Stock2Own Sale Event

Biden proposal would allow up to 11 offshore-drilling sales

MarketWatch - 19hr

The Biden administration on Friday proposed up to 10 oil and gas lease sales in the Gulf of Mexico and one off the Alaska coast over the next five years, scaling back a Trump-era plan that called for dozens of offshore drilling opportunities, including in undeveloped areas. Administration officials said fewer lease sales - or even no lease sales at all - could occur, with a final decision not due for months. Friday's announcement opens a 90-day public comment period, then a final plan must be submitted to Congress.


Crypto brokerage Voyager Digital shares fall as much as 40% after suspending trading, deposits, withdrawals

MarketWatch - 21hr

Crypto brokerage Voyager Digital shares plummeted as much as 40% after it announced Friday that it has temporarily suspended trading, deposits, withdrawals, and loyalty rewards starting 2 pm Eastern time on Friday. It shares dropped to as low as $0.25 before it rebounded to about $0.33 at market close. The crypto brokerage earlier this week issued a notice of default to Three Arrows, formerly one of the most active crypto hedge funds, after it defaulted on a loan to Voyager of about $666.7 million, including 15,250 BTC, or about $297 million based on bitcoin's recent price, and $350 million USDC. Voyager said it has engaged Moelis & Company as a financial advisor, and that has been in discussions with advisors to Three Arrows regarding potential legal remedies.


FTX signs deal to bail out crypto lender BlockFi with option to buy it for up to $240 million

MarketWatch - 22hr

Crypto exchange FTX signed a deal on Thursday to bail out embattled digital-asset lender BlockFi. The deal also includes an option for FTX to buy BlockFi at a maximum price of $240 million, based on performance triggers, according to Zac Prince, chief executive at BlockFi, in a tweet. FTX US will also provide a $400 million revolving credit facility to BlockFi, which found itself in a perilously fiscal situation after it reportedly lost about $80 million resulting in exposures to crypto hedge fund Three Arrows, which was reportedly ordered by a British Virgin Isle court to liquidate.


Home builder stocks enjoy broad gains as Treasury yields fall to 1-month low

MarketWatch - 22hr

Shares of home builders were broadly higher Friday, as the continued drop in longer-term Treasury yields helped soothe some fears about home affordability. The iShares U.S. Home Construction ETF ran up 4.3% with all 47 equity components trading higher, while the S&P 500 edged up 0.7%. PulteGroup Inc. was the biggest gainer of the group, rallying 7.0%, which would be the biggest one-day percentage gain since it surged 7.4% on Nov. 4, 2020. Among the sector ETF's other more-active components, shares of Lennar Corp. climbed 5.2%, D.R. Horton Inc. hiked up 5.4%, Builders FirstSource Inc. surged 6.4% and KB Home tacked on 4.4%. The yield on the 10-year Treasury note fell 8.4 basis points (0.084 percentage points) to a one-month low of 2.888%, and has dropped 59.5 basis points since it closed at an 11-year high of 3.483 on June 14, amid growing concerns over a possible recession. Meanwhile, lower Treasury yields lead to lower mortgage rates, which also lowers the cost of buying a home. Elsewhere, real estate services company Redfin Corp.'s stock soared 8.6% on Friday.


Oil futures settle higher, with U.S. prices up less than 1% the week

MarketWatch - 22hr

Oil futures climbed on Friday, with U.S. prices up about 0.8% for the week. "Low investment in oil discovery and the shutdown of refineries during the pandemic-induced recession of 2020 have led to a supply crunch," said Lukman Otunuga, manager, market analysis, at FXTM. "The geopolitical developments concerning Ukraine-Russia poured fuel to the fire," he said, and oil bulls "remain supported by various forces" which may push prices higher. However, "concerns over tighter monetary policy tipping the global economy into a recession may hit the demand outlook for oil, limiting upside gains." West Texas Intermediate crude for August delivery rose $2.67, or 2.5%, to settle at $108.43 a barrel on the New York Mercantile Exchange.


