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Shares of Amazon.com Inc. eased 0.2% in morning trade Tuesday, as investors shrugged off a new high stock price target on Wall Street. Analyst Rob Sanderson at MKM Partners boosted his target to $1,275, which is now the highest of the 43 analysts surveyed by FactSet, above four targets now tied for second at $1,250. Sanderson’s target is 29% above current levels. Although Sanderson doesn’t expect Amazon to generate meaningful profits anytime soon, he said the stock has “never been valued on near-term profit” and likely won’t be until investors see a limit on growth opportunities. “Until then, we think revenue growth and share gain will matter more than profitability,” Sanderson wrote in a note to clients. “We think investors have become very comfortable with the company’s continued investments because of the track record of management, consistency of share gain and massive untapped opportunity in retail and cloud computing services.” The stock, which has lost 6.0% since the July 26 record close of $1,052.80, has still run up 32% year to date, while the tech-heavy Nasdaq 100 index has climbed 22% and the S&P 500 has gained 11%.

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Shares of Endo International PLC tumbled 6.8% in morning trade Tuesday, hitting the lowest level seen since January 2003, after the drug maker swung to a large loss for the second quarter. The net loss was $1.4 billion, or $6.26 a share, after a profit of $343.6 million, or $1.54 a share, in the same period a year ago. Excluding non-recurring items, such as impairment charges related to the market withdrawal of its opioid Opana ER at the request of the Food and Drug Administration, adjusted earnings per share came to 93 cents, beating the FactSet consensus of 73 cents. Revenue fell to $875.7 million from $920.9 million, beating the FactSet consensus of $832.7 million. U.S. generics revenue was little changed at $563.3 million, above expectations of $525.0 million, but U.S. generics base revenue fell 34% while sterile injectables grew 27% and new launches and alternative dosages rose 70%. Endo’s stock has been tumbling recently after disappointing results and commentary from Teva Pharmaceutical Industries Ltd. cast a pall on generic drug makers. Endo’s stock has shed 20% over the past three months, while the S&P 500 has gained 3.3%.

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AMC Entertainment Holding Inc. on Tuesday said it’s decided to sell its stake in film production company Open Road Films. The cinema chain operator has struggled recently from high costs and poor box office returns for Hollywood films. AMC said last week it would look to cut costs and monetize some of its assets. Open Road Films is the production studio behind 2015 Oscar-winner “Spotlight.” AMC said in its 10-Q filing with the Securities and Exchange Commission that it sold its 50% ownership stake in Open Road Releasing LLC, which operates Open Road Films, and owns Fathom Events, as well as investments in other film and media companies. AMC sold its stake to Tang Media Partners for total proceeds of $28.8 million. Open Road was started in 2011 as a joint venture between AMC and rival cinema operator Regal Entertainment Group . Shares of AMC were up more than 2% intraday on Tuesday, but have declined more than 51% in the year to date. By comparison, the S&P 500 index is up nearly 11% in the year.

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From:: Stock Market News

Stocks opened lower but teetered around break-even levels on Tuesday amid a lack of large market movements. Investors will brace for Job Openings and Labor Turnovers Survey data at 10:00 a.m. Eastern, which could signal further strength in the labor market after last week’s strong jobs report. If the Dow Jones Industrial Average slips lower on Tuesday, it would end a 10-day streak of gains and nine straight record-setting sessions. In corporate news, shares in Avis Budget Group plummeted 8% after the car rental company missed their quarterly earnings target in premarket trading on Monday. The Dow slipped 30 points from 22087. S&P 500 fell less than 0.2%, while the Nasdaq Composite Index edged lower by more than 0.1%.

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Although Dow industrials futures are 14 down points ahead of Tuesday’s open, suggesting the Dow Jones Industrial Average’s win streak will be snapped at 10 sessions, an analysis of individual Dow components trading premarket suggests the streak of gains are set to continue. Of the 27 Dow components that have traded ahead of the open, 17 are gaining ground. Overall, the components’ premarket moves suggests the Dow would be up 11.5 points. Among the biggest contributors to the Dow’s move, shares of Boeing Inc. would add 8.8 points to the Dow, McDonald’s Corp. would add 3.6 points and American Express Co. would add 2.7 points. Meanwhile, Shares of 3M Co. would shave off 3 points, Goldman Sachs Group Inc. would take away 2.9 points, Johnson & Johnson would detract 2.3 points and Apple Inc. would shave off 1.6 points.

