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Exchange-traded funds that track the home-building sector fell on Monday, after the latest read on home sales came in sharply below analyst forecasts. The iShares U.S. Home Construction ETF fell 0.7% while the SPDR S&P Homebuilders ETF was off 1% and the PowerShares Dynamic Building & Construction Portfolio shed 1.3%. New-home sales ran at a seasonally adjusted annual rate of 593,000 in January, the Commerce Department said. This was below expectations for a rate of 648,000. Among the sector’s biggest movers, D.R. Horton Inc. was down 1.5% while Beazer Homes USA Inc. lost 0.7%. PulteGroup Inc. was down 0.9% on the day. The home-building sector has underperformed throughout 2018; the iShares fund is off 8.2% year to date, compared with the 3.1% rise of the S&P 500 over the same period. However, the fund has outperformed the broader market over the past 12 months. On Monday the Dow Jones Industrial Average rose 0.6% while the S&P 500 was up 0.3% and the Nasdaq Composite Index added 0.4%.

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From:: Stock Market News

DowDuPont Inc. unveiled the brand names it plans to give the three independent companies it will create following the merger of the former DuPont and Dow Chemical. The company said the agriculture division will be named Cortevta Agriscience, the materials science division will be called Dow and the specialty products division will be called DuPont. The materials science division is expected to be spun off by the end of the first quarter of 2019, while agriculture and specialty products are expected to separate by June 1, 2019. Shares are up 0.4% Monday, and have gained about 16% in the last 12 months, while the Dow Jones Industrial Average has gained about 22% and the S&P 500 has gained about 17%.

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From:: Stock Market News

Shares of General Electric Co. tumbled 3.5%, to pace the Dow Jones Industrial Average’s decliners, after the industrial conglomerate disclosed in its annual report that it expects to restate its 2016 and 2017 earnings lower as a result of new accounting standards. As a result of new revenue-recognition accounting standards, GE expects a non-cash charge of about $4.2 billion to Jan. 1, 2016 retained earnings balance. GE estimates that 2016 restated earnings per share will be lower by about 13 cents, before the impact from U.S. tax legislation, and 2017 restated EPS will be lower by about 16 cents. GE said the Securities and Exchange Commission investigation into revenue recognition practices and internal controls over financial reporting was expanded after its Jan. 16 update about its run-off insurance operations to encompass the reserve increase and the process leading to the reserve increase. On Jan. 24, Chief Financial Officer Jamie Miller had said on the post-earnings conference call with analysts that the SEC was investigating the insurance reserve increase and accounting controls. Earlier Monday, GE said it was nominating former Financial Accounting Standards Board (FASB) Chairman Leslie Seidman to its board of directors. The stock, which has traded below the $14 level for the first time since July 2010, has plummeted 23% over the past three months, while the Dow has gained 8.1%.

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From:: Stock Market News

Intel Corp. shares gained 1.7% in Monday morning after analysts at Instinet raised their price target on shares to $60 from $50. The analysts, led by Romit Shah, are upbeat about the company’s data center group. Revenue for the division grew 20% in the fourth quarter, and Shah believes that Intel can sustain its momentum here. He sees the company being able to “easily surpass segment guidance of high-single-digit growth.” Shah likes that cloud and communication service providers are becoming a larger portion of Intel’s customer base for the data center business. “This shift in customer mix has been dramatic, setting Intel up for better revenue growth,” he wrote. Intel shares have gained 33% over the past 12 months, while the S&P 500 Index is up 17%.

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From:: Stock Market News

The Cboe Volatility index fell on Monday, setting Wall Street’s so-called “fear index” for its fourth straight daily decline as it dipped ever lower back beneath its long-term average. The VIX fell 1.8% to 16.19 at its low of the session, building on a 15.3% drop that was seen over last week, which itself followed a 33% slump the previous week. The losses have come alongside a recovery in the U.S. stock market, with investors buying up equities as concerns waned that inflation was returning to the economy and that the Federal Reserve may have to grow more aggressive in raising interest rates. Such fears led to a spike in the VIX earlier this month, and despite the retreat returning it below its long-term average of 20, where it has traded fairly consistently for years, it remains up more than 22% thus far in February. Over 2018 overall, it remains up 49%. At its peak of 2018, it spiked above 50. On Monday the Dow Jones Industrial Average rose 0.6% while the S&P 500 was up 0.4% and the Nasdaq Composite Index was up 0.5%.

