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Dec 08, 2023
U.S. stocks closed higher on Friday, shaking off earlier weakness after a strong monthly jobs report, to clinch a sixth straight week in a row of gains. The Dow Jones Industrial Average DJIA advanced about 130 points, or 0.4%, to end near 36,247, according to preliminary FactSet data. The S&P 500 index gained 0.4% Friday and the Nasdaq Composite finished 0.5% higher. A string of weekly gains propelled the S&P 500 index SPX to a fresh 2023 closing high and left the Dow about 1.4% away from its record close set nearly two years ago, according to Dow Jones Market Data. Equities have benefitted from a risk-on tone going into year end, which has been driven by falling 10-year Treasury yields BX:TMUBMUSD10Y and optimism around the Federal Reserve potentially cutting interest rates in the year ahead. That hinges on if inflation continues to ease. November's robust jobs report served as a reminder Friday of the tough path of the "last mile" in getting inflation down to the Fed's 2% annual target. As part of this, the 10-year Treasury yield jumped about 11.5 basis points Friday to 4.244%, but still was about 74 basis points lower than its October high. For the week, the Dow was only fractionally higher, the S&P 500 gained 0.2% and the Nasdaq climbed 0.7%.
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Dec 08, 2023
Tang Tan, the Apple Inc. AAPL executive who headed product design for the iPhone and Apple Watch, is leaving amid a shake-up of the division responsible for the company's most critical product lines, according to a Bloomberg report. Tan reports to John Ternus, senior vice president of hardware engineering, and the division is reshuffling duties to handle the transition. Earlier this week, Bloomberg reported that Steve Hotelling, who worked on key technologies like the iPhone's multitouch screen, Touch ID, and Face ID, is retiring from Apple. Shares of Apple are up 0.7% in trading Friday. Apple had no comment on the departures.
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Dec 08, 2023
Oil futures finished higher Friday after a six-session streak of declines, but marked a seventh weekly loss in a row. Oil's overall loss highlights how "unimpressed traders were with the OPEC production cut deal, said Craig Erlam, senior market analyst at OANDA. "It also suggests they aren't particularly optimistic about the global economy next year." January West Texas Intermediate crude CLF24 fell $1.89, or 2.7%, to settle at $71.23 a barrel on the New York Mercantile Exchange. Prices based on the front-month contract lost 3.8% for the week, according to Dow Jones Market Data.
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Dec 08, 2023
Wheat futures headed lower Friday, set for their first daily loss in nine sessions, while soybean futures inched lower after a monthly supply and demand report from the U.S. Department of Agriculture. The government agency raised its forecast for global wheat production by about 1 million metric tons to 783.01 million for the 2023/2024 marketing year. While there is plenty of wheat, it's "interesting that the world is projected to use more wheat than it produces," said Sal Gilbertie, chief executive officer at Teucrium. For soybeans, the USDA lowered its forecast for 2023/2024 global production by 1.5 million metric tons to 398.88 million metric tons due to lower production in Brazil. It also raised Brazil's soybean exports forecast by 2 million metric tons and left its U.S. exports forecast unchanged. "This continues to indicate the U.S. remains a secondary player in the global soybean market due to the ongoing trade war with China," said Darin Newsom, Barchart senior market analyst. In Chicago, the most-active March wheat futures contract WH24 traded at $6.29 a bushel, down 13 ¼ cents, or 2.1%. January soybeans SF24 fell 5 cents, or 0.4%, to $13.06 ¾ a bushel.
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Dec 08, 2023
The U.S. Energy Department on Friday announced a "solicitation" for up to 3 million barrels of oil for delivery to the nation's Strategic Petroleum Reserve in March 2024. That's part of the government agency's ongoing efforts to refill the emergency oil reserve after a historic drawdown of 180 million barrels announced by President Joe Biden in the spring of 2022. The latest move follows a Dec. 1 solicitation for up to 3 million barrels of oil for delivery to the reserve in February. The Energy Department said it has already purchased nearly 9 million barrels for the SPR at an average of about $75 a barrel — lower than the average of $95 that the SPR crude was sold for in 2022. It also said it has secured nearly 4 million barrels in "accelerated exchange returns." In Friday dealings, January West Texas Intermediate crude CLF24 traded at $71.15 a barrel on the New York Mercantile Exchange, up $1.81, or 2.6%.
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Dec 08, 2023
U.S. stocks opened lower as investors weighed a jobs report that was slightly stronger than forecast. The Dow Jones Industrial Average DJIA was down 0.1% soon after the opening bell, while the S&P 500 SPX slipped 0.2% and the Nasdaq Composite COMP shed 0.4%, according to FactSet data, at last check. The U.S. Bureau of Labor Statistics said Friday the economy added 199,000 jobs in November while the unemployment rate fell to 3.7% from 3.9%. Economists polled by the Wall Street Journal had forecast a total 190,000 were added last month. In the bond market, the yield on the 10-year Treasury note was up about six basis points at around 4.21%, according to FactSet data, at last check.
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Dec 08, 2023
Treasurys sold off aggressively after Friday's nonfarm-payrolls report for November, pushing yields higher on everything from the 1-month bill to the 30-year bond. The rise in yields was led by 2- through 3-year rates, with the former jumping 12 basis points to 4.698%. Meanwhile, fed-funds futures traders pulled back on the likelihood of a Federal Reserve rate cut by March and now see a 47.5% chance of such a scenario unfolding — down from 64.5% a day ago, according to the CME FedWatch tool.
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Dec 08, 2023
U.S. stock futures are sliding Friday after November jobs data came in slightly hotter than expected, pushing back against the market's expectations that the Federal Reserve could cut interest-rates as many as five times next year. S&P 500 futures ES00 fell by 19 points, or 0.4%, to 4,569. Dow Jones Industrial Average YM00 futures were off by 120 points, or 0.3%, to 36,395. Futures on the Nasdaq-100 NQ00 were off by 113 points, or 0.7%, to 16138. The U.S. economy added 199,000 jobs in November, surpassing economists' forecasts for 190,000 jobs. The boost was helped by the conclusion of major auto-industry strikes, according to Barron's.
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Dec 08, 2023
Gates Industrial Corp.'s stock GTES was down nearly 7.7% in premarket trading on Friday after the power transmission manufacturer said it priced a previously-announced secondary offering of 15 million shares. The sellers are stockholders affiliated with Blackstone Inc. BX. The offering is expected to close on Dec. 13. The company did not provide a dollar amount for the pricing.
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Dec 08, 2023
ALX Oncology Holdings Inc. shares ALXO climbed 9% premarket on Friday after Jefferies analysts upgraded the stock to buy, from hold. The stock is "very cheap," the analysts wrote, given that the company is set to have results from three promising phase 2 trials in 2024. The company is studying an investigational therapy in combination with Merck & Co. Inc.'s MRK Keytruda for treatment of advanced head and neck squamous cell cancer. ALX shares surged more than 80% in October when the company released data from a phase 2 trial of a combination therapy for gastric cancer, and more data from that trial is expected in the second quarter of next year, the analysts noted. "Our call is investors will begin to revisit this story and see the big upside potential" in 2024, the analysts wrote. The analysts set an $18 price target for the shares, up from $8.00 previously. ALX shares are down 18% in the year to date, while the S&P 500 SPX has climbed 19%.
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Dec 08, 2023
Merck & Co. Inc. MRK and Eisai Co. Ltd. ESALF said Friday that a late-stage trial of Merck's blockbuster cancer treatment Keytruda in combination with Eisai's drug Lenvima failed to meet its primary goals for treatment of certain types of endometrial cancer. The combo therapy did not sufficiently improve overall survival or progression-free survival, compared with a chemotherapy that is the current standard of care, the companies said. Merck and Eisai will continue to research the combination therapy in patients with other types of hard-to-treat cancers, Dr. Gregory Lubiniecki, vice president of global clinical development at Merck Research Laboratories, said in a statement. The Keytruda and Lenvima combination is already approved in the U.S. and other countries for treatment of certain types of advanced endometrial cancer and advanced renal cell cancer. Merck and Eisai shares were both little changed premarket on Friday. Merck shares have dropped 6.4% in the year to date, while Eisai shares are down 21%.
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Dec 08, 2023
Crown Castle Inc.'s stock CCI was up by 0.6% in premarket trading on Friday after activist investor Elliott Investment Management LP said the company's move to replace its chief executive marked a "step in the right direction" for the cell tower real estate investment trust. Crown Castle said late Thursday that Jay Brown plans to retire as chief executive on Jan. 16. The company named board member Anthony Melone as interim chief executive at that time. The board will conduct a search to find a permanent chief executive. Elliott said it plans to work with Crown Castle on the transition. "We believe that additional significant changes are needed to ensure that Crown Castle is best positioned to fulfill its potential for shareholders," Elliott said. "We look forward to continuing our dialogue with the company's board regarding the necessary next steps, including a comprehensive review of the Fiber business, meaningful governance enhancements and a robust and transparent search process for Crown Castle's next CEO."
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Dec 08, 2023
Johnson Outdoors Inc.'s stock JOUT tumbled 19% early Friday, after the maker of outdoor recreation equipment and technology posted a bigger-than-expected fiscal fourth-quarter loss and sales that missed estimates. "The end of the elevated pandemic-driven demand of the past few years, combined with higher inventory levels at retail, resulted in lower sales and profits for our 2023 fiscal year. Our fiscal fourth quarter was particularly impacted by significantly slower demand," CEO Helen Johnson-Leipold said in a statement. The Racine, Wisconsin-based company posted a net loss of $16 million, or $1.56 a share, for the quarter to Sept. 29, after income of $9.7 million, or 95 cents a share, in the year-earlier period. Sales fell to $96.3 million from $196.4 million a year ago. The FactSet consensus was for a loss of 32 cents a share and sales of $121.0 million. "Heading into fiscal 2024, we are working hard to outperform the challenging marketplace and improving our profitability profile," said Johnson-Leipold. The stock has fallen 18% in the year through Thursday's close, while the S&P 500 SPX has gained 19.4%.
