|Day's range||2,926.05 - 2,936.83|
|52-week range||2,346.58 - 2,940.91|
Stock futures pointed to a lower open after manufacturing giant 3M (MMM) shares slumped on the heels of disappointing quarterly earnings and guidance.
U.S. stocks slipped amid another busy day for corporate earnings, which featured mixed results from industrial heavyweights Caterpillar and Boeing.
Freeport-McMoRan Inc. shares were slightly lower in premarket trade Thursday, after the copper and gold miner posted weaker-than-expected profit for the first quarter. The company said it had net income of $31 million, or 2 cents a share, in the quarter, down from $692 million, or 47 cents a share, in the year-earlier period. Adjusted per-share earnings came to 5 cents, below the 7 cents FactSet consensus. Revenue fell to $3.792 billion from $4.868 billion, and was a whisker ahead of the FactSet consensus of $3.791 billion. "Our transition to underground mining at Grasberg is advancing according to plan, and we are encouraged by recent milestones," Chief Executive Richard Adkerson said in a statement. "In North America and South America, we are advancing the Lone Star copper leach project in eastern Arizona and continuing to focus on opportunities to enhance operating performance from existing mines." The company sold 784 million pounds of copper, 242,000 ounces of gold and 22 million pounds of molybdenum in the quarter. For the full year, it expects to sell 3.3 billion pounds of copper, 0.8 million ounces of gold and 94 million pounds of molybdenum, including 800 million pounds of copper, 265 thousand ounces of gold and 25 million pounds of molybdenum in second-quarter 2019. Shares were slightly lower premarket, but have fallen 11.7% in the last 12 months, while the S&P 500 has gained 10.9%.
United Parcel Service Inc. stock fell 2.8% in Thursday premarket trading after the shipping company reported first-quarter earnings and sales that missed expectations. Net income was $1.11 billion, or $1.28 per share, slipping from $1.35 billion, or $1.55 per share, in 2018. Adjusted EPS was $1.39. Revenue of $17.16 billion, was up slightly from $17.11 billion last year. The FactSet consensus was for EPS of $1.42 and sales of $17.77 billion. UPS said the weather hurt U.S. profit by 7 cents per share. UPS continues to guide for full-year adjusted EPS in the range of $7.45 to $7.75 against a FactSet consensus of $7.52. UPS stock has gained 17.3% for the year to date while the S&P 500 index is up 16.8% for the period.
* European stocks falter as cyclicals drag * Deutsche Bank, Commerzbank end merger talks * Nokia drops 8 pct after surprise quarterly loss * Q1 beat sends ASM International to all-time high * Bic set for ...
Shares of Martin Midstream Partners L.P. plummeted 17% toward a record low, after the provider of natural-gas and other energy-related services cut its dividend in half, after part of its plan to strengthen its balance sheet, and reported a surprise first-quarter loss. The company's new quarterly distribution was reduced to 25 cents a share from 50 cents. Based on Wednesday's stock closing price of $9.84, the new annual dividend rate would lower the dividend yield to 10.16% from 20.33%. In comparison, the SPDR Energy Select Sector ETF's dividend yield is 3.07% and the implied yield for the S&P 500 is 1.96%, according to FactSet. Among other strategic actions the company is taking, the company said it is in "active negotiation" over the sale of certain non-core assets and businesses. Separately, the company said it swung to a net loss of $3.7 million, or 9 cents a share, from a profit of $13.5 million, or 29 cents a share, a year ago, compared with the FactSet consensus of a profit of 22 cents a share. Revenue fell to $251 million from $307 million, missing the FactSet consensus of $299 million. the stock has lost 4.3% year to date through Wednesday, while the S&P 500 has gained 17%.
Shares of AbbVie Inc. rose 2% in premarket trade Thursday after the drugmaker reported first-quarter earnings and revenue that beat Wall Street expectations, while raising its full-year outlook. Profit for the latest quarter fell to $2.456 billion, or $1.65 per share, from $2.783 billion, or $1.74 per share, a year ago. Adjusted EPS was $2.14, beating the FactSet consensus of $2.06. Revenue came in at $7.828 billion, down from $7.934 billion a year ago, but above the FactSet consensus of $7.772 billion. Sales of the company's best-selling drug Humira fell 5.6% to $4.446 billion. The company had previously warned investors that Humira sales would drop this year, as competitors like Mylan NV and Amgen Inc. are now selling lower-cost biosimilars in Europe. The company raised its expected full-year EPS to between $8.73 and $8.83 from between $8.65 and $8.75. Shares of AbbVie have fallen 14.7% in the year to date, while the S&P 500 has gained 16.8%.
