Mortgage rates dropped this week, however, Freddie Mac explained they won’t stay down for long. A sell-off in the bond market Tuesday sent Treasury yields higher, and mortgage rates could soon follow. …read more
From:: Real Estate Wire
Aetna to move headquarters to New York City in late 2018
Health insurer Aetna Inc. said Thursday it will move its corporate headquarters to New York City from Hartford, Connecticut in late 2018. “New York City is a knowledge economy hub, and a driver of the innovations that will play a significant part in our ongoing transformation,” Aetna Chairman and CEO Mark T. Bertolini said in a statement. The company will bring 250 new jobs to the state, New York Gov. Andrew Cuomo said in the statement. Aetna said the move will have minimal impact on its Connecticut associates, who will continue to be based there. However, “Aetna’s long-term commitment to Connecticut will be based on the state’s economic health,” it said, adding it is hopeful that lawmakers can reach an agreement to restore the state’s economic health. Hartford is currently teetering on the edge of a rare municipal bankruptcy as it struggles to close a roughly $50 million budget gap, as The Wall Street Journal has reported. . Aetna shares have gained 22.3% in 2017, while the S&P 500 has gained about 9%.
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From:: Stock Market News
Nike stock options pricing in a bigger-than-average post-earnings move
Nike Inc. options are pricing in a bigger-than-average one-day move for the stock after the athletic apparel and accessories maker reports fiscal fourth-quarter results after Thursday’s close. An options strategy known as a “straddle,” which involves the simultaneous buying of at-the-money bullish call and bearish put options for Friday expiry are pricing in a 5.1% move in either direction on Friday. Straddles are pure volatility plays, and aren’t bets on a direction. The average one-day post-earnings move for the stock after the past 20 quarterly reports is 4.8%, while the mean move is 3.8%. The stock had dropped 7.1% on March 22 after fiscal third-quarter results, and rose 1.0% on Dec. 21 after second-quarter results. Nike’s stock was little changed in morning trade, and has gained 5% year to date, while the Dow Jones Industrial Average has climbed 8.4%.
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From:: Stock Market News
Natural-gas prices turn higher as EIA reports smaller-than-expected rise in U.S. supplies
Data from the U.S. Energy Information Administration Thursday showed that domestic supplies of natural gas rose by 46 billion cubic feet for the week ended June 23. Analysts surveyed by S&P Global Platts forecast a larger build of 52 billion cubic feet. Total stocks now stand at 2.816 trillion cubic feet, down 319 billion cubic feet from a year ago, but 181 billion cubic feet above the five-year average, the government said. August natural gas rose 2.3 cents, or 0.7%, from Wednesday’s settlement to $3.117 per million British thermal units. It traded at $3.077 before the data.
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From:: Stock Market News
Blue Apron shares open at $10, in line with issue price
Shares of Blue Apron Holdings Inc. opened at $10 Thursday, in line with the company’s $10 issue price, in the company’s debut on the New York Stock Exchange. The company sold 30 million shares to raise $300 million. With the $10 issue price and opening price, Blue Apron saw a market capitalization of $1.9 billion, below its $2 billion private valuation. Blue Apron had lowered its price range Wednesday to $10 to $11 from its previously expected range of $15 to $17. Goldman Sachs & Co., Morgan Stanley, Citigroup and Barclays are the lead underwriters on the offering.
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From:: Stock Market News
Acuity Brands shares jump 11% after earnings beat
Shares of Acuity Brands Inc. surged 11% in early trade Thursday, after the maker of lighting products reported stronger-than-expected earnings for its fiscal third quarter. The company said it had net income of $82.2 million, or $1.90 a share, in the quarter, up from $74.0 million, or $1.69 a share, in the year-earlier period. Adjusted per-share earnings came to $2.15, ahead of the FactSet consensus of $2.02. Sales rose to $891.6 million from $851.5 million, also ahead of the FactSet consensus of $879 million. “Our third quarter net sales reflect continued solid performance even though initial industry data suggests that the growth rate of the Company’s key end markets in North America grew only in the low single-digit range,” Chief Executive Vernon Nagel said in a statement. “We believe the market growth rate reflected continued softness in demand for certain short-cycled, smaller lighting projects.” Shares have fallen 14% in 2017, while the S&P 500 has gained about 9%.