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Dec 08, 2023
Carrier Global Corp. CARR was up 5% in premarket trading on Friday after it confirmed plans to sell its security unit to Honeywell International HON for $4.95 billion. Carrier said it plans to use $4 billion of the sale proceeds to pay down debt. The acquisition of the maker of electronic locks for hotels and hospitals will be added to Honeywell's Building Automation unit. It's also a way for Honeywell to address a rise in demand for cloud-based products. Earlier, The Wall Street Journal reported the deal was underway. Honeywell stock is down 7.7% in 2023, compared with a 19.4% gain by the S&P 500 SPX.
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Dec 08, 2023
Mullen Automotive Inc.'s stock MULN rose 2.9% early Friday, after the electric vehicle maker filed a lawsuit against a group of investors for allegedly using "spoofing" to manipulate its share price between Nov. 9, 2021 and Nov. 9, 2023. Spoofing is the "submission and cancellation of buy and sell orders without the intention to trade in order to manipulate other traders," the company said in a regulatory filing, citing the Securities and Exchange Commission's definition. The SEC has described spoofing as a "harmful strategy" that is used by some high-frequency traders that creates the impression of substantial offer book imbalances as a way to manipulate prices. "During the relevant period defendants placed thousands of spoofing orders to sell to create the illusion that the share price of Mullen was declining. These orders were intended to "trick" or "bait" other investors into selling their shares which further drove Mullen's share price downward," said the filing. Mullen relied on the Nasdaq being an efficient market that was not being manipulated when it sold more than 5 billion shares at prices that it has since learned were artificially depressed by spoofing, causing the company to lose hundreds of millions of dollars, if not more, said the filing. The defendants in the suit are IMC, an Illinois limited liability company; Clear Street, a Delaware limited liability company; UBS, a Delaware limited liability company; and John Does 1 through 10, entities that include market makers, broker-dealers, subsidiaries, affiliates and sister companies of the defendants and defendants' customers, whose identities are currently unknown. The suit has been filed in the Southern District of New York. Mullen's stock has fallen 99.8% in the year to date, while the S&P 500 SPX has gained 19.4%.
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Dec 08, 2023
Chemicals company LyondellBasell Industries N.V. LYB said Friday it has entered an agreement to sell its ethylene oxide & derivatives business to Ineos Oxide for $700 million. The deal is expected to close in the second quarter and includes a production facility located in Bayport, Texas. The close will come after the completion of planned maintenance at the facility. Lyondell's stock has gained 11% in the year to date, while the S&P 500 SPX has gained 19.4%.
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Dec 08, 2023
The U.K. Competition and Markets Authority on Friday said it was seeking comment on whether Microsoft's investment in OpenAI "has resulted in a relevant merger situation and, if so, the impact that the merger could have on competition in the U.K." The regulator noted the partnership between Microsoft and OpenAI includes a multi-year, multi-billion dollar investment, collaboration in technology development and exclusive provision of cloud services by Microsoft to OpenAI. There have recently been a number of developments in the governance of OpenAI, some of which involved Microsoft, it noted, a reference to Sam Altman getting fired, and then re-hired, as CEO, with a new board. The regulator said it will review whether the partnership has resulted in an acquisition of control. Microsoft shares slipped 0.5% in premarket trade, having rallied 55% this year.
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Dec 07, 2023
FedEx Corp. FDX has sent a security warning to contractors, asking them to give priority to the safety of their drivers and to keep an eye on their vehicles, the Wall Street Journal reported late Thursday, citing a document it viewed. The peak season for deliveries "is showing an increase in unlawful activity, putting increasing concern on safety and security," according to the alert, which also had a list of safety tips to contractors, the Journal said. Videos of carjackings and thefts from delivery trucks have been posted on social media and aired on television.
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Dec 07, 2023
Spotify Technology S.A. SPOT said Thursday its chief financial officer, Paul Vogel, is leaving March 31, 2024, and the company has launched an external search for his successor. In the interim, Ben Kung, vice president of financial planning and analysis, will take on expanded responsibilities to support the company's realignment of its financial leadership team. Shares of Spotify are flat in extended trading Thursday.
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Dec 07, 2023
Levi Strauss & Co. LEVI said late Thursday that Chief Executive Chip Bergh will be retiring on April 26, and that, ahead of his departure, the company's board has chosen Michelle Gass, the company president, as his successor. Gass will take the reins on Jan. 29, Levi Strauss said. Gass is a former CEO of Kohl's and joined Levi Strauss last year. Bergh will remain as the board's executive vice chair until his retirement date and then transition to the role of senior adviser through the end of fiscal 2024, the company said. Shares of Levi Strauss rose 1.4% after the news and following an advance of 0.9% in the regular session.
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Dec 07, 2023
DocuSign Inc.'s DOCU stock initially jumped 8% before cooling in after-hours trading Thursday after the software company posted better-than-expected quarterly results and sales guidance. DocuSign reported fiscal third-quarter net income of $38.8 million, or 19 cents a share, compared with a net loss of $29.9 million, or 15 cents a share, in the same quarter a year earlier. Adjusted earnings were 79 cents a share. Revenue climbed to $700.4 million from $645.5 million in the year-ago quarter. Analysts surveyed by FactSet had expected on average net earnings of 63 cents a share on revenue of $690 million. DocuSign provided fourth-quarter sales guidance of $696 million to $700 million; FactSet analysts are forecasting $694 million. Shares of DocuSign have dropped 14% this year. The broader S&P 500 index SPX has increased 19%.
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Dec 07, 2023
U.S. stocks closed higher Thursday ahead of Friday's jobs report for November, with the equity rally lifting the Dow Jones to less than 2% from its last record finish. The Dow Jones Industrial Average DJIA gained about 63 points, or 0.2%, closing near 36,117, according to preliminary FactSet data. That put the equity benchmark on the doorstep of its Jan. 4, 2022 closing record of 36,799.65, according to Dow Jones Market Data. The S&P 500 index SPX ended 0.8% higher, while the outperformer was the Nasdaq Composite Index's COMP 1.4% gain. Stocks were extending a sharp rally from last month that was fueled by a sharp drop in rates used to finance the economy. The 10-year Treasury yields BX:TMUBMUSD10Y edged up to 4.129% on Thursday, but was well below its 5% peak in October. November's jobs report will be watched for signs that the labor market continues to ease, helping the Federal Reserve in its fight to keep inflation receding toward its 2% yearly target.
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Dec 07, 2023
Oil futures tallied a sixth straight session decline on Thursday, with U.S. prices marking back-to-back settlements below $70 a barrel. Prices remain in a broadly bearish trend over the past two months "as U.S. production growth and demand headwinds have overshadowed geopolitical risk and ongoing efforts by OPEC to support prices," said Robbie Fraser, manager, Global Research & Analytics, at Schneider Electric. January West Texas Intermediate crude CLF24 fell 4 cents, or nearly 0.1%, to settle at $69.34 a barrel on the New York Mercantile Exchange, after losing 4.1% on Wednesday.
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Dec 07, 2023
Walgreens Boots Alliance Inc.'s stock WBA rose 8% Thursday to lead Dow Jones Industrial Average DJIA and S&P 500 SPX gainers. The stock remains down 38% in the year to date, which is putting it on track for its worst year on record, according to Dow Jones Market Data, based on data going back to January of 1972. The company's financial results have come up short in recent quarters, and it has faced rising costs, a drop-off in COVID-19 vaccinations and a slower rollout of its healthcare business. On Thursday, it said it was expanding its flu and COVID testing and treatment offerings and reminded consumers that COVID vaccines are still available at no cost to the public, while flu and RSV vaccines are covered by most insurance plans with a zero co-pay.
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Dec 07, 2023
The lead of Tesla Inc.'s TSLA Dojo supercomputer project, Ganesh Venkataramanan, has left the company, Bloomberg reported Thursday, citing people familiar with the matter. The executive, who oversaw the project for the past five years, left Tesla in November, Bloomberg said. According to the report, former Apple Inc. AAPL executive Peter Bannon is now leading the effort. Tesla did not immediately return a request for comment. Tesla Chief Executive Elon Musk said in July that the company would spend "well over" $1 billion on Dojo, which Tesla hopes to use to process data and video to improve the EV maker's autonomous driving capabilities, with the goal of full autonomy. Dojo was unveiled at the company's first AI day in 2021 alongside Tesla's humanoid robot Optimus.
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Dec 07, 2023
Wave Life Sciences Ltd.'s stock WVE tumbled 31% Thursday, after the clinical-stage pharma company priced a $100 million secondary share offering at $5 a share, or a discount over its closing price Wednesday at $6.87. The company sold 20 million shares in the deal and granted underwriters the option to purchase up an additional 3 million shares. JP Morgan and Leerink Partners were lead bookrunners on the deal with Mizuho and Truist acting as bookrunners and H.C. Wainwright & Co. and Raymond James acting as co-managers. Wave Life is focused on developing RNA medicines to treat genetically defined diseases for patients battling devastating diseases.
