|Day's range||2,949.60 - 2,956.20|
|52-week range||2,346.58 - 2,956.20|
Stocks edged up as investors reacted to the Federal Reserve’s latest monetary policy decision to keep benchmark interest rates unchanged.
U.S. stocks will continue to ride the high on the Federal Reserve’s suggestions that it may cut interest rates if the economic outlook doesn’t improve in the next couple of months.
U.S. stock indexes Thursday morning are set to extend gains to a fourth straight day near all-time highs as the Fed signaled policy easing may be forthcoming to sustain the economy.
As the Trump administration puts tariffs on a range of imported goods and pushes a replacement deal for Nafta, lobbying on trade-related issues could set a new record this year.
The number of people who applied for unemployment benefits in mid-June fell to a one-month low and clung near the lowest level in decades, a sign the labor market remains robust even after a slowdown in hiring and softer economic growth.
The S&P 500 at 2926.46 on Wednesday—just 0.7% from its record close of 2945.83 set April 30. With S&P 500 futures up 0.9% Thursday, its possible that the index opens at a record high.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.U.S. stocks surged to a record at the open of regular trading, while Treasuries extended gains and the dollar slumped as the Federal Reserve’s dovish shift reverberated through markets. Gold rose to the highest in more than five years.The benchmark S&P 500 Index surpassed the previous all-time closing high of 2,945.83 set on April 30 and is up more than 17% this year. The 10-year Treasury yield at one point dropped below 2% for the first time since November 2016 on the prospect of easier monetary policy in the world’s biggest economy. The Stoxx Europe 600 Index was boosted by gains in technology and energy shares. Emerging-market assets surged, and credit spreads slid.“As the central bank’s dovish messaging continues to drive interest rates lower, it’s inoculating investors from other risks,” said Alec Young, managing director of global markets research at FTSE Russell. In Asia, Chinese shares jumped ahead of FTSE Russell index changes next week. The yen and the Topix Index advanced after the Bank of Japan kept rates unchanged, as predicted by economists, and offered no further signal of easing. Japan’s 10-year bond futures hit an all-time high.Traders are now pricing in a virtual certainty the U.S. central bank will cut rates by July, Fed fund futures show. Seven of 17 Fed officials now think it will be appropriate to lower the benchmark overnight rate by a half-percentage point by the end of the year, according to updated projections published Wednesday. Fed Chairman Jerome Powell cited “uncertainties” in the outlook that have increased the case for a rate reduction as officials seek to prolong the near-record American economic expansion.“This was a more dovish result than many had expected,” Tiffany Wilding, U.S. economist at Pacific Investment Management Co., told Bloomberg TV. “When you have heightened uncertainty and potential trade-policy shocks at a time when the economy is already in a fragile state, it makes sense for the Federal Reserve from a risk management perspective to really guide toward interest-rate cuts if they are needed.”Elsewhere, West Texas oil jumped above $56 a barrel after Iran said it shot down an American drone, an act the U.S. said was unprovoked on a surveillance aircraft operating in international airspace. Silver, platinum, copper and iron ore paced gains in metals.Meanwhile, the Norwegian krone surged after the country’s central bank raised its benchmark rate and said it will likely do so again this year. The pound trimmed some gains as the Bank of England kept policy unchanged but said the perceived risk of Britain crashing out of the European Union without a deal had risen. The lira pared a gain as Turkish President Recep Tayyip Erdogan criticized his country’s interest rate policy.These are the main moves in markets:StocksThe S&P 500 Index rose 1% as of 9:31 a.m. New York time, while the Nasdaq Composite Index gained 1% and the Dow Jones Industrial Average increased 0.9%.The Stoxx Europe 600 increased 0.7% to the highest in about seven weeks.The MSCI Emerging Market Index surged 1.5% to the highest in more than six weeks.The MSCI Asia Pacific Index climbed 1.3% to the highest in more than six weeks. CurrenciesThe Bloomberg Dollar Spot Index declined 0.6%, to the lowest in at least 12 weeks.The euro rose 0.7% to $1.1303, the strongest in more than a week. The yen strengthened 0.4% at 107.65 per dollar, the strongest in more than five months.The British pound increased 0.4% to $1.2686, the strongest in more than a week.The MSCI Emerging Markets Currency Index rose 1%.BondsThe yield on 10-year Treasuries fell 3 basis points to 2%.Germany’s 10-year yield eased 3 basis points to -0.32%.Britain’s 10-year yield declined 6 basis points to 0.81%, after touching the lowest in almost three years. CommoditiesWest Texas Intermediate rose 4.3% to $56.06 a barrel, the highest in three weeks.Gold increased 1.8% to $1,384 an ounce, the highest in almost six years.The Bloomberg Commodity Index jumped 1.6%.To contact the reporters on this story: Namitha Jagadeesh in London at email@example.com;Vildana Hajric in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Jeremy Herron at email@example.com, Dave LiedtkaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- S&P 500 index futures rallied on Thursday, suggesting that the benchmark index could surpass its intraday record high reached in early May, after the U.S. Federal Reserve signaled it was ready to cut interest rates, fueling an equity rally worldwide.The S&P 500 futures rose 1% at 8:32 a.m. in New York. The Fed on Wednesday dropped its use of “patient” in describing its approach to policy. The dovish tilt came after European Central Bank President Mario Draghi signaled he’s ready to add monetary stimulus. The Stoxx Europe 600 was up as much as 0.8%, led by cyclical sectors such as techs, autos and industrials, while the MSCI Emerging Markets index rose 1.5%.To contact the reporter on this story: Michael Msika in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Blaise Robinson at email@example.com, ;Celeste Perri at firstname.lastname@example.org, Catherine LarkinFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Health-care reform is coming, UBS analysts say, and it could have severe consequences for health companies.
