Tag: stock market

The U.S. stock market opened slightly lower on Wednesday as investors awaited a string of speeches by Federal Reserve officials. Traders are also tracking the U.K.’s invocation of Article 50, which officially starts that country’s withdrawal from the European Union. The S&P 500 opened 4 points, or 0.2%, lower at 2,354. Shares of Vertex Pharmaceutical Inc. jumped 20% as one of its drugs had completed late-stage trials. The Nasdaq Composite fell 2 points, or less than 0.1%, at 5,873. The Dow Jones Industrial Average was down 43 points, or 0.2% at 20,656 at the open.

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.

…read more

From:: Stock Market News

Capital One Financial Corp. was upgrade to buy from neutral at Instinet, which cited a more bullish outlook on the credit card issuer’s focus on higher-risk customers. Analyst Bill Carcache raised his stock price target to $105, which is 25% above Tuesday’s closing price of $84.17, from $97. Carcache said that Capital One has stood out as the only major card issuer that has increased its mix of subprime customers since the Great Recession, while its rivals, such as Bank of America Corp. , Citigroup Inc. , Discover Financial Services , J.P. Morgan Chase & Co. and Synchrony Financial , have been cutting their subprime exposure. “We’ve now reached a point in the cycle where we believe [Capital One’s] subprime bet is about to pay off, handsomely,” Carcache wrote in a note to clients. The stock, which was still inactive in premarket trade, has lost 3.5% year to date, while the SPDR Financial Select Sector ETF has tacked on 2.2% and the S&P 500 has gained 5.4%.

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.

…read more

From:: Stock Market News

Shares of footwear company Skechers U.S.A Inc. were down more than 5% in premarket trade on Wednesday after Susquehanna Financial Group downgraded the stock to negative from positive. Analysts at Susquehanna expect Skechers’ domestic wholesale to disappoint as the company faces ongoing challenges likely to result in less expense leverage than Wall Street anticipates. Skechers is also suffering from increased competition when it comes to retailers buying additional inventory. With Nike Inc. holding its usual demand and brands such as Adidas AG and Puma gaining traction, Skechers is being crowded out, writes lead Susquehanna analyst Sam Poser. Retailers are even planning incremental dollars to fund Under Armour Inc. , according to Poser. “While we continue to believe Skechers’ product suite has markedly improved, our proprietary checks indicate that initial sell-through and order-flow in the domestic wholesale business is trending short of expectations and will remain challenged.” Poser wrote in a note to clients. “We don’t believe upside will materialize. While we recognize international wholesale now encompasses about 40% of Skechers’ business, we believe sentiment remains closely tied to it domestic business.” Shares of Skechers are down 2.7% in the last 12 months, while the S&P 500 index has gained nearly 15%.

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.

…read more

From:: Stock Market News

International Data Corp. (IDC) said it expects global spending on security technology to rise to $81.7 billion in 2017, up 8.2% from a year ago. Spending on security-related hardware, software and services is expected to “accelerate slightly” over the next several years, achieving a compound annual growth rate of 8.7% through 2020, with industry revenue projected to approach $105 billion. “The rapid growth of digital transformation is putting pressures on companies across all industries to proactively invest in security to protect themselves against known and unknown threats,” said Eileen Smith, a program director at IDC. She said the banking, discrete manufacturing and government industries will spend the most on security technology. Of the three security-related areas, services will be the largest area of spending, IDC says. The SPDR Technology Select Sector ETF has rallied 10% year to date, while the S&P 500 has gained 5.4%.

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.

…read more

From:: Stock Market News

Shares of Dunkin’ Brands Group Inc. fell 2.8% in premarket trades Wednesday, after the doughnut retailer was downgraded to sell from neutral at Goldman Sachs. Analysts led by Karen Holthouse said unit growth risk and exposure to winter storms in the Northeast are pressures on a stock that is trading at the high end of its valuation range. “Outsized exposure to winter storms in the Northeast (55% of footprint vs. 20% for our coverage) presents some risk to 1Q17 results; however, we believe the larger challenge stems from McDonald’s McCafe and 7-11’s breakfast promotions in the quarter,” they wrote in a note. Goldman lowered its stock price target to $47 from $48 and cut its below-consensus 2017 to 2019 EPS estimates by 1%. Shares have gained 7% in the year so far, outperforming the S&P 500’s 5% gain.

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.

…read more

From:: Stock Market News

Financial services firm Cowen Group Inc. said Tuesday it has agreed a strategic partnership with China Energy Company Ltd, or CEFC, under which the Chinese company will acquire a 19.9% stake in Cowen. CEFC will pay about $100 million for the stake and will provide Cowen with debt financing of $175 million in the form of a loan. CEFC is the largest private company in Shanghai and seventh largest private company in China, according to a joint statement. CEFC will pay $18 a share for the stake, equal to a 29.5% premium over Cowen’s closing share price on March 28. CEFC will have the right to appoint three directors to the Cowen’s board, boosting the total to eleven. The equity investment and debt financing are expected to close by the end of the third quarter. Cowen shares were halted premarket for the news, but have lost 10% in the year so far, while the S&P 500 has gained 5%.

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.

…read more

From:: Stock Market News

Smith & Wesson parent American Outdoor Brands Corp. said Wednesday that a new $50 million stock repurchase program was approved, on the same day that it completed its previous $50 million program. The new program runs through March 28, 2019. Since 2012, the guns and firearms accessories maker said it has reduced its public float by 25.6% by buying back a total of 16.9 million shares at an average price of $12.67, which is 48% below Tuesday’s closing price of $18.75. The stock, which was indicated up about 0.4% in premarket trade, has tumbled 11% year to date through Tuesday, while the S&P 500 has gained 5.4%.

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.

…read more

From:: Stock Market News

The U.K. government letter formally starting the Brexit process has been received by Donald Tusk, president of the European Council, kicking off two years of negotiations. The letter, which invokes Article 50 of the Lisbon Treaty, formally states the U.K.’s intention to withdraw from the European Union. It was handed over at lunchtime Wednesday in Brussels after being signed by British Prime Minister Theresa May the day before. “After nine months, the U.K. has delivered,” Tusk said in a post to Twitter. Speaking to lawmakers in the House of Commons, May said, “This is a historic moment, and there’s no turning back.” The pound nudged higher to $1.2468 after the letter’s delivery, after dropping to $1.2456 late Tuesday. U.K. stocks stayed 0.3% lower for the session, with the FTSE 100 at 7,332.69.

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.

…read more

From:: Stock Market News

BuzzFeed is making plans to go public in 2018, media site Axios reported, citing unnamed industry sources. The website, which started life with mostly viral videos involving cats, has grown into a news site with an entertainment division including an L.A. studio, has long planned to go public, Axios reported. BuzzFeed Chief Executive Jonah Peretti has turned down past offers from media companies, it said.

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.

…read more

From:: Stock Market News

U.S. nuclear power company Westinghouse Electric Co. plans to file for Chapter 11 bankruptcy protection, after the board of its parent company, Japan’s Toshiba Corp. , approved the move Wednesday, according to a report by Nikkei news service. Cost overruns at Westinghouse’s nuclear projects in Georgia and South Carolina have weighed heavily on Toshiba, which warned in February it may face up to a $6.2 billion writedown from its nuclear energy business. Toshiba bought Westinghouse in 2006 for $5.4 billion. The Japanese conglomerate also intends to spin off its memory-chip unit at the end of March to raise much-needed capital.

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.

…read more

From:: Stock Market News