Tag: stock market

Shares of United Airlines parent United Continental Holdings Inc. climbed 0.6% in premarket trade Tuesday, after the air carrier extended its streak of earnings beats to five quarters. In the company’s first-quarter earnings report, Chief Executive Oscar Munoz said the incident earlier this month in which a passenger was forcibly dragged off the plane will prove to be a “watershed moment” for the company, making him more determined than ever to put customers first. Analyst Savanthi Syth at Raymond James reiterated his outperform rating, but said he will look for further clarity on any expected impact from the recent negative media attention for current-quarter trends in the company’s conference call with analysts, which is scheduled for 10:30 a.m. ET. Late Monday, United reported first-quarter adjusted EPS of 41 cents, above the FactSet consensus of 38 cents, and revenue of $8.42 billion, which beat expectations of $8.38 billion. The stock has lost 2.9% year to date through Monday, while the NYSE Arca Airline Index has tacked on 0.4% and the S&P 500 has gained 4.9%.

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W.W. Grainger Inc. said Tuesday net income fell 6% to $175 million, or $2.92 a share, in the first quarter, down from $187 million, or $2.98 a share, in the year-earlier period. Sales rose 1% to $2.5 billion. The supplier of maintenance, repair and operating products was expected to report EPS of $2.99 and sales of $2.563 billion, according to analysts polled by FactSet. “Overall, the first quarter clearly fell short of our expectations, driven primarily by the stronger than anticipated customer response to our U.S. strategic pricing actions, with a greater volume of products sold at more competitive prices,” Chief Executive DG Macpherson said in a statement. The company is now planning to full forward pricing actions planned for 2018 to the 2017 third quarter and lowered its full-year outlook to reflect the change. The company is now expecting 2017 sales go grow 1% to 4%, compared with prior guidance of 2% to 6%. It expects EPS of $10.00 to $11.93, down from prior guidance of $11.30 to $12.40. The company said it will work to improve margins and reduce costs in Canada, which remains challenged. Shares were halted for the news, and had not traded premarket after the halt was lifted. But they are down 4% in 2017, underperforming the S&P 500 , which has gained 5%.

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Apple Inc. stock’s price target was increased to $170 from $160 at Credit Suisse on Tuesday. Analyst Kulbinder Garcha also reiterated an outperform rating. The target increase makes Credit Suisse one of the most bullish brokerages covering Apple. According to a FactSet survey of roughly 40 analysts, the average rating on the stock is the equivalent to buy, while the average price target is $150.96. Garcha attributed his optimism to Apple’s fast-growing services business, saying he believes the market continues to underestimate Apple’s second-largest business by revenue. He expects services revenue to double to $52 billion and increase to 33% of gross profit by 2020, compared with $24 billion in fiscal 2016. Last year, services surpassed the Mac and the iPad by revenue for the first time. The App Store and other services are seen as a beacon, as hardware sales across the industry decelerate. Shares of Apple fell 0.2% to $141.55 in premarket trade. They have gained 18% in the past three months and 32% in the past year, outperforming both the Dow Jones Industrial Average and S&P 500 .

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Goldman Sachs Group Inc.’s stock slumped 2.6% in premarket trade Tuesday, after the banker reported first-quarter profit and revenue that missed expectations. Earnings for the quarter to March 31 rose to $2.16 billion, or $5.15 a share, from $1.20 billion, or $2.68 a share, in the same period a year ago, but fell short of the FactSet consensus of $5.31 a share. Revenue increased to $8.03 billion from $6.34 billion, but was below the FactSet consensus of $8.37 billion. Fixed income, currency and commodities client execution (FICC) revenue grew 16% to $1.70 billion, but fell well short of the FactSet consensus of $2.28 billion, as weakness in commodities, currencies and credit products offset increases in mortgages and interest rate products. Equity revenue declined 6% to $1.67 billion, just below the FactSet consensus of $1.69 billion, while a 16% jump in investment banking revenue to $1.70 billion beat the FactSet consensus of $1.63 billion. Separately, Goldman raised its quarterly dividend by 15% to 75 cents a share from 65 cents a share and added 50 million shares to its existing stock buyback program. The stock has lost 5.5% year to date through Monday, while the SPDR Financial Select Sector ETF has tacked on 0.2% and the Dow Jones Industrial Average has gained 4.4%.

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Starbucks Corp. said Tuesday that it’s jumping on the unicorn trend with its Unicorn Frappuccino, available from April 19 through April 23. The pink blended drink is made with mango syrup, sour blue drizzle and a sweet pink powder, topped with vanilla whipped cream. The Unicorn Frappuccino starts purple with swirls of blue, tasting sweet and fruity, but once stirred turns pink and becomes tangy and tart, Starbucks said. The drink will be available in the U.S., Canada and Mexico. Starbucks shares are up 0.2% in premarket trading, and up 4.6% for the year to date. The S&P 500 index is up nearly 8% for the year so far.

