MarketWatch.com - MarketPulse

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

Trump to hold off on 'pushing for a [trade] deal' with Japan: Fox News correspondent

7 hours ago

President Donald Trump is tamping down expectations that a significant bilateral trade deal with Tokyo could be struck while he's on his current trip to Japan, according to John Roberts of Fox News. Roberts said on Twitter that Trump had called him from Japan to say that, while weekend talks with Prime Minister Shinzo Abe would address trade, he would delay "really pushing for a deal" till after elections this summer in Japan. See: Golf, steak and a ‘Trump Cup’ sumo event on menu as Japan tailors presidential visit to Trump’s tastes

Uber's first employee, Ryan Graves, to leave board

8 hours ago

Uber Technologies Inc. disclosed Friday afternoon that Ryan Graves, the ride-hailing company's first employee, is resigning from the board as of Monday. Uber did not state a reason for Graves's departure, though it did state that it was not due to a disagreement with the company. "While this is a bittersweet moment, we accept his personal decision that this is the right time for him to step down," Ron Sugar, the independent chair of Uber's board, said in a statement. Graves served as chief executive of the company for a time in 2010, and then led operations until 2017. After Uber's initial public offering earlier this month, Graves was expected to own 1.9% of Uber stock, according to filings with the Securities and Exchange Commission. Graves is currently the founder and chief executive of an investment firm called Saltwater Capital.

First American Financial website exposes hundreds of millions of records: report

8 hours ago

First American Financial Corp. shares slipped in the extended session Friday following a report that the title-insurance company's website leaked hundreds of millions of records containing personal information. First American Financial shares declined 2.2% after hours, following a 0.7% rise to close Friday's session at $55.26. Late Friday, KrebsonSecurity.com reported that First American exposed about 885 million files, or more than 16 years worth of files. "The digitized records - including bank account numbers and statements, mortgage and tax records, Social Security numbers, wire transaction receipts, and drivers license images - were available without authentication to anyone with a Web browser," the KrebsonSecurity report said. When contacted by KrebsonSecurity, First American Financial confirmed "a design defect in an application that made possible unauthorized access to customer data" but did not comment on the extent of the exposure or how many records may have been vulnerable, according to the report. First American said it shut down external access to the application when it learned of the flaw. The company said it was evaluating what effect, if any, this had on the security of customer information.

Trump nominates head of police union that endorsed him to lead the ATF

9 hours ago

President Donald Trump on Friday said he will nominate Kenneth Canterbury, Jr., the president of the National Fraternal Order of Police, to be the director of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Canterbury has led the nation's largest police union since 2003.

Roku stock closes at record high for fourth consecutive session, market cap above $10 billion

9 hours ago

Roku Inc. shares jumped another 6.2% Friday to close at $95.78, establishing a new record high for the fourth consecutive session. Roku stock has been on a roll since the streaming-television company reported strong revenue growth on May 8, gaining 47.5% since that date. For the week, Roku stock increased 14%, after jumping 27.3% in the week of its first-quarter earnings report. Shares have now more than tripled in 2019, gaining 212% this year as the S&P 500 index has gained 12.6%. The gains pushed Roku's market capitalization into 11 figures for the first time at the end of Thursday's session before closing Friday at $10.9 billion, according to FactSet.

Novartis gets FDA nod for advanced breast-cancer treatment

9 hours ago

Novartis AG said late Friday the U.S. Food and Drug Administration has approved one of its treatments for a type of advanced breast cancer afflicting patients carrying a gene mutation. The mutations are associated with tumor growth, resistance to endocrine treatment, and a poor overall prognosis, Novartis said. The treatment, Piqray, is the first ever for treatment specifically for the type of advanced breast cancer with the mutation, the company said. "We are proud to offer a new treatment option that specifically addresses the needs of the patients living with this mutation," Novartis' oncology Chief Executive Susanne Schaffert said in a statement. "We are grateful to our researchers' bold and unrelenting pursuit of a first-in-class treatment for this incurable disease, and to the patients, investigators and administrators who participated in the clinical trials leading to this remarkable milestone." American depositary shares of Novartis rose nearly 1% in the extended session Friday, after ending the regular trading day up 3.7%.

