Tag: stock market

It’s not surprise that Goldman Sachs Group Inc.’s stock is declining in the wake of first-quarter results reported before the open, but how much it’s falling may shock for investors. The banker’s stock slumped 4.2% in morning trade to $216.78 after both profit and sales missed expectations. That would be the biggest one-day, post-earnings percentage decline since it fell 4.7% on Jan. 19, 2011 after Goldman reported fourth-quarter 2010 results. On the day following the previous 25 quarterly reports since then, the stock has fallen after 16 of them, by an average of 1.5%, according to an analysis of FactSet data. On the days after quarterly reports that the stock rose, the average gain was 2.8%. Analyst Steven Chuback at Instinet said Tuesday’s report offers Goldman bears “quite a bit of fodder” given the significantly weaker trading results than its peers. He reiterated his neutral rating and $220 stock price target, which is just 0.8% above current levels. The stock has tumbled 9.3% year to date, while the SPDR Financial Select Sector ETF has eased 0.6% and the Dow Jones Industrial Average has gained 4%.

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Verizon Communications Inc. on Tuesday announced a three-year minimum purchase agreement with Corning Inc for $1.05 billion. Shares of Corning were up more than 2% after the announcement. Verizon shares were up less than 1%. Corning will provide Verizon with up to 12.4 million miles of fiber optic cable each year from 2018 to 2020. The goal is for Verizon to build an architecture of “next-gen” fiber network to support all of its businesses, which it hopes will improve its 4G LTE coverage, speed the deployment of 5G and deliver high-speed broadband to homes and businesses. “Our plans identified a shortfall in fiber supply, and Verizon has been working with business teams to forecast demand and fill supply gaps with existing suppliers,” said Verizon Chief Supply Chain Officer Viju Menon in a statement. “Securing the required volume of optical fiber and hardware solutions with Corning will ensure we meet our planned rollout schedules.” Shares of Corning have gained 12% in the year to date, while Verizon is down more than 8% and the S&P 500 index has increased nearly 5% so far this year.

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Standard & Poor’s placed ratings on Cardinal Health Inc. on review for a possible downgrade, after the Dublin, Ohio-based drugs and medical supplies company said it was buying a unit of Medtronic Plc for $6.1 billion. The deal is “a transaction that is meaningfully larger than the tuck-ins we had anticipated,” the rating agency wrote in a note. Cardinal Health is planning to fund the deal with a $4.5 billion bridge loan and $1.6 billion of cash. “We expect leverage will rise materially to the high-2 times area from 1.4 times as of Dec. 31, 2016,” said S&P. The agency rates Cardinal Health at A-minus, but would likely lower that to BBB-plus, based on the proposed financing terms, it said. It expects to resolve the action once the deal closes. Earlier, Fitch revised its outlook on the company’s rating to negative, also citing concerns about leverage. Cardinal Health’s most active bonds, the 1.70% notes due March of 2018, were trading at 100 cents on the dollar, according to MarketAxess. Shares fell 11.6%, while the S&P 500 was flat.

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Bank of America Corp.’s first-quarter earnings reported early Tuesday beat expectations for net interest income and fee income, showcasing the bank’s strong operating leverage, according to Instinet analyst Steven Chubak. “While the shares have outperformed the peer group YTD (+3%, vs. -2% at peers), this print should provide sufficient fodder for Bank of America bulls and spur continued outperformance,” Chubak wrote in a note to investors. The bank reported combined revenue for global banking and markets of $9.5 billion, surpassing Instinet’s $9.1 billion forecast, while FICC — fixed income, currencies and commodities trading — came to $2.9 billion, ahead of its $2.7 billion forecast. Investment banking revenue of $1.6 billion was ahead of Instinet’s $1.4 billion estimate, reflecting strength in debt capital markets, equity capital markets and mergers & acquisition fees. The analyst rates the stock a buy and is sticking with his stock price target of $25, or 10% above its current trading level. Shares were flat in early trade, and are up just 2.9% in 2017, while the S&P 500 has gained 4.6%.

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Shares of Goldman Sachs Group Inc. on Tuesday erased more than 50 points from the Dow Jones Industrial Average at the start of trade, after the giant investment bank’s first-quarter results fell short of Wall Street estimates. Goldman’s stock , a contributor to the Dow, was off about 3.4%, or $8, from its Monday close of $226.26, which would translate into a 55-point drop for the price-weighted blue-chip benchmark. A point drop of that magnitude for Goldman also would put it on track to log its worst daily decline since March 21, when shares of the bank run by CEO Lloyd Blankfein lost $8.56 or 3.5%, according to FactSet data. Goldman reported a profit of $2.26 billion, or $5.15 a share, which compares with $2.68 a share for the same period a year ago, when Goldman posted its worst first quarter in 12 years as trading slumped. In early trade, the Dow was off nearly 100 points, or 0.5%, at 20,538, the S&P 500 index was down 8 points, or 0.4%, at 2,340, while the Nasdaq Composite Index fell 15 points, or 0.3%, at 5,842.

