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30-year Treasury yield jumps after report U.S. Treasury conducts outreach on ultra-long bonds

21 hours ago

Long-term Treasury yields jumped after Bloomberg News reported that the U.S. Treasury Department would reach out to market participants on the possibility of issuing ultra-long bonds. The 30-year Treasury bond yield climbed 5.8 basis points to 2.038%. Debt prices move in the opposite direction of yields. The Treasury Department has periodically asked investors about the idea of selling ultra-long bonds with maturities beyond 30 years. Back in 2017, the Treasury asked primary dealers about the potential uptake for bonds ranging between maturities of 40 years to a 100 years.

Dow ends Friday over 300 points higher -- already marking one of the wildest month for stocks since December

21 hours ago

U.S. stock indexes on Friday finished sharply higher, wrapping up a volatile week for Wall Street, marked by concerns about weakening corporate earnings and uncertainty over the health of the U.S. and global economy. The Dow Jones Industrial Average [: DJIA] closed up 307 points, or 1.2%, to 25,886, the S&P 500 index ended 1.4% higher to 2,889, while the Nasdaq Composite Index closed 1.7% higher at 7,896 (on a preliminary basis). For the week, however, the Dow finished 1.5% lower, the S&P 500 ended down 1%, while the Nasdaq retreated 0.8%. The Dow marked its eighth move of at least 1% so far this month, the most 1% moves since December 2018 when it had 12, according to Dow Jones Market Data. Investors will be looking for guidance from central-bank policy makers next week when Federal Reserve officials are slated to meet at the Jackson Hole symposium on Thursday, a day after minutes from the Fed's July 31 policy gathering is released. This past week was marked by heightened anxieties about a domestic recession after the 10-year Treasury rate fell below that of the 2-year Treasury note briefly on Wednesday, a condition that has been an accurate predictor of economic recessions in the months after the so-called yield-curve inversion takes place.

U.S. oil futures tally gains for the session and week

22 hours ago

Oil futures climbed Friday, tallying a gain for the week, their first in three weeks. "Today's rise reflected some reluctance to go home short over the weekend given the uncertainties in the Persian Gulf...," said Marshall Steeves, energy markets analyst at IHS Markit. "Overall, the market is range bound with these supply uncertainties offset by weakening demand. So while there was a rise today and for the week, there remains a longer-term downtrend," he said. September West Texas Intermediate oil added 40 cents, or 0.7%, to settle at $54.87 a barrel on the New York Mercantile Exchange. For the week, prices rose 0.7%, FactSet data show. That followed two consecutive weekly declines.

FDA approves AbbVie's Rinvoq to treat moderate-to-severe RA

23 hours ago

The U.S. Food and Drug Administration has approved AbbVie Inc's Rinvoq, a JAK kinase inhibitor, to treat moderate-to-severe rheumatoid arthritis in adults for whom methotrexate hasn't worked, AbbVie announced Friday. The pharmaceutical company said Rinvoq should be available in the U.S. later this month. "Despite the availability of multiple treatment options with varying mechanisms of action, many patients still do not achieve clinical remission or low disease activity - the primary treatment goals for rheumatoid arthritis," said Roy Fleischmann, a clinical professor at the University of Texas Southwestern Medical Center at Dallas who led one of AbbVie's clinical trials of Rinvoq. "With this FDA approval, Rinvoq has the potential to help additional people living with RA achieve remission who have not yet reached this goal." The European Medicines Agency and regulatory authorities in Canada and Japan are still reviewing the drug. Shares of AbbVie were up 2.2% Friday afternoon, though they've fallen 30% in the year to date amid investor worry over declining sales of the company's blockbuster drug Humira. The stock also took a hit in June when the AbbVie said it would be acquiring Botox-maker Allergan Plc in a deal worth around $63 billion. The S&P 500 has gained 15.2% so far this year.

Gold futures settle lower, post a third straight weekly gain

7 min ago

Gold futures fell on Friday, but posted a gain for the week--their third in row. "Drivers for gold have included global growth in negative interest rate bonds, the decline in real interest rates in the U.S., [and] uncertainty regarding U.S./China trade policy and political unrest in Hong Kong," said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management. However, "with bonds and gold overbought and bullish speculative positions at relative extremes last week ... gold may be due for a near-term pause," he said. December gold fell by $7.60, or 0.5%, to settle at $1,523.60 on Comex. For the week, most-active contract prices rose by 1%, according to FactSet data.