GNC Holdings Inc. stock skyrocketed 10.3% in Thursday premarket trading after the nutritional supplement seller reported first-quarter sales that fell, but beat expectations. GNC had a loss of $15.3 million, or 23 cents per share, after income of $6.2 million, or 7 cents per share, in 2018. Adjusted EPS was 15 cents. Revenue of $564.8 million was down from $607.5 million. The company blamed the sales decline on the transfers of Nutra manufacturing and China e-commerce business to newly-formed joint ventures, as well as the shuttering of company-owned stores. The FactSet consensus was for EPS of 18 cents and sales of $552.0 million. "During the past six months we have completed a number of important partnerships, including the strategic investment by Harbin and the joint ventures with Harbin and IVC, which further enable our team to focus on our core business. In addition, during that period, we have improved our balance sheet by retiring over $350 million in debt," said GNC Chief Executive Ken Martindale in a statement. GNC stock has taken a 14% tumble in 2019 while the S&P 500 index has rallied 16.8%.
U.S. stock-index futures on Thursday morning trade mixed, with those for the Dow under pressure after disappointing 3M Co. earnings, while healthy gains in the technology sector buoyed the Nasdaq and S&P.
United Parcel Service earned less than Wall Street expected in the first quarter, saying bad weather contributed to a shortfall that sent the stock lower in premarket trading.
Health-care stocks are being dragged down by fears that a remake of the U.S. health-care system would stunt profits.
Will Muggia of Westfield Capital Management discusses Lululemon, Palo Alto Networks and other mid-cap stocks.
Investors are assessing earnings reports from some of the biggest U.S. companies this week to see if the strong run-up in market since the start of the year is justified as the main Wall Street indexes hover below all-time highs. The S&P 500 is trading roughly 0.5% below its intraday record hit in late September, while the Nasdaq hit an intra-day record high on Wednesday but failed to close at those levels. 3M Co's shares tumbled 9.1% in premarket trading after the company said it would lay off 2,000 workers globally as it reported a lower-than-expected quarterly profit and cut its 2019 earnings forecast.
Happy Returns, which provides e-commerce package return services, has completed an $11 million round of financing, and PayPal Holdings Inc. is among the investors. Happy Returns, founded in 2015, has more than 350 Return Bars in 63 U.S. metro areas and partnerships with retailers like Sur La Table and PaperSource. The company has raised $25 million since its founding. E-commerce returns have become a focus of the retail industry with companies like Walgreens Boots Alliance Inc. adding the service to thousands of its stores, and Kohl's Corp. and Amazon.com Inc. expanding their partnership for returns. PayPal stock has rallied 27.5% in 2019 while the S&P 500 index is up 16.8% for the period.
World shares slipped on Thursday as investors digested a mixed bag of European earnings and worries over global growth lingered, while the euro suffered after poor German data and the Swedish crown slumped to its lowest in 17 years. The Euro STOXX 600 fell 0.2 percent, with concerns over the global economy underscored by weak economic data from South Korea rumbling and corporate earnings painting a mixed picture of corporate health across the region. European shares were dragged down by a 10 percent drop in Finnish telecoms equipment maker Nokia, its biggest for 18 months.
Shares of D.R. Horton Inc. dropped 5.1% in premarket trade Thursday, after the home builder reported fiscal second-quarter earnings and revenue that beat expectations, but provided downbeat full-year guidance. Net income for the quarter to March 31 edged up to $351.3 million, or 93 cents a share, from $351.0 million, or 91 cents a share, in the same period a year ago. The FactSet EPS consensus was 86 cents. Revenue rose to $4.13 billion from $3.79 billion, topping the FactSet consensus of $4.01 billion. Net sales orders rose 6% to 16,805 homes and grew 4% in value to $4.9 billion, compared with expectations of 16,732 homes and value of $5.0 billion. The company said it expects fiscal 2019 revenue of $16.7 billion to $17.0 billion, below the FactSet consensus $17.2 billion, and homes closed of 55,000 homes to 56,000 homes, surrounding expectations of about 55,800. The stock has soared 35% year to date through Wednesday, while the SPDR S&P Homebuilders ETF has climbed 26% and the S&P 500 has gained 17%.
U.S. equity-index futures were mixed on Thursday and European shares edged lower as investors parsed a slew of earnings against a backdrop of global growth concerns. The Stoxx Europe 600 slipped for a second session on a mixed day for bank earnings and as two major European mergers appeared to flounder. Investors are hoping company earnings can breathe new life into the global stock rally after the U.S. benchmark lost momentum at a record high and European stocks ended the longest run of gains in more than a year.
International Paper Co. shares surged 3.9% in premarket trade Thursday, after a profit beat offset a slight revenue miss. Memphis, Tenn.-based company said it had net income of $424 million, or $1.05 a share, in the quarter, down from $729 million, or $1.74 a share, in the year-earlier period. Adjusted per-share earnings came to $1.11, ahead of the 91 cents FactSet consensus. Sales edged up to $5.643 billion from $5.621 billion, just below the FactSet consensus of $5.729 billion. "Looking ahead to the second quarter, we anticipate improved seasonal demand and we are well positioned to continue generating strong cash flows in 2019," Chief Executive Mark Sutton said in a statement. Shares have fallen 17.2% in the last 12 months, while the S&P 500 has gained 10.9%.
