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The loan default rate for risky retailers has jumped above 5% in July, according to Fitch Ratings, a spike the rating agency warned about last week. The trailing 12-month retail institutional leveraged loan default rate stood at 2.8% at the end of June. The rate was propelled upward by five retail defaults totaling $3.8 billion of debt, by companies including J. Crew and True Religion Apparel. “The loan universe hasn’t seen defaults of this magnitude from retail since the sector’s previous high of 5.7% in 2009,” said Eric Rosenthal, senior director of leveraged finance. Defaults are being caused by a mixture of factors, including changes in the sector such as changing shopper behavior, as well as unsustainable capital structures, said Fitch.

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Amazon Business, Amazon.com Inc.’s marketplace serving companies with products like food-service supplies, lab equipment and more, said Tuesday that it now has one million customers in the U.S. Amazon Business launched in April 2015 and its customers include Con Edison of NY, Johns Hopkins University and Siemens in the U.S.. Amazon shares are down 0.3% in premarket trading, but up 38.6% for the year so far. The S&P 500 index is up 10.3% for 2017 to date.

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From:: Stock Market News

Amazon Business, Amazon.com Inc.’s marketplace serving companies with products like food-service supplies, lab equipment and more, said Tuesday that it now has one million customers in the U.S. Amazon Business launched in April 2015 and its customers include Con Edison of NY, Johns Hopkins University and Siemens in the U.S.. Amazon shares are down 0.3% in premarket trading, but up 38.6% for the year so far. The S&P 500 index is up 10.3% for 2017 to date.

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HCA Healthcare Inc. stock dropped as much as 7% in premarket trade Tuesday after the company reported second-quarter profit and revenue misses. Earnings for the latest quarter declined to $657 million, or $1.75 per share, from $658 million, or $1.65 per share in the year-earlier period. The FactSet EPS consensus is $1.80. Revenue rose to $10.73 billion from $10.32 billion, compared with the FactSet consensus of $10.76 billion. The latest results include 1 cent per share in gains on sales of facilities and 2 cents per share in legal claim costs, HCA said. The company affirmed its 2017 revenue outlook of $43 million to $44 million but cut its 2017 EPS outlook to between $7 and $7.30 from between $7.20 and $7.60. HCA shares have risen 1.8% over the last three months, compared with a 3.4% rise in the S&P 500 .

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Neuralstem Inc. shares were halted in premarket trade Tuesday on news of a mid-stage clinical trial miss for its major depressive disorder drug. The drug, NSI-189, did not meet its primary endpoint of a statistically significant reduction in depression symptoms. The company said that the drug did meet a secondary efficacy endpoint of statistical significance on the patient-rated Symptoms of Depression Questionnaire. That secondary endpoint was one of two that the company said it has analyzed so far. “We are encouraged by its emerging clinical profile, and continuing the clinical evaluation of NSI-189 to pursue its full potential is warranted,” Dr. Maurizio Fava, the trial’s principal investigator, said. Neuralstem shares have surged 12.3% over the last three months to $5.58, compared with a 3.4% rise in the S&P 500 .

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The Dow Jones Industrial Average on Tuesday was on track to jump at the open, aided by better-than-expected earnings from farm-and-industrial-equipment giant Caterpillar Inc. and McDonald’s Corp. amid a barrage of quarterly results. Caterpillar’s shares advanced about 5% in premarket trade after it delivered earnings of $1.49, outstripping analysts’ average estimates of $1.26. The Peoria, Ill.-based company also posted better-than-expected revenue and raised its full-year guidance for 2017 profit and revenue, delivering a fillip to Dow futures. Meanwhile, shares of McDonald’s jumped 2.7% premarket after the fast-food giant reported second-quarter results beat consensus estimates for revenue and profit. McDonald’s net income was $1.40 billion, or $1.70 per share, up from $1.09 billion, or $1.25 per share, for the same period last year. The Dow component was on track to add about 30 points to the Dow, putting both Dow components on track to give the price-weighted Dow a 65-point boost. Dow futures were up 112 points, or 0.5% at 21,611. Caterpillar’s stock on Monday rallied after it was upgraded by BMO Capital, with analysts Joel Tiss raising his stock price target to $125 from $110. Meanwhile, another Dow component 3M Co. found its shares down 3.3% in premarket action after disappointing Wall Street. Overall, equities were looking to trade in record territory, with futures for the S&P 500 index gaining 0.3%, while those for the Nasdaq-100 were trading 0.1% higher, following Google-parent Alphabet Inc. delivered results late Monday.