Data REIT CyrusOne shares soar after report company is exploring a sale

11 min ago

Shares of CyrusOne Inc. , a date center real estate investment trust, rose more than 8% Friday, after a Bloomberg report that the company is exploring a sale after drawing takeover interest. The news sent rivals higher with QTS Realty Trust Inc. up 3.3%, Digital Realty Trust up 2.7%, CoreSite Realty Corp. up 2.9% and Equinix Inc. up 1%. Wells Fargo analysts said the report is likely true and there is a reasonable probability the company will be taken private by a group of private infrastructure investors. Among the reasons that a take-private deal would make sense for CyrusOne is that investors have been paying premiums for hyperscale assets compared with where they would trade in public markets, the analysts wrote in a note to clients. They tend to take a longer-term investment horizon and are less focused on quarter-to-quarter volatility and could lever up the company to enable it more aggressively expand in Europe and other international markets, said the note. "On the other hand, CONE itself has noted that large hyperscale customers prefer to work with other public companies and that their access to public capital should open up dramatically once they get a second investment-grade rating," they said. CyrusOne is trading at abut 19 times Wells Fargo's next twelve month EBITDA estimate, which compares with Digital Realty's acquisition of REIT DuPont Fabros Technology , which came at a roughly 20 times multiple. "CyrusOne in many ways deserves a premium over DuPont Fabros given it has a strategic international platform, less customer concentration than DFT (which had a large pending rent roll-down with Facebook) and a more diversified business model," said the note. "On the other hand, this would be an acquisition of significant size for a private infrastructure consortium, which could merit a slight discount (for instance, ZAYO sold at a notable discount to many smaller-scale fiber assets)." CyrusOne shares have gained 32% in 2019, while the S&P 500 has gained 15%.

Baker Hughes reports a rise in the U.S. oil-rig count for the first time in 7 weeks

37 min ago

Baker Hughes on Friday reported that the number of active U.S. rigs drilling for oil rose by 6 to 770 this week. That followed a declines in each of the past six weeks. The total active U.S. rig count, meanwhile, also climbed by 1 to 935, according to Baker Hughes. September West Texas Intermediate crude continued to trade modestly higher, up 13 cents, or 0.2%, at 54.61 a barrel.

Trump held call with big bank CEOs during Wednesday market plunge: report

1 hour ago

President Donald Trump held a conference call Wednesday with top executives of three major Wall Street banks as the stock market plunged and the bond market sent a recession signal, Bloomberg reported Friday. Trump held the call with JPMorgan Chase & Co.'s Jamie Dimon, Bank of America Corp.'s Brian Moynihan, and Citigroup Inc.'s Michael Corbat, the report said. Stocks tumbled Wednesday, with the Dow Jones Industrial Average falling 800 points, or 3.1%, to log its biggest one-day percentage drop of the year, while the S&P 500 dropped 2.9%, as the yield on the 10-year Treasury yield briefly dipped below the 2-year note yield, a phenomenon seen as a potential warning of a future recession. Stocks rebounded slightly on Thursday and were holding solid gains in Friday's session, but major indexes remained on track for weekly declines.

Applied Materials shares slump after Craig-Hallum downgrades to hold from buy

2 hours ago

Craig-Hallum downgraded Applied Materials Inc. to hold from buy on Friday and said shares are fully valued given the lack of clarity on the timing or magnitude of the company's recovery. Analyst Christian Schwab cut his stock price target to $46 from $50. The company beat estimates for its fiscal third quarter late Thursday and reiterated guidance for 2019 wafer fab equipment to be down in the mid-to-high teens from 2019 but to gradually recover in 2020. "However, management remained hesitant to call Q3 the bottom given the current macro-economic environment," the analyst wrote in a note. "With management's limited visibility into the timing or magnitude of an expected gradual recovery as well as higher than expected OpEx we believe shares are fairly valued and are moving to the sidelines." Shares were down 2.3% Friday, but have gained 41% in 2019, while the S&P 500 has gained 15%.