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Dec 07, 2023
The U.S. Energy Information Administration reported on Thursday that U.S. natural-gas supplies in storage declined by 117 billion cubic feet for the week ended Dec. 1. On average, analysts surveyed by S&P Global Commodity Insights forecast a weekly fall of 105 billion cubic feet. Total working gas in storage for the week was at 3.719 trillion cubic feet, up 254 billion cubic feet from a year ago and 234 billion cubic feet above the five-year average, the government said. In Thursday dealings, January natural gas NGF24 traded at $2.585 per million British thermal units, up 1.6 cents, or 0.6%, on the New York Mercantile Exchange. Prices traded at $2.577 ahead of the supply data.
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Dec 07, 2023
U.S. stocks opened higher Thursday as investors digested fresh data showing initial jobless claims inched up. The Dow Jones Industrial Average DJIA was up 0.2% soon after the opening bell, while the S&P 500 SPX rose 0.5% and the Nasdaq Composite COMP gained 0.7%, according to FactSet data, at last check. The Department of Labor said Thursday that initial jobless claims rose by 1,000, to 220,000, in the week ending Dec. 2, indicating layoffs remain low. In the bond market, the yield on the 10-year Treasury note was up about three basis points at around 4.2% after the release of the weekly jobless-claims report, according to FactSet data, at last check.
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Dec 07, 2023
The Consumer Financial Protection Bureau fined Atlantic Union Bank $6.2 million after it found the bank illegally enrolled thousands of customers in checking account overdraft programs, the regulator said Thursday. "Atlantic Union Bank harvested millions of dollars in overdraft fees through a host of illegal practices," said CFPB Director Rohit Chopra, in a statement. "Americans are fed up with junk fee scams and the CFPB will continue its work to ensure families are treated fairly."Atlantic Union Bank, is a subsidiary of Atlantic Union Bankshares Corp. AUB"We respectfully disagree with the CFPB's conclusions about these historical practices and take very seriously our obligation to comply with applicable law," said Atlantic Union CEO John Asbury, in a press release. "Nonetheless, we believe it is in Atlantic Union's best interest to settle this matter so we can continue focusing on providing the products, services, and support our customers want," he added.
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Dec 07, 2023
Edwards Lifesciences Corp.'s stock EW rose 1.9% in premarket trading Thursday after it said it plans to form an independent company out of its Critical Care unit in a tax-free spinoff transaction by the end of 2024. The business is expected to generate about $905 million of sales in 2023. Katie Szyman will be chief executive of the new company. She has been corporate vice president of Critical Care since 2015. The maker of aortic valve replacements also announced plans to buy back $1 billion in stock. Edwards Lifesciences said it expects to generate 2024 adjusted profit of $2.70 to $2.80 a share, compared to the FactSet consensus estimate of $2.80 a share. Edwards Lifesciences said it expects 2024 sales of $6.3 billion to $6.6 billion, while analyst are projecting 2024 sales of $6.51 billion.
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Dec 07, 2023
JetBlue Airways Corp.'s stock JBLU jumped 4.9% early Thursday, after the airline raised guidance for the fourth quarter and full year, saying travel demand remains "healthy." "Since late October, close-in bookings have outperformed expectations for both holiday peak and non-holiday travel periods," the carrier said in a regulatory filing. " "JetBlue experienced strong operational performance during the month of November and achieved a 99.9% completion factor for the month and 100% completion factor for the Thanksgiving peak period." The company is now expecting its fourth-quarter adjusted loss per share to range from 35 cents to 25 cents, narrower than prior guidance of 55 cents to 35 cents. It expects revenue to fall 7% to 4%, compared with prior guidance for a drop of 10.5% to 6.5%. Available seat miles are expected to rise 2.0% to 3.0%, up from prior guidance of up 0.5% to 3.5%. For the full year, the airline expects its adjusted loss per share to range from 50 cents to 40 cents, vs. prior guidance of 65 cents to 45 cents. Revenue is expected to rise 4.0% to 5.0%, compared with prior guidance of 3.0% to 5.0%. ASM are expected to rise 5.5% to 6.5%, versus prior guidance of 5.0% to 7.0%. The stock has fallen 27% in the year to date, while the S&P 500 SPX has gained 19%.
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Dec 07, 2023
Dollar General Corp.'s stock DG rose 1.9% early Thursday, after the discount retailer beat third-quarter earnings estimates and backed its guidance, even as its CEO said it was not happy with its performance. The company posted net income of $276.2 million, or $1.26 a share, for the third quarter, down from $526.2 million, or $2.33 a share, in the year-earlier period. Sales rose 2.4% to $9.694 billion from $9.465 billion a year ago. The FactSet consensus was for EPS of $1.20 and sales of $9.644 billion. Same-store sales fell 1.3%, while FactSet was expecting a 2.1% decline. "While we are not satisfied with our financial results for the third quarter, including a significant headwind from inventory shrink, we are pleased with the momentum in some of the underlying sales trends, including positive customer traffic, as well as market share gains in both dollars and units," CEO Todd Vasos said in a statement. Vasos returned to the role of CEO in October, after serving in the position from June 2015 to November 2022. Vasos said the company has completed a review of all aspects of the business and identified key areas for improvement both in the near and longer term. For fiscal 2024, it is planning about 2,385 real estate projects, including 800 new stores, 1,500 remodels, and 85 relocations. "This is a modest slow down compared to the number of projects in recent years, which we believe is prudent in this environment," he said. Dollar General backed its full-year guidance, for a sales increase of 1.5% to 2.5%, and for EPS of $7.10 to $7.60. The company expects same-store sales to be down 1% to flat. The stock is down 45.6% in the year to date, while the S&P 500 SPX has gained 19%.
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Dec 07, 2023
Elliott Investment Management LP said Thursday it compiled positive responses from investors, analysts and industry leaders on the merits of its recommendations for cellular tower REIT Crown Castle Inc. CCI, including the removal of its Chief Executive Jay Brown. Crown Castle's stock was up by 3% in premarket trades. Elliott said the 14.5% jump in Crown Castle's stock in the week after it shared its views on the company outperformed stock gains from competitors American Tower AMTand SBA Communications SBAC. "If the Crown Castle Board is unwilling to make necessary leadership changes, Elliott will nominate a new board that will," said the activist investor, which owns $2 billion in Crown Castle stock. In November, Elliott Investment Management LP called for "significant changes," including new executive and board leadership and a review of its fiber business.
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Dec 07, 2023
Bristol Myers Squibb Co. BMY announced an additional $3 billion share buyback program on Thursday, boosting the full authorization to about $5 billion. The stock rose 1% premarket but is down 31% in the year to date, while the S&P 500 SPX has gained 18%.
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Dec 06, 2023
Shares of Nikola Corp. NKLA fell more than 16% in the extended session Wednesday after the EV company said it plans to raise $100 million of stock and $200 million in convertible notes due 2026 in two separate public offerings. Nikola said it plans to grant underwriters of the stock offering an option to buy up to an additional $15 million, and grant the underwriters of the notes offering an option to buy an additional $30 million. BTIG is lead book runner. Nikola intends to use proceeds from the common stock offering for working capital and other general corporate purposes and to allocate an amount equal to the net proceeds from the notes offering to finance, refinance, or make direct investments in its projects. Shares of Nikola ended the regular trading day up 1.3%.
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Dec 06, 2023
Bristol Myers Squibb Co. BMY said late Wednesday that its board has declared a quarterly dividend of 60 cents a share, a 5.3% increase over last year's dividend of 57 cents a share. The dividend is payable on Feb. 1 to stockholders of record at the close of business on Jan. 5. That's the 15th straight year that the company has increased its dividend, it said. Shares of Bristol Myers Squibb edged higher in the after-hours session, after ending the regular trading day down 0.7%.
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Dec 06, 2023
Chewy Inc.'s stock CHWY declined 8% in after-hours trading Wednesday after the online pet-supplies retailer posted quarterly results that topped analyst revenue and earnings estimates. Chewy reported a fiscal third-quarter net loss of $35.8 million. Adjusted earnings were 15 cents a share. Net sales climbed 8% to $2.74 billion from the same quarter a year earlier. Analysts surveyed by FactSet had expected on average a net loss of 6 cents a share on revenue of $2.75 billion. Shares of Chewy have plunged 48% this year, while the broader S&P 500 index SPX has increased 18%.
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Dec 06, 2023
ChargePoint Holdings Inc.'s CHPT stock declined 1% in after-hours trading Wednesday after the network of electric-vehicle charging stations posted quarterly results. ChargePoint reported a fiscal third-quarter net loss of $158.2 million, or 43 cents a share, compared with a net loss of $84.5 million, or 25 cents a share, in the year-ago quarter. Revenue sank 12% to $110.3 million from $124.3 million a year ago. Analysts surveyed by FactSet had expected on average revenue of $124.9 million. Shares of ChargePoint have cratered 78.5% this year, while the broader S&P 500 index SPX has increased 19%.
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Dec 06, 2023
GameStop Corp.'s GME stock rose 0.7% in extended trading Wednesday after the videogame retailer reported better-than-expected third-quarter earnings, despite missing analysts' top-line expectations. The original meme-stock darling reported a net loss of $3.1 million, or 1 cent a share, compared with a net loss of $94.7 million, or 31 cents a share, in the prior year's quarter. On an adjusted per-share basis, GameStop broke even. Revenue was $1.078 billion, compared with $1.186 billion in the prior year's quarter. Analysts surveyed by FactSet expected GameStop to report an adjusted loss of 8 cents a share and revenue of $1.182 billion. The company exited the quarter with cash and cash equivalents of $1.210 billion, compared with $1.195 billion at the end of the prior quarter. As with its previous round of earnings, GameStop said it would not be holding a conference call.
