|
Mar 27, 2023
Shares of First Republic Bank FRC surged 24% in premarket trading on Monday and led a swathe of regional lenders higher, following news of that failed Silicon Valley Bank finally has a buyer. The Federal Deposit Insurance Corp. announced earlier on Monday that First Citizens BancShares Inc. FCNCA has entered a deal to assume all loans and deposits of Silicon Valley Bridge Bank, which was created by the FDIC following the closure of Silicon Valley Bank. The FDIC has been trying to auction off the bank for about two weeks, since it became the largest U.S. bank to go bust since Washington Mutual in 2008. Also rising in premarket, shares of PacWest Bancorp PACW climbed 8%, Zions Bancorp ZION rose 3% and M&% Bank Corp. stock MTB was up 3%. First Republic stock has lost 90% of its value in less than two weeks, hitting an all-time low of $12.18 a share last Monday.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 27, 2023
Ammar Al Khudairy, the chairman of Saudi National Bank SA:1180 , has reportedly resigned and will be replaced by the bank's chief executive officer, Saeed Mohammed Al Ghamdi, Bloomberg reported on Monday. Comments from Al Khudairy sparked a selloff in Credit Suisse stock and wider stress across global financial markets a little over two weeks ago when he said his bank — the biggest shareholder in the Swiss lender — would not buy any more shares due to regulatory limitations. Days later, Credit Suisse CSCH:CSGN entered an agreement to be bought in a government brokered deal by arch-rival UBS UBSCH:UBSG for $3.25 billion. MarketWatch has reached out to the Saudi National Bank for comment.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 24, 2023
Intel Corp. INTC co-founder Gordon Moore died on Friday at his home in Hawaii, according to a statement on the company's website. He was 94. He and his colleague Robert Noyce founded Intel in 1968. Known for Moore's Law — or the idea that the number of transistors in a chip will roughly double every two years — Moore served a variety of executive roles at the chip maker, and retired from the company in 2006. In 2000, he and his wife established the Gordon and Betty Moore Foundation in 2000. He is survived by his wife, Betty, and sons Kenneth and Steven and four grandchildren.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 24, 2023
Biotech cancer-treatment developer Iovance Biotherapeutics Inc. IOVA on Friday said it had completed its rolling biologics license application submission to the U.S. Food and Drug Administration for lifileucel — a therapy intended to combat advanced melanoma in some cases. Interim Chief Executive Frederick Vogt said in a statement that completing the submission "is a critical step forward in our journey to deliver the first individualized, one-time cell therapy for a solid tumor." He added: "Our preparations for commercialization remain on track to support a launch later this year." Shares rose 13% after hours on Friday.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 24, 2023
World Wrestling Entertainment Inc. WWE on Friday said Executive Chairman Vince McMahon agreed to pay the pro-wrestling media giant around $17.4 million to cover costs the company took on related to a board committee investigation into allegations of sexual misconduct. "Such payment was made" on Thursday, WWE said in a filing. That agreement covered any costs incurred through Jan. 31 related to that investigation, as well as those related to "revisions to the Company's financial statements and other related matters." The agreement also said that McMahon will "review in good faith and reimburse" WWE for extra costs after that date. Shares of WWE were unchanged after hours. McMahon left WWE last year amid the allegations, but returned to the company this year.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 24, 2023
SoftBank Group Corp. JP:9984 plans to buy the remaining portion of AI and robotics developer Berkshire Grey Inc. BGRY that it doesn't already own in a roughly $375 million go-private merger deal. Under the deal, announced Friday, SoftBank — a big investor in AI, telecom and other tech-heavy industries — would acquire all of the outstanding capital stock of Berkshire Grey that it doesn't currently own for $1.40 per share in an all-cash transaction. The transaction, expected to close in the third quarter, represented a premium of around 24% to the stock's closing price as of Friday. Shares rose 19.3% after hours. SoftBank has been an investor in Berkshire Grey since 2019, Berkshire Grey said. SoftBank, in the statement announcing the deal, called Berkshire Grey a "pioneer" in AI-backed robotic technology that can be used in retail, e-commerce and for package handling. "SoftBank is a great partner and this merger will strengthen our ability to serve customers with our disruptive AI robotics technology as they seek to become more efficient in their operations and maintain a competitive edge," Tom Wagner, Berkshire Grey's chief executive, said in a statement.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 24, 2023
EV maker Rivian Automotive Inc. RIVN is drawing its engineers from across the U.S. to its Illinois manufacturing plant or its California headquarters in order to boost vehicle production, according to The Wall Street Journal late Friday. During the COVID pandemic, Rivian, which went public in late 2021, hired many remote-work engineers from across the country; states like Michigan, Texas, and Virginia, according to the WSJ report, citing an unnamed source close to the plan. Shares of Rivian showed little reaction after hours, following a 0.7% decline to close at $13.62.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 24, 2023
The Financial Stability Oversight Council said that "while some institutions have come under stress, the U.S. banking system remains sound and resilient," in a Friday statement. Treasury Secretary Janet Yellen convened the meeting of the nation's top financial regulators to discuss recent stresses in the U.S. banking system following the failure of Silicon Valley Bank and Signature Bank earlier this month. The council heard a presentation from New York Fed staff on "market developments" and also "discussed ongoing efforts at member agencies to monitor financial developments." Regional bank stocks KRE recovered during Friday trade, though financial sector equities XLF lagged the broader S&P 500 index SPX .
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 24, 2023
U.S. stocks ended a volatile week higher on Friday, a week that saw the Federal Reserve raise rates another 25 basis points and risks in the U.S. and European banking sectors remain in key focus. The Dow Jones Industrial Average DJIA rose about 132 points, or 0.4%, ending near 32,238, Friday, boosting its weekly gain to 1.2%, according to preliminary FactSet data. The S&P 500 index SPX climbed 0.6% Friday and 1.4% for the week, while the Nasdaq Composite Index COMP closed up 0.3% for a 1.7% weekly gain. Investors have been concerned about a potential credit crunch and its likely toll on the economy, after the failure earlier in March of Silicon Valley Bank and Signature Bank. Fed Chairman Jerome Powell on Wednesday said he expected credit conditions to tightening further, doing some of the central bank's work for it, in terms of bringing down inflation. One worry is that high rates and tighter credit could lead to a wave of defaults. Goldman Sachs this week raised its default forecast for the U.S. high-yield, or junk-bond, market to 4% from 2.8% for 2023. The junk-bond market is considered an earlier harbinger of potential stress in credit markets since it finances companies already considered at an elevated risk of buckling. European banks also were in focus, including on Friday as shares of Deutsche Bank DB came under pressure after costs of insuring it against a credit default jumped. Still, the S&P 500 and Nasdaq posted back-to-back weekly gains, according to Dow Jones Market Data. Before Friday, the Dow had two weekly declines in a row.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 24, 2023
Gold futures ended lower on Friday, paring their gain for the week, with prices failing to hold above the key $2,000 mark. Prices for the precious metal "kissed the $2,000 level again" on Friday, said Lukman Otunuga, manager, market analysis at FXTM. Gold continues to be influenced by various fundamental forces ranging from [Federal Reserve interest rate] hike expectations, lingering banking fears, dollar weakness, and falling Treasury yields," he said. But "given how the recent chaos across markets has fuelled speculation around the Fed cutting rates in 2023, gold has the potential to push higher." Gold for April delivery GCJ23 fell $12.10, or 0.6%, to settle at $1,983.80 an ounce on Comex. Prices based on the most-active contract gained 0.5% for the week, according to Dow Jones Market Data.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 24, 2023
Baker Hughes BKR on Friday reported that the number of active U.S. rigs drilling for oil rose by four to 593 this week. That followed declines in each of the past five weeks. The total active U.S. rig count, which includes those drilling for natural gas, climbed by four to 758, according to Baker Hughes. Oil prices continued to trade lower, with the May West Texas Intermediate crude contract CLK23 down 91 cents, or 1.3%, at $69.05 a barrel on the New York Mercantile Exchange.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 24, 2023
Resending to correct headline.Fed funds futures traders now see a 39% likelihood that the Federal Reserve will cut rates to between 3.75% and 4% by December — down from a current range of 4.75% to 5%. That view represents the most likely scenario they foresee as of Friday. Traders have moved away from the Fed's own median expectation for a 5.1% fed funds rate by year-end amid ongoing concerns about the global banking system. On Friday, Treasury yields were broadly lower in morning trading, while all three major U.S. stock indexes were also down.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 24, 2023
Treasury Secretary Janet Yellen will convene a meeting of the Financial Stability Oversight Council Friday.FSOC comprises the heads of the nation's top financial regulators, and was created in the wake of the 2008 financial crisis to enable the government to coordinate efforts at combating systemic risks to the U.S. economy. The announcement comes amid concerns over the health of the banking sector following the recent failures of Silicon Valley Bank and Signature Bank. The uncertainty is being felt overseas as well with shares of Germany's Deutsche Bank DB slumping as its credit default swaps widened.Financial sector equities XLF were under pressure Friday, ranking as the worst performing sector in the S&P 500 SPX in morning trade.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 24, 2023
Treasury yields plunged on Friday amid continued concerns about the global banking system, sending the policy-sensitive 2-year rate down by 18 basis points to 3.66% in morning trading. The yield is down more than 120 basis points over the past three weeks and headed for its biggest drop for such a length of time in more than 35 years. Meanwhile, the 10-year yield was down 11 basis points at 3.3% and poised for its biggest three-week plunge since March 2020.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 24, 2023
