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Oil futures turned higher on Wednesday after the U.S. Energy Information Administration reported a 3.4 million-barrel decline in crude-oil supplies for the week ended May 6. The American Petroleum Institute late Tuesday had reported a 3.45 million-barrel increase, while analysts polled S&P Global Platts expected a 300,000-barrel increase. Gasoline supplies fell by 1.2 million barrels, while distillate stockpiles were down 1.6 million barrels last week, according to the EIA. June crude was at $45.12 a barrel on the New York Mercantile Exchange, up 46 cents, or 1%. Prices traded lower at $44.22 before the data.

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From:: Stock Market News

Fitch Ratings downgraded its long-term issuer default rating on The Gap Inc. into speculative grade, or “junk”, status Wednesday after the retailer warned about slumping sales in its first quarter. The agency cut the rating to BB-plus from BBB-minus and said the outlook is stable. The move “reflects Fitch’s reduced confidence in stabilization of sales, expectations of continued gross margin volatility, and belief that Gap will need to continue using real estate actions and large-scale cost reduction programs to protect EBITDA in the face of sales declines,” the agency said in a statement. Fitch is expecting EBITDA to fall to the $2 billion range in 2016 from $2.3 billion in 2015 and a peak of $2.7 billion in 2014, with leverage expected to remain in the mid-3 times range. The rating also includes positive elements to The Gap story, it said, citing capital discipline, positive free cash flow, scale and investments in omnichannel capabilities. Shares were up 0.3% in early trade, but are down 22% in the year so far, while the S&P 500 is up 1.6%.

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From:: Stock Market News

U.S. stocks opened lower on Wednesday, as disappointing earnings reports by companies like Walt Disney Co. , Macy’s Inc. and Staples Inc. weighed on the broader market. A retreat in crude oil prices added to the selling pressures in the equity market, a day after the S&P and the Dow logged their largest daily gain in about two months. The S&P 500 was down 5 points, or 0.2%, to 2,079. The Dow Jones Industrial Average lost 69 points, or 0.4%, to 17,858 at the open. Meanwhile, the Nasdaq Composite began the session down 13 points, or 0.3%, at 4,797.

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From:: Stock Market News

Macy’s Inc. shares fell 7.5% in Wednesday premarket trading after the retailer reported first-quarter sales that missed expectations and issued a profit warning. Macy’s reported net income of $115 million, or 37 cents per share, down from $193 million, or 56 cents per share, for the same period last year. Adjusted earnings were 40 cents per share, beating the FactSet consensus of 36 cents per share. Revenue for the quarter totaled $5.8 billion, down from $6.2 billion and below the $5.9 billion FactSet consensus. Same-store sales on an owned and licensed basis were down 5.6% for the quarter. The retailer expects full-year 2016 same-store sales to fall between 3% and 4%, and earnings per share in the range of $3.15 to $3.40, lowered from previous guidance of $3.80 to $3.90. Macy’s raised its dividend to 37.75 cents per share from 36 cents per share. Company shares are down 44% for the past year while the S&P 500 is down 1% for the same period.

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From:: Stock Market News

Wendy’s Co. shares jumped 5.1% in Wednesday premarket trading after the fast-food company’s first-quarter earnings beat expectations and it raised its 2016 outlook. Wendy’s reported net income of $25.4 million, or 9 cents per share, compared with $27.5 million, or 7 cents per share, for the same period last year. Adjusted earnings were 11 cents per share, exceeding the FactSet consensus of 6 cents per share. Revenue for the quarter fell to $378.8 million from $451.8 million, beating the FactSet consensus of $351 million. The decline was primarily the result of the company’s owning 375 fewer restaurants. Same-store sales increased 3.6% in North America system. Wendy’s raised its full-year 2016 earnings outlook to between 38 cents and 40 cents from between 35 cents and 37 cents. The company expects same-store sales to climb 3% in North America. Wendy’s also provided an update on the investigation into unusual credit card activity at its restaurants, with preliminary findings showing that malware installed through a compromised third-party affected a point of sale system at fewer than 300 franchised restaurants starting in fall 2015. The company is currently rolling out another system called Aloha that was not impacted. About 50 franchise restaurants were found to have or suspected to have experienced unrelated cybersecurity issues. Wendy’s shares are up 3.8% for the year so far while the S&P 500 is up 2% for the same period.

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From:: Stock Market News

Walt Disney Co.’s stock tumbled more than 5% in premarket trade Wednesday, enough to push the Dow Jones Industrial Average firmly into negative territory, on the heels of disappointing quarterly results. The shares shed $5.50, or 5.1%, ahead of the open, which would shave about 38 points off the Dow’s price. Dow futures were down 45 points. The stock is on track to open at the lowest price seen during regular session hours since April 18.

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

Walt Disney Co.’s stock tumbled more than 5% in premarket trade Wednesday, enough to push the Dow Jones Industrial Average firmly into negative territory, on the heels of disappointing quarterly results. The shares shed $5.50, or 5.1%, ahead of the open, which would shave about 38 points off the Dow’s price. Dow futures were down 45 points. The stock is on track to open at the lowest price seen during regular session hours since April 18.

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

Turning Point Brands Inc. said Wednesday it priced its initial public offering at $10 a share. The provider of alternative tobacco products such as snuff and smokeless products sold 5.4 million shares to raise $54 million. The stock will start trading today under the symbol “TPB”. Cowen & Co. LLC and FBR Capital Markets & Co. were joint leads on the deal.

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From:: Stock Market News