Stocks fell back in afternoon trading Tuesday as traders digested remarks by Fed chief Jerome Powell to the Council on Foreign Relations. Drug stocks Allergan and Incyte were among the few bright spots. Markets began weakening following remarks from St. Louis Federal Reserve Bank President James Bullard that a quarter-point interest rate cut would be appropriate.
The money-losing company's shares now trade at around 21 times estimated sales, more expensive by that measure than any technology stock in the S&P 500 Index. In addition to online sales, Shopify now competes with companies like Square Inc. at the point of sale in brick-and-mortar stores. Last week, Ottawa-based Shopify said it plans to spend $1 billion on a chain of fulfillment centers that would pit it even more directly against Amazon.com Inc.
Roku, a platform for video-streaming services, has lost about 12% over the four-day slump. “Roku is in a very favorable position, where it can exploit the large investments being made by participants in the video category -- not just Netflix, but also Amazon, Apple and Disney,” he told Bloomberg in a phone interview. Roku's second-quarter results are estimated to come out on August 7, according to data compiled by Bloomberg.
Shares of Tesla Inc fell 1.3% on Tuesday after news website Electrek reported that the electric-car maker has so far delivered 49,000 vehicles in North America during the second quarter and may miss its quarterly target. Chief Executive Officer Elon Musk had said last month that the company was on course to deliver a record number of cars in the quarter, beating the 90,700 it sent to customers in the final quarter of last year. Tesla did not immediately respond to a request for comment.
Employees at Boston-based Internet retailer Wayfair are preparing to demonstrate on Copley Square on Wednesday following the company's alleged refusal to cease doing business with contractors furnishing border camps. In a tweet from the Twitter account, Wayfairwalkout, the employees are asking Wayfair donate $86,000 to Raices, a nonprofit agency that provide free and low-cost legal services to immigrant children, families and refugees. Wayfair did not immediately respond to a request for comment from the Business Journal. According to a letter addressed to Wayfair's leadership team, the online furniture retailer sold “over $200,000 worth of bedroom furniture” to BCFS, a nonprofit government contractor managing camps for migrants at the Southern border.
The majority of U.S. customers are eager to purchase an “American made” vehicle, but the bulk of the top 15 cars that contribute the most to the economy are actually produced by foreign automakers, according to a new ranking released on Tuesday. The most American-made vehicle in 2019, which includes criteria such as the number of factory jobs and where parts are sourced, was the Jeep Cherokee, according to Cars.com annual ranking. While it is built in Belvidere, Illinois, Jeep is owned by Italian-American carmaker Fiat Chrysler.
There was a whole lot of high-powered bet-hedging going on Monday morning at the SMC3 summer meeting in Colorado Springs, Colorado, as four top executives expressed optimism about the second half of the year, but sprinkled their bullishness with more than a few caveats. None of the panelists – two CEOs of less-than-truckload (LTL) carriers, the CEO of the nation's largest brokerage and the president and COO of a truckload carrier, didn't try to sugarcoat the current mediocre state of affairs across trucking. Darren Hawkins, CEO of LTL carrier YRC Worldwide, Inc. (NASDAQ: CHRW), mused on how his segment could go from turning away business at this time last year to reporting negative tonnage in the second quarter.
Zoom Video plunged Monday, threatening to be its worst one-day percentage loss yet, starting to fill in the gap after earnings earlier this month. The stock has done very well since its IPO, but many hot IPO stocks are retreating. So are many growth software names today.
The cryptocurrency rose to €10,024 at 13:10 UTC today – a level last seen on Jan. 21, 2018 – according to CoinDesk's Bitcoin Price Index, as prices refreshed 15-month highs in US dollar terms with a move above $11,400. On a month-to-date basis, BTC/EUR is up about 28.7 percent, while BTC/USD is flashing a 31.2 percent price rise. Bitcoin's underperformance in EUR terms could be associated with the fact that the 17-nation currency has strengthened 2 percent against the greenback this month.
Last week, Bitcoin Cash (BCH) was slowly recovering from a substantial dip earlier in the month that saw its price plummet from around $440 to $389, representing an 11% drop. Bitcoin Cash broke the $330 level around its 200-day EMA in early May, and the 20-day EMA has now moved above the 200-day EMA – a clear bullish signal. To the downside, Bitcoin Cash could eventually fall and touch the $420 support level again.
In the last few weeks, two companies have exported two small cargoes from the formation, one of light oil, the other of liquefied natural gas, foreshadowing what industry officials say will be a steady flow of shipments by the end of the year. It's way too early to declare victory -- any number of logistical and economic hurdles remain. But it's the first sign that all the money and time invested might actually pay off, and turn Argentina back into the global energy provider it used to be well over a decade ago.
In September, Amazon.com Inc. (AMZN) sent cities across the U.S. scrambling to woo the e-commerce and cloud computing giant to become home to its second headquarters. Earlier this month, Amazon narrowed its list down from 238 bidders to 20 cities and regions, including one in Canada: Toronto. "We believe the top 5 likely cities for Amazon's second headquarters/HQ2 in order will be: 1.
