Category: Stock Market News

Shares of GoPro Inc. soared 19% in active morning trade, putting it on track for seven-month closing high, after the company surprised Wall Street analysts by saying it expected to report an adjusted profit for its third quarter. Volume ballooned to over 10.6 million shares in recent trade, already more than double the full-day average of about 4.8 million shares. The stock was currently the fourth-biggest percentage gainer and second-most active on the Nasdaq exchange. The rally comes barely a month after another 19% surge on the back of better-than-expected second-quarter results after the Aug. 3 close. The stock has now run up 26% over the past three months, while the S&P 500 has gained 1.2%.

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U.S. stock benchmarks inched slightly higher on Thursday as investors contend with a barrage of risk factors, including Hurricane Irma, the European Central Bank President Mario Draghi and White House policy. The Dow Jones Industrial Average traded 0.1% higher at 21,822, the S&P 500 index ticked 0.1% up at 2,467, the Nasdaq Composite Index climbed 0.2% to 6,400. The ECB left key interest rates unchanged and said it expects them to remain at present levels for “extended period.” In the accompanying statement, which was virtually identical to the previous one, the central bank said that asset buying will continue at a €60 billion ($71 billion) a month through year-end or beyond and quantitative easing could be increased if the outlook deteriorates. Draghi’s comments during a Thursday news conference following the ECB’s policy statement sent the euro above $1.20 against the U.S. dollar. Meanwhile, Wall Street was still digesting President Donald Trump’s decision to extend the debt-limit deadline and fund the government through mid-December late Wednesday. The agreement raised hopes for more bipartisan deals that would allow the Trump administration to move forward with its promised economic reforms. However, it also raised concerns that divisiveness in the Republican party may limit further policy success, because other GOP leaders weren’t universally in favor of a short-term agreement. In corporate news, shares of GoPro Inc. rallied 18% after the wearable camera maker said it expects to be profitable on an adjusted basis in the third quarter. And Amazon’s shares rose 0.6% after it announced that it plans to open a second headquarters somewhere in North America that will house up to 50,000 employees and cost $5 billion to build. In meteorological news, Hurricane Irma, set to barrel down on Florida, comes two weeks after Hurricane Harvey hit the Texas and Louisiana Gulf Coast, where damages are estimated by AccuWeather to be up to $190 billion. Irma is said to have already killed more than 8 people and could hit Florida this weekend.

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Online travel operator Despegar on Thursday set terms for its planned initial public offering, saying it will offer 12.8 million shares priced at $23 to $26 a pop. The company is planning to list on the New York Stock Exchange under the ticker symbol “DESP”. Morgan Stanley and Citigroup are lead underwriters on the dal, with Itau BBA, UBS, Cowen and KeyBanc acting as joint bookrunners. The company is the leading online travel company in Latin America and specializes in travel to that region, as well as Central America and the Caribbean. The timing of its announcement coincides with the arrival of Hurricane Irma, which has been confirmed as the most powerful storm to ever form in the Atlantic. Irma has wreaked havoc across the Caribbean and is now on track for Florida.

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Eli Lilly & Co. said it will cut about 3,500 jobs, or about 8.3% of its global workforce, as part of a streamlining plan aimed at cutting costs by $500 million a year. The drug giant expects most of the job cuts to come in the U.S. from a voluntary early retirement program, which it expects to be mostly completed by the end of the year. Other workforce reductions are expected to come from streamlining moves, including site closures. Lilly expects to record charges of $1.2 billion, or 80 cents a share, in the third and fourth quarters of 2017. The company plans to use the cost savings to improve its cost structure and reinvest in its business. “The actions we are announcing today will result in a leaner, more nimble global organization and will accelerate progress towards our long-term goals of growing revenue, expanding operating margins and sustaining the flow of life-changing medicines from our pipeline,” said Chief Executive David Ricks. The stock, which slipped less than 0.1%, has gained 9.5% year to date through Wednesday, while the SPDR S&P Pharmaceuticals ETF has rallied 8.9% and the S&P 500 has tacked on 10%.

