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Stock Market News For May 9, 2018

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Leidos (LDOS) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

Markets erased initial loses to end almost flat on Tuesday following President Donald Trump’s announcement that the United States was withdrawing from the Iran nuclear deal. The broader energy sector overcame earlier losses, as oil prices erased declines on anticipation that sanctions would disrupt crude supplies globally. This saw the S&P 500 ending the day slightly lower. However, the Dow and Nasdaq managed to end the day a shade higher than the previous session.

The Dow Jones Industrial Average (DJI) gained less than 0.1%, to close at 24,360.21. The S&P 500 declined less than 0.1% to close at 2,671.92. The Nasdaq Composite Index closed at 7,266.90, increasing 0.02%. A total of 6.9 billion shares were traded on Monday, higher than the last 20-session average of 6.5 billion shares. Advancers outnumbered decliners on the NYSE by a 1.04-to-1 ratio. On Nasdaq, a 1.19-to-1 ratio favored advancing issues.

How did the Benchmark Perform?

The Dow gained 2.89 points after rising declining as much as 160 points at one time following Trump’s announcement. Shares of Verizon Communications Inc. VZ declined 1.5%, while Nike, Inc. NKE fell 1.3%. However J.P. Morgan Chase JPM was the best performing stock, gaining 1.5%. J.P. Morgan Chase has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

The S&P 500 lost 0.71 points, with seven of the 11 major sectors ending in negative territory. The losses were led by the Utilities Select Sector SPDR (XLU) that declined 2.5%. However, the Energy Select Sector SPDR (XLE) and Financial Select Sector SPDR (XLF) gained 0.8% and 0.7%, respectively. Meanwhile, the tech-heavy Nasdaq gained 1.69 points.

U.S Pulls Out of Iran Nuclear Deal

As was widely expected, on Tuesday Trump announced that the United States would be pulling out of Iran nuclear deal and would re-impose sanctions on that country. The international agreement was signed in 2015 and required Iran scale back its nuclear program in exchange for relief from the United States and its allies. Expectations surrounding the announcement led to markets sinking on Monday after hitting the highest level since 2014.

On Tuesday, markets witnessed a choppy session with oil prices initially decreasing on expectations that Iran could increase its oil production in order to sell as much oil as it could before sanctions come into effect.

Oil Price Hits a High Before Falling Again

Trump’s announcement to withdraw from the Iran nuclear deal did not do much to boost oil prices on Tuesday. The broader energy sector overcame earlier losses, as oil prices erased initial declines on anticipation that sanctions would disrupt global crude supplies. The United States’ withdrawal from the deal would mean re-imposition of sanctions, which would escalate the demand of oil compared to production, thus boosting up oil prices.

However, markets took a hit on anticipation that Iran in the meantime would ramp up its oil production and try to sell as much oil as it can before the sanction become effective. This saw oil prices fall. However, markets partially recovered their losses once the bigger picture emerged that oil prices are most likely to turn higher in the future as once the sanctions come to effect. For the day, WTI crude declined 2.4% to $69.06 a barrel and Brent crude slipped 1.7% to settle at $74.85 a barrel.

Stocks That Made Headlines

AB InBev (BUD) Q1 Earnings Lag, Global Brands Aid Sales Beat

Anheuser-Busch InBev SA/NV BUD, alias AB InBev, reported first-quarter 2018 results, wherein earnings lagged estimates while sales topped(Read More)

Fossil (FOSL) Loss Narrows Y/Y in Q1, Sales Deteriorate

Fossil Group Inc. FOSL released first-quarter 2018 results, wherein both the top and bottom line came ahead of the Zacks Consensus Estimate for the third straight time, and comparable store sales (comps) also increased year over year. (Read More)

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

  • Finance
    CNBC

    China's stock market is getting pummeled and history shows that is bad news for US markets

    U.S. stocks are lower about 70 percent of the time in periods when there are big drops of 10 percent or more in Shanghai stocks, according to analytics firm Kensho. The main U.S. indexes lose about 5 percent when Shanghai stocks fall 10 percent or more in a 30-day period. Big blue chips, like Goldman and Caterpillar are among the losers, but copper and oil also fall hard when Shanghai sees a big decline.