Pfizer's Lyrica doesn't meet endpoint in epilepsy study

9 hours ago

Pfizer Inc. said late Friday one of its drugs did not meet set goals for the treatment of epilepsy in a late stage clinical trial. Pfizer said a Phase 3 clinical trial showed its drug Lyrica did not significantly reduce seizures in epilepsy patients compared with those given a placebo. Lyrica is already approved by the Food and Drug Administration to treat fibromyalgia, diabetic nerve pain, spinal cord injury nerve pain and pain after shingles. Pfizer shares, which closed up less than 0.1% at $41.95, were flat after hours.

Intelligence director Coats says spy agencies will cooperate with DOJ review

10 hours ago

Director of National Intelligence Dan Coats said Friday that U.S. spy agencies will give the Justice Department information for a review of intelligence activities related to Russian interference in the 2016 election. In a statement Coats said he was confident that Attorney General Bill Barr would work with those agencies to protect "highly-sensitive classified information" that could risk national security if released. President Donald Trump has given Barr authority to review and potentially release classified information. Trump has claimed his campaign was a victim of spying.

Stock market ends higher ahead of Memorial Day holiday, but Dow logs longest weekly skid in 8 years

10 hours ago

U.S. stock benchmarks closed out a woeful week for higher on Friday, heading into the Memorial Day holiday. Reports that President Donald Trump may ease restrictions against Huawei Technologies Inc. as part of a bigger trade deal with China, helped to fuel some modest levels of optimism. However, all three major benchmarks finished the week with sizable losses, and the Dow Jones Industrial Average marked its longest weekly losing streak since 2011. The Dow finished Friday trade up 95 points, or 0.4%, at 25,585, the S&P 500 index rose 0.1% to 2,826, while the Nasdaq Composite Index ended up 0.1% at 7,637. For the week, the Dow declined 0.7%, marking its fifth straight weekly slump. The S&P 500 finished the week 1.2% lower, while the Nasdaq closed 2.3% lower for the week. Both the S&P 500 and the Nasdaq marked their third consecutive weekly loss. On the economic front, orders for durable goods fell 2.1% in April, less severe than the 2.4% decline expected by economists polled by MarketWatch. Core durable orders, a key measure of business investment, also declined, by 0.9%, the first decrease in four months. U.S. markets will be closed on Monday for Memorial Day.

U.S. oil prices finish higher, but post worst week of the year

11 hours ago

U.S. oil futures finished higher Friday, recouping some of the losses they saw from a day earlier when they settled at a more than two-month low. Prices, however, also posted their worst weekly decline year to date. Traders continued to gauge the risk of an energy demand slowdown as the U.S. and China continue to grapple with their dispute on trade. "There was a violent repricing of risk on Thursday after the rather disappointing global Flash PMIs discounted the argument that solid growth will continue to underpin demand. And that, paired with ongoing trade war tensions led to the big declines" that left the market "to finish the week deep in the red," said Tyler Richey, co-editor at Sevens Report Research. July WTI oil rose 72 cents, or 1.2%, to settle at $58.63 a barrel on the New York Mercantile Exchange. After a 5.7% drop Thursday, front-month contract prices lost 6.8% for the week, according to Dow Jones Market Data.

Foot Locker shares plummet after lackluster second-quarter guidance

11 hours ago

Foot Locker Inc. stock plummeted more than 16% in Friday trading after the athletic retailer missed on first-quarter profit and sales and gave a lackluster look forward. Calling the second quarter "just sort of not very exciting," Foot Locker Chief Executive Richard Johnson also said changes to merchandise plans would make the period even more dull. "So, the biggest shift in the second quarter is related to products that we now know are shifting out of the quarter," he said, according to a FactSet transcript. "It's a very normal course of business that we have puts and takes." But analysts at Baird reacted to the "disappointing setback" by removing their "Fresh Pick" rating from Foot Locker stock and cutting the price target to $62 from $77. Still, Baird rates Foot Locker stock outperform. "While highly disappointed by the FQ1 update/outlook, we still think Foot Locker is well positioned to benefit from an improving footwear cycle (especially as a key differentiated partner for Nike) allowing for continued strong comps and improving margin visibility over the next several quarters," the note said. Meanwhile, competing athletic retailer Hibbett Sports Inc. stock soared 22.4% after better-than-expected quarterly results. Hibbett shares have gained 69.5% for the year to date. Foot Locker stock is down 18% for the period. And the S&P 500 index is up 12.8% for 2019 so far.