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Germany’s Christian Democrats, the party of Chancellor Angela Merkel, voted in favor of a grand coalition with the Social Democrats on Monday during a party conference, according to local press. Merkel earlier reminded her party members of their task to make a responsible decision for the nation. Germany held elections in September last year but hasn’t been able to form a government since. The overwhelming vote in favor of the coalition was expected, while the SPD’s vote, which has been in progress for a week already, is less certain. The final result will be announced on Sunday, March 4. If the center-left SPD votes against the plan to join forces the center-right CDU once again, Germany could be headed for new elections. The euro was little changed at $1.2301 following the news.

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From:: Stock Market News

Shares of Avid Technology Inc. slumped 1.9% in morning trade Monday, after the media technology company said it terminated former Chief Executive Officer Louis Hernandez, effective immediately, for “violations of company policies related to workforce conduct.” The company appointed President Jeff Rosica as CEO. Hernandez also resigned from Avid’s board, and Nancy Hawthorne was elected chairman. The company said after an investigation by a special committee into allegations of “improper non-financially related workplace conduct,” the company unanimously concluded that the findings warranted “immediate termination” of Hernandez’s employment. “The board is committed to the company’s core values and to upholding an environment of the utmost respect and integrity,” Hawthorne said. Avid’s stock has plunged 36% over the past three months, while the S&P 500 has gained 6.2%.

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From:: Stock Market News

U.S. stock benchmarks trade higher Monday morning, as worries about the inflation picture and rising rates recede. The Dow Jones Industrial Average rose about 215 points, or 0.9%, at 25,524, while the S&P 500 index was up 0.7% at 2,765. The Nasdaq Composite Index climbed 0.8% to 7,391. The Nasdaq is less than 2% shy of its Jan. 26 record, while the Dow is about 4.1% from its all-time peak, while the S&P 500 is just 3.7% short of its late January record, highlighting the recent rally for those benchmarks since tumbling by at least 10% on Feb. 8. Concerns that inflation could be returning to markets, and that the U.S. central bank may have to more aggressively raise interest rates to combat such a scenario, has been the primary driver of trading in recent weeks, even eclipsing a strong earnings season. In corporate news, United Parcel Service Inc. announced it is suing the European Union’s antitrust watchdog for $2.15 billion plus interest over its decision to block a $7 billion merger with Dutch-based TNT Express NV in 2013.

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From:: Stock Market News

Shares of Nxt-ID Inc. rocketed 60% on heavy volume in premarket trade Monday, after the company said its FitPay Inc. subsidiary entered into a network services agreement with Discover Financial Services . Volume topped 1.9 million shares ahead of the open, making the stock the most actively traded ahead of the open. The agreement will allow Discover cardholders to make secure “contactless payment transactions” at retail locations with wearable devices. Under the agreement, FitPay’s payment and digital wallet platform will be integrated with DDX, which is Discover’s tokenization platform. “Consumers should have options in how they pay, and this agreement makes cutting-edge payment devices available to Discover cardholders,” said Nxt-ID Chief Operating Officer Michael Orlando. Discover’s stock was inactive in premarket trade. Over the past three months, Nxt-ID’s stock has run up 59.1%, Discover shares have gained 21.4% and the S&P 500 has tacked on 5.6%.

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From:: Stock Market News

AMC Networks Inc. said on Monday that it plans to acquire the outstanding shares of RLJ Entertainment Inc. not already owned by AMC Networks or entities affiliated with media magnate and co-founder of BET, Robert L. Johnson. AMC is buying the shares for $4.25 a share in cash, in a deal valuing RLJ Entertainment at roughly $60 million. The offer price represents a 10% premium to RLJ’s Friday closing price. In the acquisition, AMC plans for RLJ Entertainment to become a privately owned subsidiary, with a minority stake held by Robert L. Johnson. Last October, AMC Networks formed a strategic partnership with RLJ Entertainment, investing $65 million in the company in the form of loans. The company said that Citigroup Global Markets is serving as financial advisor and Sullivan & Cromwell LLP is acting as legal counsel to AMC Networks for the transaction. Shares of AMC Networks have declined nearly 15% in the last 12 months, while shares of RLJ Entertainment have climbed more than 68%. By comparison, the S&P 500 index is up 16% and the Dow Jones Industrial Average is up roughly 22%.

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From:: Stock Market News