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From:: Stock Market News
Stocks open mostly higher; tech weakness weighs on Nasdaq
U.S. stocks opened mostly higher on Thursday, with the S&P 500 and Dow industrials lifted by a rally in financials. However, by weakness in technology shares weighed on the Nasdaq Composite index. Banking shares rallied after the 34 biggest U.S. banks passed the Federal Reserve’s stress test and received green light for plans to return capital to shareholders. The S&P 500 was up fractionally at 2,441. The Dow Jones Industrial Average began the session slightly higher, up 20 points, or 0.1%, at 21,476. The Nasdaq Composite index declined 21 points, or 0.4%, to 6,214. Among biggest gainers, Citigroup Inc. and JPMorgan Chase & Co were up 3.6% and 2.9% respectively shortly after the opening bell.
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From:: Stock Market News
Tintri slashes expected price range of IPO, reduces shares offered
Tintri Inc. disclosed Thursday that it expected price of its initial public offering was slashed to $7.00-to-$8.00 a share, a day after the company said it expected the IPO to price between $10.50 and $12.50. The enterprise cloud platform company also cut the number of shares it was offering to 8.5 million shares from 8.7 million shares, meaning the amount it was raising has dropped to $68.00 million from $108.75 million. The options granted to the underwriters to buy shares to cover overallotments was reduced to 1.275 million shares from 1.305 million shares. This comes after meal-kit delivery company Blue Apron Holdings Inc.’s IPO priced at the $10, the low end of the expected range of $10 to $11, which had been lowered from a previously expected range of $15 to $17.
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From:: Stock Market News
Forestar terminates Starwood merger deal to go with D.R. Horton’s stock purchase deal
Shares of Forestar Group Inc. fell 3.2% in premarket trade Thursday, after the land developer terminated its merger deal with Starwood Capital Group, so it could go with the D.R. Horton Inc. deal to buy a 75% stake for $17.75 a share. The announcement comes less than a week after Forestar determined D.R. Horton’s deal, which allows it to remain a publicly-traded company, was a “superior proposal” to Starwood’s deal to pay $16.00 a share to take the company private. “Forestar’s shareholders meaningfully benefit by receiving a superior and immediate cash premium for their shares, while also having the opportunity to retain a substantial stake in a company we are committed to growing into a leading residential land development platform with national scale,” said Forestar Chairman Donald Horton. The stock was trading 4.8% below the D.R. Horton’s per-share bid price ahead of Thursday’s open, but was 5.6% above Starwood’s bid price. It has soared 31% year to date through Wednesday, while D.R. Horton shares have rallied 25%, the SPDR S&P Homebuilders ETF has climbed 14% and the S&P 500 has gained 9%.
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From:: Stock Market News
Whole Foods stock falls toward 6th-straight loss as lower odds of rival bid prompts downgrade
Whole Foods Market Inc.’s stock appeared headed for a sixth-straight decline, after it was downgraded Thursday to perform from outperform by analyst Rupesh Parikh at Oppenheimer, who said he no longer expects a new bidder to emerge to compete with Amazon.com Inc.’s buyout bid of $42 a share. The stock had closed as high as $43.26 on June 21, or 3% above Amazon’s bid, but has closed lower every day since then. The stock was down 0.4% at $42.10 in premarket trade Thursday. Parikh was among those that said another bid could materialize, and therefore had raised his stock price target to $45 from $40 when the deal was announced on June 16. On Thursday, he removed his price target. “Although we believe [Amazon’s] bid undervalues the company, it now appears less likely a new bid will come from a strategic player, and it is less likely that private money will attempt to outbid [Amazon],” Parikh wrote in a note to clients. Whole Foods shares have run up 37% year to date, while the S&P 500 has gained 9%.
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From:: Stock Market News