Shares of Altria Group Inc. dropped 2.6% in premarket trade Thursday, after the tobacco company reported first-quarter earnings and revenue that fell short of expectations. Net income fell to $1.12 billion, or 60 cents a share, from $1.89 billion, or $1.00 a share, in the year-ago period. Excluding non-recurring items, adjusted EPS fell 5.3% to 90 cents, below the FactSet consensus of 92 cents. Net revenue fell 7.9% to $5.63 billion, below the FactSet consensus of $5.97 billion. Smokeable products revenue fell 8.8% to $4.94 billion, as cigarette volume fell 14.3% and Marlboro volume fell 13.5%. Smokeless revenue rose 2.9% to $540 million, while shipment volume fell 2.2%. Altria affirmed its 2019 adjusted EPS outlook of $4.15 to $4.27, which surrounds the FactSet consensus of $4.19. The stock has gained 11% year to date through Wednesday, while the S&P 500 has climbed 17%.
Eli Lilly and Co. said Thursday it is working with doctors to ensure patients who are currently receiving Lartruvo, a soft-tissue sarcoma therapy being pulled from the market following the failure of a late-stage trial, will still be able to receive the drug if they have been told of the drug's risks and trial outcomes and wish to continue. The company announced in January that a Phase 3 trial of Lartruvo as a combination therapy with doxorubicin in patients with advanced soft-tissue sarcoma did not improve survival compared with standard of care. The drugmaker is now working on facilitating a smooth withdrawal of the drug from the market for advanced soft tissue sarcoma. No new patients will receive the drug outside of those participating in ongoing trials, the company said. Shares of Eli Lilly have gained 2% in the year to date, while the S&P 500 has gained 16.8%.
Wedbush analyst Daniel Ives downgraded shares of Tesla Inc. to neutral from outperform following the company's first-quarter earnings report, in which the company posted a sizable loss. Shares are down 1.2% in premarket trading Thursday. "The demand story at Tesla is quickly changing and the company has unfortunately not adjusted to an evolving [electric-vehicle] landscape (especially in the U.S.) with the well thought out marketing and distribution logistics needed to manage this difficult and complex hand holding process for customers, employees, and investors," Ives wrote. "To this point, in our 20 years of covering tech stocks on the Street we view this quarter as one of top debacles we have ever seen while Musk & Co. in an episode out of the Twilight Zone act as if demand and profitability will magically return to the Tesla story." He called management's outlook "aggressive" while arguing that the company " is not taking aggressive enough cost cutting actions and shutting down future endeavors to preserve capital and give a sustained path to profitability for the Street." Ives lowered his price target on shares to $275 from $365. The stock has fallen 22% so far this year, as the S&P 500 has gained 17%.
Defense contractor Raytheon Co. shares jumped 1.6% in premarket trade Thursday, after the company beat earnings estimates for the first quarter. Waltham, Mass.-based Raytheon said it had net income of $781 million, or $2.77 a share, in the first quarter, up from $633 million, or $2.19 a share, in the year-earlier period. Adjusted per-share earnings also came to $2.77, ahead of the FactSet consensus of $2.47. Sales rose to $6.729 billion from $6.267 billion, also beating the $6.618 billion FactSet consensus. The company had bookings of $5.4 billion in the quarter, down from $6.3 billion a year ago. Its backlog stood at $41.073 billion compared with $42.420 billion a year ago. For the full year, the company is still expecting adjusted EPS of $11.40 to $11.60 and sales of $28.6 billion to $29.1 billion. The current FactSet consensus is for EPS of $11.61 and sales of $28.9 billion. Shares have fallen 13.2% in the last 12 months, while the S&P 500 has gained 10.9%.
Hershey Co. stock soared 10.2% in Thursday premarket trading after the chocolate and snacks company report first-quarter earnings that exceeded expectations. Net income totaled $304.4 million, or $1.45 per common share, down from $350.2 million, or $1.65 per common share, last year. Adjusted EPS was $1.59, well ahead of the $1.46 per share FactSet estimate. Sales of $2.02 billion was up from $1.97 billion last year and exceeded the $2.00 billion FactSet consensus. For the year, Hershey expects EPS of $5.50 to $5.56 and adjusted EPS of $5.63 to $5.74. FactSet expects EPS of $5.64. Hershey stock has gained 9.2% in 2019 while the S&P 500 index is up 16.8% for the period.
Shares of Comcast Corp. were inactive in premarket trading Thursday after the company reported an earnings beat for the first quarter but fell short of revenue expectations. Net income rose to $3.5 billion, or 77 cents a share, from $3.1 billion, or 66 cents a share, in the year-ago period. Adjusted earnings per share rose to 76 cents from 65 cents, coming in ahead of the FactSet consensus projection, which called for 68 cents. The company reported $26.9 billion in revenue, up from $22.8 billion a year earlier but below the FactSet consensus estimate of $27.2 billion. Comcast reported $14.3 billion in cable communications revenue, up from $13.7 billion a year prior. NBC Universal revenue fell to $8.3 billion from $9.5 billion a year prior. In 2018, Comcast's NBC business benefited from the Olympics and the Super Bowl. Shares have gained 23% so far this year, as the S&P 500 has risen 17%.