SEC suspends trade in Crypto Co. shares after meteoric rise in recent trade

The Securities and Exchange Commission has temporarily suspended trading in shares of Crypto Co. , citing concerns over “the accuracy and adequacy of information.” The concerns center on, among other things, the compensation paid for promotion of the company and statements in SEC filings about the plans of insiders to sell their common shares. “Questions have also arisen concerning potentially manipulative transactions in the company’s stock in November 2017,” the SEC said in a statement. The suspension took effect at 9:30 a.m. ET and extends until 11:59 p.m. on Jan. 3. The stock, which trades on OTC Markets Group Inc.’s OTC Link marketplace, formerly known as Pink Sheets, closed Monday at $575, up from $20 at the end of November. During November, the stock rose 67% and traded within a closing range of $20 to $40. The stock was trading at about a penny as recently as Aug. 14. Bitcoin futures fell 4.3% in morning trade, while the S&P 500 slipped 0.1%.

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Starbucks opens first new café in Puerto Rico since Hurricane Maria

Starbucks Corp. has opened the company’s first new store in Puerto Rico since Hurricane Maria struck the island in September. The new café, the 25th on the island, is at the Metropolitan University campus of Ana G. Méndez University system in Cupey. “As we open our doors at UMET, and slowly begin to reopen all other stores across the island, we remain fully committed to our growth plans in the market as we work to create local jobs, serve our customers, and support the region’s coffee producers,” said Michael Conway, executive vice president for Starbucks Licensed Stores in the Americas. Starbucks shares are up 4.4% for the year so far while the S&P 500 index is up 20.1% for the period.

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U.S. stocks open higher on tax optimism; Dow, S&P near records

U.S. stocks mostly opened higher on Tuesday, as optimism continued to grow that a tax bill in Washington would be passed this week. The Dow Jones Industrial Average rose 54 points, or 0.2%, to 24,842. The blue-chip average ended at a record on Monday – its 70th of the year – and continues to trade near its intraday peak. The S&P 500 rose 3 points to 2,693, a gain of 0.1%. The Nasdaq Composite Index fell 4 points to 6,991, a decline of less than 0.1%. Investors continued to watch the latest policy updates out of Washington. The House of Representatives is expected to vote on the final version on Tuesday, while the Senate vote is expected to follow either on Tuesday or Wednesday. That should be enough time for the bill to land on President Donald Trump’s desk for the final signature before Christmas, which is the Republicans’ self-imposed deadline. In company news, Darden Restaurants Inc. rose 3.6% after it reported results that topped expectations.

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Carnival’s stock rallies after profit and sales beat expectations

Shares of Carnival Corp. rallied 1.3% in premarket trade Tuesday, after the cruise ship operator beat fiscal fourth-quarter profit and sales expectations. Net income for the quarter to Nov. 30 declined to $546 million, or 76 cents a share, from $609 million, or 83 cents a share, in the same period a year ago. The company said voyage disruptions as a result of hurricanes reduced EPS by about 11 cents. Excluding non-recurring items, adjusted EPS came to 63 cents, above the FactSet consensus of 51 cents. Revenue rose to $4.26 billion from $3.94 billion, beating the FactSet consensus of $4.15 billion, as passenger ticket and onboard and other revenue rose above expectations. Looking ahead, Carnival said it expects first-quarter adjusted EPS of 37 cents to 41 cents, which is below the FactSet consensus of 46 cents, and 2018 adjusted EPS of $4.00 to $4.30, compared with expectations of $4.28. The stock has run up 28% year to date through Monday, while the S&P 500 has gained 20%.

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Tesla’s stock climbs after UPS reserves 125 Semi trucks

Shares of Tesla Inc. rose 0.8% in premarket trade Tuesday, after United Parcel Service Inc. said it has reserved 125 of Tesla’s new Semi fully-electric trucks. Tesla is expected to begin production of the trucks in 2019. The pre-order is part of UPS plan that by 2020, one in four new vehicles will be an alternative fuel or advanced technology vehicle. “We look forward to expanding further our commitment to fleet excellence with Tesla,” said Juan Perez, chief information and engineering officer at UPS. “These groundbreaking electric tractors are poised to usher in a new era in improved safety, reduced environmental impact, and reduced cost of ownership.” UPS joins other companies which have announced Semi pre-orders, including PepsiCo. Inc. , Wal-Mart Stores Inc. and J.B. Hunt Transport Services Inc. . Tesla’s stock has run up 58.6% year to date through Monday, while UPS shares have tacked on 3.6% and the S&P 500 has rallied 20%.