NYC REIT stock drops after dividend suspended to help fund leasing commitment, tenant improvement costs

MarketWatch - 23hr

Shares of New York City REIT Inc. slid 1.7% in afternoon trading Friday, after the real estate investment trust that owns a portfolio of commercial real estate in New York, said it was "temporarily suspending" its dividend to help fund upfront costs of leasing commitments and tenant improvements. The REIT last paid a quarterly dividend of 10 cents a share in April. At current stock prices, the annual dividend rate implies a dividend yield of 7.75%, which compares with the yield for the SPDR Real Estate Select Sector ETF of 3.07% and with the implied yield for the S&P 500 of 1.71%. NYC REIT said its portfolio was over 87% occupied as of June 30. "Leasing commissions and tenant improvement costs, which are payable prior to rent commencement, are economically beneficial compared to the substantial rent paid over the terms of the leases," said Chief Executive Michael Weil. "To potentially help fund these future expenses, we are temporarily suspending the dividend as we maintain our leasing momentum." The stock has plunged 51.4% year to date, while both the REIT sector ETF and the S&P 500 have lost 20.3%.


Gold pares losses after a dip below the key $1,800 mark; silver settles at a 2-year low

MarketWatch - 23hr

Gold futures pared much of their losses by Friday’s settlement, after a dip below the key $1,800-an-ounce mark, while worries that a recession would hurt demand for industrial metals pulled silver prices to their lowest in about two years. Gold moved up from the session lows after the 10-year Treasury yield extended declines following a soft ISM manufacturing report that "suggested the labor market is cooling," said Edward Moya, senior market analyst at OANDA. August gold declined $5.80, or 0.3%, to settle at $1,801.50 an ounce, marking the lowest most-active contract settlement since February, FactSet data show. Prices touched an intraday low of $1,783.40. September silver fell 68 cents, or 3.4%, to settle at $19.667 an ounce, the lowest finish since July 2020.


Biden says Dems need 'two more votes' in the Senate to change the filibuster and codify abortion rights

MarketWatch - 24hr

President Biden called on Americans to vote in November to expand Democrats majority in the Senate by 2, so that his party has the votes to reform the filibuster in order to pass a law that guarantees American women the right to an abortion in all 50 states. "Congress is going to have to act to codify Roe into federal law," the president said during a virtual meeting with Democratic governors on the topic of reproductive health. "The filibuster should not stand in the way of us being able to do that, but right now we don't have the votes in the Senate to change the filibuster." Biden also predicted that if Republicans take control of Washington, "we're going to meet a situation where the Republicans are going to pass a nationwide prohibition" of abortion.


Alcoa's stock slumps as 'operational challenges' leads to partial curtailment of Indiana facility

MarketWatch - 24hr

Shares of Alcoa Corp. slumped 3.5% toward a seven-month low in afternoon trading Friday, after the aluminum producer said it will immediately start curtailing one of three smelting lines that are operating at its Warrick Operations facility in Indiana, citing "operational challenges." The company said the one line, which has an annual capacity of approximately 54,000 metric tons, is expected to be fully curtailed by the end of the day. Alcoa's stock, which is headed for the lowest close since Dec. 1, 2021, has dropped 26.2% year to date, while the S&P 500 has fallen 20.8%.


Panera, SPAC USHG Acquisition end partnership deal as a Panera IPO is now 'unlikely' near term

MarketWatch - 1d

USHG Acquisition Corp. and Panera Brands Inc. said Friday that they have decided to end their partnership, as deteriorating market conditions has made it "unlikely" that an initial public offering for Panera will happen in the near term. USHG shares were little changed in morning trading. USHG, a special purpose acquisition company, and fast-casual restaurant chain Panera, had announced an agreement in November in which USHG would have participated alongside the Panera Brands IPO. As part of the agreement, each USHG share would have been exchanged for a number of shares of Panera common stock following the IPO at an exchange ratio of $10 divided by the IPO price. USHG's stock was still inactive in premarket trading. Panera said it will continue to prepare for and evaluate a potential IPO should market conditions improve. The partnership's end comes at a time of relative investor disdain for recently IPO'd stocks, as the Renaissance IPO ETF has plunged 47.0% year to date while the S&P 500 has dropped 20.8%.