U.S. stocks opened lower Friday as investors continued to watch for signs of stress in the banking system. The Dow Jones Industrial Average DJIA was down 0.4% soon after the opening bell, while the S&P 500 SPX fell 0.4% and the technology-heavy Nasdaq Composite COMP shed 0.3%, according to FactSet data, at last check. Shares of Germany's Deutsche Bank were slumping in Europe on Friday after the bank's credit-default swaps widened. In U.S. economic news, orders for manufactured goods fell 1% in February, according to data released Friday by the Department of Commerce. The drop exceeded forecasts from economists polled by the Wall Street Journal for a 0.3% decline.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 24, 2023
The outlook on American Airlines Group Inc. AAL‘s issuer credit rating was revised to positive from stable S&P Global on Friday. S&P expects passenger traffic demand to remain strong, while capacity limitations in the industry should support high fares, the debt rating agency said. Higher jet fuel prices and a softer U.S. economy remain in the mix as risks, however. S&P also affirmed its current B-minus issuer credit rating on American Airlines. American Airlines fell 1% in premarket trades.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 24, 2023
Ally Financial Inc. ALLY on Friday named Russell Hutchinson as its new chief financial officer. He previously worked at Goldman Sachs Group Inc. GS including 20 years at its investment bank. Most recently, Hutchinson was chief operating officer for global mergers and acquisitions at Goldman Sachs. Interim CFO Bradley Brown will return to his position as corporate treasurer in July, when Hutchinson takes up the role. Ally Financial stock is down 2.5% in premarket trades.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 24, 2023
Activision Blizzard Inc. stock ATVI is up about 5% in premarket trades after the U.K.'s Competition and Markets Authority (CMA) said it remains on course for completing its review of the video game company's proposed acquisition by Microsoft Corp. MSFT by the end of April. "We have now provisionally concluded that the merger will not result in a substantial lessening of competition in console gaming services because the cost to Microsoft of withholding Call of Duty from PlayStation would outweigh any gains from taking such action," said Martin Coleman, chair of the independent panel of experts that's reviewing the deal for the CMA. The CMA said new evidence "provisionally alleviates concerns" over gaming consoles in the U.K. Previously stated concerns about the deal affecting competition in cloud gaming remain under review, the CMA said. Microsoft stock fell 0.7%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 24, 2023
Marlboro cigarette parent Altria Group Inc. MO said it is considering expanding into non-nicotine offering, including cannabis and caffeine pouches, according to a report in The Wall Street Journal. Altria had said at its Investor Day Thursday that it targets at least 35% growth in U.S. smoke-free volumes by 2028, and to double total U.S. smoke-free revenue to $5 billion over the same time, with $2 billion coming from "innovative" smoke-free products, according to a FactSet transcript. Altria said it is looking to take its reduced-risk products overseas, and is soliciting feedback from smokers as it develops its new products, the WSJ report said. Altria's stock fell 0.5% in premarket trading Friday, after closing Thursday at the lowest price ($43.46) since Oct. 10, 2022. It has lost 6.0% over the past three months through Thursday, while the AdvisorShares Pure US Cannabis exchange-traded fund MSOS has dropped 18.6% and the S&P 500 SPX has gained 2.7%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 24, 2023
Charles Schwab Corp. SCHW CEO Walt Bettinger said the brokerage and financial services firm has enough resources to continue to operate even if it lost its deposits over the coming year, The Wall Street Journal reported Friday. Without having to sell a single security in its portfolio, "there would be a sufficient amount of liquidity right there to cover if 100% of our bank's deposits ran off," Bettinger said in the report. Schwab could borrow from the Federal Home Loan Bank, issue certificates of deposit, or collect interest paid on its bond portfolio, he said. The comments came as investors study reduced values of long-term holdings and other assets held by financial firms that may not be sufficient to cover a sharp drop in deposits. In the case of Charles Schwab, the bank is holding some bonds that are currently under water on paper. Seawolf Capital has disclosed it has a short position in Schwab. Seawolf Capital portfolio manager Porter Collins told the WSJ that Schwab has mismanaged its balance sheet. Schwab stock is down 1.7% in premarket trades and has lost nearly 37% of its value so far in 2023, compared to a rise of 2.8% by the S&P 500 SPX.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 24, 2023
Shares of Nelnet Inc. NNI were indicated down more than 3% in premarket trading Friday, after the student-loan servicer said it was cutting 550 jobs following lower pricing and volume for its federal servicing contracts, and as it consolidated and replacement of certain loan servicing systems. The company said late Thursday that earlier in the week it received a "contract modification" from the U.S. Department of Education for its loan servicing contracts, which "significantly decreased" the price earned by the company per borrower per month. Nelnet also said that it was notified last month by the DOE of a plan to transfer one million borrowers from Nelnet to another loan servicer. "Both the price reduction and the unanticipated transfer of a million borrowers will have a material impact on NDS [Nelnet's Diversified Services]," the company said in a statement. The job cuts represent about 12% of 4,478 employees NDS had as of Dec. 31, and 6.7% of Nelnet's total workforce of 8,237. The stock has edged up 0.7% over the past three months through Thursday, while the S&P 500 SPX has gained 2.7%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 24, 2023
89bio Inc. ETNB said Friday that its public offering of stock, which the biopharmaceutical company launched after a 55% surge in its stock in the past two days, was upsized by about 38%. The company said it sold 16.92 million common shares at $16.25 each, to raise $275.0 million. The pricing was 4.1% below Thursday's closing price of $16.94. Late Thursday, the company had said it proposed a public offering of $200 million shares of common stock. The stock tacked on 0.2% in premarket trading. The company took advantage of the stock's big rally over the past two days, in the wake of the company's announcement that its experimental treatment for nonalcoholic steatohepatitis (NASH) led to NASH resolution compared with placebo in a Phase 2b clinical trial. The stock has rocketed 325% over the past 12 months through Thursday, while the iShares Biotechnology exchange-traded fund IBB has lost 4.4% and the S&P 500 SPX fell 12.6%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 24, 2023
The Dow Jones Industrial Average's DJIA early weakness, amid investor jitters over the health of the banking sector, is unanimous, as all 30 components traded lower in the premarket. The biggest decliner was Chevron Corp.'s stock CVX, which slumped 2.2% as crude oil futures CL.1 declined 3.5% amid growing recession fears. The other biggest decliner were shares of JPMorgan Chase & Co. JPM, which fell 2.0%, and of Goldman Sachs Group Inc. GS, which shed 1.9%. The stock of the Dow's other financial component, American Express Co. AXP, took a 1.0% hit. The best performing stock was Walgreens Boots Alliance Inc.'s WBA, which inched 0.1% lower. Meanwhile, Dow futures YM00 shed 273 points, or 0.8%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 24, 2023
Regions Financial Corp. RF, KeyCorp KEY and Fifth Third Bancorp FITB top a list of nine regional banks as measured by total available liquidity to cover potential deposit outflows, Citi banking analyst Keith Horowitz said in a research note on Thursday. Regions currently has about 145% of available liquidity to cover its uninsured deposits, followed by 136% for KeyCorp and 134% for Fifth Third Bancorp. Comerica CMA ranks at the bottom of the list with 96% coverage of its uninsured deposits; also U.S. Bancorp USB with 98% and Citizens Financial Group Inc. CFG with 108%. "We recognize that funding the balance sheet with wholesale funding would present a material earnings headwind, but the purpose of this exercise is to show that sufficient liquidity is available even in the case of significant deposit outflow," Horowitz said. Debt levels reported by the Federal Home Loan Bank, which provides extra debt to bank, has leveled off, which "suggests either banks' demand for immediate funding has cooled, or they are turning to other facilities," Horowitz said. The KBW Nasdaq Bank Index BKX is down 22.6% so far in 2023 as the March 10 failure of Silicon Valley Bank has impacted the sector, compared to a 2.8% year-to-date increase by the S&P 500 SPX. The Financial Select SPDR Fund XLF has fallen 9.3% in 2023.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 24, 2023
U.K. pharmaceutical giant GSK on Friday said it disagreed with a California state court ruling on Zantac, or ranitidine, and its links with cancer. "Following the 13 epidemiological studies conducted looking at human data regarding the use of ranitidine, the scientific consensus is that there is no consistent or reliable evidence that ranitidine increases the risk of any cancer," the pharmaceutical said. It added the decision relates only to the question of whether the plaintiff's experts can testify at trial. "It does not mean that the Court agrees with plaintiff's experts' scientific conclusions or their litigation-driven science," the company said. GSK UK:GSK shares fell 4% in London.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 24, 2023
Deutsche Bank shares XE:DBK slumped 8% in Frankfurt trade on Friday, as worries over bank sector health focus on another global systemically important bank. Deutsche Bank's 5-year credit-default swaps widened on Thursday, in what Reuters reported was the largest one-day rise in its history. Its AT1 bonds have tumbled in value after Switzerland wiped out Credit Suisse's securities after the state-backed takeover by UBS.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 23, 2023
The unions that represent workers at Walt Disney World said Thursday that they have reached an agreement with Walt Disney Co. DIS that will raise the minimum wage to $18 an hour this year. The agreement comes after almost 14,000 union members rejected Disney's previous offer in February of a $17 minimum wage, the unions said in a news release. According to the Services Trades Council Union (STCU), which is made up of different unions representing 45,000 theme park workers, there will be a ratification vote on March 29. Representatives from Walt Disney did not immediately return a request for comment.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 23, 2023