U.S., German yields rebound after report Germany open to deficit spending

2 hours ago

Treasury yields followed their German counterparts higher after Der Spiegel reported that Berlin would be willing to run fiscal deficits during a recession, citing sources in the German Chancellery and the finance ministry. The 10-year Treasury note yield climbed 5.7 basis points to 1.584%, while the German 10-year bond yield rose 4.5 basis points to negative 0.657%. Debt prices move in the opposite direction of yields.

Dow jumps more than 300 points in late-morning trade as yields punch higher

2 hours ago

The Dow Jones Industrial Average rose to session highs Friday morning alongside a climb for government bond yields on the day. The Dow was up 327 points, or 1.3%, at 25,907, the S&P 500 index advanced 1.5% at 2,890, while the Nasdaq Composite Index rose 1.7% to 7,900. The move came as the 10-year Treasury note rose to 1.58% from around 1.51% earlier in the session.

German bond yields rise on report it would deficit spend during a recession

3 hours ago

German bond yields rose as the publication Spiegel reported that the country was willing to engage in deficit spending if it enters recession. Germany contracted in the second quarter and economists say it may do so again in the third, which would meet the technical definition of a recession. The German DAX stock market index was stronger in afternoon trade.

Intel shares up 1.4% after Northland upgrades the stock in bullish note

3 hours ago

Northland Capital upgraded Intel Corp. to market perform from underperform on Friday, after the chip maker's strong second-quarter earnings. Analyst Gus Richard said the stock is now trading below his price target of $48, it's trading at 11.5 times his 2020 estimates, which are lower than consensus, it beat second-quarter estimates by $900 million and 17 cents but only increased its guidance by $500 million and 5 cents. "We think value stocks likely outperform higher multiple stocks during sell offs," Richard wrote in a note. "Sentiment (is) nearing a low point." Since Northland downgraded the stock back in December, the trade was has taken a turn for the worse, with bans on Huawei and Chinese super computer companies, he wrote. "In addition, AMD's server launch likely makes it clear Intel is going to struggle to maintain share and will suffer from pricing pressure," said the analyst. "While we expect AMD to take share in the server market over time, share in this market shift slow." Shares were up 1.4% Friday, but have fallen 1.2% in 2019, while the S&P 500 has gained 15%.

Dillard's management is silent after earnings miss, and analysts take note

3 hours ago

JPMorgan analysts noticed that the earnings release for Dillard's Inc. second-quarter earnings didn't include a comment from management, which could suggest a tough road ahead. Dillard's stock slipped 1.8% in Friday trading after the department store retailer reported earnings and sales that missed expectations. "Importantly, the press release included no commentary from management on 2Q business results versus 2Q of last year when CEO Dillard cited '[an] encouraging year-to-date improvement as we head into the important back half of the year,'" the note said. "Looking forward, we note Dillard's multi-year comp comparisons in 3Q to 4Q stand 540 basis points more challenging on average relative to 1H." JP Morgan rates Dillard's underweight with a $37 price target, slashed from $54. Analysts say the company has shifted its merchandise to occupy a space between Macy's Inc. and Nordstrom Inc. that caters to a higher-income target. And Dillard's has become more significant with the bankruptcies and store closings in the retail sector. But declining mall traffic and lower e-commerce business will restrict top-line growth. Dillard's stock is down 8.7% for the year to date while the S&P 500 index has gained nearly 15%.

Dow climbs 200 points at open but U.S. stock market set to book weekly loss amid recession jitters

4 hours ago

Stocks opened higher Friday but Wall Street was still on track for weekly losses, as U.S. Treasury yields recovered from multiyear low and investors track U.S.-China trade negotiations. The Dow Jones Industrial Average gained 210 points, or 0.8%, at 25,789, and the S&P 500 index climbed 0.9% at 2,873, while the Nasdaq Composite Index advanced 0.8% to 7,845. Investing has been dominated by concerns about the health of the global economy, with an inversion of the yield curve, where short-term rates rise above their longer-term counterparts, heightening those concerns. The so-called yield-curve inversion, as the condition is referred, has coincided with economic recessions. Worries about progress in trade talks between the U.S. and China also has been a key focus for investors, with little progress achieved. For the week, the Dow was on track to lose 2%, the S&P 500 index was set to decline by 1.6%, while the Nasdaq has given up 1.4% thus far this week.

