Hot Stock Minute
- Dean Arrindell at Hot Stock Minute42 mins ago
Tesla Motors (TSLA) CEO Elon Musk said he expects to be making cars in China in the next three to four years. The company is preparing to begin deliveries of the Model S electric vehicle in China this month, and is building a network of battery charging stations throughout the country. In the associated video, Yahoo Finance Editor-in-Chief Aaron Task talks with Lauren Lyster about Tesla potentially manufacturing its vehicles in China.
Selling cars that are manufactured in the country would allow Tesla to avoid paying a 25% import tariff. However Task – who disclosed he owns Tesla stock – points out that manufacturing cars in the country would mean they’d also have to share technology with China. “I can’t imagine that Elon Musk and Tesla would want to do that.”
- Deirdre Hughes at Hot Stock Minute1 hr ago
The disappearing manufacturing industry in the United States is causing some U.S. cities to start disappearing, or at least to start shrinking even as the nation’s population rises. 24/7 Wall Street and USA Today report that 30 U.S. metro areas saw their population shrink at least 1% between 2010 and 2013. And it’s no coincidence that the cities that saw the sharpest decline are located in areas that once were driven by manufacturing: Pennsylvania, Ohio and Michigan, among others.
The sharpest decline overall was in Pine Bluff, Arkansas, which saw a 4.4% decline in population between 2010 and 2013, according to 24/7 Wall Street’s analysis of U.S. Census data. That’s more than 1,000 people per year leaving the area. One reason for the exodus is almost certainly a lack of jobs. Pine Bluff’s unemployment rate was over 10% last year.
- Deirdre Hughes at Hot Stock Minute2 hrs ago
Shares of Sarepta Therapeutics (SRPT) surged in pre-market trading after the pharmaceutical company announced plans to submit a new drug application to the Food and Drug Administration for a muscular dystrophy treatment by the end of this year. The company today said it received guidance from the FDA that will allow it to apply for regulatory approval of its eteplirsen treatment for Duchenne Muscular Dystrophy.
Busy week for the markets; Report: talks of $100B deal between two drug giants; America's fastest-shrinking citiesDean Arrindell at Hot Stock Minute3 hrs ago
Another busy earnings week lies ahead. More than 150 S&P 500 (^GSPC) companies are scheduled to report this week. Among the stock we will be watching are: Netflix (NFLX), which reports after the bell today, McDonald's (MCD) tomorrow, Facebook (FB) on Wednesday, Amazon (AMZN) on Thursday and Ford (F) on Friday. The markets ended in positive territory last week, with the Nasdaq (^IXIC) breaking a three-week losing streak.
- Deirdre Hughes at Hot Stock Minute3 days ago
Federal Reserve Chair Janet Yellen this week said the Fed's current forecast projects the economy could be recovered and full employment restored within a little more than two years. By the Fed’s definition, “maximum employment” means an unemployment rate between 5.2% and 5.6%. Speaking at the Economic Club of New York in just her second public speech since taking the top job at the Fed, Yellen said, “If this forecast was to become reality, the economy would be approaching what my colleagues and I view as maximum employment and price stability for the first time in nearly a decade. I find this baseline outlook quite plausible.” Her comments were in the context of how Fed policy might look depending on where the economic recovery stands.
You and 5 million other Americans back to work
- Deirdre Hughes at Hot Stock Minute3 days ago
- Dean Arrindell at Hot Stock Minute3 days ago
What’s going on with IPOs?
Host Lauren Lyster posed that questions to Breakout host Jeff Macke and Leigh Drogen, CEO of Estimize. Weibo (WB), dubbed the Chinese version of Twitter, began trading today. The company, which is owned by web-portal Sina (SINA), raised $286 million, less than expected and priced its IPO at $17, near the low end of the range. Sabre (SABR), the parent company of travel website Travelocity, also made its stock market debut today. It sold 39.2 million shares at $16. The company was expected to sell 44.7 million shares in the $18 to $20 range.
Lyster asked if the lackluster performance of other IPOs in the last few weeks is due to less of an appetite for risky stocks.
- Dean Arrindell at Hot Stock Minute4 days ago
Quarterly reports of two consumer-oriented stocks released this morning had very different results. Leigh Drogen, CEO of Estimize and Yahoo Finance's Jeff Macke joined Lauren Lyster to discuss toymaker Mattel (MAT) and burrito chain Chipotle Mexican Grill (CMG).
Mattel, maker of the iconic Barbie and Fisher-Price toys, reported a loss $11.2 million or $0.03 per share. Worldwide sales for Barbie and Fisher-Price brands both fell, 14% and 6% respectively, though sales for its American Girl line rose 5%. Total worldwide sales fell 5% to $946.2 million.
Drogen said, “Kids aren’t playing with these dolls anymore. They’re playing with apps,” he said. "Look at Candy Crush. It’s making a ton of money.”
Macke agreed. “So make apps, Mattel,” he said. Macke compared Mattel to Coca-Cola (KO), saying that soda sales are in decline. So, what did they do? “Coca-Cola went out and bought a bunch of water instead,” Macke said, referring to their $4.2 billion purchase of Glaceau, maker of Vitaminwater and Smartwater, in 2007.
A flood of big-name earnings reports: Goldman Sachs, Morgan Stanley, American Express, IBM, Google, Mattel, ChipotleDeirdre Hughes at Hot Stock Minute4 days ago
A flood of big-name earnings reports came in this morning and after the close yesterday in what will be the busiest day yet for the first quarter earnings season. Six Dow components reported, plus Google, Mattel, Chipotle and Pepsi.
The headliners this morning were Goldman Sachs (GS) and Morgan Stanley (MS), both of which reported better-than-expected earnings. Goldman Sachs beat earnings-per-share estimates handily, coming in at $4.02 a share versus expectations of $3.45 a share. Revenue was up nearly 10% over last year. Morgan Stanley, meanwhile, also beat earnings and revenue estimates. Revenue was up nearly 4% year over year. The company also doubled its dividend to $0.10 a share.
- Deirdre Hughes at Hot Stock Minute4 days ago
The Dow (^DJI) gained 1.00% today, The Nasdaq (^IXIC) 1.29% and the S&P 500 (^GSPC) 1.05%. Federal Reserve Chair Janet Yellen, speaking to the Economic Club of New York, said a healthy economy could be reached within two years. Yellen said Federal Reserve governors and economists see a return to full employment and stable prices by the end of 2016.
Yellen also said the longer it takes to reach the Fed’s targets for employment and inflation, the longer the Fed will hold the key Federal Funds Rate at its current level, near zero.