Category: Stock Market News

Tech stocks were the one bright spot in February as the broader market got hammered and the sector was on track to be the only monthly gainer on the S&P 500 index . The S&P 500’s tech sector, which is the largest of the benchmark’s 11 sectors at a $7 trillion market cap, was on track for a 0.7% gain for February, and is up 8.3% for the year. In comparison, the S&P 500 was tracking at a 3% loss for February, and is up 2.5% for the year. With a few hours of February trading to go, shares of Apple Inc. have gained nearly 7% for the month, while shares of Hewlett Packard Enterprise Co. have rallied 15%, Red Hat Inc. shares have gained 13%, Micron Technology Inc. shares are up 11%, and Cisco Systems Inc. shares have rallied 9%. Financials are on track to be the second best performing sector in February, running at a 1.6% decline, and energy stocks are faring the worst with the sector down nearly 10% for the month.

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 revised its outlook on Weight Watchers International Inc.’s ratings to positive from stable on Wednesday, and said it expects strong subscriber, revenue and free cash flow growth in 2018. The company’s B1 CFR (corporate family rating) reflects Moody’s expectation for debt to EBITDA of about 5 times, EBITA to interest expense approaching 3 times and over $150 million of free cash flow in 2018. Leverage was more than 7 times for the 12-month period ended Sept. 30, 2017. “The accelerating subscriber and revenue growth across products and geographies during 2017 hint at what could be a high and sustainable growth trajectory in 2018 and beyond,” the agency said in a statement. Weight Watchers reported better-than-expected fourth-quarter earnings late Tuesday. Shares were up 3.8% Wednesday, and have gained 403% in the last 12 months, while the S&P 500 has gained 16%.

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 largest exchange-traded fund to track the energy sector fell on Wednesday, turning negative after crude inventories showed a bigger-than-expected increase in supplies in the latest week. The Energy Select Sector SPDR ETF lost 0.4%, turning lower in the aftermath of the data. The fund had previously risen as much as 0.9% on the day. The move lower tracked a decline in crude-oil prices. U.S. crude-oil futures lost 1.3%, as did Brent future, the international oil benchmark. Both had also been in positive territory prior to the U.S. Energy Information Administration’s data. In the data, domestic crude supplies rose by 3 million barrels for the week ended Feb. 23. Analysts surveyed by S&P Global Platts had forecast a climb of 2.1 million barrels. Rising supply, along with falling demand, is a primary driver behind weakness in oil prices. Among specific stocks, Marathon Oil Corp. was down 1.5% while Halliburton Co. was off 0.8%. The Dow Jones Industrial Average fell 0.2% while the S&P 500 was off 0.1% and the Nasdaq Composite Index was down less than 0.1%.

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

Oil prices moved lower Wednesday after the U.S. Energy Information Administration reported that domestic crude supplies rose by 3 million barrels for the week ended Feb. 23. Analysts surveyed by S&P Global Platts had forecast a climb of 2.1 million barrels, while the American Petroleum Institute on Tuesday reported a rise of 933,000 barrels, according to sources. Gasoline stockpiles also rose by 2.5 million barrels for the week, while distillate stockpiles fell by 1 million barrels, according to the EIA. The S&P Global Platts survey forecast supply declines of 200,000 barrels each for gasoline and distillates. April crude was down 41 cents, or 0.7%, to $62.60 a barrel on the New York Mercantile Exchange, down from $63.13 before the supply data.

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

Exchange-traded funds that track the home-building sector fell on Wednesday, after the latest read on home sales came in sharply below analyst forecasts. Pending-home sales fell 4.7% to 104.6 in January, the National Association of Realtors said, the lowest reading since October 2014, and the biggest monthly decline since 2010. The reading comes two days after data on new-home sales also came in below forecasts. The SPDR S&P Homebuilders ETF fell 1.2% while the iShares U.S. Home Construction ETF lost 1.3%. The PowerShares Dynamic Building & Construction Portfolio was down 0.5%. Among specific stocks, D.R. Horton Inc. fell 1.4%, as did Beazer Homes USA Inc. PulteGroup Inc. was down 1.2% while Toll Brothers Inc. lost 1.8%. The Dow Jones Industrial Average rose 0.5% on Wednesday while the S&P 500 added 0.5% and the Nasdaq Composite Index rose 0.6%.

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

U.S. stock benchmarks on Wednesday opened higher and were on pace to bounce back from a Federal Reserve-fueled selloff after Tuesday’s congressional testimony unsettled Wall Street. The Dow Jones Industrial Average rose 100 points, or 0.4%, to 25,515, while the S&P 500 index added 12 points, or 0.4%, at 2,756. The Nasdaq Composite Index advanced 39 points, or 0.5%, at 7,367. On Tuesday, the main U.S. benchmarks registered their biggest one-day drop since they officially slipped into correction territory — defined as a drop from a recent peak of at least 10% — on Feb. 8. Much of Tuesday’s decline was attributed to a reading of comments from Fed Chairman Jerome Powell, who signaled that the economy was strengthening at a rate sufficient to warrant further rate increases in 2018. Despite Wednesday’s climb, equity benchmarks were on pace for the worst February in about a decade. On Wednesday, a reading of gross domestic product, a broad measure of the goods and services produced across the U.S., rose at a 2.5% seasonally and inflation-adjusted annual rate in the fourth quarter, the Commerce Department said. In corporate news, investors were watching shares of Dick’s Sporting Goods Inc. after its CEO said the retailer would stop selling assault weapons, while shares of Booking Holdings Inc. rallied after the company formerly known as Priceline Group Inc. late Tuesday reported earnings and sales above forecasts.