Banana Republic launching Style Passport, a clothing rental service for women

5 hours ago

Banana Republic said Friday that it will launch Style Passport, an online rental subscription service for its women's clothing collection at the end of September in the U.S. Men's will be added at a later date. "Style Passport will drive incremental revenue, and help us connect with younger shoppers who appreciate great style and want an affordable, sustainable way to try new fashion," said Mark Breitbard, chief executive of Banana Republic, which is part of the Gap Inc. . Gap's other brands include the namesake and Old Navy, which will be spun off into its own business. Banana Republic had been a same-store sales laggard among the Gap brands, but has shown improvement. "With this new service, we'll gather valuable insights from a highly interactive customer base that can be used to design future product and experiences," Breitbard said. The service is $85 per month for a three-garment plan, which also includes free laundering and unlimited returns. Users have the option to purchase any item. Banana Republic also plans to offer buy-online-pickup-in-store service in the fall. Gap stock has lost half its value over the last year while the S&P 500 index is up 0.2%.

Canopy Growth may have lost its lead in Canadian recreational cannabis: GMP

5 hours ago

Canopy Growth Corp. seems to have lost its market lead in adult-use cannabis in Canada, GMP Securities said Friday. Analyst Ryan Macdonell slashed his stock price target to C$45 from C$65, after the company reported earnings for its fiscal first quarter that were mostly below expectations. But the company's setting aside of a C$6.4 million provision against oil and gelcaps being returned due to oversupply may be a company-specific problem, said Macdonell. The analyst calculated that 23% of the company's third-quarter and 50% of its fourth-quarter recreational market volumes were extract products, while extracts accounted for an average of 7% of the sell-through volume in the recreational market since inception. "We are decreasing our price target as the lacklustre performance in recreational market sales could indicate that Canopy has lost the leading position," he wrote in a note. "We remain positive on WEED over the long-term as we expect the company is well prepared for cannabis 2.0.," he said, referring to the launch of new formats including edibles later this year. Canopy shares were up 2% premarket, but have fallen 17% this week and 39% in three months. The ETFMG Alternative Harvest ETF has fallen 24% in the last three months, while the S&P 500 has lost 1%.

Housing starts slip 4% in July, while building permits climb

5 hours ago

Housing starts in July fell 4% to a seasonally adjusted annual rate of 1.19 million, the Commerce Department said Friday, as building permits rose 8.4% to 1.34 million. Economists polled by MarketWatch expected a 1.25 million rate for starts and a 1.29 million rate for permits.

Oil trims gains as OPEC lowers forecast for 2019 world oil-growth demand

6 hours ago

Oil futures trimmed gains Friday after the Organization of the Petroleum Exporting Countries, in its monthly report, slightly lowered its outlook for global oil-demand growth this year. OPEC said it now expects oil demand to grow by 1.1 million barrels a day in 2019, down 40,000 barrels a day from its July forecast. OPEC left its 2020 demand forecast unchanged at 1.14 million barrels a day. OPEC also cut its supply-growth forecast, calling for non-OPEC supplies to grow 1.97 million barrels a day this year, down 72,000 barrels a day from its July forecast. For 2020, non-OPEC supply is forecast to grow 2.39 million barrels a day, down 50,000 barrels from the July outlook. West Texas Intermediate crude for September delivery on the New York Mercantile Exchange was up 35 cents, or 0.6%, at $54.83 a barrel, while October Brent crude was 50 cents higher at $58.73 a barrel, up 0.9%.

SmileDirectClub files for IPO

6 hours ago

SmileDirectClub Inc. filed for an initial public offering on Friday, saying in a regulatory filing that it plans to raise $100 million in a deal managed by JPMorgan and Citigroup with help from another eight banks. The company has applied to list on Nasdaq, under the ticker symbol "SDC." The company uses teledentistry "to offer clear aligners affordable and conveniently," it said in its filing. Proceeds of the deal will be used to pay bonuses, to fund tax and other obligations relating to its incentive bonus agreements, to redeem LLC units from pre-IPO investors and to fund a dividend to those investors, with the rest to be spent on general corporate purposes.