Shares of Oxford Industries Inc. OXM dropped nearly 6% in the extended session Thursday after the owner of Tommy Bahama, Lilly Pulitzer and other apparel brands beat expectations for its fiscal fourth quarter but guided for a weaker fiscal first-quarter 2023 profit. Oxford earned $32 million, or $2 a share, in the quarter, compared with $24 million, or $1.50 a share, in the year-ago period. Adjusted for one-time items, Oxford Industries earned $2.28 a share. Revenue rose to $382 million, from $300 million a year ago. FactSet consensus called for EPS of $2.14 on sales of $379 million. Oxford guided for 2023 revenue of $1.62 billion to $1.66 billion and adjusted adjusted EPS of $11.50 to $11.90 for the year. For fiscal first quarter, the company guided for sales between $405 million and $425 million, and an adjusted EPS between $3.60 and $3.80. FactSet consensus calls for a current-quarter adjusted EPS of $4.09 on sales of $411 million. "We are excited about our plans for 2023 and believe continued consumer interest in elegant casualwear, moving to warmer climates and travel are all macro trends that play to our strengths," Chief Executive Tom Chubb said. "We believe these factors position us well to deliver another year of excellent results." Shares of Oxford Industries ended the regular trading day down 0.8%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 23, 2023
Joann Inc. JOAN shares shed gains from the regular session after hours Thursday after the fabric, arts and crafts retailer missed big on earnings while beating Wall Street estimates on revenue, as it seeks to cut costs. Joann shares fell 5% after hours, following a 7.1% surge in the regular session to close at $2.11. The company reported a fourth-quarter loss of $91.1 million, or $2.23 a share, versus net income of $13.6 million, or 32 cents a share, in the year-ago period. Adjusted earnings, which excludes stock-based compensation expenses and other items, were 7 cents a share, compared with $1.16 a share in the year-ago period. Revenue declined to $692.8 million from $735.3 million in the year-ago period. Meanwhile, analysts surveyed by FactSet had forecast earnings of 62 cents a share on revenue of $668.8 million. The company said it's looking to reduce annual costs by roughly $200 million. "While many of the cost headwinds we faced in fiscal year 2023 are becoming tailwinds, we believe it is prudent to continue to take proactive steps to strengthen our balance sheet," said Scott Sekella, Joann's chief financial officer, in a statement. "With this in mind, our new credit facility is another tool to improve our balance sheet as we focus on cash generation throughout fiscal year 2024." The CFO was referring to a credit facility that adds a series of $100 million first-in last-out loans, adding to its existing $500 million asset-based revolving credit loan.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 23, 2023
Shares of Scholastic Corp. SCHL dropped 12% in the extended session Thursday after the children's publishing, education and media company reported a wider quarterly loss, saying its education business suffered as school districts continue to manage staff shortages and retail demand for children's books softened. Scholastic also dialed down its outlook for the year. The company lost $19.3 million, or 57 cents a share, in the fiscal third quarter, compared with a loss of $15.3 million, or 44 cents a share, in the year-ago quarter. Revenue dropped to $325 million, from $345 million a year ago. "Scholastic navigated short-term headwinds in domestic and international markets, which contributed to modest sales declines and higher losses in our seasonally small third quarter," Chief Executive Peter Warwick said in a statement. The "tougher market conditions" are expected to continue into the fiscal fourth quarter, the company said. Scholastic guided for a fiscal 2023 adjusted EBITDA of $175 million to $185 million, compared with a previous expectation of $195 million to $205 million. Full-year revenue is expected to grow about 4%, compared with a previous range of 8% to 10%. Shares of Scholastic ended the regular trading day down 2.2%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 23, 2023
WW International Inc. WW, the parent company of Weight Watchers, said late Thursday its chairman would not stand for re-election, and is stepping down. Raymond Debbane, the current chair, will step down the day before the company's May 9 annual meeting, WW said, with the board appointing Thilo Semmelbauer as chairman-elect. Semmelbauer has been a board member since September 2016.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 23, 2023
Air Products & Chemicals Inc. APD said Thursday that it has withdrawn from the coal-to-methanol Bengalon project in Indonesia, so it can focus energy-transition projects. The industrial gases company had said in May 2020 that it invested $2 billion in the project. The stock fell 3.1% in Thursday's regular session to $266.94, the lowest close since Nov. 3. "The financial landscape for blue and green hydrogen projects has significantly changed in the last year, driving increasing opportunities for Air Products to invest in these energy transition projects around the world," the company said in a statement, which it said was made in response to media reports. "As a result, the Company has decided to redeploy its financial resources on such energy transition opportunities." Air Products said it remains "committed" to its industrial gas business in Indonesia. The stock has dropped 14.5% over the past three months, while the Materials Select Sector SPDR exchange-traded fund XLB has slipped 3.0% and the S&P 500 SPX has gained 2.7%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 23, 2023
Air Products & Chemicals Inc. APD said Thursday that it has withdrawn from the coal-to-methanol Bengalon project in Indonesia, so it can focus energy-transition projects. The industrial gases company had said in May 2020 that it invested $2 billion in the project. The stock fell 3.1% in Thursday's regular session to $266.94, the lowest close since Nov. 3. "The financial landscape for blue and green hydrogen projects has significantly changed in the last year, driving increasing opportunities for Air Products to invest in these energy transition projects around the world," the company said in a statement, which it said was made in response to media reports. "As a result, the Company has decided to redeploy its financial resources on such energy transition opportunities." Air Products said it remains "committed" to its industrial gas business in Indonesia. The stock has dropped 14.5% over the past three months, while the Materials Select Sector SPDR exchange-traded fund XLB has slipped 3.0% and the S&P 500 SPX has gained 2.7%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 23, 2023
U.S. stocks ended modestly higher Thursday in choppy trade as worries about potential weakness in the banking system resurfaced a day after the Federal Reserve increased hikes by 25 basis points. The Dow Jones Industrial Average DJIA rose about 73 points, or 0.2%, ending near 32,103, down about 400 points from the session's high. The S&P 500 index SPX gained 0.3% and the Nasdaq Composite Index COMP closed up 1%, according to preliminary figures from FactSet. Stocks closed off the session's highs, but gained ground after Treasury Secretary Janet Yellen told a Senate committee that the federal government would take extra steps to stabilize the U.S. banking system, if necessary. Stocks closed sharply lower Wednesday after the Fed raised its policy rate to a range of 4.75% to 5%, up a year ago from close to zero. But some analysts said a catalyst of the selloff was comments from Yellen indicating she wasn't yet considering ways to guarantee all bank deposits, despite regulators providing an exception to depositors in Silicon Valley Bank and Signature Bank, which failed earlier this month. Sheila Bair, who ran the Federal Deposit Insurance Corp. from 2006 to 2011, told MarketWatch on Thursday that the focus should be on underwater securities at all banks, not only regional lenders.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 23, 2023
Treasury Secretary Janet Yellen on Thursday will tell lawmakers that the federal government would take extra steps to stabilize the U.S. banking system if necessary. "We have used important tools to act quickly to prevent contagion," Yellen says in testimony prepared for delivery to a House Appropriations subcommittee. "And they are tools we could use again." Yellen's comments follow a Senate hearing on Wednesday in which she said she wasn't considering ways to guarantee all bank deposits. Invoking regulators' guarantee of all deposits at Silicon Valley Bank and Signature Bank, Yellen says "the strong actions we have taken ensure that Americans' deposits are safe. Certainly, we would be prepared to take additional actions if warranted." Some lawmakers have discussed raising the deposit-insurance limit from its current $250,000 per depositor, but Yellen said Wednesday that is not her focus right now.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 23, 2023
Oil prices settled lower on Thursday, with U.S. benchmark prices falling back below $70 a barrel just a day after topping that level for the first time in a week. "The banks are the main driver of oil, and really all risk assets today, as fading confidence in the financial system is reigniting fears that another crisis may be looming after we saw some of the biggest bank failures since 2008 in early March," said Tyler Richey, co-editor at Sevens Report Research. May West Texas Intermediate crude CLK23 fell 94 cents, or 1.3%, to settle at $69.96 a barrel on the New York Mercantile Exchange.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 23, 2023
Gold futures climbed Thursday to their highest settlement in over a year after the Federal Reserve announced a quarter-point interest-rate hike a day earlier and signaled one more rate increase this year. While Fed Chairman Jerome Powell pushed back on market expectations of a rate cut this year, the market focused on the Fed's "less hawkish" adjustment to the statement: the removal of "ongoing increases" from the text of the statement, said Fiona Cincotta, senior financial markets analyst at City Index. That suggested the central bank is "nearing the end of the hiking cycle." Gold for April delivery GCJ23rose $46.30, or 2.4%, to settle at $1,995.90 an ounce on Comex. That was the highest most-active contract finish since March 10 of last year, FactSet data show.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 23, 2023
Snap Inc.'s SNAP stock jumped more than 3% Thursday after it launched a new division to help other companies build augmented-reality features for their websites or apps. The division, called AR Enterprise Services, marks Snap's entry into selling its AR technology to business customers so they can enhance real-world photos and videos with computerized images. Snap says more than 250 million people engage with AR every day on Snapchat, its photo-messaging app.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 23, 2023
