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Emails show top CannTrust execs knew about illegal cannabis grow rooms: report

1 hour ago

Both the chairman and chief executive of CannTrust Holdings Inc. were aware that the Canadian company was growing cannabis in unlicensed rooms for months before regulators discovered it, the Toronto-based Globe and Mail reported Tuesday. Emails seen by the Globe and Mail reportedly show Chairman Eric Paul and CEO Peter Aceto, as well as other top executives, knew about the illegal grows. Graham Lee, the company's compliance officer, reportedly said in an email that the company had "dodged some bullets" after a Canadian government inspection failed to find the hidden plants in November 2018, and Paul reportedly instructed staff on how to proceed. Health Canada eventually discovered the company was growing cannabis in five unlicensed grow rooms at its Pelham, Ontario, facility from October to March, during which time it had applications pending, and regulators seized the plants earlier this month. U.S.-listed shares of CannTrust have tumbled about 50% over the past month.

Dish to buy $5 billion in wireless assets, clearing path to T-Mobile, Sprint merger: report

2 hours ago

The last hurdle to federal approval of a mega-merger between T-Mobile US and Sprint Corp. may have been cleared Tuesday, as Bloomberg News reported Dish Network Corp. has agreed to acquire $5 billion in wireless assets from the companies. That divesture could allay antritrust concerns by the Justice Department, which Bloomberg reported could sign off on the deal as soon as Thursday. Under the deal, which includes wireless spectrum assets, Dish will be able to provide T-Mobile wireless service for seven years under the Dish brand. That would allow Dish to operate as a fourth nationwide mobile carrier, which the Justice Department had pushed for. The report was published after Wall Street's extended trading had closed, but shares of SoftBank Group , which owns Sprint, jumped 2% in Tokyo trading.

Teradyne stock rallies more than 10% on earnings beat, strong outlook

7 hours ago

Teradyne Inc. shares rallied in the extended session Tuesday after the electronic testing equipment maker's quarterly results and outlook topped Wall Street estimates. Teradyne shares surged 15% after hours, following a 2.7% rise to close the regular session at $48.09. The company reported second-quarter net income of $97.4 million, or 55 cents a share, compared with $101 million, or 52 cents a share, in the year-ago period. Adjusted earnings were 66 cents a share. Revenue rose to $564.2 million from $526.9 million in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of 61 cents a share on revenue of $536.7 million. "We exceeded our revenue and profit guidance for the second quarter on stronger than expected results in semiconductor test as continued growth in 5G infrastructure, networking and memory test spending more than offset lower demand from automotive and industrial device makers," said Mark Jagiela, Teradyne president and chief executive, in a statement. Teradyne expects adjusted earnings of 64 cents to 74 cents a share on revenue of $540 million to $580 million, while analysts had forecast 62 cents a share on revenue of $538.9 million.

Jam maker Smucker ups dividend by 4%

7 hours ago

J.M. Smucker Co. said late Tuesday its board of directors has approved a 4% dividend increase to 88 cents a share. The maker of jams and spreads said the dividend will be paid on Sept. 3 to shareholders of record at the close of business on Aug. 16. Shares ended the regular trading day up 0.5%.

Well Fargo raises dividend

7 hours ago

Wells Fargo & Co. said late Tuesday its board of directors approved a 13% dividend increase to 51 cents a share, payable Sept. 1 to stockholders of record Aug. 9. The board also increased the bank's stock buyback program by an additional 350 million shares. Wells Fargo shares rose 0.4% in the extended session after ending the regular trading day up 1.6%.

Apple, Amazon, Facebook and Alphabet shares dip after new antitrust inquiry reported

7 hours ago

Shares in the largest tech companies in the U.S. took a hit in after-hours trading Tuesday afternoon, following a report that a new antitrust investigation has begun by the Department of Justice. Independent investigations into Apple Inc. , Alphabet Inc. , Facebook Inc. and Inc. were already reportedly split up between the Federal Trade Commission and the Justice Department, but a Wall Street Journal report Tuesday afternoon said that a broader investigation was now under way. The Journal reported that the Justice Department inquiry "is designed to go above and beyond recent plans for scrutinizing the tech sector that were crafted by the department and the Federal Trade Commission." Apple shares declined about 0.8% in late trading immediately after the report was released, while the other three companies' stocks all declined more than 1%.