Deere shares dip 2.8% premarket after profit miss in weak agricultural sector

6 hours ago

Deere & Co. shares slid 2.8% in premarket trade Friday, after the maker of agricultural and construction equipment's fiscal third-quarter profit fell short of estimates. Moline, Ill.-based Deere said it had net income of $899 million, or $2.81 a share, in the quarter to July 28, compared with $910 million, or $2.78 a share, in the year-earlier period. Adjusted per-share earnings came to $2.71, below the $2.83 FactSet consensus. Sales fell 3% to $10.036 billion, beating the FactSet consensus of $9.407 billion. "John Deere's third-quarter results reflected the high degree of uncertainty that continues to overshadow the agricultural sector," Chief Executive Samuel R. Allen said in a statement. "Concerns about export-market access, near-term demand for commodities such as soybeans, and overall crop conditions, have caused many farmers to postpone major equipment purchases. At the same time, general economic conditions remain positive and are contributing to strong results for Deere's construction and forestry business." The company is expecting company equipment sales to rise about 4% in fiscal 2019. Net sales and revenues are expected to rise about 5%, while net income is expected to come to about $3.2 billion. Shares have fallen 3.7% in 2019, while the S&P 500 has gained 13.6%.

FTSE 100, FTSE 250 companies still not opened because of LSE issue

9 hours ago

The London Stock Exchange said FTSE 100 and FTSE 250 companies can't trade because of a technical issue, which has lasted through the first hour of trade. The LSE said the next update will come at 9:15 a.m local time. Elsewhere in Europe, the German DAX rose 0.9% and the French CAC 40 rose 0.8%.

Dillard's stock falls after revenue miss

yesterday

Dillard's Inc. shares fell roughly 12% in the extended session Thursday after the company missed consensus revenue estimates. The company reported a fiscal-quarter net loss of $40.7 million, or $1.59 a share, compared with a loss of $2.9 million, or 10 cents a share, in the year-ago period. Revenue fell to $1.43 billion from $1.47 billion in the year-ago period. Analysts surveyed by FactSet had estimated sales of $1.48 billion. For the fiscal third quarter, analysts model revenue of $1.43 billion. Dillard's stock has fallen 6.2% this year, with the S&P 500 index rising 13.3%.

Applied Materials stock rises after company's quarterly earnings beat

yesterday

Shares of Applied Materials Inc. rose more than 3% in the extended session Thursday after the chip equipment maker reported fiscal third-quarter results that were above Wall Street expectations. Applied Materials said it earned $571 million, or 61 cents a share, in the quarter, compared with $1 billion, or $1.01 a share, in the year-ago period. Adjusted for one-time items, Applied Materials earned $692 million, or 74 cents a share, compared with $1.05 billion, or $1.04 a share, a year ago. Revenue fell to $3.56 billion, compared with $4.16 billion a year ago. Analysts polled by FactSet had expected adjusted earnings of 70 cents a share on sales of $3.53 billion. The company said it expects fiscal fourth-quarter sales of about $3.685 billion, plus or minus $150 million. Non-GAAP EPS for the next quarter was seen between 72 cents and 80 cents. In the fourth quarter of fiscal 2019, Applied expects net sales to be approximately $3.685 billion, plus or minus $150 million. Non-GAAP adjusted diluted EPS is expected to be in the range of $0.72 to $0.80.

Stocks end choppy session mostly higher after Wednesday rout

yesterday

Stocks ended a see-saw session mostly higher as investors balanced U.S.-China trade tensions and recession fears with upbeat data on retail sales and solid earnings from Dow component Walmart Inc. The Dow Jones Industrial Average finished with a gain of around 100 points, or 0.4%, near 25,579, according to preliminary figures, while the S&P 500 rose around 7 points, or 0.2%, to close near 2,848. The Nasdaq Composite bucked the trend, ending around 7 points lower near 7,767, down 0.1%. Stronger-than-expected retail sales figures buoyed expectations that consumers would continue to underpin the U.S. economy, as did strong gains for Walmart Inc. after the retailer topped Wall Street expectations. Walmart shares led Dow gainers with a 6.1% rise. But trade-related worries continued to linger after Beijing said it would take unspecified steps in response to additional U.S. tariffs on imports from China. Stocks tumbled sharply on Wednesday, with the Dow logging its biggest one-day percentage fall of 2019, after an inversion of the main measure of the U.S. yield curve underlined recession fears.