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Apple stock falls after Instinet downgrades to neutral

Shares of Apple Inc. fell 0.9% in premarket trading Tuesday after analysts at Instinet downgraded the stock to neutral from buy. The analysts, led by Jeffrey Kvaal, pointed out that Apple shares fell by 40% and 27% respectively after its last two “form-factor refreshes,” the iPhone 5 and iPhone 6. Though the stock has recovered since then, it took over a year to do so in both cases. “We argue this cycle is not different; we do not expect the services business or tax reform to be sufficient to flout the historical pattern,” Kvaal wrote. He thinks it’s unlikely that Apple can deliver meaningful upside to unit-sales estimates for its current quarter, though better-than-expected iPhone X supply could boost average selling prices above Wall Street’s consensus estimates. Instinet now has a $175 price target on shares, down from $185 previously. Apple’s stock is up 52% so far in 2017, compared with a 25% gain for the Dow Jones Industrial Average .

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GM’s stock jumps after RBC analyst turns bullish

Shares of General Motors Co. jumped 1.3% in premarket trade Tuesday, after the automaker was upgraded at RBC Capital, citing an increased confidence on “downside resiliency.” Analyst Joseph Spak raised his rating to outperform from sector perform, and bumped up his stock price target to $52 from $51. Spak said he has grown more comfortable about how GM would weather a downturn since the company reported third-quarter results in October, which beat profit and revenue expectations. “We believe uncertainty around downturn performance has been a contributing factor weighting on the [stock’s] multiple,” Spak wrote in a note to clients. “We don’t want to over-extrapolate one quarter, but the results were encouraging enough that we believe investors should begin to fade the overly pessimistic view.” He was also optimistic about GM’s mobility initiatives. Although Spak said it was uncertain if GM can win on the “robo-taxi” opportunity, at least “it has a seat at the table.” GM’s stock has rallied 21% year to date through Monday, while the S&P 500 has gained 20%.

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Kindred Healthcare to be acquired by three companies for about $4.1 bln

Home-care provider Kindred Healthcare Inc. will be acquired by three companies — Humana Inc. and firms TPG Capital and Welsh, Carson, Anderson & Stowe — for about $4.1 billion in cash, including debt, amounting to about $9 per share for company shareholders. The transaction is expected to close next summer. The Wall Street Journal previously reported on Sunday that the three companies were in advanced talks to acquired Kindred, after which shares rose 10.5% in Monday trade to $9.50 per share. After the acquisition, Kindred’s home health, hospice and community care businesses will be spun out as a standalone company called “Kindred at Home,” with Humana owning a 40% stake and the two firms owning the other 60%, which Humana will have a right to buy over time. Kindred’s other businesses — long term acute care hospitals, inpatient rehabilitation facilities and contract rehab services — will operate as “Kindred Healthcare,” a separate hospital company owned by TPG and WCAS. Kindred shares declined 4.7% in premarket trade on Tuesday. Shares have surged 55.7% over the last three months, compared with a 7.3% rise in the S&P 500 and a 10.8% rise in the Dow Jones Industrial Average .

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Match Group stock rises after Guggenheim upgrade

Shares of Match Group rose 3% in premarket trading Tuesday after an analyst from Guggenheim upgraded the stock to buy from neutral. Guggenheim’s Jake Fuller likes Match’s positioning heading into 2018, thanks to better growth prospects for Match’s various brands as well as muted competition in online dating. He sees some of Match’s older dating brands returning to growth in the new year and believes that Tinder will maintain its momentum. The company introduced Tinder Gold, a new paid feature, earlier this year, and Fuller predicts that about 30% of Tinder subscribers will spend up on Gold in 2018. He also notes a relative lack of competition in online dating. “We do not see the Internet heavyweights encroaching in the online dating category as they are in many other categories, and would note that Match’s scale has become a real competitive advantage,” he wrote. Match shares have gained 78% in 2017, compared with a 20% gain for the S&P 500 Index .

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Tenet’s stock falls after downbeat profit outlook, increased cost-cutting target

Shares of Tenet Healthcare Corp. slumped 3% in premarket trade Tuesday, after the health care services company provided a 2018 profit outlook that was below expectations, and said it was expanding its cost-cutting program in an effort to improve its financial performance. The company expects 2018 adjusted earnings per share, which excludes non-recurring items, of $1.07 to $1.36, below the FactSet consensus of $1.40. The company said it was increasing its target for cost cuts by $100 million to $250 million by the end of 2018. In addition, Tenet said it was evaluating a potential sale of Conifer, which provides performance improvement and health management services and clients including hospitals and physician groups. Conifer had $401 million in revenue during the third quarter, compared with total revenue of $4.59 billion. Tenet said it is continuing with its plan to refresh the composition of its board of directoprs. The stock has slipped 0.7% year to date through Monday, while the SPDR Health Care Select Sector ETF has rallied 21.5% and the S&P 500 has gained 20.2%.

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