Boeing Co. BA employees allegedly worked on current and future Air Force One planes without the required security credentials, The Wall Street Journal reported Thursday. Pentagon officials are scrutinizing the security lapse, the newspaper said, citing people familiar with the matter. The company and the Defense Department also have been examining for how long many workers with access to the jets lacked certain credentials, and why in some cases security clearances had expired months or years ago, the report said. The Wall Street Journal quoted an Air Force spokeswoman as saying both the Air Force and Boeing are looking into what was described as a lapse in personnel tracking and "continue to provide robust security for the presidential jets." Boeing said that it "quickly notified the Air Force after it discovered what it described as an administrative issue," the report said. Air Force Ones are a variant of the famous 747 "Queen of the Skies" Boeing jet, which the company recently retired. The current iteration is a specially configured 747-200B, the newest and largest presidential airplane, Boeing has said. Capabilities include longer range and aerial refueling.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 23, 2023
The U.S.-listed shares of ABB Ltd. ABBCH:ABBN rose 1.4% in afternoon trading Thursday, after the Switzerland-based electrification and automation company announced a new $1 billion stock buyback program, to be launched in April. The new program, which represents about 1.5% of the company's market capitalization of $66.02 billion, according to FactSet, follows the completion of the $2 billion program launched a year ago. Under the previous program, the company repurchased 67.46 million shares, or 3.3% of the shares outstanding. The stock has edged up 1.3% over the past three months while the iShares MSCI Switzerland exchange-traded fund EWL has lost 9.9% and the S&P 500 SPX has declined 10.8%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 23, 2023
Carvana Co.'s CVNA debt swap is "distressed" and "tantamount to default" if completed because it will result in bondholders receiving less than originally promised, S&P Global ratings analysts said Thursday. They lowered their rating on Carvana's debt to CC, from CCC , with a negative outlook. The outlook "reflects our expectation that we will lower our issuer credit rating on the company to ‘D' (default) upon the completion of the proposed exchange offer," S&P said. "Shortly after restructuring, we would raise the ratings to a level that reflects the ongoing risk of a conventional default or future distressed restructurings." Carvana is pursuing the deal because its capital structure "is unsustainable and the company has limited options to reduce its debt burden and improve its cash flow organically," S&P said. The car retailer on Wednesday updated its fiscal first-quarter guidance and launched a bond swap of up to $1 billion to stave off its cash burn. The swap reportedly lacks support from the majority of the bondholders. Carvana stock is down 94% in the past 12 months, compared with a decline of around 10% for the S&P 500 index. SPX
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 23, 2023
Shares of Netflix Inc. NFLX powered up 9.1% in midday trading Thursday, enough to pace the S&P 500's gainers, and putting them on track to close at the highest price for the month. The video streaming giant stock was also headed for the the biggest one-day gain since it ran up 13.1% on Oct. 19, 2022. While the stocks of other companies with leading streaming services were also rising, Netflix's stock outperformed them by a wide margin. Shares of Apple Inc. AAPL advanced 1.7%, Walt Disney Co. DIS climbed 1.8%, Amazon.com Inc. AMZN rallied 1.6% and Paramount Global PARA gained 2.6%. However, they all outperformed the S&P 500 SPX, which tacked on 1.4%. Separately, The Wall Street Journal reported that New York lawmakers are considering a sales tax on streaming services, such as Netflix, to raise money for the Metropolitan Transportation Authority so fares on New York City subways wouldn't have to be raised.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 23, 2023
Shares of Digital World Acquisition Corp., the special-purpose acquisition company (SPAC) that is looking to take Donald Trump's Truth Social public, dropped 1.6% in morning trading Thursday toward a third-straight loss. The pullback comes amid reports that the grand jury probing former President Trump's role in paying hush money to a porn star isn't expected to act on Thursday, so a vote is not expected until next week. The SPAC's stock had dropped 2.4% on Wednesday, after saying it "terminated" Chief Executive Patrick Orlando after roughly 18 months in the role. Meanwhile, the stock's three-day pullback comes after it bounces 11.0% on Monday, after the stock had closed Friday at the lowest price since October 2021. It has plunged 81.6% over the past 12 months while the S&P 500 SPX has lost 10.3%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 23, 2023
A Manhattan grand jury isn't expected to act today in its probe into former President Donald Trump's role in paying hush money to a porn star, according to reports. Fox News said the grand jury won't hear testimony or vote on the case today. The jury doesn't sit on Fridays, so a vote on the case isn't expected this week. The Wall Street Journal reported that jurors are scheduled to meet today but are expected to hear another matter.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 23, 2023
The U.S. Energy Information Administration reported on Thursday that domestic natural-gas supplies fell by 72 billion cubic feet for the week ended March 17. On average, analysts forecast a decline of 71 billion cubic feet in a survey conducted by S&P Global Commodity Insights. Total working gas stocks in storage for the latest week was at 1.9 trillion cubic feet, up 504 billion cubic feet from a year ago and 351 billion cubic feet above the five-year average, the government said. Following the data, April natural gas NGJ23 was up 1.6 cents, or 0.7%, at $2.187 per million British thermal units on the New York Mercantile Exchange. Prices traded at $2.198 before the supply data.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 23, 2023
U.S. stocks opened higher Thursday, attempting to bounce back from a late selloff the previous session after the Federal Reserve delivered a rate hike and Chair Jerome Powell said rate cuts by year end were unlikely. Investors, however, were betting that the Fed will deliver cuts before year-end, helping equities to find support, analysts said. The Dow Jones Industrial Average DJIA rose 197 points, or 0.6% , while the S&P 500 SPX gained 0.9% and the Nasdaq Composite COMP jumped 1.3%
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 23, 2023
The replaces a previous item that incorrectly reported Michael Stigers position with the company. It has been corrected.United Natural Foods Inc. UNFI disclosed Thursday that Michael Stigers, chief executive of the grocery wholesaler's UNFI Retail business, will resign to "pursue another professional opportunity." Stigers will remain with the company until May 31. The stock has tumbled 43.4% so far in March, as the company reported disappointing quarterly results, to close Wednesday at the lowest price since January 2021, while the S&P 500 SPX has slipped 0.8%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 23, 2023
WASHINGTON (MarketWatch) The U.S. current-account deficit, a measure of the nation's debt to other countries, shrank 5.6% in the 2022 fourth quarter. The current-account deficit narrowed to $206.8 billion from a revised $219 billion in the 2022 third quarter. The smaller gap reflected a decline in the "secondary" income deficit and a bigger surplus in services such as tourism. The current account reveals if a country is a net lender or debtor. The current account deficit was equal to 3.2% of GDP in the fourth quarter, down from 3.4% in the prior quarter. The current-account deficit as a share of GDP peaked in 2005 at 6.3%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 23, 2023
Shares of United Natural Foods Inc. UNFI rallied 2.6% in premarket trading Thursday, after the grocery wholesaler disclosed that Chief Executive Michael Stigers will resign, after less than two years in the role. Stigers, who has been CEO since August 2021, said he was leaving to "pursue another professional opportunity." He will remain with the company until May 31. The stock has tumbled 43.4% so far in March, as the company reported disappointing quarterly results, to close Wednesday at the lowest price since January 2021. Since the end of August 2021, which was month Stigers became CEO, the stock has lost 47.7% while the S&P 500 SPX has lost 13.0%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 23, 2023
Stifel Financial Corp. SF said Thursday it's expanding its venture capital lending unit by hiring three "key" partners formerly with Silicon Valley Bank. Jake Moseley, Matt Trotter, and Ted Wilson have joined the bank as managing directors, with leadership roles in Stifel's venture banking unit based in the San Francisco Bay area. Stifel Chairman and CEO Ron Kruszewski said the move marks the bank's "commitment to growth companies, venture capital, and the entire innovation ecosystem." Stifel said the three new hires will join fellow bankers Brad Ellis and Nat Stone as members of a five-person operating committee. "We believe that Stifel is the best place for us to continue our mission of providing best-in-class financial services to entrepreneurs and their investors," Moseley, Trotter and Wilson said in a prepared joint statement. Stifel stock has fallen 10.8% in the past month, compared to a 1.4% gain by the Nasdaq COMP and a loss of 1.4% by the S&P 500 SPX over the same time period. Silicon Valley Bank was taken over the the Federal Deposit Insurance Corp. and is now being sold with bids due this week.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 23, 2023
The Bank of England on Thursday matched the U.S. Federal Reserve by hiking interest rates by a quarter point. The 7-2 decision, the eleventh consecutive increase, brings the U.K. base rate to 4.25%, and comes after data showed inflation surprisingly accelerated in February to a year-over-year rate of 10.4%. "If there were to be evidence of more persistent pressures, then further tightening in monetary policy would be required," the central bank said.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 23, 2023
Shares of Regeneron Pharmaceuticals Inc. REGN rallied about 7% in premarket trading on Thursday after the company said a pivotal Phase 3 clinical trial showed that Dupixent reduced exacerbations in people with uncontrolled chronic obstructive pulmonary disease (COPD), compared with placebo. U.S.-listed shares of Sanofi SNY, which co-developed Dupixent, were up about 6%. The drug is already approved to treat conditions like eczema and asthma; it generated $8.7 billion revenue for Regeneron last year. About 300,000 people in the U.S. have uncontrolled COPD with type 2 inflammation, according to Regeneron's news release. The study enrolled about 1,000 adults between the ages of 40 and 80 year old who smoke or are former smokers. Regeneron's stock is up 4.1% so far this year, while the S&P 500 SPX has gained 2.9%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 23, 2023