Oil prices rise as sources say API data show an 11 million-barrel drop in U.S. crude stocks

8 hours ago

The American Petroleum Institute reported late Tuesday that U.S. crude supplies dropped by 11 million barrels for the week ended July 19, according to sources. The API also reportedly showed a stockpile climb of 4.4 million barrels in gasoline, while distillate supplies rose by 1.4 million barrels. Inventory data from the Energy Information Administration will be released Wednesday. The EIA data are expected to show crude inventories fell by 4.4 million barrels last week, according to a survey of analysts conducted by S&P Global Platts. The survey also forecast a weekly supply decline of 1.1 million barrels for gasoline, but distillate stockpiles are expected to climb by 1.7 million barrels. September West Texas Intermediate crude was at $57.02 a barrel in electronic trading, up from the contract's $56.77 settlement on the New York Mercantile Exchange.

IRobot stock plunges more than 10% after revenue miss

8 hours ago

IRobot Corp. shares plunged roughly 15% in the extended session Tuesday after the company beat earnings expectations but missed consensus estimates for revenue. The company reported second-quarter net income of $7.2 million, or 25 cents a share, compared with $10.5 million, or 37 cents a share, in the year-ago period. Adjusted for stock-based compensation and tax effects, among other items, earnings were 48 cents a share. Revenue rose to $260.2 million from $226.3 million in the year-ago period. Analysts surveyed by FactSet had estimated earnings of 3 cents a share on revenue of $267.8 million. For the third quarter, analysts model earnings of 87 cents a share on revenue of $38.79 million. IRobot stock has gained 22% this year, with the S&P 500 index rising 6.3%.

Texas Instruments stock rallies on earnings beat

8 hours ago

Texas Instruments Inc. shares rallied in the extended session Tuesday after the chip maker topped Wall Street estimates for the quarter. Texas Instruments shares surged 6.5% after hours, following a 1.6% rise to close the regular session at $120.07. The company reported second-quarter net income of $1.31 billion, or $1.36 a share, compared with $1.41 billion, or $1.40 a share, in the year-ago period. Texas Instruments said results included a 7-cents-a-share benefit that had not been included in the original guidance. Revenue declined to $3.67 billion from $4.02 billion in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of $1.22 a share on revenue of $3.6 billion. Texas Instruments expects third-quarter earnings of $1.31 to $1.53 a share on revenue of $3.65 billion to $3.95 billion, while analysts had forecast $1.38 a share on revenue of $3.84 billion.

Dow ends just shy of record as stocks rise on news of resumption of face-to-face China trade talks

8 hours ago

U.S. stocks closed solidly higher Tuesday, and the Dow narrowly missed a closing record, as investors appeared to react positively to reports that the U.S. and China would hold face-to-face talks for the first time since May. The Dow Jones Industrial Average closed 177 points, or 0.7%, higher at 27,350 (on a preliminary basis), just off its July 15 closing record at 27,359.16. The S&P 500 index ended 0.7% higher at 3,005, marking its best finish since July 3, according to FactSet data. Meanwhile, the Nasdaq Composite Index wrapped up the session with a 0.6% gain to reach 8,251. U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will travel to China for meetings with China's Vice Premier Liu He, following their collapse in May, the Wall Street Journal reported. Better-than-expected earnings from Dow components, Coca-Cola and United Technologies reported before the market opened also helped stocks rise, marking a second straight day of gains.