Global Payments could announce $20 billion deal for Total System Services on Tuesday: CNBC

12 hours ago

Global Payments Inc. is expected to announce a roughly $20 billion deal for peer Total System Services Inc. on Tuesday, according to CNBC. The deal is expected to be an all-stock transaction, CNBC said, citing multiple anonymous sources. Global Payments and Total System Services didn't respond to requests for comment about the potential deal. Total System Services shares are up 11.2% in midday trading Friday, while Global Payments shares are up 3.7%. "A combined TSYS-Global Payments entity would be a ~$40B market cap payments company with 8% share in U.S. merchant acquiring, and benefit from the similar customer segment focus of the two merchant acquiring business on the [small- and medium-sized business] segment," wrote MoffettNathanson analyst Lisa Ellis. However, she sees other potential deals involving Global Payments as "equally, if not more, likely" given that the company is growing more quickly than Total System Services, which has seen its shares rise 37% this year as the S&P 500 has climbed 13%.

Gold futures edge down for the session, climb for the week

12 hours ago

Gold futures edged lower Friday, pulling back from the one-week high they settled at a day earlier. Prices for the haven metal, however, ended the week higher against backdrop of worries surrounding the U.S.-China trade standoff and political uncertainty in the U.K. Prime Minister Theresa May announced her decision Friday to step down. June gold fell $1.80, or 0.1%, to settle at $1,283.60 an ounce on Comex. For the week, prices gained 0.6%, according to FactSet data.

Baker Hughes reports a third straight weekly decline in U.S. oil-rig count

12 hours ago

Baker Hughes on Friday reported that the number of active U.S. rigs drilling for oil fell by 5 to 797 this week. That followed declines over each of the last two weeks. The total active U.S. rig count, meanwhile, fell by 4 to 983, according to Baker Hughes. June West Texas Intermediate crude was up 39 cents, or 0.7%, to $58.30 a barrel. It was at $58.26 shortly before the rig data.

Boeing under SEC investigation on 737 Max groundings: report

13 hours ago

The U.S. Securities and Exchange Commission is investigating Boeing Co. over disclosures related to the 737 Max issues, according to a Bloomberg report on Friday that cited people familiar with the matter. The 737 Max family has been grounded since March following two fatal crashes that pointed to a problem related to one of the aircraft's anti-stall features. Officials in the SEC's enforcement division are examining whether Boeing properly disclosed to shareholders the material problems with the plane, Bloomberg said. Boeing shares have lost 1% in the past 12 months, versus gains around 4% for the S&P 500 index and 3% for the Dow Jones Industrial Average . Boeing is a Dow component.

Disaster-aid bill stalls in House as Republican objects

14 hours ago

A $19 billion disaster-aid package stalled in the House of Representatives on Friday after passing the Senate on Thursday. Most lawmakers have left Washington for the Memorial Day recess, and Rep. Chip Roy, a Texas Republican, objected to a so-called unanimous consent request. Roy's objection delays consideration of the bill until at least June 3, when lawmakers return. The measure helps a number of states and Puerto Rico recover after a series of hurricanes, floods and wildfires.

Stock markets early gains losing steam in late-morning trade ahead of Memorial Day weekend

15 hours ago

Gains for the broader stock market were losing momentum Friday morning, heading into an extended holiday weekend for U.S. markets. The Dow Jones Industrial Average was up 31 points at 25,519 , but had been up by as many as 180 points to start the day's action. The S&P 500 index was basically flat at 2,824. Both indexes were clinging to gains of about 0.1%. Meanwhile, the Nasdaq Composite Index was up 0.2% at 7,646. All three benchmarks are set to book weekly losses, with the Dow set for its longest string of weekly declines -- five straight-- since a six-week skid ended June 10 of 2011. The U.S. market will be closed on Monday for Memorial Day. Trade tensions between the U.S. and China have been a big driver of market turbulence over the past few weeks.

