Category: Stock Market News

Data from the U.S. Energy Information Administration Wednesday showed that domestic crude supplies dropped by 5.4 million barrels for the week ended Aug. 25, following declines in each of the last eight weeks. That’s more than the forecast for a decline of 1.5 million barrels by analysts surveyed by S&P Global Platts. The American Petroleum Institute had reported late Tuesday a decline of 5.8 million barrels, according to sources. Gasoline stockpiles were unchanged for the week, while distillate stockpiles edged up by 700,000 barrels, according to the EIA. The data on the products defied survey forecasts for a decline of 1.9 million barrels for gasoline and a fall of 600,000 barrels for distillates. October crude was down 32 cents, or 0.7%, at $46.12 a barrel on the New York Mercantile Exchange. Prices traded at $46.16 before the supply data. September gasoline traded at $1.90 a gallon, up 11.7 cents, or 6.5%, ahead of the contract’s expiration Thursday.

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U.S. stock-index benchmarks kicked off trade near break levels on Wednesday after a pair of upbeat economic reports, with a key employment report due Friday and the Labor Day holiday set to begin. The Dow Jones Industrial Average opened up 9 points, or less than 0.1%, at 21,870, the S&P 500 index traded flat at 2,446, and the Nasdaq Composite Index added 0.1% at 6,309. On the data front, the U.S. economy expanded at a 3% pace in the second quarter, a faster pace than had originally been reported, and the fastest rate in more than two years. Separately, ADP said private-sector employers added 237,000 jobs in August, well above the 185,000 that had been expected. In corporate news, Vera Bradley Inc. surged after it reported a first-quarter loss that was wider than expected. Sales also came in below forecasts, while shares of H&R Block Inc. look set for a down day after falling late Tuesday as the tax preparer posted. Overall trading was slightly more subdued as geopolitical tensions around North Korea’s launch of a ballistic missile eased and investors watched Hurricane Harvey, now a tropical storm, continue to wreak havoc in Texas and Louisiana. Looking ahead, the market awaits a speech from President Donald Trump on tax reform at 2:30 p.m. Eastern.

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Medicines Co. shares surged 2.5% in premarket trade Wednesday on news that the Food and Drug Administration has approved its injection for complicated urinary tract infections, including the kidney infection pyelonephritis. The injection, Vabomere, contains both an antibacterial and an ingredient that inhibits certain resistance mechanisms used by bacteria, the company said. Medicines Co. expects the injection will be available in the fourth quarter. Complicated urinary tract infections are bacterial infections associated with factors such as pregnancy, prolonged catheterization or use of other drainage devices. Developing new drugs for complicated UTIs has long been a priority; the FDA issued recommendations for drug development in the area in 2015. Medicines Co. shares have surged 2.6% to $38.74 over the last three months, compared with a 1.4% rise in the S&P 500 .

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The Federal Reserve will continue to expect much more from ever before from directors of large banks, said Federal Reserve Governor Jerome Powell, on Wednesday. In a speech at a conference sponsored by the Chicago Fed, Powell reminded the audience that, during the financial crisis, large banks incurred “massive losses” from esoteric products that were not even on the radar of bank boards. He said the Fed would work with bank directors who feel buried under paper from regulations put in place post-crisis, but said the central bank would not back away from requiring that bank boards be strong and effective. “Our reforms were designed to assure that boards of directors understand and approve the strategy of the company and the risks inherent in that strategy, and that the institution has the capital, liquidity, and risk management capabilities necessary to manage those risks,” Powell said. The Fed governor did not comment on the outlook for interest rates or the economy in his prepared remarks.

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In what may be the last deal Dara Khosrowshahi led as chief executive of Expedia , the company announced an investment of $26 million in ALICE, a hotel technology platform for staff, concierge and guests. Expedia was the lead investor in ALICE’s series B round and also led its series A round in 2015. Khosrowshahi, who has been CEO at Expedia since 2005, was officially announced as chief executive of Uber Technologies Inc. Monday night. With this round, ALICE has raised total funding of $39 million. Shares of Expedia were relatively flat in premarket trade.