U.S. stocks open slightly lower as third quarter begins

MarketWatch - 1d

U.S. stocks opened lower on Friday ahead of a long holiday weekend as markets kicked off the second half of the year in the red. The Dow Jones Industrial Average dropped 54 points, or 0.2%, to 30,720. The S&P 500 shed 4 points, or 0.1%, to 3,781. The Nasdaq Composite dropped 20 points, or 0.2%, to 11,006. Stocks just wrapped up one of the first first-half stretches in decades during what has been a brutal year as growth fears and inflation have battered markets.


GM stock slumps after earnings warning, as chip shipment timing and supply chain disruptions weigh

MarketWatch - 1d

Shares of General Motors Co. dropped 1.7% in premarket trading Friday, after the automaker warned of a second-quarter earnings shortfall, as vehicle wholesale volumes were hurt by the timing of semiconductor shipments and other supply chain disruptions. The company expects net income for the quarter to June 30 to be between $1.6 billion and $1.9 billion, well below the FactSet consensus of $2.46 billion. The company affirmed its full-year outlook, however, as the supply disruptions are expected to be temporary. "[W]e had a total of approximately 95 thousand vehicles in our inventory that were manufactured without certain components as of June 30, 2022, a majority of which were built in June," the company said in a statement. "We expect that substantially all of these vehicles will be completed and sold to dealers before the end of 2022." GM still expects 2022 net income of $9.6 billion to $11.2 billion, which surrounds the FactSet consensus of $10.24 billion. The stock has tumbled 45.8% year to date through Thursday, while shares of rival Ford Motor Co. have dropped 46.4% and the S&P 500 has slumped 20.6%.


JPMorgan Chase downgrades three regional banks

MarketWatch - 1d

JPMorgan Chase & Co. analysts on Friday downgraded three regional bank stocks and said they're moving their outlook for the sector to neutral based on rising expectations of a recession as well as more aggressive interest rate hikes from the U.S. Federal Reserve. JPMorgan cut its ratings on Live Oak Bancshares Inc. and Huntington Bancshares Inc. to neutral from overweight and downgraded HBT Financial Inc. to underweight from neutral. "On LOB, while our call on the stock has been to buy at the point of maximum pessimism, with the Fed now adopting a much more hawkish posture, we now believe this point remains on the road ahead rather than in the rear-view mirror," JPMorgan analysts said. "For HBAN and HBT, despite both companies having peer-leading [customer loyalty], they have yet to translate this premium experience into stronger top- and bottom-line growth versus peers." Analysts said they are neutral on regional banks, partly because bank stock valuations are already discounting a 50% probability of a recession and inflation could ease back. Analysts spotlighted First Republic Bank , Signature Bank , SVB Financial Group , Silvergate Capital Corp. and Cullen/Frost Bankers Inc. as their top picks in the sector. The KBW Bank Index is down 23.6% in 2022, compared to a drop of 20.6% by the S&P 500 .


Tesla's stock bounces into positive territory after China-based rivals report upbeat June deliveries

MarketWatch - 1d

Shares of Tesla Inc. bounced into positive territory in premarket trading Friday, going from an earlier loss of as much as 1.7% to a gain of 0.5%, after China-based electric vehicle makers reported strong June deliveries data. China is an important market for Tesla, as the EV giant generated 24.8% of its revenue from China in the first quarter, and 25.7% of its revenue from China in 2021. The stock's bounce comes after it had lost 8.6% amid a four-day losing streak through Thursday, to end the month of June with a 11.2% decline. NIO Inc. , Li Auto Inc. and XPeng Inc. all reported big increases in June deliveries, both from a month ago and from a year ago, to continue a recovery after a relatively rough April. Tesla's stock has dropped 36.3% year to date through Thursday, while the S&P 500 has declined 20.6%.