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Dec 06, 2023
U.S. stock indexes ended lower on Wednesday, with the S&P 500 SPX and the Dow Jones Industrial Average DJIA booking a third straight session of losses as investors awaited more labor-market data for clarity about the state of the economy. The Dow industrials fell 70 points, or 0.2%, to end at 36,054, while the S&P 500 finished 0.4% lower and the Nasdaq Composite COMP retreated 0.6%. U.S. businesses added 103,000 new jobs in November, paycheck company ADP said on Wednesday, in another sign of slower hiring and a softer labor market. Investors will monitor jobless claims numbers on Thursday morning before contemplating the widely followed official data on nonfarm payrolls, wages and the unemployment rate, due out Friday 8:30 a.m. Eastern time.
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Dec 06, 2023
An earlier version of the headline for this article misspelled the name JPMorgan Chase. The story has been corrected. JPMorgan Chase & Co. JPM Chief Executive Jamie Dimon told lawmakers they should crack down on cryptocurrency transactions by terror groups and rogue nations. "If I were the government I'd close it down," Dimon said when asked by Sen Elizabeth Warren, Democrat of Massachusetts, about digital currency transactions during a Senate Banking Committee hearing on Wednesday. Transactions by North Korea and Hamas, among others, have funded terrorism around the world, Warren said. Dimon and chief executives from seven other of the U.S.'s largest banks agreed that cryptocurrency brokers should be subject to the same regulations as banks under the Bank Secrecy Act, which is designed to prevent terrorists and drug traffickers from using the financial system to fund their activities. Dimon said he's "always been deeply opposed to crypto."
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Dec 06, 2023
Shares of Sphere Entertainment Co. SPHR rose 8.7% Wednesday after Macquarie Equity Research raised its price target to $34 from $32. The entertainment venue's stock is on pace for its largest daily percentage increase since Oct. 2, 2023, when it rose 11.1%, Dow Jones market data show. U2 kicked off a headline-grabbing residency at the Sphere on Sept. 29, and the venue featured prominently in last month's Las Vegas Grand Prix. The 50-minute immersive film "Postcard from Earth" is also showing at the Sphere. In a note released Wednesday, Paul Golding, Macquarie's senior U.S. lifestyle and payments analyst, pointed to the company's announcement of a private $225 million convertible senior notes deal and to its financial update Tuesday. "Sphere released an 8-K yesterday alongside its convertible note announcement, citing expectations of positive Sphere [Adjusted Operating Income] in [the fiscal second quarter] (vs FactSet cons loss of $14m) on its U2 residency, Postcard shows, and F1 takeover," he wrote. "January-March will see four incremental U2 shows on top of the most recent 36 show count noted at the prior earnings call, bringing the total run to 40." The 360-foot-tall concert and entertainment venue at the Venetian Resort is the world's largest spherical structure, according to the Venetian's website. Sphere Entertainment shares have risen 49% in 2023, outpacing the S&P 500 index's SPX gain of 18.7%.
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Dec 06, 2023
Oil futures fell for a fifth straight session Wednesday, leading U.S. prices to settle below $70 a barrel for the first time in more than five months. "The market is doubtful about the efficacy of OPEC's latest output cuts," said Fawad Razaqzada, market analyst at City Index and FOREX.com. "The fact that U.S. is exporting near 6 million barrels of the black stuff per day also makes the job of oil producers in the OPEC group difficult, as they have to give up more market share as part of their agreement to withhold supplies." January West Texas Intermediate crude CLF24 fell $2.94, or 4.1%, to settle at $69.38 a barrel on the New York Mercantile Exchange. Prices based on the front-month contract settled at their lowest since June 27, according to Dow Jones Market Data.
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Dec 06, 2023
Facebook parent Meta Platforms Inc. META said Wednesday it is testing more than 20 generative-AI features, including in search and in ads across Facebook, Instagram, Messenger and WhatsApp, before deploying them globally. The AI rollout builds off comments from Meta Chief Executive Mark Zuckerberg about generative AI at the company's Connect conference in September and during Meta's third-quarter earnings call in October. "The experiences that we started to roll out at Connect are going to transform the way people use all our services — feeds, messaging, hardware, advertising, business messaging, interacting with creators and more," Zuckerberg said in October.
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Dec 06, 2023
An upgrade of Comerica Inc.'s CMA technology platform inadvertently caused millions of dollars in account shortfalls in its wealth management trust unit, The Wall Street Journal reported on Wednesday. The Office of the Comptroller of the Currency is studying the technology platform change at Comerica that triggered failures on transactions for trust clients, the newspaper reported. Client withdrawals from trust assets administered by Comerica ran into trouble, leaving a hole in the bank's funds, the report said. Greg Carr, executive vice president of wealth management at Comerica, told The Wall Street Journal that the bank has been working "swiftly" to remediate the issues. So far, the problems have caused the bank to write off $500,000, the article said. Comerica stock was up 1% in recent trading. The bank has reported $175 billion in assets under its administration in its trust unit as of Sept. 30.
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Dec 06, 2023
The Energy Information Administration on Wednesday reported that U.S. commercial crude inventories fell by 4.6 million barrels for the week ended Dec. 1. On average, analysts polled by S&P Global Commodity Insights expected the report to show a decline of 4.1 million barrels. The EIA report also revealed supply increases of 5.4 million barrels for gasoline and 1.3 million barrels for distillates. The forecast called for supply gains of 800,000 barrels each for gasoline and distillates. Crude stocks at the Cushing, Okla., Nymex delivery hub rose by 1.9 million barrels last week, the EIA said. Oil futures continued to trade lower, with January West Texas Intermediate crude CLF24 down $1.70, or 2.4%, at $70.62 a barrel on the New York Mercantile Exchange. Prices traded at $70.80 before the supply data.
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Dec 06, 2023
McDonald's Corp. MCD said Wednesday it plans to open 10,000 new restaurants by 2027 in what the company described as the fastest period of growth in company history. The new additions would bring the fast-food giant's restaurant total to 50,000. McDonald's also said it will team up with Alphabet Inc.'s GOOG Google unit on cloud technology and artificial intelligence to connect its restaurants worldwide. The company also plans to grow its loyalty program to 250 million by 2027 from 150 million now. McDonald's said its loyalty program ranks as one of the largest in the world. Chief Executive Chris Kempczinski said McDonald's has a "clear trajectory for future growth." McDonald's stock price fell by 0.7% in early trading on Wednesday.h." McDonald's stock price fell by 0.7% in early trading on Wednesday.
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Dec 06, 2023
U.S. stocks opened higher on Wednesday following the first back-to-back declines for the Dow in a month as investors shrugged off weak employment data, while Treasury yields continued to decline. The S&P 500 SPX gained 22 points, or 0.5%, to 4,589, the Nasdaq Composite rose by COMP 84 points, or 0.6%, to 14,312. The Dow Jones Industrial Average DJIA increased by 135 points, or 0.4%, to 36,253. Treasury yields continued to fall on Wednesday, with the 10-year yield down 4.4 basis points at 4.143 after touching its lowest level since Sept. 1, according to FactSet data. Investors digested a report on private payrolls from ADP on Wednesday which showed just 113,000 jobs last month, the latest sign that the U.S. labor market has been softening. The data arrived ahead of a closely watched report on the labor market from the Labor Department is due out Friday.
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Dec 06, 2023
Nio Inc.'s stock NIO was up by 3.2% in premarket trading on Wednesday after Reuters reported the Chinese electric-car maker may spin off its battery-manufacturing business as early as 2024. Citing three people familiar with the company, the report said senior manufacturing engineers will reach out to external investors to back the company after the spin off, as Nio looks to shed the nascent business to focus on profitability, cost cutting and efficiency improvements.
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Dec 06, 2023
Ollie's Bargain Outlet Holdings Inc.'s stock OLLI was up 4.6% in premarket trading Wednesday after the retailer's third-quarter earnings beat the FactSet consensus estimate. The company also raised its 2023 earnings outlook to between $2.77 a share and $2.83 a share, beating the analyst estimate of $2.73 a share. Ollie's said its third-quarter sales and margins were ahead of expectations. Ollie's Bargain Outlet said its third-quarter net income rose to $31.8 million, or 51 cents a share, from $23.1 million, or 37 cents a share, in the year-ago quarter. The company's adjusted profit of 51 cents a share beat the FactSet consensus estimate of 45 cents a share. Sales rose by 14.8% to $480.1 million, above the analyst estimate of $469.6 million. "Consumers remain under pressure and are looking for ways to save money on branded merchandise they need and want in their homes," said Chief Executive John Swygert. "Manufacturers are creating new and innovative products, changing packaging and sizes, and competing for retail shelf space, which is creating more closeout opportunities."
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Dec 06, 2023
Shares of Pharvaris N.V. PHVS jumped 40% premarket on Wednesday after the Switzerland-based company said an investigational drug met its primary goal in a clinical trial for treatment and prevention of hereditary angioedema attacks. The attacks can cause rapid and severe swelling of the face, windpipe, hands, feet and other areas. The treatment, deucrictibant, significantly reduced the average monthly attack rate, compared to placebo, and cut moderate and severe attacks by 92%, Pharvaris said. Leerink Partners analysts said in a report Wednesday that the result "exceeds expectations" and potentially positions deucrictibant more favorably than BioCryst Pharmaceuticals Inc.'s BCRX hereditary angioedema treatment Orladeyo, which has been selling well. Pharvaris shares have gained 86% in the year to date, while the S&P 500 SPX is up 19%. BioCryst shares dropped 4.6% premarket Wednesday and have fallen 46.6% so far this year.