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U.S. stocks opened lower on Tuesday, with financials leading the decline after Goldman Sachs reported weaker-than-expected quarterly results. The Dow Jones Industrial Average fell 95 points, or 0.5%, to 20,545. The S&P 500 slid 7 points to 2,342, a drop of 0.3%. The Nasdaq Composite Index fell 20 points, or 0.3%, to 5,837. Goldman Sachs Group Inc lost 3% and was the biggest drag on the Dow. The company’s results overshadowed forecast-topping results from fellow financial Bank of America , shares of which rose 1.4%. Among other results, Johnson & Johnson fell 2% after reporting a drop in revenue. Investors also continued to watch political issues abroad, with the coming election in France and tensions between the U.S. and North Korea. In the latest economic data, housing starts fell 6.8% in March. Industrial output rose 0.5% in the month.

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Snap Inc. announced new lenses, or augmented reality overlays, Tuesday that Snapchat users can use to “paint the world” or create a 3D experience on a photo. Previously, users could put lenses, such as dog face, over their own face in a selfie or with one other person. The move comes on the same day as Facebook Inc.’s developer conference. Facebook’s Instagram has been taking aim at Snap, with the expanded roll-out of its Instagram Stories, which the company said had surpassed Snap in terms of daily active users. Shares of Snap were down 1.2% in premarket trade Tuesday. Snap shares have fallen 11.5% month-to-date, compared to the S&P 500’s loss of 1%.

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Vera Bradley Inc. said Tuesday it signed a licensing agreement with CID Resources Inc. to design apparel and accessories for female health care professionals. This is a new product category for the company, according to a statement from Chief Executive Rob Wallstrom, with the medical uniforms market estimated at $1.8 billion in the U.S. Nearly 20% of Vera Bradley’s customers say they work in the health care industry, he said. The line, which will include uniforms, tote bags and ID badge holders, is expected to launch in spring 2018. Since September 2016, Vera Bradley has entered into licensing agreements with companies such as Peking Handicraft Inc. for bedding, rugs and kitchen textiles, and Mainstream Swimsuits Inc. for swimwear and cover-ups. Licensing partnerships are not expected to have a material impact on financial performance for the fiscal year ending Feb. 3, 2018. Vera Bradley shares are inactive in premarket trading, and down nearly 49% for the past year. The S&P 500 index is up 12.2% for the last 12 months.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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Shares of Goldman Sachs Group Inc. on Tuesday looked set to erase more than 40 points from the Dow Jones Industrial Average at the start of trade, after the giant investment bank’s first-quarter results fell short of Wall Street estimates. In premarket trade Goldman’s stock , a contributor to the Dow, was off about 2.8%, or $6.26, from its Monday close of $226.26, which would translate into a 42-point drop for the price-weighted blue-chip benchmark. A point drop of that magnitude for Goldman also would put it on track to log its worst daily decline since March 21, when shares of the bank run by CEO Lloyd Blankfein lost $8.56 or 3.5%, according to FactSet data. Goldman reported a profit of $2.26 billion, or $5.15 a share, which compares with $2.68 a share for the same period a year ago, when Goldman posted its worst first quarter in 12 years as trading slumped. Futures for the Dow were off 60 points, or 0.3%, at 20,509, while those for the S&P 500 were down 5 points, or 0.2%, at 2,339. Futures for the Nasdaq-100 were down 9.50 points, or 0.2%, at 5,385. Meanwhile, shares of Dow component UnitedHealth Group Inc. were adding about 26 points to the equity gauge, helping to offset some of Goldman’s decline. United also reported quarterly results, with profits up as the company exited many of the Affordable Care Act’s exchanges.

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Kate Spade & Co. shares slid 2% in Tuesday premarket trading after the accessories company reported first-quarter 2017 earnings that missed expectations. The earnings announcement was unexpected, and comes amid reports that it’s in talks to be acquired by Coach Inc. Net income was $1.36 million, or 1 cent per share, down from $11.6 million, or 9 cents per share, for the same period last year. The FactSet consensus was 7 cents per share. Sales for the quarter were $271.2 million, down from $274.4 million last year and below the $299.0 million FactSet consensus. Same-store sales fell 2.4% for the quarter, and were down 8.1% excluding e-commerce. The FactSet consensus was for a 3.4% increase. Due to the ongoing review of strategic alternatives, the company did not provide guidance and won’t host a conference call. It reiterated that the review process does not guarantee a transaction or other strategic result. Kate Spade shares are up nearly 4% for the year so far while the S&P 500 index is up nearly 5% for the period.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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