended August 10. Analysts polled by S&P Global Platts had forecast a climb of 30 billion cubic feet. Total stocks now stand at 2.387 trillion cubic feet, down 687 billion cubic feet from a year ago, and 595 billion below the five-year average, the government said. September natural gas fell by 3.5 cents, or 1.2%, to $2.906 per million British thermal units, down from $2.931 before the supply data.

Walmart Inc., Boeing stocks deliver 130-point jolt to Dow industrials in early trade

11 hours ago

The Dow Jones Industrial Average on Thursday was up more than 300 points, with the blue-chip benchmark buoyed by a surge in shares of Walmart Inc. and Boeing Co. . Walmart and Boeing were combining to produce a 130-point tailwind for the Dow . The jolt in their shares, underscores the bullish theme that has helped the overall U.S. market shake off worries about Turkey's economy and lira . Giant retailer Walmart delivered quarterly results that were better than expected and Boeing scored a bounce from reports that trade talks between China and the U.S. would resume soon. Boeing had been among the main large-capitalization, multinational stocks perceived to be among the most vulnerable to trade disputes between the two largest global economies. A $1 move in any one of the price-weighted Dow's components equates to a swing of 6.8 points.

China limits offshore lending to support yuan: Reuters

11 hours ago

Chinese authorities moved to shore up the yuan by banning Chinese banks from certain offshore lending activities, according to Reuters, citing sources with direct knowledge of the matter. Banks may no longer deposit and lend yuan offshore through free trade zone schemes, the report said, which would in turn limit liquidity in the offshore yuan, making it more expensive to short it and pushing it higher. The move compares to action by the Hong Kong Monetary Authority in April, in which liquidity in the banking system was reduced to shore up the Hong Kong dollar . China's yuan sold off against the dollar for much of this year, weakening more than 5% in the year to date, according to FactSet. While many analysts attributed the yuan weakness to concerns about a trade war between the U.S. and China and general weakness across emerging markets currencies, others are worried about a devaluation akin to that of 2015, which jolted markets. On Thursday, the yuan rallied against the U.S. dollar. One dollar last bought 6.8726 yuan offshore , down 1.1%, and 6.8890 yuan in Beijing , down 0.7%.

Aretha Franklin--the Queen of Soul--has died at 76, according to reports

11 hours ago

Aretha Franklin, the Queen of Soul, has died, according to an Associated Press report, citing her publicist. The 76-year-old singer and songwriter was under hospice care for an undisclosed illness. Franklin began her career as a child singing gospel at the New Bethel Baptist Church in Detroit and is known for with an incredible four-octave vocal range, and iconic hits songs, including "Respect."

Stocks open higher on plans to resume U.S.-China trade talks

12 hours ago

U.S. stocks climbed at the opening bell on Wednesday as investors closely eye potential for geopolitical concerns to abate after China and the U.S. plan to renew trade talks. The S&P 500 rose 13 points, or 0.5%, to 2,832. The Dow Jones Industrial Average advanced 247 points, or 1%, to 25,409. The Nasdaq Composite rose 51 points, or 0.7%, to 7,825. Reports say China's commerce ministry will send a delegation to the U.S. later in August. The development helped to ease fears that tensions between the two largest economies in the world could translate into a full-blown trade war. Equities are also buoyed by stronger than expected corporate earnings from Walmart and Cisco , two constituents of the blue-chip Dow.

Alibaba stock price target cut at Raymond James, but it's still a 'strong buy'

13 hours ago

The price target for China-based e-commerce giant Alibaba Group Holding Ltd.'s stock was cut to $280 from $300 at Raymond James, due primarily to the recent weakness in the Chinese renminbi. The stock rose 1.8% in premarket trade Thursday, after shedding 5.7% this week through Wednesday. The new price target is 65% above Wednesday's closing price of $169.83. Analyst Aaron Kessler reiterated his strong buy rating on Alibaba, saying the stock's recent weakness--down about 20% since mid-June while the Nasdaq Composite was little changed--was due primarily to macroeconomic concerns in China and currency moves, with the renminbi down about 9% versus the U.S. dollar since March-quarter results were reported. Other concerns include the tariffs and the trade spat with the U.S., which Kessler doesn't believe will have a material impact on results. Kessler said Alibaba remains his "top large cap pick" as the company is expected to be the biggest winner of continued strong e-commerce growth in China. The stock has lost 1.5% year to date through Wednesday, while the iShares China Large-Cap ETF has shed 12% and the S&P 500 has gained 5.4%.

Celanese to raise prices to combat rising raw material costs, effect of China tariffs

13 hours ago

Chemicals company Celanese Corp. said Thursday it is raising the prices of its engineered materials polymer products to combat the rising costs of raw materials and the effect of a 25% tariff on products imported into the U.S. from China. The company said it is raising the price of its propylene-based long fiber thermoplastics, including Celstran, and its polybutylene terephthalate and polyethylene terephthalate compounded engineering plastics, including Celenex, Vandar, Impet, Pibiter, OmniTech and Compel. The price hikes will become effective for orders shipped on or after Aug. 23, or as contracts allow. Shares were not yet active premarket, but have gained 6.9% in 2018, while the S&P 500 has gained 5.4%.

