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U.S. stock-index futures on Tuesday cut early gains following a report that Rex Tillerson was stepping down as secretary of state. Futures for the Dow Jones Industrial Average were higher, up 80 points, or 0.3%, at 25,318, but had been showing triple-digit advance on the back of a reading on consumer inflation that was in line with expectations, assuaging some concerns about hotter-than-expected rising prices. S&P 500 index futures were up 0.4% at 2,800, while those for the Nasdaq-100 were showing a rise of 0.4% at 7,194. Mike Pompeo, director of the Central Intelligence Agency, was named to replace Tillerson, according to Trump in a tweet. Pompeo’s post will be filled by Gina Haspel. The report of Tillerson’s resignation comes amid a series of reports of tension between Tillerson and Trump that may have culminated in the outgoing secretary of state’s disapproval of a coming meeting between Trump and North Korean leader Kim Jong Un. The Washington Post was the first to report of Tillerson’s departure. Tillerson’s resignation also comes less than a week after Trump’s chief economic adviser, Gary Cohn, announced that he was stepping down amid concerns over the impact on tariffs on steel and aluminum imports on global trade. Tillerson was the former head of Exxon Mobil Corp. . On Monday, the Dow and the S&P 500 finished lower, while the Nasdaq Composite Index booked its second straight record close.

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President Donald Trump said Tuesday he will replace Secretary of State Rex Tillerson with CIA Director Mike Pompeo. Trump asked Tillerson to step aside last Friday, the Washington Post said. Officials said Trump felt it was important to make the change as he prepares for talks with North Korea’s leader. On Twitter, Trump thanked Tillerson for his service and said Pompeo would do a “fantastic job.”

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The U.S. dollar pared its modest gains and dipped into negative territory on the back of Tuesday’s consumer price inflation report. As the report met expectations, the dollar reaction underlined that traders were hoping for a surprise on the upside. The February headline and core inflation numbers both read 0.2%. On the year, the headline figure grew to 2.2% from 2.1%, while the core number was flat at 1.8%. Alongside wage growth, which disappointed expectations last week, CPI data are a key factor in the Federal Reserve’s policy decisions. The Fed is due to meet next on March 21-22, when the central bank is expected to raise interest rates for the first out of at least three times this year. The ICE U.S. Dollar Index was little changed, but tipping into negative territory, at 89.866.

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After Cigna Inc.’s acquisition of Express Scripts Holding Co. , Diplomat Pharmacy Inc. could be the next takeover target, Height Capital Markets analyst Andrea Harris said on Tuesday. Potential buyers could include online retailer Amazon , which has reportedly expressed an interest in health care, or health insurers Humana or Centene , according to Harris. Diplomat is the largest independent provider of expensive specialty drugs for such diseases as cancer, hepatitis C, autoimmune conditions and more. It also acquired two pharmacy-benefit managers — LDI Integrated Pharmacy Services and Pharmaceutical Technologies Inc. — last fall, which looked to be “a sign the firm was positioning itself as an attractive acquisition target by broadening its offering beyond specialty pharmacy,” Harris said. “The maneuver shifted DPLO from a specialty pharmacy to a middle market [pharmacy-benefit manager with a specialty drug focus, which represents an increasingly essential offering.” Pharmacy-benefit managers have been subject to increasing competitive and political pressure of late, as health insurers have moved drug price negotiation in-house and pharmacy-benefit managers have been accused of helping drive drug prices up. Diplomat shares were not active in Tuesday premarket trade. Company shares have surged 10.5% over the last three months, compared with a 4.5% rise in the S&P 500 .

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Treasury yields were largely unchanged after the February consumer price index report matched expectations. The 10-year note yield was flat at 2.870%, according to Tradeweb data. The 2-year note yield was down 0.4 basis point to 2.262%. The 30-year bond yield was mostly unchanged at 3.130%. Bond prices move inversely to yields. The consumer price index in February rose 0.2%, in line with the 0.2% forecast from economists surveyed by MarketWatch. Meanwhile, the core gauge, stripping out volatile energy and food prices, rose 0.2%.

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Shares of Nutanix Inc. are up 0.6% in premarket trading Tuesday, after rising during the past seven trading sessions. Needham analyst Jack Andrews raised his price target on shares to $61 from $48 on Tuesday, following the company’s analyst day during which Nutanix showed a model for $3 billion in billings by 2021. “Importantly, we note that the model was outlined using historical patterns for appliance-based consumption only,” Andrews wrote. “As the company expands its upselling opportunity, initial deal size and expansion rates could expand compared to historical patterns.” He noted that management now sees its total addressable market representing up to $200 billion, including areas like network virtualization. Andrews’ increased target reflects his growing confidence “in the long-term sustainability of Nutanix’s revenue and free cash flow growth.” Nutanix shares have gained 148% in the past 12 months, while the S&P 500 has risen 17%.

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Shares of Dick’s Sporting Goods Inc. sank 6.3% in premarket trade Tuesday, after the sporting goods retailer beat fiscal fourth-quarter profit expectations, but missed on sales and provided a downbeat outlook. Net income for the quarter to Feb. 3 rose to $116.0 million, or $1.11 a share, from $90.2 million, or 81 cents a share, in the same period a year ago. Recent tax legislation resulted in a $6 million charge during the quarter. Excluding non-recurring items, adjusted earnings per share came to $1.22, above the FactSet consensus of $1.20. Revenue rose to $2.66 billion from $2.48 billion, but was below the FactSet consensus of $2.74 billion, as the same-store sales decline of 2.0% compared with expectations of a 0.9% decline. For 2018, the company expects same-store sale to be flat to down in the low single-digit percentage range, while the FactSet consensus is for a 0.2% rise. The stock had rallied 7.6% over the past three months through Monday, while the SPDR S&P Retail ETF had gained 1.5% and the S&P 500 had advanced 4.5%.

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Shares of DSW Inc. dropped 2.6% in premarket trade Tuesday, after the footwear retailer missed fiscal fourth-quarter revenue expectations and provided a downbeat outlook, offsetting a profit beat and a raised dividend. Net income for the quarter to Feb. 3 fell to $11.7 million, or 15 cents a share, from $30.5 million, or 38 cents a share, in the same period a year ago. Excluding non-recurring items, such as the impact of acquisitions and recent tax legislation, adjusted earnings per share came to 38 cents, above the FactSet consensus of 27 cents. Revenue rose to $720.0 million from $674.6 million, below the FactSet consensus of $728.2 million, while same-store sales growth of 1.3% beat expectations of a 1.2% rise. For 2018, DSW expects “revenue growth to decrease by 1% to 3%,” following 2017 growth of 3.3%, and while the FactSet consensus of $2.85 billion implies a rise of 1.8%. Separately, the company raised its quarterly dividend by 25% to 25 cents a share, with the new dividend payable April 6 to shareholders of record on March 23. The stock had lost 7.8% over the past three months through Monday, while the SPDR S&P Retail ETF has gained 1.5% and the S&P 500 has advanced 4.5%.

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President Donald Trump signed an executive order late Monday that blocks Broadcom Ltd.’s acquisition of Qualcomm Inc. , citing national security risks, according to multiple media reports. The order also says the 15 people Broadcom had put up for election on Qualcomm’s board of directors are disqualified from standing as directors. Qualcomm stock is down nearly 5% in late trading, and Broadcom stock is down 1.5%. Broadcom stock has gained 16% in the past year, as the S&P 500 index has climbed 17%. Qualcomm stock rose 7.1% in the past year.

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From:: Stock Market News