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Dec 06, 2023
Brown-Forman Corp.'s stock BF.B slid 4.7% early Wednesday, after the parent to Jack Daniel's whiskey posted weaker-than-expected fiscal second-quarter earnings and said a challenging operating environment has it tempering its expectations for the year. The company had net income of $242 million, or 50 cents a share, for the quarter to Oct. 31, up from $227 million, or 47 cents a share, in the year-earlier period. Sales rose 1% to $1.107 billion. The FactSet consensus was for EPS of 51 cents and sales of $1.149 billion. "While we grew at a slower pace than anticipated, we delivered strong gross margin expansion and continued to invest strongly behind our brands," Chief Executive Lawson Whiting said in a statement. The company now expects full-year organic sales growth of 3% to 5%, down from guidance of 5% to 7%, offered with first-quarter earnings. Organic sales strip out the impact of foreign exchange and acquisitions. "While we remain optimistic about our prospects for growth of organic net sales and organic operating income in fiscal 2024, evolving global macroeconomic conditions continue to create a challenging operating environment tempering our expectations," said the statement. The stock has fallen 8.3% in the year to date, while the S&P 500 SPX has gained 19%.
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Dec 06, 2023
The stock of InMode Ltd. INMD, an Israeli medical tech company, fell 13% early Wednesday, after the company cut its full-year guidance to reflect stronger-than-expected headwinds from the current macro environment, that was causing a slowdown in platform sales, mainly in North America. The company is now expecting adjusted EPS of $2.47 to $2.50, down from prior guidance of $2.53 to $2.57. It expects sales to range from $485 million to $495 million, down from a prior range of $500 million to $510 million. The stock has fallen 34% in the year to date, while the S&P 500 SPX has gained 19%.
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Dec 06, 2023
Campbell Soup Co.'s stock CPB was up by 0.6% in premarket trades on Wednesday after the company said it may outpace analyst estimates for 2024 earnings per share. Campbell Soup said its first-quarter net income for the three months ended Oct. 29 fell to $407 million, or 78 cents a share, from $436 million, or 99 cents a share in the year-ago quarter. Adjusted first-quarter earnings of 91 cents a share beat the FactSet consensus estimate of 87 cents a share. Revenue fell 2% to $2.52 billion, in line with the analyst estimate. Looking ahead, Campbell Soup expects adjusted 2024 earnings of $3.09 to $3.15 a share, ahead of the FactSet consensus estimate of $3.07 a share. Chief Executive Mark Clouse said the company's first-quarter results were in line with expectations. "We are off to an encouraging start in our important holiday season," Clouse said. Campbell Soup expects to close its acquisition of Sovos Brands in 2024.
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Dec 06, 2023
United Natural Foods Inc.'s stock UNFI was moving between gains and losses early Wednesday, after the grocery wholesaler posted a narrower-than-expected fiscal first-quarter adjusted loss, but sales that fell short of estimates. The company had a net loss of $39 million, or 67 cents a share, for the quarter to Oct. 28, after income of $66 million, or $1.07 a share, in the year-earlier period. Its adjusted per-share loss came to 4 cents, narrower than the FactSet consensus for a loss of 32 cents a share. Sales rose to $7.552 billion from $7.532 billion, but were below the $7.612 billion FactSet consensus. The company updated its fiscal 2024 guidance for its net loss and EPS to reflect non-cash asset charges and a gain on a sale, but backed guidance for sales. It now expects a net loss of $120 million to $46 million, compared with prior guidance of $110 million to $36 million. It still expects a loss per share of 88 cents to EPS of 38 cents and sales of $30.9 billion to $31.5 billion. The stock has fallen 58% in the year to date, while the S&P 500 SPX has gained 19%.
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Dec 06, 2023
Exxon Mobil Corp. XOM said Wednesday it's boosting its share repurchases to $20 billion per year from the time it closes its Pioneer Natural Resources Co. PXD acquisition in the first half of next year through 2025, up from $17.5 billion in 2023. The oil major said its oil-equivalent production is expected to increase to 4.2 million barrels a day by 2027 from 3.8 million oil-equivalent barrels per day in 2024, with growth in the Permian and Guyana. Exxon said it's also "pursuing more than $20 billion of lower-emissions opportunities through 2027, which represents the third increase in the last three years, from an initial $3 billion in projects identified in early 2021." The oil major is also targeting $6 billion in structural cost reductions by the end of 2027. Including these latest cost savings, Exxon Mobil said it has reduced expenses by $15 billion versus 2019. Exxon Mobil's stock was up by 0.5% in premarket trading on Wednesday.
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Dec 06, 2023
Delta Air Lines Inc. DAL backed its guidance for the fourth quarter and full-year on Wednesday, ahead of a presentation at the Morgan Stanley Global Consumer & Retail Conference. The airline is still expecting fourth-quarter EPS of $1.05 to $1.30 and revenue growth of 9% to 12%. For the full year, it expects EPS to range from $6.00 to $6.25 and for revenue to grow about 20%. The guidance was previously provided on Oct. 12. The stock has gained 14.5% in the year to date, while the S&P 500 SPX has gained 19%.
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Dec 06, 2023
Altria Group Inc. MO and Philip Morris International Inc.'s stocks PM fell in premarket trade Wednesday, caught up in the downdraft created by British American Tobacco's massive $31.5 billion writedown of its cigarette brands. BAT's stock UK:BATS was down 8% in London after it announced the writedown, which covers its acquired U.S. combustibles brands, as it assesses their value over 30 years. U.S. brands it holds include Camel and Newport. Altria and Philip Morris were down 1.3%. Jefferies analyst Owen Bennett said that while BAT's business is clearly under pressure, "post call there are reasons not to be too negative: 1) possible upside from US next year; 2) both the vape & pouch businesses profitable already, even with the disposable pressures on the former, while we think the additional heated investment is needed. We've said before, the focus on pricing vs below-the-line has been wrong; 3) appears open to selling part of ITC stake, with possible buyback implications," Bennett wrote in a note. ITC is the Imperial Tobacco Company of India.
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Dec 06, 2023
Yum Brands Inc.'s KFC division has agreed to acquire more than 200 KFC restaurants in the U.K. and Ireland from EG Group, the biggest franchisee in those countries. The deal "represents a significant opportunity to accelerate KFC's growth strategy in the large and growing UK and Ireland chicken market, with high average unit volumes and robust margins," the companies said in a joint statement. No financial terms were disclosed, but the deal is expected to close by the end of the first half of 2024. The deal will be financed using cash flows from Yum YUM and is expected to have an immaterial impact on Yum's 2024 financial results. The stock has fallen 2.9% in the year to date, while the S&P 500 SPX has gained 19%.
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Dec 05, 2023
Five9 Inc. FIVN said Tuesday it was approached with an acquisition opportunity, but is not pursuing any deal. The cloud-based software provider was reacting to a Bloomberg report on Monday that said it was mulling a possible sale after a bid by Zoom Video Communications Inc. ZM fell through in 2021.
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Dec 05, 2023
Mastercard Inc. MA late Tuesday said that its board has declared a quarterly cash dividend of 66 cents a share, a 16% increase over the previous dividend of 57 cents per share. The dividend will be paid on Feb. 9 to shareholders of record on Jan. 9. The board has also approved a new share buyback program, authorizing the company to repurchase up to $11 billion of its shares, the company said. The new program will be effective at the end of Mastercard's previously announced $9 billion program in December 2022. As of Dec. 1, the company had about $3.5 billion remaining under that plan. Shares of Mastercard rose 0.7% in the extended session Tuesday, after ending the regular trading day up 0.1%.
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Dec 05, 2023
Asana Inc.'s ASAN stock dropped 6% in extended trading Tuesday after the software company reported quarterly results. Asana reported a fiscal-third-quarter net loss of $61.8 million, or 28 cents a share, compared with a net loss of $100.9 million, or 49 cents a share, in the same quarter a year ago. The adjusted net loss was 4 cents a share. Revenue was $166.5 million, compared with $141.4 million in the same quarter a year ago. Analysts surveyed by FactSet had expected on average a net loss of 11 cents a share on revenue of $164.1 million. Shares of Asana have soared 69% this year. The broader S&P 500 index SPX has improved 19%.
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Dec 05, 2023
U.S. stocks finished mostly lower on Tuesday, with the Dow logging back-to-back losses for the first time in nearly a month, while a rally in megacap technology stocks helped boost the Nasdaq. Apple Inc.'s AAPL gains on Tuesday saw it end the session with a market capitalization north of $3 trillion for the first time since early August, according to Dow Jones Market Data. The S&P 500 SPX fell by 2.60 points, or 0.1%, to 4,567.18, according to preliminary closing data from FactSet. The Dow Jones Industrial Average DJIA fell by 79.88 points, or 0.2%, to 36,124.56. Meanwhile, the Nasdaq Composite COMP gained 44.42 points, or 0.3%, to 14,229.91. U.S. stocks rallied hard in November, with the S&P 500 rising more than 11% for its best monthly gain of the year, and one of its best monthly advances over the past decade. But markets have pulled back early this week, raising questions about whether the rally can continue, market strategists said.
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Dec 05, 2023
Oil futures on Tuesday stretched their losses into a fourth consecutive session, pulling U.S. prices to their lowest settlement since early July. "The OPEC decision was a clear disappointment last week due to both the underwhelming amount of additional [oil] output curbs and the voluntary nature of the 2024 policy cuts," said Tyler Richey, co-editor at Sevens Report Research. January West Texas Intermediate crude CLF24 fell 72 cents, or 1%, to settle at $72.32 a barrel on the New York Mercantile Exchange. Prices based on the front-month contract settled at their lowest since July 6, according to Dow Jones Market Data.