Starbucks to take delivery nationwide with help from Uber Eats

8 hours ago

Starbucks Corp. said Tuesday that it will make Starbucks Delivers available across the U.S. in early 2020 through a partnership with Uber Eats, which is a unit of Uber Technologies Inc. . Starbucks said in a statement that the service has the potential to extend the customer base beyond those who make a pit stop at a Starbucks location part of their daily routine. In addition, the two companies will collaborate on innovation and technology. Starbucks and Uber Eats launched a pilot of the delivery program in fall 2018 in Miami, and the service is currently available in 11 U.S. markets. Starbucks is scheduled to announce its third-quarter earnings on Thursday after the closing bell. Starbucks stock has gained 40% in 2019 while the S&P 500 index is up nearly 20% for the period.

Trump sues House committee and New York to protect state tax returns

9 hours ago

President Donald Trump on Tuesday sued the House Ways and Means Committee and New York state officials in an effort to protect his state tax returns from being turned over to the congressional panel, the Wall Street Journal reported. The lawsuit seeks to block the application of a New York law that enables the committee chairman to obtain Trump's state taxes, the Journal said. The lawsuit was filed in federal court in Washington.

U.S. oil futures settle higher on crude-supply decline expectations, reports of upcoming U.S.-China trade talks

10 hours ago

U.S. oil futures gave up earlier losses Tuesday to finish with a gain, ahead of government data that are expected to reveal a fall in domestic crude supplies for a sixth week in a row. Analysts polled by S&P Global Platts forecast a decline of 4.4 million barrels in crude stocks for the week ended July 19. Oil prices also got a late-session boost from news that "the British military has approached its [European Union] allies to discuss [a] mission of protecting ships traveling through the Strait of Hormuz, and news of face-to-face, U.S.-China trade negotiations next week," said Tyler Richey, co-editor at Sevens Report Research. September West Texas Intermediate oil rose 55 cents, or 1%, to settle at $56.77 a barrel on the New York Mercantile Exchange.

Gold logs biggest 1-day loss in nearly 2 weeks; silver ends at 1-year high

10 hours ago

Gold futures settled lower on Tuesday, posting their biggest single-session decline for a most-active contract since July 11. "Traders have already factored in [an] interest rate cut by the Federal Reserve next week," said Chintan Karnani, chief market analyst at Insignia Consultants, but the "war-like situation, if any, in the Middle East needs to be closely tracked." August gold fell $5.20, or 0.4%, to settle at $1,421.70 on Comex. Silver, meanwhile, saw its September contract tack on 6.5 cents, or 0.4%, to settle at $16.476 an ounce-marking its highest settlement since mid-June, 2018.

Bed Bath & Beyond cuts corporate staff, including elimination of COO

11 hours ago

Bed Bath & Beyond Inc. said Tuesday that it has reduced its corporate workforce at its Union, N.J. headquarters by about 7%, including the elimination of the chief operating officer position. Eugene A Castagna, the company's former COO, left the company today. Job cuts were also made at select locations where corporate associates were employed. These associates have been offered severance packages. Bed Bath & Beyond estimates that the organizational changes will yield future annual pre-tax savings of $30.7 million. For the remainder of fiscal 2019, the savings is forecast to be about $18.9 million. The company expects to incur a restructuring charge of about $12 million in fiscal 2019. Bed Bath & Beyond reiterated its forecast for full-year earnings per share at the lower end of the $2.11-to-$2.20 range. The FactSet consensus is for EPS of $1.91. Bed Bath & Beyond stock edged down 0.2% in Tuesday trading, but has fallen more than 51% over the last year. The S&P 500 index is up 7% for the past 12 months.

