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Oil prices rallied Thursday, extending earlier gains after data from the U.S. Energy Information Administration showed that domestic crude supplies dropped by 6.3 million barrels for the week ended June 30. That topped forecasts for a decline of 1.6 million barrels by analysts surveyed by S&P Global Platts, and also came in above the fall of 5.8 barrels reported by the American Petroleum Institute late Wednesday. Supply data were released a day late because of Tuesday’s Independence Day holiday. Gasoline stockpiles also fell by 3.7 million barrels, while distillate stockpiles decreased by 1.9 million barrels last week, according to the EIA. August crude rose $1.24, or 2.8%, to $46.37 a barrel on the New York Mercantile Exchange. It traded at $45.77 before the supply data.

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From:: Stock Market News

U.S. stocks opened firmly lower Thursday as central banks around the globe were indicating a desire to exit from ultra-easy monetary policies that prevailed during the heart of the 2008-’09 financial crisis. The Dow Jones Industrial Average fell 0.6% at 21,347, the S&P 500 index slipped 0.7% at 2,414, while the Nasdaq Composite Index tumbled 1.1% at 6,082, after posting Wednesday’s best performance among the U.S. equity benchmarks. Wall Street has closely followed recent central bankers’ comments about the strength of the global economy, with recent remarks from the European Central Bank lifting expectations that policy makers may be ready to close a chapter in longstanding monetary-easing programs, which have supported prices in bonds and stocks around the world. Minutes from the ECB released Thursday indicated that the central bank was worried about how best to communicate increasing confidence in the eurozone economy without roiling markets. Those minutes, coming after the Federal Reserve’s minutes on Wednesday, helped to drive bond prices lower and yields higher. The 10-year German bond yield hit an 18-month high at 0.54%, while the 10-year Treasury note climbed to 2.38% on the day. On the economic front, a reading of private-sector employment showed that employers added a seasonally-adjusted 153,000 jobs during the month, below the 180,000 jobs that a consensus of economists had forecast. Meanwhile, initial jobless claims in the period between June 25 and July 1 increased 4,000 to a seasonally adjusted 248,000. Economists use these numbers to get a feel for the official nonfarm-payrolls report due on Friday, with the consensus estimate at 179,000 new jobs created in June. Later in the morning, the Institute for Supply Management report services was 57.4 in June, compared with 56.5 expected. A reading of 50 indicates expansion. In corporate news, shares of Tesla Inc. extended Wednesday’s decline after the electric car maker’s Model S failed to receive a top safety award. Shares of General Electric slumped after the EU’s antitrust watchdog said GE may have misled regulators when the EU was reviewing its $1.65 billion deal with LM Wind Power.

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From:: Stock Market News

Starbucks Corp. said Thursday that a planned $120 million expansion of its Augusta soluble plant will create 80 to 100 new jobs in Georgia. The expansion will add 140,000 square feet to the existing 180,000 square feet, and should be complete by the fall of 2019. The plant currently employs 185 people and opened in July 2012. Its roasters make Via Instant coffee, as well as the coffee base for the company’s Frappuccino beverages and many of its bottled and canned drinks. The expansion will allow the company to make packaged coffee for retail locations and Starbucks cafes. Starbucks has a relationship with the nearby Fort Gordon and recruits from the base. Starbucks shares are down 0.6% in Thursday trading, but up 3.8% for the year to date. The S&P 500 index is up 8.1% for 2017 so far.