Shares of Generation Bio Co. GBIO jumped about 28% premarket trading on Thursday after the company announced a collaboration with Moderna Inc. MRNA to to develop novel nucleic acid therapeutics. Moderna will make an upfront payment of $40 million in cash, in addition to a $36 million equity investment "at a premium over recent share prices." Generation Bio's stock are down 1.3% so far this year, while the broader S&P 500 SPX has gained 2.9%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 23, 2023
Truist analyst Brandon King cut stock price targets and earnings estimates for a host of banks, on expectations that net interest margins will fall, loan growth will slow and credit costs will increase. "[W]e continue to forecast a recession later this year with incrementally higher NCOs [net charge offs], provisioning and reserve levels," King wrote in a note to clients. He believes continued credit tightening by the Federal Reserve will put further pressure on deposit flows and pricing. "We are also anticipating less excess liquidity deployment as banks keep more balance sheet liquidity on hand," King wrote. Among the biggest percentage cuts to stock price targets, PacWest Bancorp's PACW was cut to $13 from $29, while the bank's earnings-per-share estimate was dropped to $1.45 from $3.27. Elsewhere, stock price targets for Western Alliance Bancorp WAL was lowered to $50 from $86, for Zions Bancorp ZION was decreased to $35 from $59 and for Comerica Inc. CMA was cut down to $54 from $78. Meanwhile, the SPDR S&P Regional Banking exchange-traded fund bounced 2.3% in premarket trading Thursday, after slumping 5.7% on Wednesday. The ETF has tumbled 29.4% so far this month through Wednesday, while the S&P 500 SPX has lost 0.8%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 23, 2023
Ford Motor Co. F will now report its results by three new global business segments rather than by geographic regions, the company announced Thursday. The results will be reported by Ford Blue, encompassing gas and hybrid vehicles, Ford Model e, or electric vehicles, and Ford Pro, which is commercial products and services. Ford's stock, which ended Wednesday's session down 2.1%, rose 1.2% premarket. "We've essentially ‘refounded' Ford, with business segments that provide new degrees of strategic clarity, insight and accountability to the Ford plan for growth and value," said Ford CFO John Lawler, in a statement. "It's not only about changing how we report financial results; we're transforming how we think, make decisions and run the company, and allocate capital for highest returns." Ford also reconfirmed its late-2026 margin targets of 10% for company adjusted EBIT and 8% for Ford Model e, with the latter "driven by ambitious scaling of EV production run rates," according to the company. Additionally, the company reaffirmed its full-year 2023 adjusted EBIT guidance of $9 billion to $11 billion.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 23, 2023
Shares of Darden Restaurants Inc. DRI gained 1.0% in premarket trading Thursday, after the parent of Olive Garden and LongHorn Steakhouse restaurant chains beat fiscal third-quarter profit, total sales and same-store sales expectations, amid a strong traffic performance. Net income for the quarter to Feb. 26 rose to $286.6 million, or $2.34 a share, from $247.0 million, or $1.93 a share, in the year-ago period. The FactSet consensus for earnings per share was $2.25. Sales grew 13.8% to $2.79 billion, above the FactSet consensus of $2.73 billion. Same-store sales jumped 11.7%, beating the FactSet consensus of 9.1% growth, as Olive Garden sales increased 12.3% to beat expectations of 9.5% and LongHorn Steakhouse sales rose 10.8%. For fiscal 2023, the company expects EPS of $7.85 to $8.00, total sales of $10.45 billion to $10.5 billion and same-store sales growth of 6.5% to 7.0%, compared with the FactSet consensus for EPS of $7.89, sales of $10.42 billion and same-store sales growth of 5.9%. The stock has rallied 8.8% over the past three months through Wednesday, while the S&P 500 SPX has tacked on 2.4%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 23, 2023
General Mills Inc. GIS stock rose 0.7% in premarket trades on Thursday after the food company beat Wall Street analyst estimates for third-quarter revenue and adjusted profit. General Mills said its third-quarter profit fell 16% to $553.1 million, or 92 cents a share, from the year-ago level of $660.3 million, or $1.08 a share. Adjusted profit of 97 cents a share beat the Wall Street estimate of 92 cents a share, according to data compiled by FactSet. Revenue increased by 13% to $5.13 billion, ahead of the analyst view of $4.97 billion. Looking ahead, General Mills said its now expects 2023 organic net sales growth of 10% to 11%, compared to its previous expectation for about 10% growth. "General Mills continues to expect the largest factors impacting its performance in fiscal 2023 will be the economic health of consumers, the inflationary cost environment, and the frequency and severity of disruptions in the supply chain," the company said.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 23, 2023
Shares of Accenture PLC ACN surged 4.3% in premarket trading Thursday, after the management consultant reported fiscal second-quarter profit and revenue that beat expectations, while trimming its full-year outlook. Net income for the quarter to Feb. 28 fell to $1.53 billion, or $2.39 a share, from $1.64 billion, or $2.54 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $2.69 beat the FactSet consensus of $2.49. Revenue grew 5.1% to $15.81 billion, above the FactSet consensus of $15.59 billion, as bookings jumped 13% to a record $22.09 billion. For fiscal 2023, the company cut its revenue growth outlook to 8% to 10% from 8% to 11% and its net EPS guidance to $10.84 to $11.05 from $11.20 to $11.52, as operating margin is expected to contract to 14.1% to 14.3%. On an adjusted basis, the company expects 2023 EPS of $11.41 to $11.63, surrounding the FactSet consensus of $11.47. The stock has lost 5.1% year to date through Wednesday, while the S&P 500 SPX has gained 2.5%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 23, 2023
The Swiss National Bank, just days after rescuing Credit Suisse, said it is lifting its policy rate by a half point to 1.5%. "In doing so, it is countering the renewed increase in inflationary pressure. It cannot be ruled out that additional rises in the SNB policy rate will be necessary to ensure price stability over the medium term," said the Swiss bank in a statement. The Swiss franc rose against the dollar CHFUSD after the decision.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 23, 2023
Swiss regulator FINMA on Thursday defended the decision for Credit Suisse AG.'s CSCH:CSGN additional Tier 1 bonds (AT1), or contingent convertible bonds or CoCos, to be written down as part of the investment bank's merger with UBS AG UBSCH:UBSG. "The AT1 instruments issued by Credit Suisse provide contractually that they are written off in full in the event of a trigger event (viability event), in particular when extraordinary government support is granted," the regulator said in a statement. As the bank was granted assistance loans backed by a federal default guarantee on March 19, the regulator instructed the bank to write down the 16 biillion francs ($17.2 billion) worth of those bonds to zero, it said. "On Sunday, a solution was found to protect customers, the financial center and the markets. In this context, it is important that CS's banking business continues to function smoothly and without interruption. That is now the case," said FINMA Director Urban Angehrn. FINMA explained that AT1 instruments in Switzerland are designed to be written off or converted into Common Equity Tier 1 capital before the equity of the bank in question is completely used up or written off. Those instruments publicly issued by big banks are mostly held by institutional investors due to their risk and large denominations, it added. The news of the writedown delivered a shock to investors of the $275 billion AT1 bond market, triggering a sell-off of other European bank debt earlier this week. Also read, What are CoCos and why are Credit Suisse's now worth zero?
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
Biogen Inc. BIIB received a setback late Wednesday after a Food and Drug Administration advisory committee said the biotech drug maker's proposed amyotrophic lateral sclerosis, or ALS, treatment did not show it was effective. On Wednesday, the FDA's Peripheral and Central Nervous System Drugs Advisory Committee voted 5-3 with one abstention that the study did not "provide convincing evidence of the effectiveness of toferson," the name of the treatment for the proposed indication. While the FDA uses the committee's recommendation to decide whether or not to approve the drug, it is not bound by the decision. Biogen shares were up 0.3% after hours, following a 1.9% decline in the regular session to $261.22.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
Shares of KB Home KBH rose 3% in the extended session Wednesday after the home builder reported first-quarter earnings and sales that topped views, saying it saw an uptick in demand that continued into March. KB Home earned $125.5 million, or $1.45 a share, in the quarter, compared with $134.3 million, or $1.47 a share, in the year-ago period. Revenue was flat at $1.38 billion. Analysts polled by FactSet expected earnings of $1.13 a share on sales of $1.32 billion. The company delivered 2,788 homes, a decline of 3%, and the average selling price increased 2% to $494,500. "As we entered the Spring selling season during the quarter, we began to see an increase in demand," reflecting the company's sales strategies and "stabilizing" mortgage interest rates, Chief Executive Jeffrey Mezger said in a statement. "As a result, we achieved a sequential improvement in our net orders in both January and February, and net orders have remained strong in the early weeks of March." While there are "considerable interest rate and economic uncertainties, we are encouraged by this progression," Mezger said. KB Home guided for housing revenues in a range between $5.20 billion and $5.90 billion for the year, and an average selling price in a range of $480,000 to $490,000. KB Home is "well positioned with a solid balance sheet and healthy cash flow expected for this year," Mezger said. Its board has approved a $500 million share buyback authorization, and the company has flexibility to continue to return cash to stockholders. Shares of KB Home ended the regular trading day up 0.4%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
OpenAI Chief Executive Sam Altman late Wednesday acknowledged a security flaw that briefly allowed some users of the service to view the titles of others' conversations. "We had a significant issue in ChatGPT due to a bug in an open source library, for which a fix has now been released and we have just finished validating. A small percentage of users were able to see the titles of other users' conversation history," Altman tweeted. "We feel awful about this."
