Category: Stock Market News

Ulta Beauty Inc. shares are down nearly 4% in Wednesday trading after the company was downgraded to hold from buy at Edward Jones. “At current levels, we believe the shares adequately reflect our outlook for above-average earnings growth,” analysts wrote. “Ulta Beauty shares have an above-average price movement, reflecting price volatility that is well above that of the broader market and most retail peers.” Analysts think sales growth will slow, and with e-commerce sales growing faster than store sales, profit margin growth is limited. Despite the downgrade Edward Jones says the company is a “compelling growth” story because there’s room for additional stores, has a differentiated business model in an “attractive industry,” and could have further profit expansion. Edward Jones says Ulta could increase its fleet of stores by half to more than 1,500. Ulta shares are up 35.2% for the past year while the S&P 500 index has gained 15.7% for the period.

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.

…read more

From:: Stock Market News

Puma Biotechnology Inc. shares surged 20% in afternoon trade Wednesday, after the company said an advisory committee for the U.S. Food and Drug Administration has voted 12 to 4 in favor of recommending approval for the company’s neratinib treatment for breast cancer. The vote came after a review of the clinical development program for the drug, which aims to prevent recurrence in early-stage breast cancer patients. Puma stock already rallied Tuesday, after the FDA released favorable briefing documents for the advisory committee meeting. The stock has gained 135% in 2017 so far, while the S&P 500 has gained 7%.

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.

…read more

From:: Stock Market News

Gold prices suffered back-to-back losses Wednesday, then climbed in electronic trading shortly after the release of minutes from the U.S. Federal Reserve’s May policy meeting. Most Fed officials said it would “soon” be time to raise rates again. Financial markets are currently pricing in an 83% probability of a rate hike in June, according to CME’s FedWatch tool. The ICE U.S. Dollar Index , which had been trading nearly flat, inched lower against most currency rivals in the wake of news. June gold was at $1,255.70 an ounce in electronic trading. Prices lost $2.40, or 0.2%, to end at $1,253.10 an ounce for the session.

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.

…read more

From:: Stock Market News

Federal Reserve officials were in broad agreement at their May 2-3 meeting on a general approach to shrinking the bank’s massive balance sheet, according to minutes of the session released Wednesday. Nearly all Fed officials said they were content with a plan to end the reinvestment of principal of maturing securities — the main approach favored to shrink the balance sheet instead of asset sales — in slow, ever-increasing stages, rather than ending the reinvestment all at once. In their discussion of interest-rate policy, most Fed officials said it would “soon” be time to raise rates again, a signal that the majority among the central bank’s policy makers remain resolute about hiking rates at their meeting next month. But the discussion of the outlook showed widening divisions among Fed officials, with “several” seeing a possible need to start raising rates at a faster pace, while a few others thought a slower pace was more advisable.

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.

…read more

From:: Stock Market News

Shares of Abercrombie & Fitch Co. jumped 6.6% in afternoon trade, after The Wall Street Journal reported that rival American Eagle Outfitters Inc. and private-equity firm Cerberus Capital Management were working on a joint buyout bid for the troubled apparel retailer. The WSJ report, citing people familiar with the matter, could be reached in about a month. In the meantime, other parties remain in the auction for Abercombie, including fellow apparel retailer Express Inc. and other private-equity firms, the WSJ report said. Earlier this month, Abercrombie’s stock rallied after the WSJ reported that Abercrombie was in mergertalks with at least two interested buyers. Abercrombie’s stock has climbed 8.3% year to date, while American Eagle shares have shed 25%, the SPDR S&P Retail ETF has lost 8.2% and the S&P 500 has gained 7.2%.

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.