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From:: Stock Market News

U.S. stocks opened lower Thursday as central banks around the globe were indicating a desire to exit from ultra-easy monetary policies that prevailed during the heart of the 2008-’09 financial crisis. The Dow Jones Industrial Average fell 0.2% at 21,424, the S&P 500 index slipped 0.4% at 2,423, while the Nasdaq Composite Index declined 0.6% at 6,114, after posting Wednesday’s best performance among the U.S. equity benchmarks. Wall Street has closely followed recent central bankers’ comments about the strength of the global economy, with recent remarks from the European Central Bank lifting expectations that policy makers may be ready to close a chapter in longstanding monetary-easing programs, which have supported prices in bonds and stocks around the world. Minutes from the ECB released Thursday indicated that the central bank was worried about how best to communicate increasing confidence on the eurozone economy without roiling markets. Those minutes, coming after the Federal Reserve’s minutes on Wednesday, helped to drive bond prices lower and yields higher. The 10-year German bond yield hit an 18-month high at 0.54%, while the 10-year Treasury not climbed to 2.37% on the day. On the economic front, a reading of private-sector employment showed that employers added a seasonally-adjusted 153,000 jobs during the month, below the 180,000 jobs that a consensus of economists had forecast. Meanwhile, initial jobless claims in the period between June 25 and July 1 increased 4,000 to a seasonally adjusted 248,000. Economists use these numbers to get a feel for the official nonfarm-payrolls report due on Friday, with the consensus estimate at 179,000 new jobs created in June. In corporate news, shares of Tesla Inc. extended Wednesday’s decline after the electric car maker’s Model S failed to receive a top safety award. Shares of General Electric slumped after the EU’s antitrust watchdog said GE may have misled regulators when the EU was reviewing its $1.65 billion deal with LM Wind Power.

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From:: Stock Market News

Shares of General Electric Co. slumped 1.8% in premarket trade Thursday, after J.P. Morgan slashed its price target, citing an uncertain outlook and a lack of growth potential. Analyst C. Stephen Tusa reiterated his bearish underweight rating on the industrial conglomerate, and cut his stock price target to $22, which is 20% below Wednesday’s closing price of $27.35, from $27. The stock traded at $26.85 ahead of the open; the stock hasn’t closed below $27 since Oct. 5, 2015. Tusa said the GE narrative “is as open and undefined as it’s been in decades,” with the new CEO likely to set the course over the second half of the year on a material restructuring that includes setting portfolio priorities, a change in the capital allocation strategy and new long-term growth targets. While a fresh start is expected under John Flannery, who will become CEO on Aug. 1, but “we don’t see a quick or easy fix to the current predicament,” Tusa wrote in a note to clients. “Unlike other resets where the multiple expands, we don’t see the future growth potential as a catalyst here, and are cutting our price target to $22 and remain [underweight].” The stock has dropped 13.5% year to date through Wednesday, while the Dow Jones Industrial Average has gained 8.7%.

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From:: Stock Market News

BeiGene Ltd. shares surged 12.6% in premarket trade Thursday on news of its cancer collaboration with Celgene Corp. . BeiGene will receive $263 million in upfront licensing fees, and is eligible for up to $980 million in milestone payments and royalties, the companies said, and Celgene will acquire 5.9% of BeiGene’s shares at $59.55. BeiGene shares closed at $52.27 on Wednesday. Under the deal, the companies will work to develop and commercialize BeiGene’s cancer drug BGB-A317 in solid tumor cancers in much of the world (except Asia but including Japan), while BeiGene will retain development and commercialization rights for the drug in some other areas. BeiGene will also acquire Celgene’s China commercial operations and exclusively license Celgene drugs that have been approved in China. The deal is expected to close in the third quarter. Celgene shares have surged 7.2% over the last three months and BeiGene shares have surged 41.2%, compared with a 3.2% rise in the S&P 500 .

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From:: Stock Market News

Liberty Interactive Corp. said Thursday that it is acquiring the remaining 61.8% stake in HSN Inc. in a deal that equates to a total enterprise value of $2.6 billion. The acquisition is an all-stock transaction. HSN will become a wholly-owned subsidiary attributed to the QVC Group tracking stock. HSN Inc. consists of the multichannel retailer HSN and Cornerstone, a portfolio of home and apparel brands including Garnet Hill and Frontgate. After the deal closes, HSN headquarters will remain in St. Petersburg, FL, and QVC chief executive Mike George will remain in his position. HSN shareholders will receive fixed consideration of 1.65 shares of Series A QVC stock for every share of HSN stock. Liberty Interactive plans to issue 53.4 million shares of QVC Series A common stock. The acquisition is expected to be complete in the fourth quarter of 2017. HSN shares are halted until 8:30 am ET, but are down 36.6% for the last year. Liberty Interactive shares are down 3.4% for the past 12 months. The S&P 500 index is up nearly 16% for the last year.

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From:: Stock Market News