GNC stock tanks 10% after sales miss, will close as many as 900 stores

11 hours ago

GNC Holdings Inc. stock has tanked 10.6% in Tuesday trading after the struggling health-and-wellness retailer reported second-quarter sales that missed expectations and said that it will close as many as 900 stores in the coming months. Net income totaled $16.1 million, or 11 cents per share, after net income of $13.3 million, or 16 cents per share, last year. Adjusted EPS was 13 cents, beating the FactSet consensus for 12 cents per share. Sales of $534.0 million was down from $617.9 million last year and below the FactSet guidance for $553.0 million. Domestic same-store sales fell 4.6%, deeper than the 2% FactSet forecast. GNC Chief Executive Kenneth Martindale said deteriorating mall traffic, a trend for the past several year, "accelerated" during the last few quarters. More than a quarter (28%) of GNC stores are in malls while 61% are in strip centers, which he said are "relatively" stable. "We remain on pace to achieve our 2019 and 2020 cost savings targets and the results from our store optimization effort continue to meet our expectations," he said on the call, according to a FactSet transcript. "As a result of the current mall traffic trends, it's likely that we will end up closer to the top end of our original optimization estimate of 700 to 900 store closures." The company is also battling headwinds on Inc. and says it's working closely with the e-commerce giant to drive sales in a "different" marketplace environment. GNC shares fell 25% over the past three months, and more than 48% over the past year. The S&P 500 index is up 6.7% for the past 12 months.

Mark Esper confirmed as defense secretary in 90-8 Senate vote

11 hours ago

The Senate on Tuesday confirmed Mark Esper as defense secretary in a vote of 90-8. Esper is a former lobbyist for Raytheon Co. and served in the U.S. Army and National Guard. Esper will be sworn in by the end of the day, writes the Associated Press.

LSC Communications' stock plunges to pace NYSE losers after Quad/Graphics buyout deal terminated

14 hours ago

Shares of LSC Communications Inc. plunged 38% Tuesday to pace all NYSE decliners, after the print and digital media services company said the deal to be acquired by Quad/Graphics Inc. was terminated, afer the Department of Justice filed a lawsuit against Quad regarding the proposed buyout. As part of the termination, Quad will pay LSC a $45 million termination fee. Quad's stock surged 9.1%. "We disagree with the DOJ's conclusion regarding our transaction, especially in the context of industry trends," said LSC Chief Executive Thomas Quinlan. "However, we and Quad recognize the significant additional time and resources that would be required to challenge the DOJ's complaint and have therefore decided mutually that it is in the best interests of our respective companies to terminate the merger agreement." The all-stock deal was originally announced on Oct. 31, 2018, and was valued at the time at $1.4 billion. LSC's stock has plunged 85% over the past 12 months and Quad shares have plummeted 58%, while the S&P 500 has advanced 6.5%.

De La Rue shares tumble as currency printer reveals South Sudan corruption probe

14 hours ago

Shares of U.K.-listed currency printer De La Rue dropped 12% in London trade as the company said the UK Serious Fraud Office has opened an investigation into suspected corruption in the conduct of business in South Sudan. De La Rue says it intended to cooperate with the probe. It said it is not possible "to predict reliably what effect their outcome may have on De La Rue."

Brunswick to cut global salaried workforce by 9% as part of cost-cutting plans

15 hours ago

Brunswick Corp. announced Tuesday a cost-cutting plan that will result in a 9% cut to the boat and engines maker's global salaried workforce, or about 400 employees. The company said the further streamlining measures it was expected to cut annual costs of its marine business by $30 million to $35 million. The measures follow the completion of the sale of its fitness business last month to KPS Capital Partners for $490 million in cash. Together, the company said its actions should cut annual run-rate costs by about $50 million. Brunswick said a "large majority" of the actions announced Tuesday have already been implemented. "Actions like these affecting our colleagues and co-workers are never easy but are necessary for us to continue to invest in the future of our business," said Chief Executive David Foulkes. Brunswick's stock bounced 2.0% in morning trading, after shedding 5.1% on Monday following downbeat analyst calls on the boating industry. It has tumbled 17.1% over the past three months, while the Dow Jones Industrial Average has gained 2.3%.