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

Eaton Corp. said Wednesday it will raise its quarterly dividend by 10% to 66 cents a share, from 60 cents a share. The new dividend will be payable March 23 to shareholders of record on March 12. Based on the power management company’s Tuesday stock closing price of $81.96, the new annual dividend rate $2.64 a share implies a dividend yield of 3.22%, compared with the S&P 500’s implied dividend yield of 1.88%, according to FactSet. Eaton said it has paid dividends on its stock for every year since 1923. The stock gained 0.4% in morning trade. It has advanced 7.1% over the past three months, while the S&P 500 has tacked on 4.9%.

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 Frontier Communications Corp. tumbled 23% in active premarket trade Wednesday, enough to pace the decliners ahead of the open, after the communications services company suspended its dividend to make resources available to pay down debt. The previous annual dividend rate was $2.40 a share, which based on Tuesday’s stock closing price of $9.24 implied a dividend yield of 25.97%, compared with the S&P 500’s implied dividend yield of 1.88%, according to FactSet. Separately, FTR also reported late Tuesday a narrower-than-expected fourth-quarter loss and revenue that topped expectation, according to FactSet. Wells Fargo analyst Jennifer Fritzsche the dividend cut now frees the company to turn 100% of its attention to operations. “We note the dividend cut was very much a rip-the-Band-Aid-off moment, but we believe those funds can be better spent elsewhere,” Fritzsche wrote in a note to clients. “We view [Frontier’s] turnaround as very much a ‘show me story,’ and reiterate our market perform rating on the shares.” The stock has dropped 79% over the past 12 months through Tuesday, while the S&P 500 has climbed 16%.

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

U.S. regulators are taking another look at the so-called Volcker Rule, according to a Reuters report Wednesday. The financial-services industry has used every opportunity to slow the implementation of the law — one that is supposed to limit the ability of banks to make risky trades while accepting taxpayer-insured deposits — ever since it was established as part of the 2010 Dodd-Frank law. Now there’s momentum, according to sources cited by Reuters, to revise it, including eliminating the requirement for big banks to prove they do not trade on their own accounts. On Tuesday, new Fed Chairman Jerome Powell told Congress, “We’re taking a fresh look at the Volcker rule.” The industry also wants clarification on what types of funds banks are banned from investing in, want some foreign funds permanently exempted from the ban, and want a new lead regulator to oversee the rule’s enforcement. The Fed, Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency, the Securities and Exchange Commission and the Commodity Futures Trading Commission share responsibility for enforcing the rule.

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

TJX Cos. shares jumped 7.5% in Wednesday premarket trading after the off-price retailer reported fourth-quarter sales that beat consensus, a dividend increase, and a new share buyback program. Net income for the quarter totaled $877.3 million, or $1.37 per share, up from $677.9 million, or $1.03, for the same period last year. Adjusted EPS was $1.19, which excludes a 17-cent benefit from the tax overhaul. Revenue for the quarter was $10.96 billion, up from $9.47 billion last year. The FactSet consensus was for EPS of $1.27 and revenue of $10.76 billion. Same-store sales rose 4%, exceeding the FactSet consensus for 2.1% growth. TJX, whose chains include T.J. Maxx, said it will give non-bonus-plan associates a one-time bonus, make an incremental contribution to retirement plans for eligible associates, institute paid parental leave and enhanced vacation benefits after the tax overhaul. The company will also repatriate $1 billion from TJX Canada in fiscal 2019. And it will increase the quarterly dividend 25% to 39 cents per share for common stock declared in April 2018 and payable in June 2018. TJX will also repurchase $2.5 billion to $3.0 billion during the fiscal year ending Feb 2, 2019. “Apart from the tax-related tax benefit, we plan to continue to reinvest in the business, including store growth, supply chain and infrastructure, technology, training our associates, and upgrades to the shipping experience for customers,” said Chief Executive Ernie Herrman in a statement. For the first-quarter, the company expects EPS of $1.00 to $1.02 and adjusted EPS in the range of 85 cents to 87 cents, which excludes the benefit of the tax overhaul. Full-year EPS is forecast to be in the range of $4.73 to $4.83. Adjusted EPS is expected to be $4.00 to $4.08 excluding a tax benefit. The FactSet consensus is for first-quarter EPS of 97 cents and full-year EPS of $4.67. TJX shares are up 6.4% for the past three months but down 1.5% for the past year. The S&P 500 index is up 16.1% for the last year.

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