Posts by Yahoo Finance
There’s no rest this Friday for Wall Street. Stocks started the day mixed as more earnings poured in and investors got their first look at economic growth in the third quarter.
The US economy grew at its fastest pace in two years driven by a surge in exports and as companies boosted inventories. The Commerce Department reported that GDP came in an annualized rate of 2.9 percent last quarter, which was better than economists expected.
Amazon disappoints investors
Amazon’s (AMZN) third-quarter earnings missed analyst expectations by a wide margin and revenue was in line with estimates. Amazon blamed big investments in warehouses and video. The company built 18 fulfillment centers during the quarter and plans to build more. Investors are also responding to Amazon’s forecast for operating income in the fourth quarter ranging from nothing to $1.25 billion. Haven’t we seen this movie before?
Stocks to watch
Uber’s Jetson vision
It’s a jam-packed day on Wall Street as investors mull over more earnings and fresh data on the economy. An early morning rally in stocks has evaporated as the selling in global bonds intensified.
Tesla (TSLA) delivered only its second profitable quarter in its history. That surprised analysts who were expecting a loss. The company also beat Wall Street’s revenue forecast. The company’s last profitable quarter was in 2013, and the pressure was on this time because CEO Elon Musk needs cash to build the company’s mass market Model 3. Will he be able to make good on Tesla’s goal of delivering 500,000 vehicles in 2018?
Twitter (TWTR) is flapping its wings. The struggling social media company delivered better-than-expected earnings and revenue for the third quarter. Twitter reported 317 million monthly active users. That’s a rise of 3% from a year ago. The company also said it would eliminate about 350 jobs, or 9% of its workforce. Twitter shares have had a bumpy ride since speculation first started swirling about a potential takeover.
Wall Street is combing through another big pile of corporate earnings. All three major averages (^GSPC, ^DJI, ^IXIC) are lower across the board after a disappointing outlook from Apple and as crude prices (CL=F) fall for the third straight day.
The Apple half full
Apple (AAPL) shares are lower after the company’s fiscal fourth-quarter earnings failed to impress investors even though Apple beat profit forecasts and essentially matched revenue projections. Investors seem to be focused instead on Apple’s profit margin forecast for the current quarter, which fell short of expectations. Are investors missing the point?
Stocks to watch
Boeing (BA) reported earnings and revenue that handily topped analysts’ estimates. Profit jumped nearly 34% from a year ago. The company also lifted its outlook for the year as deliveries increased.
Stocks started the day mixed as investors navigate through a flood of earnings releases and wait for some key data on the economy.
Eyes on Apple
Investors have their eyes on Apple (AAPL). The company may report its third consecutive quarter of declining iPhone sales. Earnings may also fall year-over-year for the third time. But if Apple’s profits beat analyst expectations, the broader stock market could rally because Apple has the biggest market value of any company in the S&P 500. What products will drive growth going forward?
Caterpillar (CAT) forked over earnings that topped analysts’ estimates, but revenue fell short of forecasts. Revenue fell more than 16% from a year ago. The company also cut its outlook for the year as it sees economic weakness in the global economy persisting.
Merck (MRK) delivered a beat on both its top and bottom lines for the third quarter. Profit jumped nearly 20% from a year ago, driven largely by strong demand for its new cancer drug Keytruda.
Investors are reviewing AT&T’s (T) $107.50-a-share offer for Time Warner (TWX) in a stock-and-cash deal valued at more than $85 billion. AT&T is the nation’s second biggest wireless phone carrier and already owns Direct TV. The proposed deal with Time Warner would make AT&T the owner of Time Warner assets like CNN and HBO. The deal will face intense scrutiny from antitrust regulators and faces opposition from politicians ranging from Donald Trump to Bernie Sanders. What does it mean for consumers?
More M&A action
Too big to fail?
Brexit and the cloud
Wall Street slipping to end the week as mixed earnings reports, and a stronger dollar, weigh on stocks. Catch The Final Round at 4p ET with Yahoo Finance editor-in-chief Andy Serwer, Cathie Wood of Ark Invest, and reporter Jared Blikre.
Winners and losers
Let’s take a look at some of today’s winners and losers. Stocks finishing the week lower include Skechers as the footwear maker forecast weaker-than-expected fourth-quarter revenue, Twilio as the cloud communications firm priced its secondary offering of 7 million shares at $40; and AMD, with shares of the chipmaker getting zapped after its sees fourth quarter revenue declining around 18% sequentially. The soft outlook is overshadowing a better-than-expected Q3.
Congress to review ‘obsolete’ gambling laws
Finally a congressional committee is reviewing federal gambling laws, including a 24-year-old ban on sports betting, with the aim of creating comprehensive legislation that could legalize activities like daily fantasy sports and other types of gaming. For more on this story we are joined by Yahoo Finance’s Dan Roberts.
Stocks (^DJI, ^GSPC, ^IXIC) are rallying at the midday mark, with the energy sector (XLE) taking the lead and consumer staples (XLP) the most in the red. Keith Bliss of Cuttone & Co. joins us live from the New York Stock Exchange.
To discuss the other big stories of the day , Alexis Christoforous is joined by Yahoo Finance editor-in-chief Andy Serwer and Mark Martiak, senior wealth strategist at Premier Wealth First Allied Securities.
Seventy of the S&P 500 companies have now reported. Of these, 78% have beaten their earnings-per-share estimates, and 60% have beaten on revenue. Overall, it’s a 4.0% beat for those 70 companies, but after estimates are included for the remaining, expectations are for a decline of -1.0%. That’s according to FactSet.
Yahoo Finance at Yahoo Finance 5 mths ago
For decades, economic textbooks have highlighted the golden relationship between productivity and wages. As workers are able to produce more, employees reap the gains in the form of higher wages.
But this is no longer the case.
Wages and productivity climbed in lockstep between 1950 and 1980. However, there is a striking divergence between the 1980s and today.
Even with the unemployment rate near multi-decade lows, Federal Reserve Chair Janet Yellen highlighted concerns about the lack of wage growth and underemployment during her speech at Harvard last month.
“We're close to an unemployment rate that I think most economists would associate with our full employment goal. But the number of individuals working part-time who would like to have full-time jobs is unusually high,” Yellen said. “And we've really not seen much improvement in wage growth, which is suggestive of some slack in the labor market.”
Why are the gains in productivity not going back to employees?
During the Great Recession, nearly 10 million jobs were lost. And, while there have been significant job gains since then, they haven’t been the same type of jobs.
Yahoo Finance at Yahoo Finance 5 mths ago
Thinx is revolutionizing the $15 billion feminine hygiene market with its new “period-proof underwear.”
Thinx co-founder and CEO Miki Agrawal told Yahoo Finance’s Alexis Christoforous in the video above that Thinx is “breaking the taboo surrounding menstruation” by disrupting a category that has only had three major innovations in the 20th century.
“This is one of the first few products made by women for women. Most feminine hygiene products were invented by men, like the tampon,” said Agrawal. “This product really considered all the desires and all the needs women need. ”
Agrawal explained that the needs she was referring to were that the products needed to “look and feel like a regular pair of underwear” and “have the appropriate functionality.”
Thinx underwear comes in six styles, from hiphuggers for “heavy days” which according to Thinx is equivalent to two tampons, to the thong, which is for a woman’s “lightest days.”
In terms of what’s next for the company, Agrawal said there’s more planned for Thinx in the future. “We’re scaling new products. We’re disrupting different aspects of the feminine hygiene market.”