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Cardinal Health Inc. shares dropped 19.3% in premarket trade Tuesday after the company said it had agreed to a $6.1 billion deal for certain Medtronic businesses and updated its 2017 guidance. The company now expects fiscal 2017 earnings per share to come in at the bottom of earlier guidance of $5.35 to $5.50, compared with the FactSet consensus of $5.42. Cardinal Health attributed the guidance to generic deflation in its pharmaceutical business. Cardinal Health expects the Medtronic deal, which is for the company’s patient care, deep vein thrombosis and nutritional businesses and should close in the first quarter of fiscal 2018, to add at least 21 cents to EPS that year. Still, Cardinal Health expects EPS to be flat to down mid-single digits for fiscal year 2018, due to “several company-specific discrete items” that it did not specify and generic deflation. The Medtronic businesses encompass 23 product categories and include brands used in nearly every U.S. hospital, Cardinal Health said, with the businesses bringing in $23 billion in revenue for 12 months through October 2016. Company shares have surged 8.0% over the last three months, compared with a 3.4% rise in the S&P 500 .

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From:: Stock Market News

Cardinal Health Inc. shares dropped 14.5% in premarket trade Tuesday after the company said it had agreed to a $6.1 billion deal for certain Medtronic businesses and updated its 2017 guidance. The company now expects fiscal 2017 earnings per share to come in at the bottom of earlier guidance of $5.35 to $5.50, compared with the FactSet consensus of $5.42. Cardinal Health attributed the guidance to generic deflation in its pharmaceutical business. Cardinal Health expects the Medtronic deal, which is for the company’s patient care, deep vein thrombosis and nutritional businesses and should close in the first quarter of fiscal 2018, to add at least 21 cents to EPS that year. Still, Cardinal Health expects EPS to be flat to down mid-single digits for fiscal year 2018, due to “several company-specific discrete items” that it did not specify and generic deflation. The Medtronic businesses encompass 23 product categories and include brands used in nearly every U.S. hospital, Cardinal Health said, with the businesses bringing in $23 billion in revenue for 12 months through October 2016. Company shares have surged 8.0% over the last three months, compared with a 3.4% rise in the S&P 500 .

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In a surprise move, U.K. Prime Minister Theresa May has announced plans for an early general election on June 8. In an unscheduled speech delivered Tuesday morning, May said an election is needed because other parties in parliament are opposed to the Conservative-led government’s Brexit plans.

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The pound dropped against all other major currencies on Tuesday morning after news U.K. Prime Minister Theresa May will make an unscheduled statement at 11:15 a.m. London time, or 6:15 a.m. Eastern Time. The unusual move sparked speculation May could call a snap election, as statements by the prime minister usually are reserved for significant announcements, according to the British press. Downing Street confirmed May will make a statement after her Cabinet meets on Tuesday, but declined to say what it will be about. Sterling dropped to $1.2530 after trading as high as $1.2608 earlier on Tuesday. Against the euro, the pound dropped to €1.1760, falling from an intraday high of €1.1833. “There are unconfirmed rumors at this stage circulating that Theresa May might be stepping down, while there are other reports going around that this could be linked to the announcement of a U.K. general election. Truth be told, nobody is really that aware of what is going on, but this uncertainty has caused a reaction in the sterling,” said Jameel Ahmad, vice president of market research at FXTM in a note. May has repeatedly denied she will call a snap election before the next planned vote in 2020.

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From:: Stock Market News

The pound dropped against all other major currencies on Tuesday morning after news U.K. Prime Minister Theresa May will make an unscheduled statement at 11:15 a.m. London time, or 6:15 a.m. Eastern Time. The unusual move sparked speculation May could call a snap election, as statements by the prime minister usually are reserved for significant announcements, according to the British press. Downing Street confirmed May will make a statement after her Cabinet meets on Tuesday, but declined to say what it will be about. Sterling dropped to $1.2530 after trading as high as $1.2608 earlier on Tuesday. Against the euro, the pound dropped to €1.1760, falling from an intraday high of €1.1833. “There are unconfirmed rumors at this stage circulating that Theresa May might be stepping down, while there are other reports going around that this could be linked to the announcement of a U.K. general election. Truth be told, nobody is really that aware of what is going on, but this uncertainty has caused a reaction in the sterling,” said Jameel Ahmad, vice president of market research at FXTM in a note. May has repeatedly denied she will call a snap election before the next planned vote in 2020.

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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From:: Stock Market News