Zoom Video started with a 'perform' rating at Oppenheimer

16 hours ago

Oppenheimer analyst Ittai Kidron initiated coverage of Zoom Video Communications Inc.'s stock with a perform rating late Thursday, arguing that the company has a large and expanding total addressable market but that its shares look fairly valued following a big run-up since the company's April initial public offering. The stock is currently trading at $78.50, more than double its IPO price of $36. "Zoom's freemium tier (self-serve, unlimited use) has driven viral user expansion, while giving the company a springboard to quickly convert users to paying customers with multiple expansion levers (new users, new use cases, higher tiers, new products, international expansion)," Kidron wrote. "The net result is fast-paced growth (~48% CAGR) and strong net dollar expansion (high 130% range)." Kidron said that the company looks poised to sustain its "strong execution" but he awaits a more attractive entry point before recommending the shares. They're up 25% over the past month, as the S&P 500 has fallen 3.2%.

Dow appears set for longest weekly losing streak in 8 years

16 hours ago

The Dow Jones Industrial Average on Friday was gaining to close out a mostly downbeat trading stretch, but the gains don't appear to be sufficient for the blue-chip to avoid its longest weekly string of losses in about eight years. The Dow was set for a weekly decline of 0.5%, even as the benchmarks rose 150 points, or 0.6%, at 25,640. If the gauge logs a weekly loss it would be its fifth straight, representing the longest such weekly skid since a six-week slump ended June 10, according to FactSet data. Meanwhile the S&P 500 index was trading 0.6% higher, on track for a weekly slump of 0.7%, while the Nasdaq Composite Index gained 0.8% at 7,689, but set for a weekly decline of 1.6%. Both indexes are on track for their third straight weekly declines.

Dow rises 150 points at start of Friday action but poised for 5th weekly loss in a row ahead of Memorial Day

16 hours ago

U.S. stocks opened higher on Friday, capping a mostly downbeat week for equities, weighed by U.S.-China trade tensions, which put the three main indexes on track to post consecutive weekly losses heading into the Memorial Day holiday. The Dow Jones Industrial Average rose 150 points, or 0.6%, at 25,651, set for a weekly slump of 1.1% and its fifth straight weekly loss, as of Thursday's close, the S&P 500 index rose 17 points, or 0.6%, at 2,839, poised for a 1.3% weekly skid. Meanwhile, the Nasdaq Composite Index advanced 0.8% at 7,685, but was on pace for a 2.4% weekly slide as of Thursday's finish. The main political news for the day centered on apparent softening of trade tensions between the U.S. and China and Theresa May's announced resignation as U.K. prime minister amid her failed attempts at Brexit. In economic news, orders for durable goods-products designed to last at least three years, such as cars and appliances-fell 2.1% from the prior month to a seasonally adjusted $248.4 billion in April, the Commerce Department said Friday. Meanwhile, yields on government debt rose somewhat after the 10-year Treasury month hit its lowest rate since 2017 in Thursday trade as heightened tariff anxieties, among many other factors, helped to drive bond prices up and yields lower. The 10-year Treasury note yield was at 2.33% in recent action. U.S. markets will be closed on Monday in observance of Memorial Day and the bond market will close an hour early at 2 p.m. Eastern Time on Friday.

Deckers shares rise as interest in Ugg lifts in the U.S.

17 hours ago

Shares of Deckers Outdoor Corp. jumped 6.4% in Friday premarket trading after the company reported earnings that beat expectations. The stock rise was nearly as much as interest in the Ugg brand in the U.S. "According to Google Trends, interest in Ugg over the past year grew by 7%," said Chief Executive David Powers in the earnings call, according to a FactSet transcript. Powers said the brand acquired almost 1.5 million new customers. "There is still opportunity for Deckers to continue to drive upside in sales and possibly margins, though investments in marketing, digital and analytics may temper such opportunity in the near-term after two years of favorable weather and strong execution," wrote Wedbush analysts. Wedbush rates Deckers shares neutral with a $138 price target, up from $130. Deckers portfolio also includes Hoka One One and Teva. Deckers shares have rallied 15.2% for the year to date, exceeding the S&P 500 index , which is up 12.6%.