Kohl's says Franchise Group takeover talks have ended without a deal

MarketWatch - 1d

Kohl's Corp. announced Friday that takeover talks with Franchise Group have ended without a deal. Franchise Group was the top bidder at $60 per share after Kohl's engaged with 25 companies. "Despite a concerted effort on both sides, the current financing and retail environment created significant obstacles to reaching an acceptable and fully executable agreement. Given the environment and market volatility, the Board determined that it simply was not prudent to continue pursuing a deal," said Peter Boneparth, board chair, in a statement. There had been media reports of an end to the talks earlier Friday, which sent Kohl's shares plunging more than 11% before the stock was halted . Franchise Group stock fell 3.2% in Friday premarket trading. Kohl's board reaffirmed its commitment to a $500 million accelerated share repurchase (ASR) program after second-quarter results are announced. The company also talked up its partnership with beauty retailer Sephora and a plan to open 100 smaller-format locations as part of a plan to grow the business. However, for the second quarter the company now expects sales to be down high-single digits year-over-year versus previous guidance for down low-single digits. The FactSet consensus is for sales of $4.127 billion, implying a 2.3% decline. The company will announce second-quarter results on August 18. Kohl's stock is down 27.7% for the year to date.


Boxer Mike Tyson's cannabis company gets venture financing

MarketWatch - 1d

Private cannabis company Tyson 2.0 said Thursday it closed an oversubscribed, $9 million round of Series A financing led by JW Asset Management, with investments from K2, Ambria Capital, Tress Capital, and Patrick Carroll. The investment round for the cannabis company named after widely known boxing champ Mike Tyson comes after its launch last year. Tyson 2.0 now sells cannabis in 20 U.S. states and Canada and is led by co-founder, president, CEO and chairman Chad Bronstein. Tyson 2.0 plans to use its fresh capital to buy celebrity intellectual property, grow its brand lineup and increase its marketing and distribution efforts.


XPeng stock rallies after June deliveries more than double from a year ago

MarketWatch - 1d

The U.S.-listed shares of XPeng Inc. surged 2.1% in premarket trading Friday, after the China-based electric vehicle maker reported big jumps in June deliveries from a month ago and from last year. The company also said it expect to begin accepting pre-orders for its G9 sports utility vehicle in August, ahead of an official launch in September. For June, the company delivered 15,295 EVs, up 51% from May and up 133% from a year ago. The June deliveries consisted of 8,045 P7 sports sedans, 5,598 P5 sedans and 1,652 G3i and G3 compact sport utility vehicles. For the second quarter, XPeng delivered 34,422 EV, more than rival China-based EV makers NIO Inc. and Li Auto Inc. . XPeng's stock has plunged 36.9% year to date through Thursday, while the iShares MSCI China ETF has declined 11.1% and the S&P 500 has shed 20.6%.


Coronavirus tally: Daily cases break out to 4 1/2-month high, as hospitalizations keep climbing

MarketWatch - 1d

The U.S. is stocking up on COVID-19 vaccines and health regulators have recommended updating booster shots to fight the omicron subvariants, amid concerns of another surge in the fall and spring. There's good reason for those concerns, as the seven-day average of new COVID-19 cases have broken out of a two-month range, and has risen 10% from two weeks ago to 114,000 on Thursday, according to a New York Times Tracker, the most since Feb. 16. And the daily average for hospitalizations have increased every day since April 18 to 33,077 on Thursday, which was up 10% from two weeks ago and the most since March 8. The daily average for deaths was 378 on Thursday, up 18% from two weeks ago, but down from a two-month high of 388 on Wednesday.


NIO stock jumps after June EV deliveries rise sharply from a last month and from last year

MarketWatch - 1d

The U.S.-listed shares of NIO Inc. jumped 2.4% in premarket trading Friday, after the China-based electric vehicle maker reported June deliveries that rose sharply from last month and from a last year. The company said it delivered 12,961 vehicles in June, up 84.5% from May and 60.3% more than the same period a year ago. The June deliveries consisted of 8,612 sport utility vehicles, including 1,684 ES8s, 5,100 ES6s and 1,828 EC6s, as well as 4,349 ET7 sedans. For the second quarter, NIO delivered 25,059 EVs, up 14.4% from a year ago. During the quarter, on June 15, the company unveiled the ES7 five-seater SUV. NIO's stock has tumbled 31.4% year to date through Thursday, while the iShares China Large-Cap ETF has slipped 7.3% and the S&P 500 has dropped 20.6%.