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
Fitch Ratings late Wednesday downgraded First Republic Bank's FRC debt rating three notches, following a downgrade last week. Fitch downgraded the bank's issuer default rating to "B" from "BB." The downgrade comes after a group of banks injected $30 billion of liquidity into the bank. "While this injection created necessary headroom from a liquidity perspective, the bank's new funding profile is relatively costly and is viewed as the primary ratings constraint," Fitch said. "Fitch estimates that, due to the higher cost of funds, FRC is currently operating at a net loss that is not sustainable over the longer term absent a balance sheet restructuring," the ratings agency said. "Furthermore, to the extent that FRC is required to repay the $30 billion at the end of its term, it will have to raise liquidity by selling assets."
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
Cardlytics Inc. CDLX said late Wednesday that its chief financial officer is resigning over the summer. Andy Christiansen told the company on Friday that his last day is July 21, but will remain for a transition period, the company said. The ad platform said it hired a firm to find a new CFO. Shares of Cardlytics were down 1% after hours, following a 15.2% drop in the regular session to close at $2.96.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
Shares of Steelcase Inc. SCS rallied 12% in the extended session Wednesday after the office furniture maker reported adjusted quarterly earnings and sales above Wall Street expectations, saying that orders in its Americas region were stronger than it expected as workers were back at offices. Steelcase earned $15.7 million, or 13 cents a share, in the quarter, contrasting with a loss of $2.2 million, or 2 cents a share, in the year-ago period. Steelcase's revenue rose 6% to $801.7 million, from $753.1 million a year ago. FactSet consensus called for adjusted earnings of 11 cents a share on sales of $751 million. The stronger orders "drove revenue and earnings above our expectations," Chief Executive Sara Armbruster said in a statement. "Although our fourth-quarter orders were below the prior year, project business from large corporate customers improved sequentially from the third quarter." A "notable number" of large U.S. companies have announced "workplace strategies that emphasize the importance of an in-office presence," Armbruster said. Steelcase ended the regular trending day up 0.4%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
U.S. stocks closed sharply lower on Wednesday, giving up earlier gains, after the Federal Reserve raises interest rates by 25 basis points as expected, but talked down the possibility of cuts to rates this year. The Dow Jones Industrial Average DJIA tumbled 531 points, or 1.6%, ending near 32,028, while the S&P 500 index SPX shed 1.7% and the Nasdaq Composite Index COMP closed down 1.6%, according to preliminary FactSet figures. Fed Chairman Jerome Powell said the U.S. banking system remained resilient after it and regulators rolled out liquidity measures to help shore up confidence in the banking system after the collapse of Silicon Valley Bank and Signature Bank earlier in March. Powell also said that tighter credit conditions for consumers, following the bank failures, would likely work like rate hikes in terms of lowering inflation. It will be a key area of focus for the Fed in the coming weeks and months, he said. The 10-year Treasury rate BX:TMUBMUSD10Y fell Wednesday to 3.46%, a sign that investors in the bond market think growth will be slower.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
The nation's top security regulator announced charges against Justin Sun, founder of the crypto platform Tron, alleging that he sold unregistered crypto securities and fraudulently manipulated the secondary market for Tronix, the platform's native token.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
Treasury Secretary Janet Yellen on Wednesday said her agency hasn't looked at expanding FDIC deposit insurance. Yellen is testifying in the Senate, where she was asked about reports that officials are studying ways to expand FDIC coverage to all deposits. "This not something we have looked at, it's not something that we're considering," she said.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
Oil prices settled with a gain on Wednesday, shortly after the Federal Reserve announced its decision to boost its benchmark fed funds rate by a quarter of one percentage point. Oil prices and equities rallied in the minutes following the Fed announcement, as the central bank's "language around future rate hikes softened, which supports the outlook for risk assets," said Troy Vincent, senior market analyst at DTN. May West Texas Intermediate crude CLK23rose $1.23, or 1.8%, to settle at $70.90 a barrel on the New York Mercantile Exchange.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
Japan-based Recruit Holdings Inc.'s JP:6098 Indeed job-search site plans to lay off 15% of its workforce for total of 2,200 positions, according to a company blog post Wednesday. Indeed Chief Executive Chris Hyams said the cuts will "come from nearly every team, function, level and region." Hyams, who will take a 25% pay cut, said affected employees will receive an email stating that their last day of employment is today, and that they will be paid through March 31, Severance includes 16 weeks of salary and four months of COBRA in the U.S. American depositary receipts of Recruit RCRUY were down 0.2% in recent activity.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
Gold futures settled higher on Wednesday, then extended those gains into the electronic trading after the Federal Reserve announced a hike in its benchmark fed funds rate of a quarter of one percentage point to a 4.75% to 5% range. April gold GCJ23 was at $1,966.40 an ounce in electronic trading shortly after the announcement. That follows a settlement at $1,949.60 an ounce, up $8.50, or 0.4%, for Wednesday's session.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
U.S. stocks turned higher, shaking off earlier weakness, after the Federal Reserve on Wednesday raised its policy rate as expected by 25 basis points to help fight inflation. The increase in interest rates comes despite recent weakness in the banking system after the collapse earlier in March of Silicon Valley Bank. The S&P 500 index SPX was up 14 points, or 0.4%, to about 4,016, at last check, while the Dow Jones Industrial Average DJIA was up 0.2% near 32,609 and the Nasdaq Composite Index was 0.7% higher. The Fed also said the U.S. banking system remains resilient, in its policy statement. The 10-year Treasury rate BX:TMUBMUSD10Y was lower at 3.52%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
Amazon.com Inc. AMZN on Wednesday said it is expanding its Fire TV line with new sizes of the high-end Fire TV Omni QLED Series and a $200 option called the Fire TV 2-Series. The retail giant also announced it has sold more than 200 million Fire TV devices. The Omni QLED Series features what Amazon calls the "Fire TV Ambient Experience" that lets customers engage with apps on their TVs that include Spotify Technology SPOT. The Fire TV 2-Series starts at $199.99; the QLED Series starts at $449.99.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
Albermarle Corp. ALB said Wednesday it's planning to invest at least $1.3 billion in a lithium hydroxide facility to be located in Chester County, South Carolina. The Charlotte, N.C.-based company, which makes products for mobility, energy, connectivity and health, said it expects the facility to create more than 300 jobs with an average annual wage of about $93,000. The project, which will start construction in late 2024, is expected to also create more than 1,500 construction jobs. Albemarle expects the facility to produce about 50,000 metric tons of battery-grade lithium hydroxide a year from multiple sources, with the potential to expand up to 100,000 metric tons. That would be enough to make lithium-ion batteries to power an estimated 2.4 million EVs annually. The stock was slightly lower Wednesday, but has gained 8% in the last 12 months, outperforming the S&P 500 SPX, which has fallen 11%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
PacWest Bancorp PACW stock fell 4% Wednesday after it disclosed a drop in despots since the start of the year and canceled plans to raise capital after successfully lining up loans from a private investor as well as the federal government. PacWest said it continues to have "solid liquidity" after borrowing from the federal government and getting a $1.4 billion injection from Atlas SP through a new senior asset-backed financing facility. The bank also canceled plans for a capital raise due to "current volatility in the market and depressed market prices for regional bank stocks, as well as the availability of other options to enhance capital." The bank disclosed that it has $11.4 billion in available cash, which is up from $10.8 billion in available cash as of March 17. The bank said its available cash on hand exceeds total estimated uninsured deposits of $9.5 billion as of March 20. The bank said it "proactively" took steps to bolster its liquidity including $3.7 billion of borrowings from the Federal Home Loan Bank, $10.5 billion of borrowings from the Federal Reserve Discount Window, and $2.1 billion in Bank Term Funding Program borrowings on March 20. The bank said its venture banking unit has opened 130 new accounts opened since March 9.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
The Energy Information Administration on Wednesday reported that U.S. crude inventories climbed last week, defying some expectations for a sizable decline, while gasoline and distillate supplies posted declines. The government agency reported that crude inventories edged up by 1.1 million barrels for the week ended March 17. On average, analysts forecast a decline of 5.5 million barrels, according to a survey by S&P Global Commodity Insights. The EIA report showed weekly inventory declines of 6.4 million barrels for gasoline and 3.3 million barrels for distillates. The analyst survey had forecast supply decreases of 2 million barrels for gasoline and 1.3 million barrels for distillates. Crude stocks at the Cushing, Okla., Nymex delivery hub fell by 1.1 million barrels for the week, the EIA said. May West Texas Intermediate crude CLK23 was down 3 cents, or less than 0.1%, at $69.64 a barrel on the New York Mercantile Exchange. It was at $69.30 before the supply data.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
SoFi Technologies Inc. SOFI said Wednesday that those with its checking or savings accounts will be able to access up to $2 million of Federal Deposit Insurance Corporation (FDIC) insurance, versus the standard $250,000 amount. "SoFi Checking and Savings is able to offer additional FDIC insurance through the SoFi FDIC Insurance Network, a newly created partnership with multiple banks designed to provide the best benefits to SoFi members," the company said in a release. SoFi noted that for those who opt in to the increased coverage, SoFi will "seamlessly place their deposits beyond the standard insurance coverage with specifically identified FDIC insured partner banks." The benefit is currently available to new members and will become available to existing members over the next week. "We know the last few weeks have been unnerving for many consumers, and we hope this helps," Chief Executive Anthony Noto said in the release. Shares of SoFi are up more than 4% in morning trading Wednesday.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