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Dec 05, 2023
Airbnb Inc. ABNB on Tuesday named Ellie Mertz its new chief financial officer, with outgoing CFO Dave Stephenson set to become the company's first-ever chief business officer. Airbnb also said that head of hosting Catherine Powell is moving to an adviser role and plans to "move on from Airbnb" next year. The company said it created the role of chief business officer "because we're about to embark on our next chapter … We spent 2023 perfecting our core service, and we're now ready to turn the corner." Stephenson's "critical" role will include guiding long-term growth plans and "driving international expansion, growing global host supply (across existing and new businesses), and leading all business and corporate development activities at Airbnb," Chief Executive and co-founder Brian Chesky said in an e-mail to employees. Airbnb shares rose more than 1% Tuesday and are up 58% in the year to date, which compares with an advance of 19% for the S&P 500 index SPX.
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Dec 05, 2023
Chemical company Albermarle Corp. ALB saw its common stock price drop 4.4% on Tuesday as the biggest decliner in the S&P 500 SPX. UBS cut its price target for Albermarle to $130 a share from $140 on lower lithium prices, which have fallen amid lower-than-expected demand for electric vehicles (EVs). "We expect ALB stock to remain under pressure until there is visibility on 1) lithium price floor, 2) any supply response to lower prices…and 3) EV demand outlook," UBS analyst Joshua Spector said in a research note. UBS reiterated a neutral rating on Albermarle amid expectations that the lithium market will remain volatile.
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Dec 05, 2023
New York City Mayor Eric Adams said Tuesday his administration is launching a new, lithium-ion battery-charging pilot program early in 2024, that will allow an initial group of delivery workers to safely charge their bikes in public. "The pilot will test a variety of technologies to charge e-bike batteries at multiple locations across the city, developed as part of the administration's "Charge Safe, Ride Safe" plan to protect New Yorkers from fires caused by lithium-ion batteries and promote safe electric-micromobility usage," Adams team said in a statement. The pilot builds on earlier programs to develop more outside-of-home charging options for New Yorkers, including one that set up "deliverista hubs" in vacant newsstands in partnership with Los Deliveristas Unidos and U.S. Senate Majority Leader Chuck Schumer. The city has a $25 million U.S. Department of Transportation grant to install 173 outdoor electric-micromobility charging and storage stations at 53 New York City Housing Authority developments. E-bikes and e-scooters have become essential for delivery workers, but bring serious fire risk. There were 253 fires relating to batteries that power electric mobility devices in 2023, up from 30 in 2019.
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Dec 05, 2023
KeyCorp.'s stock KEY was down 3.8% on Tuesday after the bank lowered its fourth-quarter outlook for non-interest income to drop by 5% to 8% from the previous quarter. The bank's prior estimate was for an increase of 1% to 3%. KeyCorp expects fourth-quarter loan activity to drop by 1% to 3% from the third quarter, with "relatively stable" net interest income. The estimates were included in a filing accompanying the bank's appearance at the Goldman Sachs 2023 U.S. Financial Services Conference.
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Dec 05, 2023
U.S. stocks opened lower on Tuesday as the market's recent rally remained on pause ahead of a slew of economic data that will likely decide the future of interest-rate cuts by the Federal Reserve next year. The Dow Jones Industrial Average DJIA was falling 93 points, or 0.3%, to 36,113, while the S&P 500 SPX was down 0.3% and the Nasdaq Composite COMP was retreating 0.4%. After a strong run of gains in November that led three major indexes to notch five straight winning weeks, U.S. stocks were pulling back as investors were tempering their expectations for rate cuts by the first quarter of 2024. In U.S. economic data, a Labor Department survey due at 10 a.m. Eastern is expected to show job openings fell to 9.4 million in October from about 9.6 million in the previous month.
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Dec 05, 2023
Wells Fargo & Co.'s WFC stock was down by 0.4% on Tuesday after the bank said it plans to book $750 million to nearly $1 billion in fourth-quarter severance costs. Chief Executive Charlie Scharf said at the Goldman Sachs U.S. Financial Services conference that the bank has seen turnover come down, which is leading to "more severance than we otherwise would have anticipated." Scharf said the bank plans to take up to "a little less than $1 billion" in severance costs as it focuses on efficiency. "We're going to have to be more aggressive about our own internal actions," he said. "But again, we think that, that's the right thing to do for the long term."
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Dec 05, 2023
Procter & Gamble Co. PG said Tuesday it's planning a restructuring of its business operations, primarily in certain enterprise markets, including Argentina and Nigeria, to address "challenging macroeconomic and fiscal conditions." The consumer goods company expects to book after-tax restructuring charges of $1.0 billion to $1.5 billion, most of which will be noncash and recognized in the fiscal years ending June 30, 2024 and 2026, with the first charges to be booked in the quarter ending Dec. 31. The company also expects to book a roughly $1.3 billion pretax noncash impairment charge related to its 2005 acquisition of The Gillette Co. "The impairment charge arises from a reduction in the estimated fair value of the Gillette indefinite-lived intangible asset due to a higher discount rate, weakening of several currencies relative to the U.S. dollar and the impact of the restructuring program described above," the company said in a regulatory filing. It said the underlying Gillette business remains strong, but future adverse changes in the business or macro environment may trigger another charge. The stock has gained 0.3% in the year through Monday's close, while the S&P 500 SPX has gained 19%.
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Dec 05, 2023
Philip Morris International Inc. PM backed its full-year profit guidance on Tuesday, and said it expects organic top-line growth and double-digit, currency-neutral adjusted EPS growth. "This is underpinned by the continued strength of our smoke-free portfolio led by our two blockbuster premium brands: IQOS and ZYN," said Chief Financial Officer Emmanuel Babeau in a statement released ahead of an investor conference. The tobacco company expects full-year EPS to range from $4.95 to $4.98, which includes a $1.10 adjusted and a currency impact of 53 cents a share. The FactSet consensus is for $6.11 in EPS. The stock was down 0.8% premarket, and has fallen 8% in the year to date, while the S&P 500 SPX has gained 19%.
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Dec 05, 2023
Replimune Group Inc. shares REPL dropped more than 40% premarket on Tuesday after the biotech company said an investigational cancer therapy had failed to meet its primary goals in a clinical trial in skin cancer. The therapy, RP1, was studied in combination with cemiplimab, a Regeneron Pharmaceuticals Inc. REGN monoclonal antibody branded as Libtayo. The combination therapy showed a clinically meaningful improvement in response rate and duration in patients with cutaneous squamous cell carcinoma, compared with Libtayo alone, but the complete response rate fell short of the study's statistical significance threshold, Replimune said in a release. The trial will continue as planned to assess overall survival and other factors, the company said. Replimune also said it would halt development of its investigational RP2 and RP3 therapies in squamous cell carcinoma of the head and neck and colorectal cancer. As of Sept. 30, the company said it had cash and investments totaling $496.8 million, and the reshuffling of portfolio priorities is expected to extend its cash runway to early 2026. Replimune shares have dropped 55% in the year to date, while the S&P 500 SPX has gained 19%.
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Dec 05, 2023
Designer Brands Inc.'s stock DBI slid 34% premarket Tuesday, after the parent to footwear brands, including Keds, Lucky Brand and Vince Camuto, posted weaker-than-expected third-quarter earnings and cut its guidance. Columbus, Ohio-based Designer Brands said it was hurt by a footwear market that contracted for the first time since the pandemic amid unseasonably warm weather. "We saw improved performance in casual and clearance categories this quarter, but this was not enough to offset the broader lack of demand," CEO Doug Howe said in a statement. "While macro pressures notably impacted our business, we clearly recognize the need to operate with even greater speed and increase the level of innovation, newness, and fashion into our assortments, returning to our roots as a merchant organization and a fashion footwear retailer." The company had net income of $10.1 million, or 17 cents a share, down from $45.2 million, or 65 cents a share, in the year-earlier period. Adjusted per-share earnings came to 24 cents, well below the 46 cent FactSet consensus. Sales fell to $786.3 million from $865.0 million a year ago, also below the $824.0 million FactSet consensus. The company expects the pressure to continue and lowered its full-year guidance for EPS to a range of 40 cents to 70 cents from $1.20 to $1.50 previously. It expects sales to be down in the high single digits, compared with prior guidance of down mid-to-high single digits. The stock has gained 31% in the year to date, while the S&P 500 SPX has gained 19%.
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Dec 05, 2023
Eli Lilly & Co. LLY said Tuesday its new obesity drug Zepbound has been added to a major pharmacy benefit manager's preferred formulary, or list of covered drugs, as it hits U.S. pharmacy shelves. Zepbound, which was approved by the U.S. Food and Drug Administration last month, as of Dec. 1 was added to the preferred formulary of Express Scripts, the giant PBM owned by Cigna Group CI, and will be added to Cigna Healthcare commercial formularies as of Dec. 15, Lilly said. A Lilly commercial savings card program is also now available at U.S. pharmacies to help patients access Zepbound, the company said. People who are commercially insured with coverage for Zepbound may get the drug for as little as $25 a month, the company said, while those who have commercial insurance that does not cover Zepbound may pay $550 a month, about 50% off the list price. "The availability of Zepbound in U.S. pharmacies is the first step, but we have to work hand-in-hand with employers, government and healthcare industry partners to remove barriers and make Zepbound available to those who need it," Rhonda Pacheco, Lilly's group vice president for diabetes and obesity, said in a statement. Lilly shares gained 0.1% premarket Tuesday and are up 60% in the year to date, while the S&P 500 SPX has gained 19%.
