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Wells Fargo & Co.’s stock slipped 0.3% in premarket trade Wednesday, bucking the early gains seen in the financial sector and the broader stock market, after the banking giant was downgraded at J.P. Morgan, citing mounting public and regulatory scrutiny over fraudulent accounts following “tough” Senate hearings. Analyst Vivek Jeneja cut his rating to neutral, after being at overweight since October 2015, and trimmed his stock price target to $48 from $53.50. That follows upgrades the past two sessions, at Morgan Stanley and R.W. Baird. Wells Chief Executive John Stumpf testified Tuesday in front of the Senate Banking Committee, with Senator Elizabeth Warren calling him “gutless” for not taking full responsibility for the opening of fraudulent accounts. Juneja said he believes Wells will have to spend a lot more on litigation, revenue growth will probably slow, the reputational hit on the bank will be “material” and it could push the bank to move to grow earnings more in areas which carry a lower valuation multiple. “We expect management to turn this around but it will likely take some time and expense–hence the downgrade,” Juneja wrote. The stock has tumbled 8.4% so far this month, while the SPDR Financial Select Sector ETF has lost 3.1% and the S&P 500 has slipped 1.4%.

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From:: Stock Market News

Wal-Mart Stores Inc. said Wednesday that it had awarded more than $200 million in cash bonuses during the second quarter to more than 900,000 hourly workers. Wal-Mart employs more than 1.5 million associates in the U.S., according to the company’s website. The bonuses are part of an incentive plan, based on store performance from May to July. The bonuses are available four times per year. Wal-Mart announced a two-year, $2.7 billion investment in associate training, wages and more in 2015. The bonuses are not part of that commitment, the company said. Wal-Mart shares are up 0.2% in premarket trading. The retail giant’s stock is up 17.4% for the calendar year so far while the S&P 500 Index is up 4.7% for the same period.

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.

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From:: Stock Market News

Wal-Mart Stores Inc. said Wednesday that it had awarded more than $200 million in cash bonuses during the second quarter to more than 900,000 hourly workers. Wal-Mart employs more than 1.5 million associates in the U.S., according to the company’s website. The bonuses are part of an incentive plan, based on store performance from May to July. The bonuses are available four times per year. Wal-Mart announced a two-year, $2.7 billion investment in associate training, wages and more in 2015. The bonuses are not part of that commitment, the company said. Wal-Mart shares are up 0.2% in premarket trading. The retail giant’s stock is up 17.4% for the calendar year so far while the S&P 500 Index is up 4.7% for the same period.

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From:: Stock Market News

Shares of CarMax Inc. tumbled 5.5% in premarket trade Wednesday, after the used car seller reported disappointing fiscal second-quarter results. Net earnings for the quarter ended Aug. 31 were $162.4 million, or 84 cents a share, compared with $172.2 million, or 82 cents a share, in the same period a year ago. Earnings per share were reduced by 4 cents for the modification of equity awards held by the company’s retired chief executive officer. The FactSet EPS consensus was 88 cents. Sales rose to $4.00 billion from $3.88 billion, but missed the FactSet consensus of $4.11 billion, while same-store used unit sales increased 3.1% as a decline in store traffic was offset by improved conversion rates. Used vehicle unit sales increased 7.0%, beating the FactSet consensus of 2.9%. The stock had gained 3.3% year to date through Tuesday, while the S&P 500 had advanced 4.7%.

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From:: Stock Market News

Panera Bread Co. said Wednesday that it will begin serving bacon that’s free of artifical preservatives, flavors, sweeteners and colors from artifical sources. The company will also source its bacon from pigs that meet the company’s standards for reduced confinement and antibiotics. This “clean” bacon is made with six ingredients – pork, water, sea salt, sugar, celery powder and thyme extract – and will be used in salads and sandwiches. Panera shares are inactive in premarket trading, but up 6.2% for the past year. The S&P 500 Index is up 8.8% for the last 12 months.

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From:: Stock Market News

General Mills Inc. said Wednesday it had net income of $409 million, or 67 cents a share, in its first fiscal quarter to Aug. 28, down from $435 million, or 69 cents a share, in the year-earlier period. Adjusted per-share earnings came to 78 cents, ahead of the FactSet consensus of 76 cents. Sales fell to $3.9 billion from $4.2 billion, matching the FactSet consensus. However, “our net sales performance did not meet our expectations due to the challenging macro environment, a difficult year-over-year comparison, and a slower start to the year on certain businesses,” Chief Executive Ken Powell said in a statement. The company is planning actions to improve its sales performance, but is expecting to achieve its profit goals for fiscal 2017 and its target of 20% adjusted operating profit margin by fiscal 2018. Shares were indicating higher in light premarket trade, and are up 12% in the year so far, while the S&P 500 has gained about 5%.

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From:: Stock Market News

Japanese stocks gained on Wednesday, driven higher as the yen fell and the Bank of Japan left its deposit rate unchanged at negative 0.1%. The central bank took additional steps to help stoke inflation, including a new plan to target 10-year interest rates, with a commitment to keep them around zero. The Nikkei 225 surged 1.8% to 16,792, while the yen fell to ¥102.65 compared with ¥101.74 late Tuesday in New York. Financial stocks led the gains amid relief that the central bank did not push deposit rates further into negative territory. Mitsubishi UFJ Financial Group Inc. and Sumitomo Mitsui Financial Group Inc. each climbed over 7%. Markets are now awaiting a press conference from the Bank of Japan, expected at 2:30 a.m. Eastern Time. Elsewhere, Australia’s S&P/ASX 200 rose 0.7%, the Shanghai Composite index inched up 0.2%, while the Hong Kong Hang Seng index rose 0.7%.

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From:: Stock Market News

The Japanese yen fell sharply against major crosses on Wednesday after the Bank of Japan said it would keep its deposit rate unchanged at minus 0.1%, and tweak its policy framework. Stepping up its battle against deflation, the central bank said it would start targeting 10-year interest rates, committing to keep them around zero, and continue quantitative easing until inflation “exceeds” 2%. Against the dollar , the yen slid to ¥102.49 from ¥101.74 late Tuesday in New York. The yen fell 0.9% against the euro at ¥114.31 and around the same amount against the British pound at ¥133.09. The Nikkei 225 index climbed 1.5% to 16,746 as the yen tumbled.

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From:: Stock Market News

Japan’s central bank announced Wednesday that it would keep its key interest rate steady at -0.1%. The Bank of Japan also said it would expand its monetary base until inflation becomes stable above 2%. The BOJ intends to abandon its monetary base target, but maintain an annual pace of government-bond buying at 80 trillion yen. Experts had been nervously awaiting the bank’s move, with many concerned the BOJ would cut interest rates even deeper into negative territory. Japan’s Nikkei stock market rose and the yen weakened immediately following the BOJ announcement.

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From:: Stock Market News