U.S. stocks were trading lower after struggling for direction at the open on Wednesday ahead of the Federal Reserve's decision on its interest rate policy. The Dow Jones Industrial Average DJIA was down 0.1% soon after the opening bell, while the S&P 500 SPX dipped 0.1% and the Nasdaq Composite COMP slipped 0.2%, according to FactSet data, at last check. The central bank will release a statement on its monetary policy decision at 2 p.m. Eastern, with Fed Chair Jerome Powell scheduled to hold a press conference at 2:30 p.m. Fed-funds futures show traders largely expecting the Fed will raise its benchmark rate by a quarter percentage point to a target range of 4.75% to 5% as it seeks to bring down high inflation. The Fed's two-day policy meeting that concludes Wednesday comes in the wake of turmoil in the banking sector.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
PacWest Bancorp PACW stock fell 13% in premarket trade Wednesday after it said it continues to have "solid liquidity" after borrowing from the federal government and getting a $1.4 billion injection from Atlas SP through a new senior asset-backed financing facility. The bank also canceled plans for a capital raise due to "current volatility in the market and depressed market prices for regional bank stocks, as well as the availability of other options to enhance capital." The bank disclosed that it has $11.4 billion in available cash, which is up from $10.8 billion in available cash as of March 17. The bank said its available cash on hand exceeds total estimated uninsured deposits of $9.5 billion as of March 20. The bank said it "proactively" took steps to bolster its liquidity including $3.7 billion of borrowings from the Federal Home Loan Bank, $10.5 billion of borrowings from the Federal Reserve Discount Window, and $2.1 billion in Bank Term Funding Program borrowings on March 20. The bank said its venture banking unit has opened 130 new accounts opened since March 9.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
Carvana Co.'s stock CVNA rallied 24% in premarket trade Wednesday, as the car retailer updated fiscal first-quarter guidance while announcing a bond exchange. The company said it now expects sales and operating revenue to range from $2.4 billion to $2.6 billion, down from $3.5 billion in the year-earlier period. The FactSet consensus is for sales of $2.8 billion. "The decrease in total net sales and operating revenues is primarily driven by the reduction in retail units sold," the company said in a regulatory filing. It now expects to sell between 76,000 and 79,000 retail units, down from 105,185 a year ago. The FactSet consensus is for sales of 83,000 retail units. It expects non-GAAP gross profit of $310 million to $350 million, compared with $314 million a year ago.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
Shares of Upwork Inc. UPWK rose 1.2% in premarket trading Wednesday, after the company that connects freelancers with clients who need work performed said it would buy back a little more than one-third of its 0.25% convertible debt due 2026 outstanding. The company estimates that it will spend about $157 million in cash to repurchase $196.8 million aggregate principal amount of the debt. The repurchases are expected to close on or about March 27, leaving about $378.2 million principal amount of the notes outstanding. The stock has gained 2.2% year to date through Tuesday but has tumbled 54.0% over the past 12 months, while the S&P 500 SPX has lost 11.3% the past year.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
First Republic Bank's stock FRC fell nearly 7% in premarket trades after rising earlier in the day, ahead of the Federal Reserve's policy meeting later Wednesday and decision on interest rates. With about 8 million shares trading hands, it's the most active stock in the premarket. The Wall Street Journal reported late Tuesday that First Republic had tapped Lazard to help it review its options, and consultant McKinsey for post-crisis planning, citing people familiar with the matter. Options on the table include a sale, a capital infusion and asset sales, the sources said, according to the Journal. The outcome of today's Fed meeting is unclear following the dramatic events of the past 10 days, which has seen the failure of Silicon Valley Bank amid a run on the bank's deposits, along with the failures of two crypto-friendly lenders, Signature Bank and Silvergate Capital. Adding to the tension is the forced shotgun wedding of Credit Suisse and UBS in Switzerland last weekend. At the moment, the market probabilities are 73% for a quarter-percentage-point move and 27% for no move, according to the CME FedWatch tool. The market seems to be growing in confidence of a hike, analysts said, based on movements on the front end of the curve. First Republic, which has been caught up in the banking crisis because it has a similar profile to Silicon Valley Bank, rallied on Tuesday on reports JPMorgan Chase was helping to bolster its capital. It then tumbled about 9% in the after-hours session.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
Hershey Co. HSY affirmed on Wednesday its 2023 guidance ranges for sales growth and profit, as the chocolate and snacks giant hosts its investor day in Hershey, Penn. The company expects sales to grow 6% to 8% from a year ago and adjusted earnings per share is projected to rise 9% to 11%, the same guidance the company provided when it reported fourth-quarter results on Feb. 2. The FactSet sales consensus of $11.21 billion implies 7.6% growth, and the adjusted EPS consensus of $9.40 implies a 10.3% rise. Hershey's stock, which was indicated down about 0.5% in premarket trading, has advanced 5.0% year to date, while the S&P 500 SPX has gained 4.3%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
Shares of 89bio Inc. ETNB soared about 48% in premarket trading on Wednesday after the company said its experimental treatment for nonalcoholic steatohepatitis (NASH) led to NASH resolution compared to placebo in a Phase 2b clinical trial. The drug, pegozafermin, also demonstrated fibrosis improvement, without worsening of NASH. 89bio said it plans to move the drug into Phase 3 research. There are several mid- and late-stage treatments in development for NASH, with a number of readouts expected this year. The company's stock is down 14.1% so far this year, while the broader S&P 500 SPX is up 4.6%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
Shares of Ollie's Bargain Outlet Holdings Inc. OLLI powered up 8.9% toward a 3 1/2-month high in premarket trading Wednesday after the retailer of closeout merchandise and excess inventory reported better-than-expected fiscal fourth-quarter results and provided an upbeat outlook, as margins improved despite a "highly promotional" environment. Net income for the quarter to Jan. 28 rose to $53.1 million, or 85 cents a share, from $44.7 million, or 71 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of 84 cents topped the FactSet consensus of 79 cents. Sales grew 9.7% to $549.8 million, above the FactSet consensus of $542.2 million, while same-store sales growth of 3.0% beat expectations of a 0.3% rise. Cost of sales rose less than sales, up 7.9% to $343.3 million, as gross margin improved to 37.6% from 36.5%. For fiscal 2023, the company expects adjusted EPS of $2.49 to $2.58 and sales of $2.04 billion to $2.06 billion, both above the FactSet consensus for EPS of $2.38 and sales of $2.00 billion. The stock has climbed 17.0% over the past three months through Tuesday, while the S&P 500 SPX has gained 4.7%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
Papa John's International Inc. PZZA said Wednesday Chief Financial Officer Ann Gugino is stepping down effective immediately. The company named Chris Collins, current vice president for treasury and tax, as its principal financial and accounting officer on an interim basis, as it starts to search for a successor to Gugino, it said in a regulatory filing. As long as she remains compliant with confidentiality and non-compete requirements, Gugino will be entitled to severance benefits consistent with a termination without cause, said the filing. That means she will get her base salary for a period of 12 months from the date of her departure, will get a pro rata payment of her annual bonus, will be paid for unused vacation days and be entitled to executive outplacement services. The company said Collins will be paid an annual base salary of $300,000, a one-time grant of $100,000 of restricted stock and a one-time cash bonus of $50,000. He will also be eligible for a 2023 target annual incentive plan opportunity of 75% of his base salary for the period of time in which he serves in this position. The stock has fallen 18% in the last 12 months, while the S&P 500 SPX has fallen 11%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
Petco Health & Wellness Co. Inc.'s stock WOOF slid 7% in premarket trade Wednesday, after the pet food and health products company's fourth-quarter earnings lagged estimates and it offered soft guidance for the current year. San Diego, Calif.-based Petco posted net income of $32.7 million, or 12 cents a share, for the quarter to Jan. 28, up from $27.3 million, or 11 cents a share, in the year-earlier period. Adjusted per-share earnings came to 23 cents, just below the 24 cent FactSet consensus. Revenue rose 4.2% to $1.578 billion from $1.514 billion, a whisker below the $1.579 billion FactSet consensus. Same-store sales rose 5.3%, while FactSet expected a rise of 3.6%. Sales were lifted by the company's consumables business and services and other business, partially offset by the supplies and companion animal business. The company is now expecting fiscal 2023 revenue of $6.150 billion to $6.275 billion and adjusted EPS to be down 21 cents to down 13 cents. The EPS number will be hurt by about $145 million to $155 million of principal payments on a term loan. The FactSet consensus is for revenue of $6.360 billion and EPS of 68 cents. The stock has fallen 48% in the last 12 months, while the S&P 500 SPX has fallen 11%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
Winnebago Industries Inc. WGO stock rose 5% in premarket trade on Wednesday after the recreational vehicle (RV) maker beat Wall Street estimates for adjusted earnings per share and revenue. The Eden Prairie, Minn., company said its second-quarter profit fell to $52.8 million, or $1.52 a share, from $91.2 million, or $2.69 a share, in the year-ago quarter. Winnebago's adjusted second-quarter earnings of $1.88 a share beat the estimate of $1.25 a share, according to analyst forecasts compiled by FactSet. Winnebago's second-quarter revenue fell 25.6% to $866.7 million, which beat the analyst estimate of $783.7 million. CEO Michael Happe said performance in the company's marine unit offset a "softening in consumer demand for RVs from recent cyclical highs."