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Dec 05, 2023
AutoZone Inc.'s stock AZO was up by 1% in premarket trading on Tuesday after the auto parts retailer said its profit rose 10%m as its same-store sales growth of 2.1% matched the FactSet consensus estimate. AutoZone's first-quarter net income rose to $593.46 million, or $32.55 a share, from $539.32 million, or $27.45 a share, in the year-ago quarter. The company beat the FactSet consensus estimate of $26.75 a share. Sales rose 5.1% to $4.19 billion, in line with the analyst estimate. AutoZone's total store count rose by 25 net new stores for a total of 7,165 in the U.S., Mexico and Brazil. "Domestic sales results were solid despite tough comparisons from a year ago, while our international business continues to deliver exceptionally strong sales growth," said Chief Executive Bill Rhodes.
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Dec 05, 2023
An earlier version of this article had a typo in the 2024 revenue guidance. It has been corrected.CVS Health Inc.'s stock CVS rose 3% premarket Tuesday, after the drug-store chain backed guidance for 2023 and set guidance for 2024 with revenue that's comfortably above consensus. The company said it expects 2024 adjusted EPS of at least 8.50 on revenue of at least $366.0 billion. The FactSet consensus is for EPS of $8.51 and revenue of $344.5 billion. The company still expects 2023 adjusted EPS of $8.50 to $8.70 on revenue of $351.5 billion to $357.3 billion. It offered the outlook in a statement released ahead of an investor day. The Woonsocket, R.I.-based company is introducing CVS CostVantage, a new reimbursement model that aims to improve transparency. "CVS CostVantage will define the drug cost and related reimbursement with contracted pharmacy benefit managers (PBMs) and payors, using a transparent formula built on the cost of the drug, a set markup, and a fee that reflects the care and value of pharmacy services," the company said. It's further launching CVS Caremark TrueCos as a new pricing program for prescription drugs that will offer visibility into admin fees. The company's Health Services segment will be rebranded as CVS Healthspire starting this month. CVS Health is also raising its quarterly dividend by 10% to 66.5 cents vs. 60.5 cents previously. The new dividend is payable Feb. 1 to holders of record as of Jan. 22. The stock is down 26.5% in the year to date, while the S&P 500 SPX has gained 19%.
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Dec 05, 2023
Johnson & Johnson's stock JNJ was slightly higher premarket Tuesday, after the healthcare company set guidance for 2024 and for the longer term, ahead of an investor day at the New York Stock Exchange. The company said it expects 2024 sales to grow 5% to 6% and for adjusted EPS to range from $10.55 to $10.75, including the recently announced acquisition of medical tech company Laminar Inc. , which will shave 15 cents off earnings. The FactSet consensus is for EPS of $10.78. The company expects at least 3% operational sales growth in 2025 for its enterprise division, even as Stelara, a treatment for plaque psoriasis and psoriatic arthritis, will see competition in the U.S. from a biosimilar. It expects 5% to 7% operational sales compound annual growth rate from 2025 to 2030. At the medtech segment, it expects operational sales to be at the upper range of its markets, which are expected to grow 5% to 7% through 2027. Innovative medicine is expected to see 5% to 7% operational sales growth from 2025 to 2030. The stock has fallen 10% in the year to date, while the S&P 500 SPX has gained 19%.
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Dec 05, 2023
J.M. Smucker Co.'s stock SJM rose about 1% in premarket trade Tuesday, after the parent of Folgers coffee and Jif peanut butter beat profit estimates for the third quarter, while sales fell slightly short and it lowered its full-year guidance. Orrville, Ohio-based Smucker had net income of $194.9 million, or $1.91 a share, for the quarter, up from $191.1 million, or $1.79 a share, in the year-earlier period. Adjusted per-share earnings came to $2.59, while FactSet was expecting $2.47. Sales fell 12% to $1.939 billion from $2.205 billion a year ago, just below the $1.943 billion FactSet consensus. The company updated its full-year guidance to reflect the acquisition of Twinkie maker Hostess Brands. It now expects sales to rise 8.5% to 9.0%, down from prior guidance of 8.5% to 9.5%. It expects adjusted EPS to range from $9.25 to $9.65, compared with prior guidance of $9.45 to $9.85. The stock has fallen 29% in the year to date, while the S&P 500 SPX has gained 19%.
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Dec 05, 2023
Nio NIO on Tuesday said it lost 4.56 billion Chinese renminbi, wider than the 4.11 billion renminbi it lost in the year-earlier quarter, while revenue more than doubled to 19.07 billion renminbi as vehicle sales rose 46%. On an adjusted basis, the EV maker said it lost 2.28 renminbi per share, or 31 U.S. cents per share. Analysts polled by Visible Alpha expected a loss of 2.49 renminbi on revenue of 19.3 billion renminbi. The company's vehicle margin was 11%, versus 16.4% in the year-earlier quarter. It's expecting revenue to rise between 0.1% and 4% in the fourth quarter, on a deliveries increase between 17.3% and 22.3%. Nio shares rose 3% in premarket trade.
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Dec 04, 2023
Corrected with A&T planning to run 70% of its wireless traffic through open-capable platforms by late 2026.AT&T Inc. T said Monday afternoon that it will collaborate with Ericsson to build "a more robust ecosystem of network infrastructure providers and suppliers" in the U.S. The company estimates its spending could near $14 billion over the five-year duration of its contract with Ericsson. AT&T said it intends to "lead the United States in commercial scale open radio access network (Open RAN) deployment," and it plans to run 70% of its wireless network traffic through open-capable platforms by late 2026. "This move to an open, agile, programmable wireless network positions AT&T to quickly capitalize on the next generation of wireless technology and spectrum when it becomes available," the company said in a press release.
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Dec 04, 2023
EyePoint Pharmaceuticals Inc. EYPT announced Monday afternoon that it has begun an underwritten public offering of $175 million in common stock. The company will also give underwriters the chance to purchase up to an additional $26.25 million of stock at the offering price, for 30 days, less an underwriting discount. The offering comes after EyePoint shares surged 177% in Monday's regular session following its announcement of upbeat data for its macular degeneration treatment EYP-1901. That was the stock's largest one-day percentage gain on record. EyePoint shares are up a further 6% in after-hours trading. The company said in a release that it would use the net proceeds from the stock offering to advance EYP-1901's clinical development "through the initiation of and reporting of topline data from two pivotal Phase 3 clinical trials." EyePoint will also use proceeds to support earlier-stage pipeline-development efforts.
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Dec 04, 2023
GitLab Inc.'s stock GTLB surged 15% in extended trading Monday after the software company reported quarterly results that surpassed analyst revenue and earnings estimates. GitLab reported a fiscal third-quarter net loss of $285.2 million, or $1.84 a share, compared with a net loss of $48.5 million, or 33 cents a share, in the same quarter a year ago. Adjusted earnings were 9 cents a share. Revenue catapulted 32% to $149.7 million from $113 million in the same quarter a year earlier. Analysts surveyed by FactSet had expected on average a net loss of a penny a share on revenue of $141.5 million. Shares of GitLab have advanced 16.5% this year. The S&P 500 index SPX is up 19%.
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Dec 04, 2023
U.S. stocks finished lower on Monday with the Dow pulling back from its 2023 highs, while a catch-up rally in small caps stretched to a fourth day. The S&P 500 SPX fell by 24.85 points, or 0.5%, to 4,569.78, according to preliminary closing data from FactSet. The Nasdaq Composite COMP declined by 119.54 points, or 0.8%, to 14,185.49. The Dow Jones Industrial Average DJIA shed 41.06 points, or 0.1%, to 36,204.44. Market watchers blamed rising Treasury yields for the pullback in stocks, with the 10-year yield up more than 4 basis points at 4.266%. But while other indexes fell, the small-cap Russell 2000 RUT gained 16.76 points, or 0.8%, to 1,879.53. The small-cap index has outperformed the Nasdaq by more than 5.5 percentage points over the past four sessions, the best such stretch since June, according to Dow Jones Market Data.
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Dec 04, 2023
Shares of Five9 Inc. FIVN popped nearly 10% Monday following a report the call-center software provider is mulling a sale, more than two years after it scrapped a multibillion-dollar acquisition by Zoom Video Communications Inc. ZM. Five9 is in talks with advisers to measure interest from potential buyers, including Zoom, according to a Bloomberg report, citing people familiar with the situation.
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Dec 04, 2023
Oil futures on Monday posted a third-straight session decline, with U.S. prices settling at their lowest since mid-November. Oil prices have remained under pressure on concerns over slowing demand, as well as some skepticism that the OPEC output cuts will hold, and the fact that U.S. production continued to break new records, said Michael Hewson, chief market analyst at CMC Markets UK. January West Texas Intermediate crude CLF24 fell $1.03, or 1.4%, to settle at $73.04 a barrel on the New York Mercantile Exchange. Prices based on the front-month contract settled at their lowest since Nov. 16, according to Dow Jones Market Data.
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Dec 04, 2023
Lululemon Athletica Inc.'s stock LULU fell 2% Monday, after Wells Fargo downgraded the yoga gear maker's stock to equal weight from overweight, and said it's taking its chips off the table following a strong year-to-date run. The stock has gained 42.6% in 2023 so far, outperforming the S&P 500's SPX 19% rise. Analysts led by Ike Boruchow said there were several factors behind the bank's upgrade of Lululemon back in January. These included the view that inventories would normalize after the holiday; there was material freight recapture ahead to boost margins; the company was looking at strong growth overseas, specially in China that would boost sales upside; and valuation would revert to historical norms. "Simply put, these factors have played out — likely driving the stock's outperformance in '23," said the analysts. Wells Fargo is of the view that laggard names in the retailing, specialty softlines and e-commerce space, are the ones to own right now, citing as examples, Burlington Stores Inc. BURL, Bath & Body Works Inc. BBWI, Gap Inc. GPS, PVH Corp. PVH and Victoria's Secret VSCO, among others. "LULU's fundamentals have been impressive the past 24 months—and as such, they don't have any "easy" P&L lines to play with (except for SG&A, which we don't believe the market will reward)," the analysts wrote. "At the same time, valuation is no longer cheap—with multiples back in line with history." Wells Fargo is now replacing Lululemon with NIke Inc., which it named a new top defensive pick. "We simply believe the recovery characteristics and self-help story now beginning at NKE make for a more compelling long idea into 2024," said the note. Nike's stock was up 1.3%.
