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European banks rose on Thursday after European Central Bank President Mario Draghi suggested using public money to tackle the level of bad loans in the eurozone banking system. The Stoxx Europe 600 banks index jumped 0.6% after trading with losses earlier in the day. Speaking at the ECB’s monetary policy news conference Draghi said a public backstop for non-performing loans would be “very useful,” but it should be agreed with the European Commission. Draghi also warned the level of bank loans is problem a for future profitability and bank lending. “We want to avoid fire sales,” he said. The comments come after concerns have risen in recent weeks that the level of bad loans at Italy’s banks could blow up the country’s financial system and threaten its membership in the eurozone. Italian banks are neck-deep in non-performing loans, with official data putting the total at around 200 billion ($220.5 billion), or around 8% of total loans. The issues have been reflected in Italian bank shares, with focus particularly on Siena-based Banca Monte dei Paschi , which is down 74% so far this year. The European Central Bank earlier this month asked BMPS to cut its gross nonperforming loan exposur to €14.6 billion by 2018 from €46.9 billion in 2015.

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From:: Stock Market News

Stocks opened mostly lower Thursday, putting the Dow industrials on track to end a nine-session win streak — the index’s longest such streak since March 2013. Investors focused on the European Central Bank meeting, at which benchmark interest rates were left unchanged, while a flurry of economic data in the U.S. reflected moderate but steady growth. A barrage of earnings results drove individual stocks, while a drop in oil prices also weighed on sentiment. The Dow Jones Industrial Average fell 10 points, less than 0.1%, to 18,581, the S&P 500 index lost less than a point, or less than 0.1% at 2,173, while the Nasdaq Composite Index advanced 3 points, or 0.1%, to 5,092. Among individual stocks, Southwest Airlines Co. dropped nearly 10% after weaker-than-expected earnings, while General Motors Co. jumped 4% toward a three-month high after strong quarterly results. Qualcomm shares surged 7% following quarterly results.

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From:: Stock Market News

Shares of Qualcomm Inc. rose 7.5% on Thursday following the company’s stronger-than-expected earnings report late Wednesday and a number of price target increases. Qualcomm’s stock target was raised to $55 from $50 at Nomura, to $67 from $59 at Pacific Crest, to $70 from $67 at Credit Suisse, to $67 from $59 at Stifel Nicolaus and to $59 from $55 at RBC Capital. The mobile-chip maker reported quarterly revenue of $6 billion on Wednesday, topping analyst expectations of $5.6 billion, according to FactSet. The stock opened at $59.80 on Thursday. It has risen 16% over the last three months, outperforming the S&P 500 , which is up 4%.

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From:: Stock Market News

General Mills Inc. disclosed Thursday that it will cut 420 jobs in Brazil and 440 jobs in China, as part of a restructuring of certain international product lines. The job cuts are a result of the snack giant’s plan to close a snacks manufacturing facility in Marilia, Brazil, to cease production of meals and snacks at its facility in Sao Bernardo do Campo, Brazil and to cease production of underperforming snacks at its Nanjing, China facility. The company also said in the filing that it made a “tentative decision” to close its facility in Vineland, New Jersey, which would affect 370 jobs. In addition, the company reached an agreement to sell its dry mixes plant in Martel, Ohio, which will affect 180 jobs. General Mills expects to record charges of $42 million for its moves in Brazil and China. The closure of its Vineland plant is expected to cost $67 million, while the sale of its Martel plant will lead to a loss of $11 million. The stock, which tacked on 0.6% in premarket trade, has run up 24% year to date through Wednesday, while the S&P 500 has gained 6.3%.

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From:: Stock Market News

European Central Bank President Mario Draghi on Thursday stressed the need to tackle the level of bad loans in the eurozone banking system, saying they are a problem for future profitability and bank lending. Speaking at the ECB’s monetary policy news conference, Draghi outlined three ways to address non-performing loans, which are particularly an issue in Italy. The central bank boss suggested a consistent supervisory approach, a development of a full-functioning NPL market and government action. “And possible also having a public backstop,” he said. “We want to avoid fire sales”. The comments come after concerns have risen in recent weeks that the level of bad loans at Italy’s banks could blow up the country’s financial system and threaten its membership in the eurozone. Italian banks are neck-deep in non-performing loans, with official data putting the total at around 200 billion ($220.5 billion), or around 8% of total loans. The issues have been reflected in Italian bank shares, with focus particularly on Siena-based Banca Monte dei Paschi , which is down 74% so far this year. The European Central Bank earlier this month asked BMPS to cut its gross nonperforming loan exposur to €14.6 billion by 2018 from €46.9 billion in 2015.