Amazon adding a second California storefront for Prime Now alcohol delivery

yesterday

Amazon.com Inc. is adding a second California location in San Francisco for Prime Now delivery of alcoholic beverages. The e-commerce giant has gotten a license to operate the warehouse-like facility, which can also serve walk-in customers. The first of these storefronts, in Los Angeles, has been operating since February. There has been speculation around whether Amazon was expanding its brick-and-mortar ambitions to the wine and spirits space. Amazon began delivering alcohol through the Prime Now service in select cities in 2015. Prime Now offers customers two-hour delivery. Amazon stock is up 18.3% for the year to date while the S&P 500 index is up 13.6% for the period.

Dow erases skid to session lows in afternoon trade to turn slightly positive in a matter of minutes

yesterday

The Dow Jones Industrial turned positive on Thursday afternoon, in volatile trade that had seen the blue-chip index stumble to its low of the session. The Dow was up 0.1%, or 30 points, at 25,505 and had been down by as many as 140 points at its nadir, following a report from The Wall Street Journal that the European Central Bank was readying a package of stimulus measures at its next policy meeting in September that should exceed investors' expectations, according to one ECB official on its rate-setting committee. The 10-year Treasury note briefly yielded 1.48%, representing a fresh three-year low for the benchmark bond. The S&P 500 index also was bouncing modestly higher at 2,841, while the Nasdaq Composite Index was down 0.3% lower but off its lows of the session. August is a seasonally volatile time for U.S. stock markets because it usually is accompanied by low volumes as traders go on vacation.

Dow falls to Thursday low and 10-year bond slides below 1.5% as ECB official points to shock-and-awe stimulus

yesterday

The Dow Jones Industrial Average fell to its Thursday low in afternoon trade as the market digested reports about coming monetary-policy action out of Europe. The Wall Street Journal reported that the European Central Bank was readying a package of stimulus measures at its next policy meeting in September that should exceed investors' expectations. The 10-year Treasury note yielded 1.48%, representing a fresh three-year low for the benchmark bond. Bond prices rise as yields fall. The WSJ reported that Olli Rehn, who sits on the ECB's rate-setting committee as the head of Finland's central bank, said the slowing global economy would see Europe's central bank roll stimulus measures that should include "substantial and sufficient" bond purchases as well as cuts to the bank's key interest rate. The comments come as the market has been rattled by worries about a global economic recession, heightened by a so-called yield-curve inversion, where the 2-year Treasury note has risen above the 10-year for the first time in more than a decade. The Dow, most recently, was down 100 points, or 0.4%, at 25,380, while the S&P 500 index declined 0.4% at 2,831, while the Nasdaq Composite Index retreating 0.6% at 7,724.

10-year Treasury yield falls below 1.50%

yesterday

The breathless rally in long-term Treasury yields shows no signs of ending, with the benchmark 10-year bond rate breaking below the 1.50% level on Thursday. The 10-year Treasury note yield fell 8.4 basis points to 1.497%. The 2-year note yield was down 9.8 basis points to 1.479%, while the 30-year bond yield slipped 8.7 basis points to 1.940%. Debt prices move in the opposite direction of yields. Bond yields accelerated their mid-morning slide as comments from European Central Bank policymaker Olli Rehn raised the prospect of a more aggressive package of stimulus measures at the ECB's September meeting. His comments helped draw investors into European debt. The German 10-year government bond yield slipped 5.4 basis points to a negative 0.706%. The 10-year Italian bond yield plunged 19.3 basis points to 1.334%.

Pfizer recalls two lots of migraine drug due to potential bacterial contamination

yesterday

Pfizer Inc. is recalling two lots of its migraine medication Relpax, the U.S. Food and Drug Administration said Thursday. The pharmaceutical company is voluntarily recalling those particular lots because they could potentially be contaminated with two strains of bacteria. "These product lots may not meet Pfizer's in-house microbiological specification for the potential presence of Genus Pseudomonas and Burkholderia," the FDA said in a statement. Pfizer said it has not received any related customer complaints or reports of adverse events and has notified customers of the recall. Shares of Pfizer have fallen 21% so far this year, while the S&P 500 has gained 13.6%.