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Dec 04, 2023
Car-rental company Sixt XE:SIX2 is phasing out Tesla Inc.'s EVs from its fleet due to lower resale value, Bloomberg reported Monday, citing an email to customers from the German company that it had viewed. Tesla's price cuts hit residual values and higher EV repair costs are compounding the problem, the report said. Sixt did not immediately respond to a request for comment. According to Bloomberg, the company still plans to electrify as much as 90% of its fleet in Europe by the end of the decade. In October, U.S. car rental company Hertz Global Holdings Inc. HTZ cited similar concerns about its rental Teslas and fleet value. Tesla shares traded 1.4% lower on Monday, and are down about 4% in the past three months. The shares are holding on to sizable yearly gains, however, up 91% and outperforming the S&P 500 index SPX, which is up around 19% in the same period.
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Dec 04, 2023
Twilio Inc.'s stock TWLO fell 2% early Monday, after the cloud computing company said it plans to cut 5% of its global workforce and book $25 million to $35 million in severance charges. The company's most recent filing with the Securities and Exchange Commission shows it had 5,905 employees as of Sept. 30, 2023. The company expects to book most of those charges in the fourth quarter and the plan should be completed by the end of the first quarter of 2024. The company said it's backing guidance for the fourth quarter and fiscal year that was provided in November. Chief Executive Jeff Lawson said workers will be informed of their status by email within the next two hours. The stock has gained 36% in the year to date, while the S&P 500 SPX has gained 19.7%.
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Dec 04, 2023
The U.S. stock market opened lower Monday, with investors appearing to take a breather after all three major benchmarks rose for five straight weeks. The Dow Jones Industrial Average DJIA was trading 0.4% lower soon after the opening bell, while the S&P 500 SPX fell 0.8% and the Nasdaq Composite COMP dropped 1%, according to FactSet data, at last check. The S&P 500 was down after Friday, when it closed at its highest value since March 30, 2022, according to Dow Jones Market Data. Monday is a light day for the U.S. economic calendar, with a report on factory orders scheduled to be released at 10 a.m. Eastern Time.
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Dec 04, 2023
Southwest Gas Holdings Inc. SWX said Monday it plans to pursue an initial public offering of of Centuri Holdings Inc. to separate it from the company by the spring or summer or 2024 once it finds a chief executive for the utility infrastructure company. Current Centuri Chief Executive Paul M. Daily has said he plans to retire in 2024. Centuri announced on Sept. 22 it submitted a confidential draft registration for an IPO. Southwest Gas's stock has fallen 2.5% in 2023, compared to a 19.7% increase by the S&P 500 SPX.
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Dec 04, 2023
Uber Technologies Inc.'s stock UBER soared 4.2% early Monday, after the ride-sharing company's stock was added to the S&P 500, prompting Oppenheimer to raise its price target to $75 from $65 and reiterate its outperform rating, the equivalent of buy. "Following the inclusion, we expect UBER to lean into growth and share buybacks, which should increase investor sentiment for growth/ return in 2024," said analysts led by Jason Helfstein in a note to clients. The last 10 companies to be added to the benchmark index saw stock's increase an average 5% of their first trading day, moderating to up 3% 15 trading days after the announcement, said the note. Uber's stock has gained 132% in the year to date, while the S&P 500 SPX has gained 19.7%.
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Dec 04, 2023
Wallbox's stock WBX was rallying by 22% Monday after generator specialist and S&P 500 SPX component Generac Holdings Inc. GNRC said it made a minority investment in the electric-vehicle charging company. Financial terms were not disclosed. Generac will also get a seat on Wallbox's board of directors and a global commercial agreement to provide Generac's residential and commercial customers with Wallbox's products. Generac stock is up by 21.5% in 2023, compared to a 19.7% gain by the S&P 500 SPX.
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Dec 04, 2023
Verizon Communications Inc. VZ plans to offer a bundle containing ad-free Netflix and Max for $10 a month combined to customers of its myPlan service. These wireless plans let customers choose which streaming services, bundles or other offers they want to get in addition to their cellular service. Verizon said in a Monday morning press release that it will be the only one to offer such bundled savings on the services from Netflix Inc. NFLX and Warner Bros. Discovery Inc. WBD , which runs Max. The bundle will become an option for consumers Dec. 7.
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Dec 04, 2023
Brookfield Asset Management BAMCA:BAM and Brookfield Renewable Partners BEPCA:BEP.UT said they will evaluate their next steps, if any, after Origin Energy Ltd. AU:ORG shareholders rejected a $10.6 billion takeover proposal with private-equity firm EIG. Origin shareholders approved the deal by 69%, but the vote was short of the required 75% approval level. "We are seeing plentiful opportunities to deploy capital at or above our target returns," Brookfield Renewable Chief Executive Connor Teskey said. The firm said it remains on track to deploy up to $8 billion of equity capital over the next five years, which is consistent with its target. "Our plan to accelerate the transition of Origin has generated significant interest from similar businesses around the world, who are seeking a capital and operating partner to enhance the value of their businesses by accelerating their transition," Brookfield said.
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Dec 04, 2023
EyePoint Pharmaceutics Inc.'s stock EYPT rocketed 362% early Monday, after the company announced positive results from a Phase 2 trial of its EYP-1901 treatment for wet age-related macular degeneration, or wet AMD. The company said the study combining vorolanib, a selective tyrosine kinase inhibitor with bioerodible Durasert E, met its primary endpoint as well as key secondary endpoints with both doses used in the study, including a more than 80% reduction in treatment burden, nearly two-thirds of eyes supplement-free up to six months and over 80% receiving only zero or one supplement up to six-months. "Wet AMD is a prevalent and progressive lifetime disease. With frequent treatment, patients can maintain their visual acuity, but the unfortunate reality is that many patients end up undertreated due to the burden of dosing of the currently available, short-acting anti-VEGF therapies," said DR. Carl Regillo, Chief of Retina Service at Wills Eye Hospital. The company plans to release the full dataset at Angiogenesis, Exudation, and Degeneration 2024 in February. The stock has gained 89% in the year to date, while the S&P 500 SPX has gained 19.7%.
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Dec 04, 2023
Shares of Virgin Galactic Holdings Inc. SPCE fell 14.1% in premarket trades Monday after founder Sir Richard Branson ruled out further investment in the space-tourism company. In an interview with the Financial Times Branson said that his business empire will not be putting more money into Virgin Galactic, which recently fleshed out its near-term growth strategy. "We don't have the deepest pockets after Covid, and Virgin Galactic has got $1bn, or nearly. It should, I believe, have sufficient funds to do its job on its own," he said. Last month Virgin Galactic reported a deeper-than-expected first-quarter loss and revenue that missed analysts' estimates. Branson founded Virgin Galactic in 2004. The company's stock has been pressured by the struggles of Branson's satellite launch company Virgin Orbit Holdings Inc., which filed for bankruptcy protection earlier this year. Shares of Virgin Galactic have fallen 32.8% in 2023, compared with the S&P 500 index's SPX gain of 19.7%.
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Dec 04, 2023
SilverSun Technologies Inc. SSNT said Monday Jacobs Private Equity II LLC agreed to invest $1 billion in cash into the company including money from co-investor Sequoia Heritage and others. Jacobs Private Equity II will become the majority stockholder of SilverSun with its leader, Brad Jacobs, as chief executive. SilverSun will spin off its existing business to shareholders, with the remaining company becoming a "standalone platform for significant acquisitions in an industry to be announced soon," the company said. The platform company's name has yet to be determined. "I'm excited to start building another multibillion-dollar company from scratch," Jacobs said. SilverSun Technologies stock is up 24% so far in 2023, compared to a 36.7% increase by the Nasdaq COMP. Based in New Jersey, SilverSun is a business application, technology and consulting company.
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Dec 04, 2023
Alaska Airlines Inc. ‘s stock ALK was downgraded to market perform from strong buy by Raymond James on Monday, after it announced it would acquire Hawaiian Airlines parent Hawaiian Holdings Inc. HA for $18 a share, or a 270% premium over its closing price on Friday. "Admittedly, with the acquisition unlikely to close for 12-18 months, the earnings recovery outlook that supported our prior view is intact, with the only likely change a delay in resuming a dividend," analyst Savanthi Syth wrote in a note to clients. "Moreover, we believe this acquisition makes sense longer term and Alaska has the balance sheet and earnings strength to see it through. However, given the current macro uncertainty, the complexity of executing the merger should weigh on sentiment and likely limits the near- to medium-term upside case," she wrote. Alaska's stock was down 11.9% while Hawaiian was up 188.5%.
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Dec 04, 2023
General Motors Co.'s stock GM rose 1.2% in premarket trade Monday, after Mizuho upgraded the stock to buy from neutral and said the car maker has several catalysts for a move higher now the UAW strike is over. These include that estimated costs of wage increases of about $1.5 billion in 2024 will be fully offset by planned cost cuts totaling about $2 billion; the refreshed electric vehicle strategy is focused on profitability; the company is pausing investments in its money-losing Cruise self-driving business; 2024 should see improved production without the interruption caused by strikes; and the company's $10 billion share buyback will cover about 10% of shares outstanding over 12 months. Analysts raised their stock price target to $42 from $38. The stock has fallen 3.8% in the year to date, while the S&P 500 SPX has gained 19.7%.
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