WASHINGTON (MarketWatch) - The U.S. current-account deficit, a measures of the nation's debt to other countries, fell 9.4% in the first quarter mostly because of a smaller deficit in goods. The current-account deficit shrank to $130.4 billion from a revised $143.9 billion in the fourth quarter. The deficit in goods declined to $216.5 billion from $232.3 billion, reflecting ongoing trade wars and slower global growth. The current account reveals if a country is a net lender or debtor. The current account deficit was equal to 2.5% of GDP in the first quarter, down from a six-year high of 2.8% at the end of 2018. It's still well below a peak of 6.3% in 2005, however.
Tesla Inc. shares fell 1.5% in premarket trade Thursday, after Goldman Sachs slashed its stock price target to $158 from $200 on concerns the company can meet estimates for the second half and beyond. Analysts led by David Tamberrino said they expect the second quarter to be fine and come close to FactSet consensus for volumes, estimates for the second half look high, "considering there are fewer levers to pull to stoke demand going forward (i.e., company released lower priced variants of the Model 3, a leasing option was introduced, and right-hand drive orders have begun)." With the Federal tax credit due to step down again on July 1, second-quarter demand is likely not sustainable, the analysts wrote in a note to clients. Investors should be asking what are the sustainable levels for Model S, Model X and Model 3, they wrote, and how will that change with the introduction of the Model Y, which will likely cannabalize part of the customer base for other models. "We maintain our Sell rating on shares, but lower our 12-month price target to $158 (from $200) as we see a lower probability of the company achieving our upside volume scenarios; we believe a downward path for shares will resume as it becomes more clear that sustainable demand for the company's current products are below expectations," said the note. Tesla shares have fallen 32% in 2019 to date, while the S&P 500 has gained 16.7%.
Shares of Edesa Biotech Inc. shot up 140% in premarket trade after the Toronto-based company said the FDA had given it the go-ahead to start a Phase 2b trial looking at a topical treatment for chronic allergic contact dermatitis. The treatment, called EB01, is the company's lead drug candidate. "There are limited options for ACD patients and we have been pleased with the level of interest from physicians in the U.S.," said Par Nijhawan, Edesa's chief executive officer. "The company is committed to rapidly advancing our clinical plans and remains on track to initiate our clinical study for EB01." Shares of Edesa have declined 22.5% in the year to date through Wednesday, while the S&P 500 has gained 16.7%.
Fat Brands Inc. has completed its acquisition of Elevation Burger for $10 million, the company said Thursday. Fat Brands portfolio of chains includes Fatburger, Buffalo's Cafe and Ponderosa. Fat Brands has more than 400 franchised restaurants with annual system-wide sales of more than $400 million. Elevation Burger was founded in 2002 and sells organic, grass-fed product at 44 franchised locations across the U.S. and abroad. Fat Brands stock has slipped 4% for the year to date while the S&P 500 index has gained 16.7% for the period.
Vera Bradley Inc. said Thursday that it has taken a 75% interest in Creative Genius Inc., a digitally-native jewelry and accessories company that also operates under the name Pura Vida Bracelets. The deal is for a $75 million consideration, subject to certain price adjustments, and up to $22.5 million in incremental earnout based on 2019 performance. The deal isn't subject to financing conditions. For the year ending Dec. 31, 2018, Pura Vida had revenue of $68.3 million and net income of $3.8 million. For the fiscal year ending Feb. 2, 2019, Vera Bradley had revenue of $416.1 million and no outstanding debt. Vera Bradley has the right to acquire the remaining 25% stake after five years. Pura Vida will operate as a subsidiary of Vera Bradley from its La Jolla, Calif. headquarters, and is expected to be accretive to earnings in fiscal 2020. Vera Bradley stock has rallied 38.6% for the year to date while the S&P 500 index is up 16.7% for the period.