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From:: Stock Market News

The European Central Bank, as expected, left interest rates unchanged at its policy meeting on Thursday. In a statement, the ECB said it expected rates “to remain at the present or lower levels for an extended period of time, and well past the horizon of the net asset purchases.” The central bank also said it was also confirming that monthly asset buys of 80 billion euros a month are intended to run until March 2017, “or beyond” if necessary, and in any case until [the Governing Council] sees a sustained adjustment in the path of inflation consistent with its inflation aim.” ECB’s main refinancing rate stands at 0%, while the deposit rate paid on money parked overnight at the bank remains at minus 0.4%. The rate on the ECB’s marginal lending facility remains at 0.25%. ECB President Mario Draghi’s news conference is scheduled for 2:30 p.m. Frankfurt time, or 8:30 a.m. Eastern.

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From:: Stock Market News

General Motors Co.’s stock ran up 5.4% in premarket trade Thursday toward a three-month high, after the car maker reported second-quarter profit and sales that were well above expectations and raised its full-year outlook. Earnings for the latest quarter rose to $2.9 billion, or $1.81 a share, from $1.1 billion, or 67 cents a share, in the same period a year ago. Adjusted earnings per share came in at $1.86, beating the FactSet consensus of $1.52. Revenue rose to $42.4 billion from $38.2 billion, above the FactSet consensus of $38.2 billion. Global vehicle sales were flat at 2.4 million. For 2016, GM raised its adjusted EPS outlook to $5.50 to $6.00 from $5.25 to $5.75; the FactSet consensus is $5.66. “Our results were generated by strong retail sales in the U.S., record sales in China and a continued emphasis on improving the performance of our operations worldwide,” said Chief Executive Mary Barra. The stock has declined 7.4% year to date through Wednesday, while the S&P 500 has tacked on 6.3%.

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Theranos Inc. is appointing two new executives to head regulatory and compliance efforts, the company said Thursday. The company has also created a compliance and quality committee to oversee the efforts. Dave Wurtz, previously a senior director of compliance at ThermoFisher Scientific, was named vice president, regulatory and quality, and Daniel Guggenheim, previously an assistant general counsel for regulatory law at McKesson Corp., was named chief compliance officer. Both will report to Elizabeth Holmes, the chief executive officer. The appointments come after U.S. regulators have banned Holmes from operating a medical laboratory for at least two years after issues with blood testing at Theranos.

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From:: Stock Market News

Biogen Inc.’s stock surged 5.3% in premarket trade Thursday, after the biotechnology company beat second-quarter earnings and revenue expectations and provided an upbeat full-year outlook. That offset the announcement that Chief Executive George Scangos will leave after six years at the company, after a successor is found. Earnings for the quarter ended June 30 rose to $1.05 billion, or $4.79 a share, from $927.3 million, or $3.93 a share, in the same period a year ago. Adjusted earnings per share came in at $5.21, above the FactSet consensus of $4.67. Revenue increased 12% to $2.89 billion from $2.59 billion, beating the FactSet consensus of $2.79 billion. For 2016, Biogen expects adjusted EPS of $19.70 to $20.00, above the FactSet consensus of $18.90. Revenue is expected to be $11.2 billion to $11.4 billion, surrounding the FactSet consensus of $11.29 billion. The stock has tumbled 14% year to date through Wednesday, while the S&P 500 has gained 6.3%.

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From:: Stock Market News

Travelers Cos. Inc. said Thursday it had net income of $664 million, or $2.24 a share, in the second quarter, compared with $812 million, or $2.53 a share, in the year-earlier period. Adjusted per-share earnings came to $2.20, above the FactSet consensus of $2.04. Revenue rose to $6.785 billion from $6.710 billion, also above the FactSet consensus of $6.353 billion. Earnings were pressured by catastrophe and non-catastrophe weather-related losses, as well as lower net investment income in the low interest-rate environment, the insurer said. Shares were not yet active in premarket trade, but are up 3.7% in the year so far, while the Dow Jones Industrial Average has gained almost 7%.

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From:: Stock Market News