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Mitsubishi Tanabe Pharma Corp. said early Tuesday that its amyotrophic lateral sclerosis (ALS) therapy, the first new one approved by the Food and Drug Administration in more than 20 years, is now available in the U.S. The therapy’s list price is about $146,000 a year, according to the ALS Association, which does not account for often-substantial discounts and rebates. In clinical trials, some patients on the therapy, Radicava, had significantly less of a physical decline relative to patients on the placebo. Radicava, which was approved by the FDA in early May, is not a cure for ALS but may be an important advance for patients with the progressive neurodegenerative disease, according to the ALS Association. ALS attacks the body’s nerve cells and affects a patient’s ability to move over time. Currently, the disease’s cause isn’t known and there is no cure, according to the Centers for Disease Control and Prevention. Mitsubishi Tanabe shares have risen 12.9% over the year-to-date, compared with a 10.8% rise in the S&P 500 .

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A federal appeals court in Chicago on Monday upheld the conviction of Michael Coscia, the first U.S. trader to face prison time for manipulating futures prices using “spoofing,” the Wall Street Journal reported. “Spoofing” was made illegal in 2010 as part of the Dodd-Frank Act. Spoofing involves placing large orders intended to deceive other traders into thinking supply or demand has changed enough to bring about better market pricing on smaller trades made by the deceptive trader. The large orders are then canceled before execution. The court rejected Coscia’s claim that his conviction should be overturned because the law is too vague to be enforced. “Mr. Coscia engaged in this behavior in order to inflate or deflate the price of certain commodities,” the circuit judges wrote, according to the Journal. “His trading accordingly also constituted commodities fraud, the ruling said.

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Ralph Lauren Corp. shares rose 5.2% in Tuesday premarket trading after the luxury clothing and accessories brand reported fiscal first quarter earnings that beat estimates. Net income totaled $59.5 million, or 72 cents per share, after a loss of $22.3 million, or 27 cents per share, for the same period last year. Adjusted EPS was $1.11, beating the 95-cent FactSet consensus. Revenue totaled $1.35 billion, down from $1.55 billion and just ahead of the $1.34 billion FactSet consensus. The decline was driven by a pullback in distribution, fewer promotions, brand eliminations, and less consumer demand, the company said. Same-store sales fell 7% for the quarter. The FactSet consensus was for an 8.6% decline. Ralph Lauren expects second-quarter revenue to fall 9% to 10%. Ralph Lauren shares are down 13.5% for the year so far while the S&P 500 index is up 10.8% for the period.

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Shares of Dean Foods Co. fell as much as 13% in premarket trade on Tuesday after the company reported earnings for the second quarter that were below Wall Street expectations. The company said it had net income of $91.37 million, or 19 cents per share, compared with $91.68 million, or 36 cents per share during the same quarter a year ago. Adjusted earnings per share were 21 cents, well below FactSet’s consensus of 31 cents. Revenue hit $1.93 billion in the second quarter, up from $1.85 billion a year ago, but just below FactSet’s consensus of $1.94 billion. “We faced a challenging and rapidly evolving retail environment,” sad Dean Foods Chief Executive Ralph Scozzafava. “We experienced volume pressure from both a macro and competitive perspective that impacted our total volume performance with the quarter, and we anticipate this will carry forward for the remainder of 2017. Our financial results came in well below our expectations.” Scozzafava said he was not satisfied with the company’s results. The company lowered its per-share earnings expectations for the full year to be in the range of 80 cents to 95 cents, and plans to “aggressively address” its cost structure, cutting between $40 million to $50 million by the end of the year. Shares of Dean Foods are down more than 31% in the year to date, while the S&P 500 index is up nearly 11%.

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From:: Stock Market News

Valeant Pharmaceuticals International Inc. shares surged 7.9% in premarket trade on Tuesday after the company reported a second-quarter loss and cut its 2017 revenue guidance. The company reported a loss of $38 million, or a loss of 11 cents per share, compared with a loss of $302 million, or a loss of 88 cents per share in the year-earlier period. The FactSet adjusted earnings-per-share consensus was 94 cents. Revenue declined to $2.233 million from $2.42 million, above the FactSet consensus of $2.228 million. Valeant also cut its 2017 revenue guidance to $8.70 to $8.90 billion from $8.90 to $9.10 billion. Valeant shares have surged 5.9% year-to-date, compared with a 10.8% rise in the S&P 500 .

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From:: Stock Market News