Shares of Kroger Co. rose 1.5% in premarket trading Thursday, after the grocery-store giant reported fiscal first-quarter earnings and sales that topped expectations, and affirmed its full-year guidance. Net income for the quarter to May 25 fell to $772 million, or 95 cents a share, from $2.03 billion, or $2.37 a share. Excluding non-recurring items, adjusted earnings per share slipped to 72 cents from 73 cents but was above the FactSet consensus of 71 cents. Sales fell to $37.25 billion from $37.72 billion, but beat the FactSet consensus of $37.19 billion. The latest-quarter results reflect the divestiture of its convenience-store business. Identical sales grew 1.5%, while digital sales increased 42%. Kroger confirmed its 2019 guidance ranges for identical sales growth of 2.00% to 2.25% and for adjusted EPS of $2.15 to $2.25. The stock has lost 14.0% year to date through Wednesday, while the Dow Jones Industrial Average has gained 13.6%.
Del Taco Restaurants Inc. said Thursday it is expanding its partnership with Beyond Meat Inc. and will offer two new burritos containing that company's plant-based protein. The Mexican fast-food chain said it has sold almost two million Beyond Tacos and Beyond Avocado Tacos since adding those options to its menu in April. "The enthusiasm shown by our fans during the first weeks of our Beyond Meat offerings was undeniable," Del Taco Chief Executive John Cappasola said in a statement. The company is now adding the Beyond 8 Layer Burrrito and the Epic Beyond Cali Burrito to its menu at more than 580 locations across the U.S. Beyond Meat shares rose 2.5% premarket on the news. Del Taco shares were up 1.8% premarket and have gained 14.8% in the last 12 months, while the S&P 500 has gained 16.7%.
Activist shareholder Starboard Value LP said Thursday it has delivered a letter to the head of infrastructure company Aecom, urging a prompt review of the company with the aim of unlocking value. STarboard, which owns 4.0% of Aecom's outstanding shares, said it welcomes the recent announcement that the company plans to sell off its management services division, which is one of three along with design and consulting services and construction services. "This is potentially a positive development," said the letter. "However, it is just one piece of a broader set of opportunities to unlock significant value at AECOM." The company was formed through a set of deals that have not been effectively integrated and metrics lag those of peers, said the letter. "We believe there is a substantial opportunity to drive profitability improvements through integration and operational initiatives. In addition, we believe a more expansive and open minded strategic review of the Company's assets is necessary." Aecom shares rose 2.6% premarket, and have gained 38% in 2019 to date, while the S&P 500 has gained 16.7%.
Pier 1 Imports Inc.'s stock will reflect on Thursday a 1-for-20 reverse stock split that went into effect just after midnight. The stock closed at a pre-split price of 68 cents on Wednesday, which would translate to a split-adjusted price of $13.60. The struggling home decor retailer said late Wednesday that shareholders had approved of a reverse split, in the ranges of 1-for-5, 1-for-10 or 1-for-20, and the board of directors decided to go with 1-for-20. "The objective of the reverse stock split is to enable Pier 1 to regain compliance with the NYSE minimum share price continued listing rule and maintain its listing on the NYSE," the company said in a statement. The reverse split will reduce the number of shares outstanding to about 4.25 million from 84.99 million. The stock had tumbled 76% year to date through Wednesday, while the SPDR S&P Retail ETF has declined 16% and the S&P 500 has gained 5.8%.
Darden Restaurants Inc. said Thursday its board has approved an increase in its quarterly dividend of 17% to 88 cents a share. The new dividend will be payable Aug. 1 to shareholders of record as of July 10. The company made the announcement as it posted fiscal fourth-quarter earnings. Shares fell 4.6% in premarket trade.
Olive Garden parent Darden Restaurants Inc.'s shares fell 4.6% in premarket trade Thursday, after the company's fiscal fourth-quarter sales and same-restaurant sales fell short of estimates. Darden said it had net income of $208 million, or $1.67 a share, in the quarter to May 26, up from $174.5 million, or $1.39 a share, in the year-earlier period. Adjusted per-share earnings came to $1.76, ahead of the $1.73 FactSet consensus. Sales rose to $2.229 billion from $2.134 billion, but were below the FactSet consensus of $2.244 billion. Same-restaurant sales rose 1.6%, below the FactSet consensus of up 2.4%. The company, which also operates the LongHorn Steakhouse, The Capital Grille, Eddie V's, Cheddar's Scratch Kitchen, Yard House, Seasons 52 and Bahama Breeze restaurant chains, said it now expects same-restaurant sales to grow 1% to 2% for fiscal 2020, and for EPS to range from $6.30 to $6.45. The FactSet consensus is for same-restaurant sales to grow 2.2% and for EPS of $6.46. Shares have gained 17.6% in 2019 to date, while the S&P 500 has gained 16.7%.