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Shares of NCI Building Systems Inc. tumbled 16% toward a 10-month low in premarket trade Thursday, after the maker of metal products for the nonresidential building industry reported disappointing third-quarter results and cut its sales outlook. Late Wednesday, the company said net income fell to $18.1 million, or 25 cents a share, from $23.6 million, or 32 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 27 cents, missing the FactSet consensus of 32 cents. Revenue rose to $469.4 million from $462.4 million, but was below the FactSet consensus of $495.2 million. The company cuts its 2017 revenue outlook to $1.75 billion to $1.78 billion, after raising it to $1.80 billion to $1.86 billion from $1.75 billion to $1.85 billion on June 6. NCI said it lowered its outlook because the softer market activity seen in the third quarter is expected to continue into the fourth quarter, particularly in its legacy components business and given the impact of Hurricane Harvey. The stock had gained 7.4% year to date through Wednesday, while the S&P 500 had rallied 10%.

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The euro jumped to $1.2045 against the U.S. dollar on Thursday during the European Central Bank’s news conference with President Mario Draghi following its decision to leave interest rates unchanged. The eurozone currency last hit above the $1.20 level in late August. Draghi said that European exports were doing well, but that one should expect consequences from the appreciation of the euro. He continued that the exchange rate was not a policy target but stressed its importance for growth and inflation, which was revised downward due to the euro’s recent strength. The ECB cut its inflation projections for 2018 and 2019 to 1.2% and 1.5%, respectively, compared with earlier forecasts for 1.3% and 1.6%, respectively. Economic growth in the eurozone region is expected to improve at a faster rate than previous estimates, with 2.2% in 2017 versus an earlier forecast of 1.9%.

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Barnes & Noble Inc. shares sank 10.8% in Thursday premarket trading after the bookseller reported fiscal first-quarter earnings and sales that missed consensus. Net loss for the quarter totaled $10.8 million, or 15 cents per share, after a loss of $14.4 million, or 20 cents per share, for the same period last year. The FactSet consensus was for a loss of 12 cents per share. Sales for the quarter were $853.3 million, down from $913.9 million and below the $873.0 million FactSet consensus. Same-store sales fell 4.9% for the quarter. The company maintained its full-year same-store sales guidance for a decline in the low-single digits. Barnes & Noble shares are down 29.6% for the year so far while the S&P 500 index is up 10.1% for the period.

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Shares of Mastercard Inc. rallied 1.6% in premarket trade Thursday, after the credit card company raised its 2017 revenue outlook. With the stock trading at $135.00, it is on track to open above its Aug. 28 record close of $133.85 and its Aug. 31 all-time intraday high of $134.50. In a filing with the Securities and Exchange Commission, the company said it now targets 2017 revenue growth in the “high end of low double-digits” percentage range, up from previous guidance of “low double-digits.” The FactSet revenue consensus of $12.22 billion implies 13.4% growth from 2016. The stock has soared 29% year to date through Wednesday, while shares of rival Visa Inc. have run up 32% and the S&P 500 has gained 10%.

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Shares of General Electric Co. slumped 1.5% in premarket Thursday, after J.P. Morgan analyst Stephen Tusa reiterated his underweight rating on the industrial conglomerate, saying the outlook is even worse than he thought. While he has a $22 price target on the stock, which is 12% below Wednesday’s closing price of $24.92, Tusa said he sees “something in the high teens” as an investable fair value for the shares. He said he believes GE is “tight on cash,” but while the dividend appears safe “for now” he believes the share buyback program is “fungible.” He said his more bearish view is “an adjustment to reality, not cyclical,” as structural weakness in GE’s power business, a less-than-expected bounce in oil and gas and transportation and a more GAAP approach to reporting numbers provides downside risk to earnings expectations. “Based on our standing [free cash flow] estimates and estimates for outflow from investing activities, GE is already below breakeven when it comes to funding the dividend with ongoing FCF, with compounding risk if fundamentals come in worse that expectations,” Tusa wrote in a note to clients. The stock has tumbled 21% year to date, while the SPDR Industrial Select Sector ETF has gained 9.1% and the Dow Jones Industrial Average has climbed 10%.

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From:: Stock Market News

The euro slightly pared its gain on Thursday after the European Central Bank left interest rates on hold and made no changes to its quantitative easing program. The shared currency bought $1.1966, compared with $1.1981 ahead of the decision, but up from $1.1917 late Wednesday in New York. The ECB repeated that it expects rates to remain at present levels for an “extended period.” The ECB also reiterated its plan to buy 60 billion euros a month worth of bonds through the end of December and that if the outlook deteriorated, it could increase the size of the program. Focus now turns to ECB President Mario Draghi’s news conference at 8:30 a.m. Eastern Time. The key question for traders is what will happen to the QE program when it expires at the end of the year and when the ECB will start tapering the purchases.

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From:: Stock Market News