Dow components reporting earnings add a net 25 points to index

15 hours ago

The three Dow Jones Industrial Average components that reported second-quarter earnings Tuesday are adding about a net 25 points to the index's level early Tuesday, with two stocks gaining and one declining. The Dow was up 116 points. The biggest contributor to the Dow's price was United Technologies Corp.'s stock , which rose $2.65, or 2% in morning trade, to add about 18 points to the Dow, after better-than-expected results and raised outlook. Coca-Cola Co. shares climbed $1.79, or 3.5%, to add about 12 points to the Dow, after earnings and revenue beats. Meanwhile, Travelers Companies Inc. shares fell 75 cents, or 0.5%, to shave about 5 points off the Dow, after a profit miss.

Dow gains more than 100 points after better-than-expected quarterly results from Coke, United Tech.

15 hours ago

U.S. stocks headed higher at the open Tuesday, with the market responding positively to upbeat earnings from companies and news that Congress struck a debt-ceiling pact, which would avoid a government shutdown. The Dow Jones Industrial Average was trading 106 points, or 0.4%, higher at 27,279, the S&P 500 index rose 0.4% to 2,996, while the Nasdaq Composite Index advanced 0.4% at 8,235. Dow members Coca-Cola Co. and United Technologies Corp. , reported better-than-expected results, which delivered a lift to blue chips and the broader market. Late Monday, President Donald Trump and congressional leaders announced a budget deal that would avoid the possibility of a government shutdown or federal default. Meanwhile, investors were also watching the announcement of new U.K. Prime Minister Boris Johnson, a hard-line politician who has advocated for Britain exiting the European Union without a trade pact with the EU. Johnson takes over from Conservative Party leadership, replacing Theresa May, who was unable to forge a Brexit deal. Looking ahead, investors also are watching for results from insurance firm Travelers Cos. and Visa Inc. were also due Tuesday.

Stanley Black & Decker shares rise after earnings beats guidance

15 hours ago

Stanley Black & Decker Inc. shares rose 2.1% in Tuesday premarket trading after the company reported second-quarter earnings that beat guidance. Net income totaled $356.3 million, or $2.37 per share, up from $293.6 million, or $1.93 per share, in 2018. Adjusted EPS was $2.66, ahead of the $2.54 FactSet consensus. Sales totaled $3.76 billion, up from $3.64 billion but below the $3.80 billion FactSet expectation. The company reiterated its guidance for full-year EPS of $7.50 to $7.70 and adjusted EPS of $8.50 to $8.70. The FactSet consensus is $8.62. Stanley Black & Decker stock is up 18.2% so far for 2019 while he S&P 500 index is up 19.1% for the period.

Coca-Cola shares rise after earnings and revenue beat expectations

15 hours ago

Coca-Cola Co. shares rose 1.7% in Tuesday premarket trading after the beverage company reported second-quarter earnings and revenue that beat expectations. Net income totaled $2.6 billion, or 61 cents per share, up from $2.3 billion, or 54 cents per share, last year. Adjusted EPS was 63 cents, beating the 61-cent FactSet consensus. Revenue of $10.0 billion was up from $9.4 billion and ahead of the $9.9 billion FactSet guidance. Coca-Cola said the quarter was driven by sparkling soft drinks with Coca-Cola Zero Sugar and Coca-Cola Plus Coffee standouts. The company also introduced ready-to-drink Costa Coffee in the U.K. Coca-Cola stock has gained 8.2% for the year so far while the Dow Jones Industrial Average is up 16.5%.

Health Catalyst upsizes planned IPO, raises price range

15 hours ago

Health Catalyst Inc. increased the size of its planned initial public offering on Tuesday and raised the expected price range. The company said it is now planning to offer 7 million shares in the deal, up from a previous plan for 6 million, and raised the price range to $24 to $25 from a previous $20 to $23. "We are a leading provider of data and analytics technology and services to healthcare organizations," the company says in its prospectus. Goldman Sachs, JPMorgan and William Blair are lead underwriters on the deal with another four banks acting as co-managers. Proceeds of the deal will be used for working capital and other general corporate purposes, that may include acquisitions or other strategic deals.