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
China has granted its first emergency use authorization to a homegrown mRNA COVID vaccine, the Wall Street Journal reported Wednesday. The vaccine, known as SYS6006, was developed by CSPC Pharmaceutical Group Ltd., according to a filing to the Hong Kong exchange by the company. It uses the same technology as the vaccines developed and used widely in the U.S. by Pfizer PFE and German partner BioNTech BNTX and Moderna MRNA. It was designed to target both newer variants of the virus that are dominant along with older ones. China has relied on older technology, so-called inactivated vaccines, to protect its population during the pandemic, but as the virus spread and mutated, China's vaccines proved less effective against the highly transmissible omicron variants than did the mRNA ones produced by the West.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
Shares of Virgin Orbit Holdings Inc. VORB skyrocketed 64.9% in premarket trading, to bounce off the previous session's record-low close, after the launch and space solutions company said it would initiate an "incremental resumption" of operations. The company said starting Thursday, March 23, it will work on preparations for its next mission, with a further resumption of operations planned for March 27. The company initiated a company-wide pause of operations on March 16, to conserve capital while it held discussions with potential funding sources and as it explored strategic opportunities. "The company does not currently intend to disclose further developments with respect to these discussions, unless and until its Board of Directors approves a specific transaction or other course of action requiring disclosure," Virgin Orbit said in a statement. The stock had plummeted 60.0% amid a seven-day losing streak to close Tuesday at a record low of 44 cents, the longest losing streak since it fell for 10 straight sessions to Dec. 9, 2022. The stock has lost 76.0% year to date, while the S&P 500 SPX has gained 4.3%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
Shoe Carnival Inc. SCVL said Wednesday it had net income of $21.6 million, or 79 cents a share, for its fiscal fourth quarter to Jan. 28, up from $20.6 million, or 72 cents a share, in the year-earlier period. Sales fell to $290.8 million from $313.4 million. The FactSet consensus was for EPS of 80 cents and sales of $307 million. The Evansville, Ind.-based retailer of footwear and accessories said profit and sales were up from $3.5 million and $239.9 million in the fourth quarter of 2020, before the pandemic broke out. "The Shoe Carnival team successfully delivered operating income margins and overall profitability more than double those generated just three years ago, consistent with our strategic plans and 2022 guidance," CEO Mark Worden said in a statement. Inventory was higher at $390.4 million at year-end, up $130.9 million versus 2019. The company is now expecting fiscal 2023 EPS of $3.96 to $4.20 and sales of $1.26 billion to $1.32 billion. The FactSet consensus is for EPS of $4.29 and sales of $1.35 billion. The stock has fallen 27% in the last 12 months, while the S&P 500 SPX has fallen 11%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
Shares of AMC Entertainment Holdings Inc. AMC and Bed Bath & Beyond Inc. BBBY soared in premarket trading Wednesday, as fellow "meme" stock GameStop Corp. GMEskyrocketed after the consumer electronics and video games seller reported a surprise fiscal fourth-quarter profit. Bed Bath's stock shot up 11.4%, after bouncing 1.0% Tuesday off Monday's record-low close of 81 cents, but was still headed for a sub-$1 open. AMC's stock climbed 10.2%, after having tumbled 38.2% month to date through Tuesday. And AMC's preferred equity units APE, known as APEs, jumped 10.8% ahead of the open, after they rallied 13.8% over the past two sessions, but were still down 28.5% month to date through Tuesday. Meanwhile, GameStop shares ran up 42.8% premarket, putting them on track to open at a 3 1/2-month high.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
First Republic Bank's stock FRC rose 4.4% in premarket trade Wednesday, ahead of the Federal Reserve's policy meeting later Wednesday and decision on interest rates. The outcome of today's meeting is unclear following the dramatic events of the past 10 days, which has seen the failure of Silicon Valley Bank amid a run on the bank's deposits, along with the failures of two crypto-friendly lenders, Signature Bank and Silvergate Capital. Adding to the tension is the forced shotgun wedding of Credit Suisse and UBS in Switzerland last weekend. At the moment, the market probabilities are 73% for a quarter-percentage-point move and 27% for no move, according to the CME FedWatch tool. The market seems to be growing in confidence of a hike, analysts said, based on movements on the front end of the curve. First Republic, which has been caught up in the banking crisis because it has a similar profile to Silicon Valley Bank, rallied on Tuesday on reports JPMorgan Chase was helping to bolster its capital. It then tumbled about 9% in the after-hours session after reports it had hired advisers to review its options. The Wall Street Journal reported late Tuesday that First Republic had tapped Lazard to help it review its options, and consultant McKinsey for post-crisis planning, citing people familiar with the matter. Options on the table include a sale, a capital infusion and asset sales, the sources said, according to the Journal.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
Meme stock GameStop Corp. GME soared 43% in premarket trade Wednesday, after the videogame retailer surprised investors with an earnings beat late Tuesday. The retailer is "aggressively focused on year-over-year profitability improvement while still pursuing pragmatic long-term growth," Chief Executive Matt Furlong said at the company's call after the results. GameSto earned $48.2 million, or 16 cents a share, in the fourth quarter, contrasting with a loss of $147.5 million, or 49 cents a share, in the year-ago quarter. Sales dropped slightly to $2.23 billion, from $2.25 billion a year ago, in the prior year's fourth quarter. Analysts polled by FactSet expected the videogame retailer to report an adjusted loss of 13 cents a share on sales of $2.18 billion.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
Adidas XE:ADS and Puma XE:PUM shares each drifted lower after results from Nike NKE on Tuesday night. Analysts at Stifel said the Nike results were mixed for their German rivals. "We believe ADS and PUM are behind NKE's inventory reduction curve. But good progress at NKE is a positive for the industry," they said. However, the analysts also highlighted that higher markdowns, currency headwinds and higher input/supply-chain costs were not offset by pricing.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 22, 2023
U.K. consumer prices jumped 10.4% in February, from a 10.1% rise in January, the National Statistics Office reported Wednesday. The increase was higher than the 9.8% expected by a consensus of economists polled by FactSet Research. The Consumer Price Index including owner occupiers' housing costs (CPIH) rose by 9.2% in the 12 months to Feb 2023, up from 8.8% in Jan 2022. The fresh jump in prices comes a day ahead of a decision by the Bank of England's Monetary Policy Committee. The British pound GBPUSD jumped on the data, last up 0.4% to $1.2261.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 21, 2023
Marvell Technology Inc. MRVL reportedly will shed 4% of its global workforce, the latest Silicon Valley company to announce job cuts, citing a slowdown in the semiconductor industry. Late Tuesday, Bloomberg News reported that Marvell said it was going to trim its workforce of 320. The company last reported having 7,448 employees. Shares of the chip maker were down less than 0.1% after hours, following a 1.9% gain to close the regular session at $41.13.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 21, 2023
Ozan Kose/Agence France-Presse/Getty ImagesRecent stress in the banking sector isn't the only sign that something is breaking or about to crack in the wake of the Federal Reserve's yearlong rate-hike campaign.On Tuesday, Goldman Sachs GS warned that it's seeing signs of a broad-based deterioration in market functioning and a "material uptick" in most of the indicators it follows to gauge market impairment across assets. "A closer look reveals much of the stress to be stemming from the Treasury and funding markets," said Ravi Raj, a rates strategist and quantitative economist at the firm.Out of almost three dozen indicators, seven were in a red zone as of Monday and in the highest percentile of the firm's "Temperature Check" chart, meaning they show the most signs of impairment or stress relative to the past five years, Raj said in an email to MarketWatch. Those red-hot readings include the UST Bloomberg Liquidity Index and the 10-year security's market depth, which refers to the market's ability to absorb large orders without significantly impacting the underlying price.Source: Goldman Sachs Global Investment ResearchTuesday's warning from Goldman Sachs came on a day in which investors seemed willing to look past the banking sector's problems, for now. As financial markets turned to Wednesday's policy update from the Fed, Treasury yields shot higher across the board, sending the 2-year rate BX:TMUBMUSD02Y to its biggest one-day jump since June 5, 2009. Meanwhile, U.S. stocks DJIASPXCOMP finished higher. Last year, traders, academics and other analysts raised concerns that the Treasury market was fragile, potentially even vulnerable to becoming the source of the next financial crisis, should there be large-scale forced selling or some other surprise.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
Mar 21, 2023
The S&P 500 on Tuesday posted its highest close since the collapse of Silicon Valley Bank earlier this month, which sent shockwaves through financial markets and raised concerns about the stability of the U.S. banking system. The S&P 500 index SPX closed up about 51 points, or 1.3%, ending near 4,003, according to preliminary data from FactSet. That was its highest close since May 6, four days before the failure of Silicon Valley, the biggest bank collapse since the 2008 global financial crisis. The Dow Jones Industrial Average DJIA rose 1% Tuesday, while the Nasdaq Composite Index COMP swept to a 1.6% gain. Banks and companies with heavy exposure to rate-sensitive assets, including property loans, have been under pressure since Silicon Valley Bank's implosion. It drew attention to some $600 billion in paper losses at banks from their holdings of "safe" but low-coupon securities that have fallen in value in the year since the Federal Reserve began rapidly increasing interest rates to combat high inflation. Those older bonds end up worth less when investors have access to new securities with higher yields, with a similar low-risk profile in terms of credit risks. The failure of several regional banks in March, plus the sale of Credit Suisse CS to rival bank UBS UBS over the weekend, has reawakened fears of potentially broader problems in the banking system as central bank have increased rates and ended an era of easy money. Even so, stocks were rallying as the Federal Reserve at the conclusion of its 2-day policy meeting on Wednesday is expected to raise its policy rate by another 25 basis points. See: The Fed will either pause or hike interest rates by 25 basis points. What are the pros and cons of each approach?
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
|
|