Apple faces 'low likelihood' that its iPhones will be subject to tariffs, says Wedbush

17 hours ago

Wedbush analyst Daniel Ives wrote Friday that Apple Inc.'s selloff due to escalating trade tensions with China looks overdone. "We continue to strongly believe that for a company that employs over 1 million Chinese workers with its flagship Foxconn factory and is a major strategic player within the China technology ecosystem...from a supply chain perspective Apple will not have major roadblocks ahead despite the loud noise," he wrote. "Taking a step back, we ultimately believe there is a low likelihood that Apple and its iPhones feel the brunt of the tariffs given its strategic importance domestically as well as [Chief Executive Tim] Cook's ability to navigate these issues in the past with Trump and K Street." He maintained an outperform rating and $235 target price on the stock, which has gained 14% so far this year, as the Dow Jones Industrial Average has increased 9%.

Alibaba stock rises after Stifel adds company to its 'select list'

17 hours ago

Stifel analyst Scott Devitt elevated Alibaba Group Holding Ltd. shares to his firm's "select list" on Friday as he reiterated a bullish view of the company in the face of escalating trade tensions between the U.S. and China. Alibaba shares are up 1.3% in premarket trading Friday. "While it is impossible to predict the timing of resolution of certain macro events, we believe the recent pullback has created an opportunity to own shares with a long-term investment horizon," he wrote. "Cross-border business between the U.S. and China is a relatively small component of total company revenue. Long-term secular trends such as the growing middle class and the economy shifting more towards services are more important to Alibaba's long-term growth trajectory." Alibaba shares have gained 14% so far this year, as the S&P 500 has risen 13%.

Total System Services stock rises after Bloomberg reports of merger talks with Global Payments

17 hours ago

Shares of Total System Services Inc. are up more than 6% in premarket trading Friday after Bloomberg reported that the company has engaged in talks with Global Payments Inc. about a potential merger. The companies also discussed potential joint ventures and other ways they could work together without merger, according to Bloomberg, which cites an anonymous source. Total System Services and Global Payments didn't immediately respond to MarketWatch's request for comment. "It seems like the race is on for creating the third two-sided network platform, servicing both [financial institutions] and merchants," wrote Wedbush analyst Moshe Katri. "TSS remains one of the least expensive names in the space." Payments peers Fidelity National Information Services Inc. and Worldpay Inc. announced plans to combine back in March, while Fiserv Inc. and First Data Corp. announced their own merger plans in January. Piper Jaffray analyst Jason Deleeuw wrote that he expects any merger between Total System Services and Global Payments to be a cash and stock deal, "like the other two processing mega-mergers announced this year." Total System Services shares have gained 23% so far this year, as the S&P 500 has risen 13%.

Snap shares climb 2.7% premarket on WSJ report of talks with major music labels

18 hours ago

Snap Inc. shares rose 2.7% in premarket trade Friday, after a report that the Snapchat parent is in talks with record labels on expanding the ways its users can include music in posts. The Wall Street Journal, citing people familiar with the matter, said the move comes amid competitive pressure from Facebook Inc.'s Instagram and TikTok. Snap already has case-by-case licenses to use individual artist's music, but is now seeking to access the catalogs of the big music labels, including Vivendi SA's Universal Music Group, Sony Corp.'s Sony Music Entertainment and Access Industrie's Warner Music Group, the paper reproted. Snap shares have gained 4.9% in the last 12 months, while the S&P 500 has gained 3.5%.