…read more

From:: Stock Market News

Vermont Gov. Phil Scott, Republican, on Wednesday vetoed the bill that would have legalized marijuana for adult use in the state. Scott said there was still a path forward for legalization in the state and offered changes the legislature would need to make to gain his support on the bill. The bill would have eliminated penalties for possession of up to an ounce of marijuana and cultivation of up to two mature plants and four immature plants in the home. The bill was passed by the Senate inn a 20-9 vote and the House of Representatives in a 79-66 vote earlier this month. While eight states have legalized marijuana via ballot initiative, Vermont would be the first to do so through the legislative process. According to the Marijuana Policy Project, 57% of voters in Vermont support legalizing marijuana for adults 21 and older. “We are disappointed by the governor’s decision to veto this widely supported legislation, but we are very encouraged by the governor’s offer to work with legislators to pass a legalization bill during the summer veto session,” said Matt Simon, New England political director of the Marijuana Policy Project, in a statement. “Despite the veto, this is a huge leap forward.”

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.

…read more

From:: Stock Market News

Tesla Inc. said Gaby Toledano has become its new head of human resources, replacing Arnnon Geshuri who held the role for more than eight years. Toledano joins Tesla after 10 years as an executive at Electronic Arts , the company said in a blog post. Before that, she was head of HR at Siebel Systems, and has done stints at Microsoft and Oracle . Geshuri joined Tesla from Google and is planning a short break “before moving on to a new endeavour,” the company said. Tesla shares were trading up 1.3% Wednesday, and have gained 44% in 2017, while the S&P 500 has gained 7%.

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.

…read more

From:: Stock Market News

Bravado, the merchandising and brand management arm of Universal Music Group, said on Wednesday it has entered into a partnership with The Copyrights Group to license the Paddington brand in the U.S. and Canada. The Paddington children’s book franchise, created in 1958 by British writer Michael Bond, made its big screen debut in 2015, earning $268 million worldwide. A sequel is expected in theaters later this year. France-based content and media company Vivendi SA , which owns Universal Music Group and The Copyrights Group, acquired the ownership rights for the Paddington brand in 2016 — with the exception of publishing rights. With the partnership, Bravado will control the licensing of the brand across retail and consumer products in the U.S. and Canada. Shares of Vivendi have gained 6% in the year to date and nearly 9% in the trailing 12-month period.

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.

…read more

From:: Stock Market News

Moody’s Investors Service followed its downgrade of China’s sovereign rating Wednesday with a downgrade of Hong Kong, reflecting its view that credit trends in China will continue to affect Hong Kong given their close economic, financial and political ties. Moody’s lowered Hong Kong’s rating to Aa2 from Aa1. The rating now stands at the third-highest level of investment grade, above China’s rating of A1, which is the sixth-highest level of investment grade. “The economic and financial linkages between Hong Kong and China are close and broad-based,” said the ratings agency. “Combined with political linkages, this means that any erosion in China’s credit profile, such as that reflected in the 24 May downgrade of China’s rating to A1 with a stable outlook, will ultimately affect Hong Kong’s credit profile and will be reflected in the Special Administrative Region’s (SAR) rating.” China accounts for more than half of Hong Kong’s exports of goods, three quarters of tourist arrivals and 40% of exports of services in general, said Moody’s. As a very open economy, Hong Kong is exposed to global trade, bringing it even closer to China as it increases its share of world GDP and global trade, it said.

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.

…read more

From:: Stock Market News

The Securities and Exchange Commission and the U.S. Attorney’s office on Wednesday alleged insider trading in connection with the government’s plan to cut Medicare reimbursement rates. The SEC’s complaint alleges that David Blaszczak, a former government employee turned political intelligence consultant, obtained key confidential details about upcoming decisions by the Centers for Medicare and Medicaid Services from his close friend and former colleague at the agency, Christopher Worrall. Blaszczak allegedly tipped two analysts at a hedge fund advisory firm that paid him as a consultant — Theodore Huber and Jordan Fogel. Blaszczak, Worrall, Huber, and Fogel are each disputing the allegations.

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.

…read more

From:: Stock Market News