Li Auto stock rallies after June EV deliveries rise nearly 70%

MarketWatch - 1d

The U.S.-listed shares of Li Auto Inc. rose 1.5% in premarket trading Friday, after the China-based electric vehicle maker reported a more than 63% jump in second-quarter deliveries. The company said it delivered 13,024 Li ONEs in June, up 68.9% from a year ago, after delivering 11,496 Li ONEs in May. The company had unveiled its Li L9 six-seat smart utility vehicle on June 21. That lifted second-quarter deliveries to 28,687, a 63.2% increase from a year ago. Li Auto's stock has rallied 19.4% year to date through Thursday, while the iShares MSCI China ETF has lost 11.1% and the S&P 500 has dropped 20.6%.


Kohl's shares plunge on report deal talks have ended

MarketWatch - 1d

Shares of department store operator Kohl's fell 14% in premarket trade after CNBC reported that deal talks for it to be bought by Franchise Group have ended. The report cited two people familiar with the matter. Franchise Group had proposed a buyout worth $60 per share, subject to due diligence. Kohl's ended Thursday at $35.69.


Facebook's Meta warns of engineer job cuts, sharp downturn ahead: report

MarketWatch - 1d

Facebook owner Meta is bracing for a sharp downturn, with plans to cut 30% of engineer jobs this year, Chief Executive Officer Mark Zuckerberg told employees on Thursday, Reuters reported. "If I had to bet, I'd say this might be one of the worst downturns that we've seen in recent history," Zuckerberg said during a weekly meeting with employees. He said the company's plan to hire engineers had been cut to 6,000 to 7,000 from an original target of 10,000, would also be leaving some jobs unfilled and also pressure managers to weed out underperforming workers. "Part of my hope by raising expectations and having more aggressive goals, and just kind of turning up the heat a little bit, is that I think some of you might decide that this place isn't for you, and that self-selection is OK with me," he said, according to Reuters, which listened to an audio file of the meeting. A separate memo from Chief Product Officer Chris Cox said the company was in "serious times," with "fierce" headwinds.


FedEx cut to hold from buy at Berenberg, amid 'cloudy macroeconomic outlook'

MarketWatch - 1d

FedEx Corp. was downgraded to hold from buy, and its price target cut to $275 per share from $300 by Berenberg analysts, who said the shipping giant had become "too much of a 'show-me story. Shares had seen a recent reprieve amid a CEO change and apparent influence of an activist investor, analysts William Fitzalan Howard and Conor Dwyer said in a note on Friday. "This raised hopes that the capital markets day this week might mark a break from the business's chequered reputation of the past few years. However, with near-term earnings risks now mounting and mixed prospects for the execution of the strategic review, we think the shares may pause for breath until the macroeconomic outlook becomes clearer," they said.


U.S. stocks end lower, with S&P 500 suffering worst first half of a year since 1970

MarketWatch - 1d

U.S. stocks closed lower Thursday, ending the second quarter with steep losses that left the S&P 500 suffering its worst first half of a year since 1970. The Dow Jones Industrial Average fell around 250 points to close 0.8% lower, while the S&P 500 dropped 0.9% and the Nasdaq Composite slid 1.3%, according to preliminary FactSet data. All three major benchmarks ended down after economic data released Thursday showed U.S. consumer spending in May increased less than expected as high inflation rises faster than wages. The S&P 500 dropped more than 20% during the first six months of 2022.


Oil futures fall for the month, but hold on to a year-to-date gain

MarketWatch - 1d

Oil futures fell on Thursday to tally a loss for the month, but held on to a gain so far this year. The Organization of the Petroleum Exporting Countries and their allies, together known as OPEC+, confirmed an existing agreement to boost production in August. The decision either illustrates the group's "inability to boost production above what is planned," or its "indifference to do so in order to meet western demand," said Hakan Kaya, senior portfolio manager at Neuberger Berman. West Texas Intermediate crude for August delivery fell $4.02, or 3.7%, to settle at $105.76 a barrel on the New York Mercantile Exchange. Based on the front-month contracts, prices fell 7.8% for the month, but trade nearly 41% higher year to date, according to Dow Jones Market Data.


