Tag: stock market

Shares of McDonald’s Corp. climbed 1.1% in morning trade Monday, after the fast food giant was upgraded by Instinet analyst Mark Kalinowski, who said investor fears about slowing same-store sales are overblown. Kalinowski raised his rating to buy from neutral, and lifted his stock price target to $139–16% above current levels–from $126. “Our checks suggest that November should end up as one of the best same-store sales months for the quick-service burger sector in 2016, with McDonald’s playing a key role in this despite lapping difficult comparisons,” Kalinowski wrote in a note to clients. He said that although it is difficult to pinpoint the reason for the same-store sales improvement, it is nevertheless important that sales don’t appear as bad as anticipated. “Once investors obtain more comfort with this, those that have been avoiding the stock due to these difficult comparisons may choose to re-enter it,” Hargreaves said. The stock has gained 1.2% year to date, while the Dow Jones Industrial Average has run up 11%.

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The Dow industrials on Monday opened at an all-time high as crude-oil prices extended last week’s OPEC-inspired rally, and as investors dismissed concerns about the outcome of Italy’s referendum on Sunday. The Dow Jones Industrial Average rose 85 points, or 0.5%, at 19,260, the S&P 500 index began trade 9 points, or 0.4%, higher at 2,201, while the Nasdaq Composite Index advanced 27 points, or 0.5%, at 5,282. On Sunday, Italian Prime Minister Matteo Renzi announced his resignation after a vote to reform existing rules that might make it easier for euroskeptics to take power in the country was rejected. The rejection of the referendum raises questions about the shared European currency, the euro, which roiled markets earlier in the New York day. But the resumption of crude-oil futures climb, after the Organization of the Petroleum Exporting Countries reached a pact last week to curb production, has helped to lift appetite for assets perceived as risky, like stocks. On the corporate side, shares of Visa led the Dow industrials in early trade, while UnitedHealth Group Inc. shares were the biggest laggards among blue-chip names.

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Under Armour Inc. announced Monday that it signed a 10-year deal with Major League Baseball to be the exclusive provider of on-field uniforms, its first-ever deal with a professional sports league. The deal, which begins with the 2020 MLB season, will include jerseys, game-day outerwear, year-round training apparel and an assortment of merchandise for fans. “This is a watershed moment for the Under Armour brand as this partnership with MLB and Fanatics furthers our collective dedication to bringing passion, energy and innovation to the game of baseball,” said Under Armour Chief Executive Kevin Plank. The stock, which tacked on 0.8% in morning trade, has tumbled 27% year to date, while the S&P 500 has gained 7.7%.

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Liberty Mutual Insurance said Monday it has agreed to buy Ironshore Inc. from Fosun International Ltd. in a deal valued at about $3 billion. Ironshore will continue to operate with the same management team and brand. The company had gross premiums written of $2.2 billion in 2015 and operates out of hubs in the U.S., Bermuda and London.

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Apple Inc.’s stock price target was cut at Pacific Crest, which cited “stable, but uninspiring” demand for the technology giant’s new iPhones. Analyst Andy Hargreaves kept his rating at overweight, saying the stock is still “too cheap,” but trimmed his price target to $127, or 16% above Friday’s closing price of $109.90, frmo $129. “While we believe Apple has slightly reduced its forecast to suppliers, the change is not drastic and is mostly a return to forecasts in place prior to an increase in October,” Hargreaves wrote in a note to clients. Still he cut, his estimate for fiscal first-quarter iPhone sales to 76.8 million units from 78.3 million, and his fiscal 2017 estimate to 225.0 million from 231.9 million. Hargreaves slashed his fiscal 2017 earnings-per-share outlook to $8.58 from $8.94, compared with the FactSet consensus of $9.00. He said he believes the iPhone estimate changes, recent currency moves, concerns over trade policy and the potential for costs in the next iPhone cycle to increase all pose threats to gross margins. “This is likely to act as an overhang that reduces optimism around near-term upside potential,” Hargreaves said. The stock, which edged up 0.3% in premarket trade, has lost 1% since the election through Friday, while the Dow Jones Industrial Average has rallied 4.6%.

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OncoMed Pharmaceuticals Inc. said early Monday that Chief Medical Officer Jakob Dupont had resigned, effective early 2017, and that he plans a return to Genentech/Roche . The company said it has started a search for its next CMO. Dupont’s resignation was due to “personal and family-related issues,” OncoMed said. Dupont worked at Roche, and before that Genentech, for about five years, according to his LinkedIn profile, and his return to the company should be “a position of significant responsibility in oncology clinical development,” OncoMed said. OncoMed shares, which were not active in pre-market trade, dropped 62.4% year-to-date to $8.48 per share, compared with a 7.2% rise in the S&P 500 .

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Cerecor Inc. shares dropped 37% in pre-market trade Monday after the company said its midstage clinical trial for a nicotine withdrawal treatment failed to meet its primary objective. The company is also developing the CERC-501 treatment for Major Depressive Disorder, which it said it will continue to do. The biotech, which was valued at $1.75 at Friday’s close, saw shares sink 47.8% year-to-date, compared with a 7.2% rise in the S&P 500 .

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Hilton Worldwide Holdings Inc. said Monday its board has approved the spinoff of its Park Hotels & Resorts and its Hilton Grand Vacations timeshare business. The company said its shareholders will receive 2 shares of Park and one share of HGV for every 10 shares of Hilton that they own. Following the distribution, the company will conduct a 1-for-3 reverse stock split. The transactions are expected to be completed on Jan. 3, 2017. Park and HGV will begin regular trading on the New York Stock Exchange under the ticker symbols “PK” and “HGV” on Jan. 4. Hilton shares were up about 1% in premarket trade, and have gained 18% in the year so far, while the S&P 500 has gained 7.2%.

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Johnson Controls Inc. , which completed its merger with Tyco in September, on Monday set targets for fiscal 2017 and beyond, setting guidance for adjusted per-share earnings at $2.60 to $2.75, compared with a pro forma adjusted EPS of $2.31 for fiscal 2016. “We are well positioned as a market leader to accelerate growth in our core buildings and energy businesses,” Chief Executive Alex Molinaroli said in a statement. The industrial company is targeting fiscal 2020 adjusted EPS growth of 12% to 15%. It is targeting an organic revenue compound average growth rate of 3% to 4%, including $500 million in run-rate sales synergies, it said. It expects EBIT growth of 40% to 55% before special items, with 300 to 380 basis points of margin expansion. Shares were not yet active in premarket trade, but are up 52% in the year to date, while the S&P 500 has gained 7.2%.

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Consolidated Communications Inc. announced Monday an agreement to buy FairPoint Communications Inc. in an all-stock deal valued at $1.5 billion, including debt. Under terms of the deal, FairPoint shareholders will receive 0.7300 Consolidated shares for each FairPoint share they own. Based on Friday’s closing prices, that values FairPoint shares at $20.72, or a 22% premium and implied a market value for FairPoint of $560.9 million. The deal, which is expected to close by mid 2017, is expected to generate annual synergies of $55 million, and should added to cash flow per share in the first year. “The financial benefits associated with the combination in the form of synergies and reduced leverage provide us additional operating and strategic flexibility going forward,” said Consolidated Chief Executive Bob Udell. The stocks are still halted for news until 7:30 a.m. ET. FairPoint shares have gained 5.8% year to date through Friday, while Consolidated’s stock has run up 35% and the S&P 500 has tacked on 7.2%.

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