Funko names Jennifer Fall Jung CFO

16 hours ago

Funko Inc. said Tuesday that it has named Jennifer Fall Jung as chief financial officer, effective August 13. Jung spent 20 years with Gap Inc. and was most recently senior vice president of corporate finance and investor relations. She replaces Russell Nickel, whose departure was announced on April 16. He joined the company in 2013. Funko stock inched up 0.7% in premarket trading, but has soared more than 83% for the year to date. The S&P 500 index is up 19.1% for the period.

Polaris' stock surges after adjusted profit falls less than expected

16 hours ago

Shares of Polaris Industries Inc. rallied 6.3% in premarket trading Tuesday, putting them on track to snap a 4-session losing streak, after the off-road-vehicle (ORV) maker reported a second-quarter profit and sales that beat expectations, although motorcycle and boat sales missed. Net income fell to $88.3 million, or $1.42 a share, from $92.5 million, or $1.43 a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share declined 2% to $1.73 but was above the FactSet consensus of $1.65. Sales rose 18% to $1.779 billion, just above the FactSet consensus of $1.773 billion. ORV and snowmobiles sales increased 6% to $1.05 billion to beat the FactSet consensus of $1.02 billion, motorcycle sales rose 15% to $196.8 million but missed expectations of $202.2 million and boats sales totaled $182.4 million to miss expectations of $196.2 million. For 2019, the company revised its EPS guidance range to $6.10 to $6.30 from $6.05 to $6.30. The stock has gained 7.8% year to date through Monday, while the Dow Jones Industrial Average has climbed 16.5%.

Realogy shares soar 31% premarket on news of homebuying partnership with Amazon

16 hours ago

Realogy Holdings Cor. shares soared 31% in premarket trade Tuesday, after the company announced a partnership with Inc. called TurnKey, a homebuying program that makes it easier to find and move into a new home. The program is already available in 15 U.S. cities. Realogy, a residential real-estate services company, said the service includes an Amazon move-in benefit valued at $1,000 to $5,000, under which the company connects a homebuyer with services and experts in their area. Realogy shares have fallen 65% in 2019, while the S&P 500 has gained 19%.

Kimberly-Clark shares rise after earnings beat, guidance raised

17 hours ago

Kimberly-Clark Corp. shares rose 2.4% in Tuesday premarket trading after the Kleenex company reported second-quarter earnings that beat expectations and raised its full-year guidance. Net income totaled $485.0 million, or $1.40, up from $455.0 million, or $1.30 per share, last year. Adjusted EPS was $1.67, beating the $1.61 per share FactSet consensus. Sales of $4.59 billion was down slightly from $4.60 billion last year but just ahead of the $4.58 billion FactSet expectation. Kimberly-Clark now expects full-year adjusted earnings to be $6.65 to $6.80, up from previous guidance of $6.50 to $6.70. The FactSet consensus is for $6.76. Net sales are now expected to be even-to-down 1% year-over-year versus prior guidance for a 1%-to-2% decline. Kimberly-Clark stock is up nearly 18% for the year to date while the S&P 500 index is up 19.1% for the period.

Lockheed Martin shares climb premarket after earnings beat

17 hours ago

Lockheed Martin Corp. said Tuesday it had net income of $1.420 billion, or $5.00 a share, in the second quarter, up from $1.163 billion, or $4.05 a share, in the year-earlier period. Sales rose to $14.427 billion from $13.398 billion. The numbers beat the FactSet consensus for EPS of $4.77 and sales of $14.196 billion. Sales rose at all of the aerospace giant's four business segments of aeronautics, missiles and fire control, rotary and mission systems and space. The company raised its full-year guidance and now expects EPS to range from $20.85 to $21.15 from a prior outlook of $20.05 to $20.35. It raised its sales guidance to $58.250 billion to $59.750 billion from a prior $56.750 billion to $58.250 billion. The current FactSet consensus is for full-year EPS of $20.60 and sales of $58.049 billion. Shares rose 2.3% premarket and have gained 37% in 2019, while the S&P 500 has gained 19%.