FTX nears deal to acquire BlockFi for $25 million, reports say

MarketWatch - 1d

Digital asset exchange FTX is nearing a deal to acquire crypto lender BlockFi for $25 million, or a 99% discount to its most recent private-market valuation, according to a report in CNBC. The deal could take months to close, according to the report, but a term sheet could be signed by the end of this week. The news comes one week after BlockFi announced it had secured a $250 million line of credit with FTX to bolster its balance sheet amid broad declines in major cryptos including bitcoin and ether . A separate report in the Block stated that the deal would involve turning the $250 million loan into equity.


Gold prices down a fourth straight session, tally a loss for the month

MarketWatch - 1d

Gold futures marked a fourth straight session decline on Thursday, ending more than 2% lower for the month, according to FactSet data. A "strong U.S. dollar and rising interest-rate expectations continue to weigh on the precious metal, with the metal once again unable to benefit from the ongoing risk aversion in the markets," said Fawad Razaqzada, market analyst at City Index and FOREX.com, in a Thursday note. August gold declined $10.20, or 0.6%, to settle at $1,807.30 an ounce, the lowest most-active contract finish since February.


Nikola adjourns shareholder meeting, still short of support share issuance

MarketWatch - 2d

Electric-truck maker Nikola Corp. adjourned its shareholder meeting for a second time to July 18 after a key proposal failed to pass, the company said Thursday. Nikola has sought to increase its authorized number of shares to 800 million, from the about 600 million it has, potentially to raise capital. Of those 600 million shares, about 567 million shares are either issued or reserved for future issuance, Nikola said. Increasing the number would provide "flexibility to support the growth of the business," the EV maker said. "Nikola stockholders have voted overwhelmingly in favor of Proposal 2, with the exception of the vote of a stockholder who appears to represent more than 85% of the votes against Proposal 2," the company said without identifying the shareholder. Founder and former Chairman Trevor Milton has been reported as voting against the share issuance. Milton is Nikola's top shareholder, with a 11.7% stake, according to FactSet. Milton stepped down from the company in September 2020 after a short seller accused Nikola of misleading investors about the capabilities of a prototype, which the company denied.


Vipshop stock falls after disclosing more sales by JD.com

MarketWatch - 2d

The U.S.-listed shares of Vipshop Holdings Ltd. sank 5.7% in morning trading Thursday, and have now tumbled TK% amid a four-day losing streak, after disclosing that a large shareholder, JD.com Inc. , sold off a chunk of its holdings in the past week. JD.com's stock fell 2.0% in morning trading. In an amended 13D filing Thursday morning, the China-based online apparel and accessories seller said fellow China-based ecommerce company JD.com owned 5.64 million Vipshop shares, or 4.3% of the shares outstanding. Just six days earlier, an amended 13D filing showed that JD.com owned 7.10 million shares, or 5.4% of the shares outstanding. In mid-April, another amended 13D filing showed JD.com owned 8.59 million Vipshop shares, or 6.3% of the shares outstanding. Vipshop's stock has rallied 14.0% year to date and JD.com shares have declined 9.3%, while the iShares China Large-Cap ETF has lost 8.7% and the S&P 500 has dropped 21.0%.


FDA says COVID-19 boosters should be updated to combat two omicron subvariants

MarketWatch - 2d

The Food and Drug Administration on Thursday told COVID-19 vaccine makers that plan to update their boosters to add a BA.4 and BA.5 spike protein component to the new shots that are in development. These "bivalent" boosters should equally target the two subvariants of omicron as well as the original strain of the virus and are expected to be rolled out to Americans in the fall or winter. Earlier this week, the FDA's advisory committee on vaccines voted 19-2 that the COVID-19 boosters need to be modified to better combat omicron and its subvariants. The BA.4 and BA.5 subvariants now make up more than half of U.S. cases. The FDA said the primary series of shots will not be updated at this time. Moderna Inc., BioNTech SE and Pfizer Inc. , and Novavax Inc. said this week that they plan to modify their COVID-19 boosters. Johnson & Johnson has no plans to modify its COVID-19 shot.