Kroger partnering with robotics company for driverless delivery pilot

13 hours ago

Kroger Co. and Nuro, a robotics company, announced Thursday that they have partnered to pilot driverless delivery vehicles in Scottsdale, Ariz. Shoppers can place their orders beginning today at Fry's Food Stores via the mobile app or the grocer's website. Deliveries can be scheduled for the same or next day. There is no minimum order, but there is a $5.95 delivery fee. Deliveries will be made at the shopper's curb. The pilot will begin with the self-driving Toyota Prius and will introduce the custom driverless vehicle in the fall. Kroger shares are up 2% in Thursday premarket trading, and have gained 9.5% for the year to date. The S&P 500 index is up 5.4% for 2018 so far.

J.C. Penney's stock plunges toward record low and record selloff

13 hours ago

J.C. Penney Co. Inc.'s stock took a 23% dive in very active premarket trade Thursday, in the aftermath of a wider-than-expected second-quarter loss and lowered outlook, to put it on track to open at a record low, as well as its biggest-ever one-day percentage loss. Volume spiked to 2.1 million shares, making the stock the most actively traded ahead of the open. The full-day average is about 11.9 million shares. The stock's previous record close was $2.30 on May 25, 2018. The previous biggest one-day loss was 19.7% on May 16, 2012, followed by a 19.2% decline on Oct. 19, 1987, or Black Monday, according to FactSet. The stock had tumbled 21.5% over the past three months through Wednesday, while the SPDR S&P Retail ETF had climbed 7.5% and the S&P 500 had gained 3.5%.

J.C. Penney shares slump 22% after wider-than-expected loss, revenue decline

14 hours ago

J.C. Penney Co. Inc. shares slumped 22% in Thursday premarket trading after the department store retailer reported second-quarter losses that were wider than expected and sales fell. Net loss totaled $101 million, or 32 cents per share, after a loss of $48 million, or 15 cents per share, last year. Adjusted loss was 38 cents per share. Sales totaled $2.83 billion, down from $3.07 billion. The FactSet consensus was for a loss of 6 cents per share and sales of $2.81 billion. Same-store sales rose 0.3%, below the FactSet estimate for 1% growth. The company said it had to markdown items across many merchandise categories. "This quarter we adjusted our approach to inventory management from 'buying to store capacity' to 'buying and chasing' into demonstrated sales trends," said Chief Financial Officer Jeffrey Davis in a release statement. "Inventory receipts continued to outpace total sales performance this quarter due to prior purchase commitments." J.C. Penney now expects same-store sales to be about flat, and adjusted losses are now expected to be $1 to 80 cents. The previous guidance was for same-store sales that were flat to up 2%, and a loss of 7 cents to EPS of 13 cents. The company says the search for a chief executive is ongoing. J.C. Penney shares have sunk 23.7% for the year to date compared with S&P 500 index gains of 5.4% for the period.

Shares of cinema chains tumble, led by AMC, on report Amazon is eyeing Landmark Theatres

14 hours ago

AMC Entertainment Holding Inc. led cinema stocks lower in premarket trade Thursday, after a report that juggernaut Inc. is competing to buy out Landmark Theatres. Bloomberg cited unnamed sources familiar with the situation saying that Amazon is seeking control of the cinema chain from Wagner/Cuban Cos., but said no decisions have been made and talks could yet unravel. That company is owned by billionaires Mark Cuban and Todd Wagner. AMC is the biggest movie theater chain in the U.S. following its acquisition of Carmike Cinemas in 2016. The stock tumbled 4.5% on the news. Cinemark Holdings Inc. shares fell 0.8% on the news. Marcus Corp. shares were unchanged.

Walmart's stock surge could give a 60-point boost to the Dow's price

14 hours ago

Shares of Walmart Inc. shot 9.9% higher in premarket trade, after the discount retail giant reported blowout fiscal second-quarter results, putting them on track to give a big boost to the Dow Jones Industrial Average . The shares' price gain would add about 61 points to the Dow, while Dow futures climbed 200 points. The stock was on track to open at the highest price seen during regular session hours since Feb. 16, 2018. The stock had lost 8.6% year to date through Wednesday, while the SPDR S&P Retail ETF had run up 12% and the Dow had gained 1.8%.

CACI International raises FY19 guidance after closing CSRA deal

14 hours ago

CACI International Inc. said Thursday it is raising guidance for fiscal 2019 after completing the acquisition of the systems engineering and acquisition support services business of CSRA LLC, a unit of General Dynamics Information Technology Inc. The business is a specialized provider of comprehensive engineering services to the U.S. Navy. CACI offers IT and services to support government departments including intelligence, defense and federal civilian clients. The company is expecting the deal to add about $150 million to fiscal 2019 revenue and is expected to boost per-share earnings on a GAAP basis. CACI is now expecting fiscal 2019 revenue of $4.700 billion to $4.900 billion, up from earlier guidance of $4.550 billion to $4.750 billion, and EPS of $9.14 to $9.53, up from earlier guidance of $8.98 to $9.38. Shares were not yet active premarket, but have gained 36.3% in 2018, while the S&P 500 has gained 5.4%.