Category: Stock Market News

Shares of Herbalife Ltd. soared more than 9%, nearing a two-year high on Friday, after the company confirmed a ruling by the Federal Trade Commission that it is not a pyramid scheme and can continue to operate as a direct selling company without significantly changing its business model. In a separate settlement with the Illinois Attorney General, Herbalife agreed to pay $3 million to settle similar allegations. The ruling, first reported by The Wall Street Journal, ends a two-year investigation by the FTC that started after billionaire investor Bill Ackman revealed a large short stake in the company and claimed it was a pyramid scheme. In light of the ruling, Ackman rival and fellow billionaire investor Carl Icahn, who has long supported Herbalife, said the company raised his ownership limit to 34.99% from 25%. Shares of Herbalife were on track to open around $64.62 on Friday, which would put them on track for their highest closing price since July 28, 2014, when the stock closed at $67.48.

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Shares of Chipotle Mexican Grill Inc. fell nearly 2% in premarket trade Friday after the stock was downgraded to equal-weight from overweight at Morgan Stanley and its price target was reduced to $405 from $500. The downgrade comes in light of new evidence that show Chipotle’s sales recovery from the E. coli and salmonella outbreaks will “remain more protracted” than the market expects. “A full sales recovery to prior peak volumes could take years in our view,” said Morgan Stanley analyst John Glass. The analysis was conducted through an online survey of 2,000 U.S. consumers regarding how often they shop at Chipotle and other fast casual brands. Shares of Chipotle were on track to open around $411 on Friday. They’ve declined by 11% on the last three months and 37% on the year, underperforming the S&P 500. The average rating on the stock is the equivalent to hold, while the median 12-month price target is $451.89, according to a FactSet poll of more than 20 analysts.

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An American father and his son vacationing in France are believed to be among the dead after a suspected terror attack in Nice late Thursday, according to media reports. At least 84 people died when a truck drove for more than a mile through a packed crowd during a fireworks display for Bastille Day celebrations on the seaside in the French riviera. CBS News identified the two Americans as Sean Copeland, 51, and his son Brodie, 11, from Austin, Texas, who were in Nice with their family. A tribute to the family was made by Hill Country Baseball on its Facebook page Thursday evening.

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AdvancePierre Foods Holdings Inc. priced its initial public offering toward the lower end of its expected range late Thursday. The packaged sandwich and foods company priced its IPO at $21 a share, following a given range of $20 to $23 a share. The company said it is selling about 11.1 million shares with stockholders selling 7.5 million shares. Underwriters have an option to sell an additional 2.8 million shares to cover over-allotments. The stock begins trading on the New York Stock Exchange on Friday under the ticker “APFH”.

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Dozens of people were killed in Nice, France, on Thursday night after a truck drove, apparently purposely, into a crowd of Bastille Day revelers. There were report that the driver then engaged in a gun battle with police. French TV reported as many as 30 dead. “It’s total panic,” a witness told BFM TV. Local authorities called the incident “an attack” and urged people to stay indoors. The incident took place near the end of a fireworks show on the Mediterranean city’s coastside Promenade des Anglais. “A lorry driver appears to have killed dozens of people,” Nice Mayor Christian Estrosi said in a tweet.

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Korn/Ferry International said late Thursday it is paying more to restructure a business it bought less than a year ago. In a Securities and Exchange Commission filing, the executive search firm said it would spend $20 million to $26 million on severance packages and office consolidation for HG Luxco, which the firm bought in December for $475 million. The charges are in addition to $30.6 million in restructuring charges Korn/Ferry paid earlier in the year related to HG Luxco.

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Ultragenyx Pharmaceutical Inc. shares rose in the extended session Thursday after the biotech company reported positive results in a drug study meant to treat a rare metabolic disorder. Ultragenyx shares rose 3% to $51 after hours. In a late-stage clinical trial, the company said its recombinant human beta-glucuronidase treatment reduced the loss of certain complex carbohydrates needed to maintain tissue health in patients with Mucopolysaccharidosis 7.

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Juno Therapeutics Inc. on Thursday said it bought privately held, Boston-based RedoxTherapies, Inc. for an undisclosed amount, getting access to a RedoxTherapies’ blocker with potential to be used in certain cancer treatments. RedoxTherapies founder Michail Sitkovsky will become a scientific consultant to Juno, the company said. Shares of Juno rose 0.1% in late trading after ending the regular trading session down 5.2%.

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The S&P 500 and the Dow Jones Industrial Average finished at a fresh record high close on Thursday, extending their winning streak for a fifth session, spurred on by better-than-expected earnings from J.P. Morgan Chase & Co. The S&P 500 rose 11 points, or 0.5%, to end at 2,163, its fourth straight record closing. The Dow added 134 points, or 0.7%, to 18,506, for its third record finish in a row. The Nasdaq Composite gained 28 points, or 0.6%, to 5,034, ending at its highest level for 2016 and turning positive for the year. Meanwhile, J.P. Morgan posted second-quarter earnings of $1.55 a share, besting the $1.42 a share forecast by analysts in a FactSet survey.

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Financials logged a seven-session win streak Thursday, marking the longest string of gains for the sector in about 15 months. The S&P 500’s financial sector was up about 1% on the day, helping to lead the S&P 500 index and the Dow Jones Industrial Average to finish at records. The seven straight days of gains for the financial sector represent its longest win streak since a seven-session period ended April 16, 2015, according to FactSet data. Thursday’s advance was sparked by better-than-expected second-quarter results from J.P. Morgan Chase , which is viewed as a bellwether for the financial sector and the U.S. economy. J.P. Morgan’s results help kick off earnings season, and suggest that quarterly performance for financials may be better than feared. Gains in the sector were also being led by a more than 4% rise in shares of Lincoln National Corp. and insurer MetLife Inc. . Despite the multisession rise, financials are still the only S&P 500 sector in negative territory so far this year, down 1.3%. Expectations of lower rates for longer has been a drag on bank profitability. Meanwhile, the formerly battered energy sector is the third best sector in the S&P 500 this year, up 16%, behind defensive sectors telecommunications and utilities.

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