Federal Reserve Chairman Jerome Powell delivers remarks about the state of the U.S. economy and Fed monetary policy at the Council on Foreign Relations in New York.
Americans who are nearing retirement age have about $200,000 in their 401(k) accounts on average, a new survey found. According to Vanguard's “How America Saves 2019” report, published this month, the average American worker aged 65 and older has about $192,877 in their 401(k) and a median balance of around $58,035. While their median balance is slightly below that age group as well — by about $3,700, it's still considerable since many start tapping into their 401(k) starting at 65.
Google is warning employees not to show up at the San Francisco Pride parade this weekend expecting to protest their employer while riding the official company float, saying that would violate the company's code of conduct, The Verge reports. For nearly a month, Google employees have internally protested YouTube's decision to continue hosting videos from conservative comedian Steven Crowder, who has repeatedly targeted a gay journalist from Vox, using racist and homophobic language. A group of Google employees this week reached out to the team organizing the Mountain View search giant's participation in Pride, asking if they'd be allowed to protest YouTube's decision while marching with their employer.
After many Americans in high-tax states saw the impact of the $10,000 cap on state and local tax (SALT) deductions on their returns this filing season, experts have told FOX Business that more and more individuals are looking for ways to mitigate the increased financial burden – which can mean moving to lower-tax states. While states with no income tax have gotten most of the attention, including Florida, Texas and Nevada, there may be a closer option for residents in the Northeast – Pennsylvania. The Keystone State could attract disgruntled residents from nearby high-tax states like New York, New Jersey and Connecticut.
The price tag caused some heartburn on Wall Street, with AbbVie declining as much as 16% to $66 at 1:38 p.m. in New York, putting the stock on course for its worst single-session drop since the drugmaker was spun off from former parent Abbott Laboratories. AbbVie will pay $188.24 a share in cash and stock, according to a statement, a 45% premium to Allergan's closing price on Monday. “Allergan, with its well-known Botox, is being used to smooth the wrinkles this time not of a face but of a company,” said David Maris, an analyst with Wells Fargo.
Slowing global economic growth and demand concerns have WTI crude oil prices down more than 20% from a year ago. Oil investors were hoping for much higher prices in 2019 than the mid $50s per barrel, and the energy sector has once again lagged the market significantly this year. Bank of America analyst Doug Leggate recently lowered his oil price forecast for the second half of 2019 from $68 per barrel to $63, but Leggate says there are still plenty of value opportunities among oil stocks today.
Big drug hating politicians may want to think twice before hopping on the boob tube or working behind the scenes to attack and prevent a fresh wave of pharma industry consolidation. In some respects, the need to cost effectively develop the next blockbuster drug for an aging population has caused big drug companies to consider joining forces as seen in Tuesday's news of Abbvie buying Allergan. So while tempting, politicians seeking re-election should consider leaving their usual whipping boy — Big Pharma — alone for now say people Yahoo Finance has chatted up.
Federal Reserve Chairman Jerome Powell said Tuesday afternoon that the Fed is “insulated” from short-term political pressure, warning that huge policy mistakes can happen when the Fed is influenced by the White House. “Congress chose to insulate the Fed this way because it had seen the damage that often arises when policy bends to short-term political interests,” Powell said at a speech in New York. Powell later added that central banks across the world have experienced episodes of lacking political independence, which lead to “bad things” happening.
Tesla, Inc. (TSLA) shares rose more than 3% on Monday after Elon Musk warned short sellers that they had about three weeks until their positions "explode." With the company set to update on second quarter production and deliveries in early July, many traders are speculating that these figures will be better than the market is expecting and lead to a short squeeze. The stock has rallied significantly higher since the beginning of the month, when Elon Musk first suggested that the company was "quite likely" to meet its Model 3 production goals of 5,000 vehicles per week by the end of June. In the middle of the month, he also purchased 72,000 shares of stock in what was seen as a vote of confidence, bringing his total holdings to about 33.74 million shares.
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Bears have increasingly criticized Tesla's cash position as it faces pressure to ramp up production for its first mass-market vehicle, the Model 3 sedan. Some investors are losing confidence in serial entrepreneur and angel investor Elon Musk, who despite his history of beating the odds, has continually delayed targets for his Palo Alto, California-based automaker at a time when it faces heightened competition from traditional car companies and EV startups.
A string of surprises and missed expectations set off a sharp plunge in Tesla stock this year. But with production of the Tesla Model 3 accelerating and the company's Model Y and pickup truck in development stages, can Elon Musk defy skeptics and get the electric-car maker surging again? Musk, the company's mercurial chief executive, touted the potential for a record second quarter at Tesla's annual shareholder meeting in mid-June.
Tesla Inc.'s (TSLA) analysts have been turning more bullish in recent weeks despite the latest news that Elon Musk is looking to take the company private for $420 per share. Since the electric automaker reported results on August 1, analysts have been aggressively upping their earnings estimates for the company, taking forecasts for next year up by more than 68%. The Bloomberg Model 3 tracker now estimates Tesla is producing more than 5,800 Model 3's per week.