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Shares of Vera Bradley Inc. rose more than 12% in premarket trade on Wednesday after the women’s clothing company reported earnings for the second quarter that were better than Wall Street expected. Net income for the quarter was $2.2 million, or 6 cents per share, compared with $5.1 million, or 14 cents per share during the same period a year ago. Adjusted earnings per share were 13 cents, above FactSet’s consensus of 10 cents per share. Revenue hit $112.4 million in the quarter, down from $119.2 million in the year-earlier period. FactSet’s revenue consensus was $112.0 million. Vera Bradley Chief Executive Robert Wallstrom, while noting sales were in line with the company’s expectations, mentioned the pressure on the retail industry. “Although comparable sales trends improved over those in the first quarter, challenges in the retail environment continued into the second quarter,” Wallstrom said in a statement. He went on to talk about the steps the company has made to strengthen the business, but ultimately said the progress so far has not been at the pace the company hoped. Vera Bradley will ramp up refining its business and strategic plan by taking a more aggressive approach to turn around the business in the next three years. “We have engaged an outside consulting firm, working alongside our team, in performing a comprehensive review of our business model, existing strategic plan and historic performance to provide us with in-depth analysis and research on critical components of our business,” Wallstrom said. Among some of its business initiatives, Vera Bradley plans to reduce the amount of clearance items in order to restore customer pricing perception, and it also plans to streamline its offering. The company expects revenue for the third quarter to be in the range of $112 million to $117 million, compared with FactSet’s consensus of $120 million. Per-share earnings for the third quarter are expected to be in the range of 13 cents to 15 cents. FactSet’s consensus is for earnings of 16 cents per share. Vera Bradley shares have declined 14% in the year to date, while the S&P 500 index is up more than 9%.

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Shares of Barnes & Noble Education, Inc. were down 3.2% in premarket trade Wednesday after the company missed first-quarter earnings expectations. It reported a net loss of $34.8 million, or a loss per share of 75 cents, wider than a loss of $27.9 million, or a loss per share of 60 cents in the year-earlier period. The FactSet consensus was for a loss per share of 55 cents. Sales were $355.7 million, up from $239.2 million in the year-earlier period and below the FactSet consensus of $393 million. Shares of Barnes & Noble Education have fallen 28% in the past three months, while the S&P 500 has gained 1.4%.

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Shares of alcohol company Brown-Forman Corp. were up 1.6% in premarket trade on Wednesday after the company reported fiscal 2018 first-quarter earnings that were above Wall Street’s expectations. The company said net income of $178 million, or 46 cents earnings per share, compared with $144 million, or 36 cents per share during the same period a year ago. FactSet’s consensus for per-share earnings was 39 cents. Brown-Forman revenue was $723 million, compared with $661 million a year ago, and above FactSet’s $687 million revenue consensus. “We continue to foresee growth potential for our brands, most notably in American whiskey,” said Brown-Forman Chief Executive Paul Varga in a statement. Brown-Forman said it expects underlying net sales to grow in the range of 4% to 5% for the full year, thanks to new Jack Daniel’s whiskies. The company also forecasts per-share earnings to be in the range of $1.85 to $1.95, which puts FactSet’s $1.85 consensus at the lower end. Shares of Brown-Forman have gained 14% in the year to date, while the S&P 500 index is up more than 9% in the year.

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Chico’s Fas Inc. shares plummeted 10.6% premarket Wednesday after the company reported second-quarter profit and revenue misses. Earnings for the latest quarter declined to $22.72 million, or 18 cents per share, from $23.04 million, or 17 cents per share in the year-earlier period. The FactSet earnings-per-share consensus was 20 cents. Revenue declined to $578.6 million from $635.7 million in the year-earlier period, compared with the FactSet consensus of $578.7 million. The company expects comparable sales to be down in the high single-digits for fiscal 2017. The latest sales results were “disappointing,” Chief Executive Shelley Broader said, and the company is taking “decisive actions” to turn things around in categories like Chico’s jackets and White House Black Market dresses. “While it is early in the third quarter, these key categories are showing encouraging progress,” Broader said. Chico’s shares have plummeted 16.9% over the last three months, compared with a 1.4% rise in the S&P 500 .

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YogaWorks Inc. said Tuesday it has acquired Tranquil Space’s two studios in the Washington, D.C. metro area, without providing financial details. The company, which completed its IPO on Aug. 11, said it has now built its east coast presence to 52 studios. Tranquil Space was founded by Kimberly Wilson in 1999, and has two studios in Arlington, Va. and in the Dupont Circle neighborhood of Washington. Shares were not yet active premarket, but are down 5.6% in the week to date, while the S&P 500 is flat.

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