Hibbett shares soar after earnings blow past estimates, guidance raised

18 hours ago

Hibbett Sports Inc. shares soared 16.6% in Friday premarket trading after the athletic retailer reported first-quarter earnings that blew past estimates and the company raised its guidance. Net income totaled $27.4 million, or $1.48 per share, up from $21.5 million, or $1.12 per share, last year. Adjusted EPS was $1.61, blowing past the $1.32 Factset consensus. Revenue totaled $343.3 million, up from $274.7 million last year and ahead of the $327.0 million FactSet estimate. Same-store sales rose 5.1% while FactSet expected a 0.7% same-store sales decline. Same-store sales will not include City Gear until the fourth quarter of fiscal 2020. Hibbett announced its acquisition of City Gear, a specialty athletic retailer with 135 stores across 15 states, in October 2018. "We believe our improved web traffic and mobile app, along with continued traction in buy online, pickup in-store, are translating to traffic in our stores and online," said Hibbett Chief Executive Jeff Rosenthal. The company is undergoing a realignment of its stores, with three new stores opened in the quarter, two Hibbett stores rebranded as City Gear shops, one expansion of a "high-performing" Hibbett, and 24 store closures. Hibbett plans to close 95 underperforming stores in fiscal 2020. For the year, Hibbett raised its same-store sales estimate to a 0.5% to 2.0% increase, up from a previous 1% decline to 1% growth. EPS is expected to be $1.70 to $1.85, up from $1.50 to $1.70. Adjusted EPS is now expected to be $2.00 to $2.15, up from $1.80 to $2.00. FactSet is guiding for EPS of $1.90 and same-store sales growth of 0.8%. Hibbett stock has climbed 38.6% for the year to date while the S&P 500 index is up 12.6%.

Pound briefly climbs after news U.K. Prime Minister Theresa May will step down

20 hours ago

The British pound jumped, then pulled back on the news U.K. Prime Minister Theresa May will step down, after she failed three times to get a Brexit deal passed through Parliament. Making the announcement from Downing Street, May said her last day as prime minister and Conservative party leader will be June 7. The pound initially jumped on the move that had been widely reported, rising to a session high of $1.2725, before falling back to $1.2674, but still up 0.2% on the day. "The fact is that sterling volatility is going to rise from here and Boris Johnson is going to go for the hard Brexit which is going to be a huge disaster for the country," said Naeem Aslam, chief market analyst at TF Global Markets, in reference to former foreign secretary and Brexit hardliner Johnson.

Report: Huawei may be part of any China trade deal, Trump says

yesterday

The U.S. could ease harsh measures taken against Huawei Technologies Co. as part of a wider trade deal with China, President Donald Trump suggested Thursday, Reuters reported. Last week, the Trump administration effectively banned U.S. companies from dealing with the Chinese tech giant over concerns that its telecom equipment poses a national security threat, though some companies were to get a 90-day window before the ban begins. Speaking about a possible trade deal Thursday at the White House, Trump said: "If we made a deal, I could imagine Huawei being possibly included in some form or some part of it," according to Reuters, though he said the company was "very dangerous" from a security standpoint. There had been speculation that the action against Huawei was, at least in part, a bargaining chip to be used in future negotiations. There are no new trade talks scheduled, but Chinese officials have said they're open to resuming negotiations, and Trump on Thursday again predicted a quick end to the yearlong trade war.

Canadian marijuana producer Flowr receives Nasdaq listing approval

yesterday

Flowr Corp. said late Thursday that it had received approval to list on the Nasdaq Capital Market. The Canadian weed producer will trade under the ticker FLWR and begin trading at a date it will set out in its 40-F, filed with the Securities and Exchange Commission. "We have made tremendous progress against our strategic priorities in 2019, and the approval of our listing on the Nasdaq further enhances our capital markets objectives. This listing provides us with broader access to investors around the world and is a natural progression for Flowr," Chief Executive Vinay Tolia said in a statement. Flowr stock fell 0.6% in regular trading Thursday as the S&P 500 index dropped 1.2%.

Dynavax announces layoffs, CEO retirement

yesterday

Dynavax Technologies Corp. said late Thursday it will focus on its vaccine business and on its first commercial product, a hepatitis B vaccine, looking to unwind its immuno-oncology business. The company will also lay off workers and trim operations to focus on the vaccine's commercialization. "Following a comprehensive analysis of our assets, strengths and opportunities, we have determined we should focus our resources on our approved vaccine, HEPLISAV-B, which, as the only two-dose hepatitis B vaccine, is gaining market share and is well positioned to become the new standard of care in the U.S," Chief Executive Eddie Gray said. In the same press release, Gray said that the restructuring was "the optimal time" for his retirement, effective Aug. 1. The company's board of directors has created an interim office of the president and has appointed David Novack and Ryan Spencer, two senior vice presidents, as co-presidents effective immediately. Shares of Dynavax, halted earlier in the extended session, fell more than 5% when they resumed trading. The shares ended the regular session 0.2% lower.