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Shares of Seagate Technology PLC plummeted 17% in premarket trade Tuesday toward an eight month low, after the data storage products maker reported fiscal fourth-quarter results that were well below expectations and announced a leadership transition. Net profit for the quarter to June 30 rose to $114 million, or 38 cents a share, from $70 million, or 23 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 65 cents, missing the FactSet consensus of 98 cents. Revenue fell to $2.41 billion from $2.65 billion, below the FactSet consensus of $2.56 billion. “Although the near-term dynamics of technology shifts present demand variations for the storage industry from time to time, we continue to see growing storage demand in the long-run driven by the proliferation of data growth from new technologies, emerging industries, and growing businesses,” said Chief Executive Steve Luczo. Separately, the company said Luczo will transition to executive chairman on Oct. 1, and will be replaced as CEO by Dave Mosley, currently Seagate’s chief operating officer. The stock has plunged 21% over the past three months through Monday, while the S&P 500 has gained 3.4%.

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Shares of Freeport-McMoRan Inc. rose more than 2% premarket on Tuesday after the metals and mining company swung to a profit in the second quarter after a loss the year earlier. Net income for the second quarter came in at $268 million, or 18 cents per share, after a loss of $479 million, or 38 cents per share, during the year-earlier period. Adjusted earnings for the quarter was 17 cents, below FactSet’s consensus of 20 cents. Revenue for the quarter hit $3.71 billion, up from $3.33 billion during the same quarter a year ago and above FactSet’s consensus for $3.67 billion. “We are encouraged by recent progress in our active negotiations with the Indonesian government to resolve issues involving our contractual rights,” said Freeport-McMoRan Chief Executive Richard Adkerson in a statement. Shares of Freeport-McMoRan have fallen nearly 2% in the year to date, while the S&P 500 index is up more than 10%.

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Domino’s Pizza Inc. shares are up 0.5% in Tuesday premarket trading after the company reported second-quarter earnings and revenue that beat estimates. Domino’s had second-quarter net income of $65.7 million, or $1.32 per share, up from $49.3 million, or 98 cents per share, for the same period last year. The FactSet EPS consensus was for $1.23. Revenue totaled $628.6 million, up from $547.3 million last year and ahead of the $610.0 million FactSet consensus. Domestic same-store sales were up 9.5% for the quarter, while international same-store sales grew 2.6%. The FactSet consensus was for a 7% same-store sales increase. Domino’s Pizza shares are up 34.4% for the year so far while the S&P 500 index is up 10.3% for the period.

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Shares of 3M Co. fell 1.5% before the market opened on Tuesday after the company reported revenue for the second-quarter that missed Wall Street expectations. Net income for the quarter came in at $1.58 billion, or $2.58 per share, up from $1.29 billion, or $2.08 per share during the same quarter a year ago. FactSet’s per-share earnings consensus was for $2.54. Sales for the quarter hit $7.81 billion, which was an improvement compared with last year’s $7.66 billion, but just below FactSet’s consensus of $7.87 billion. 3M saw the biggest sales growth in electronics and energy, which was up 7.5%, followed by industrial sales, which grew 2.5%. The company revised its per-share earnings outlook for the the full year and expects earnings in the range of $8.80 to $9.05 per share, compared with its previous estimate of $8.70 to $9.05 per share. Shares of 3M have gained 17.6% in the year to date, while the S&P 500 index is up 10.3%.

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