  • U.S. probes 54,400 Ford trucks over tailgate complaints
    Business
    Reuters

    U.S. probes 54,400 Ford trucks over tailgate complaints

    The National Highway Traffic Safety Administration (NHTSA) said Thursday it had opened a preliminary investigation into 54,400 Ford Motor Co pickup trucks after receiving five complaints that tailgates had unexpectedly opened while the vehicles were in motion. The agency said the investigation was looking into the issue in 2017 model year F-250 and F-350 Super Duty pickup trucks. NHTSA will investigate to determine if the issue poses an unreasonable risk to safety and whether the agency should seek a recall.

  • Finding a Cure for Kinder Morgan’s Frustration
    Business
    Bloomberg

    Finding a Cure for Kinder Morgan’s Frustration

    Rising profits – Ebitda was up 6 percent, year over year – and that Canadian pipeline sale have helped address Kinder Morgan’s biggest problem, its crushing debt. Thankfully, it provided a strong signal on Wednesday evening that it would.

  • Here's everyone who has dropped out of Saudi Arabia's 'Davos of the Middle East'
    Finance
    Yahoo Finance

    Here's everyone who has dropped out of Saudi Arabia's 'Davos of the Middle East'

    U.S. Treasury Secretary Steven Mnuchin tweeted Thursday that he will not be attending the Future Investment Initiative in Saudi Arabia next week. The news comes after prominent members of the world’s business community have been dropping out of Saudi

  • Cramer's lightning round: For growth and yield, go with V...
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    CNBC Videos

    Cramer's lightning round: For growth and yield, go with V...

    Jim Cramer speeds through his take on callers' favorite stocks, including his favorite pick for "decent growth with good yield."

  • Provocateur Stormy Daniels Takes an Unexpected Turn in the National Spotlight
    News
    Time

    Provocateur Stormy Daniels Takes an Unexpected Turn in the National Spotlight

    To understand what it means to be famous like Stormy Daniels, for the reasons she is famous, spend time with her in a public space. On Oct. 15, a California judge threw out the defamation case she filed against Donald Trump. Over the past year, Daniels, 39, has become the Zelig of White House scandals.

  • What happens if you win Mega Millions' $970M jackpot?
    Finance
    Associated Press

    What happens if you win Mega Millions' $970M jackpot?

    Despite the terrible odds — one in 302.5 million for those keeping score at home — someone will eventually match all six numbers and win the Mega Millions jackpot, which now stands at $970 million. Here are some answers for someone holding that prized lottery ticket for what would be the second-largest lottery jackpot in U.S. history. Lottery officials recommend winners take a deep breath, put their winning ticket in a safe spot and consult with a reputable financial planner before popping over to the lottery headquarters.

  • The ‘smart money’ says it’s time to buy the Chinese internet giants and the U.S. FAANGs
    News
    MarketWatch

    The ‘smart money’ says it’s time to buy the Chinese internet giants and the U.S. FAANGs

    When the media and investors turn negative on stocks but the “smart money” is bullish, it’s a good time to think about buying. After all, exactly what is the smart money, and how do you know? Lately, several fund managers who pass this test have been pounding the table on Chinese internet names.

  • Business
    CNBC

    Goldman Sachs sees a correction coming for chipmakers but still likes Nvidia

    "We foresee a cyclical correction approaching and recommend investors to stay selective in Semis," Goldman Sachs said in a note Thursday. Nvidia is Goldman's top choice in the industry. Goldman Sachs warned clients about a downturn coming for the semiconductor sector, but still recommends some chip stocks.

  • Aurora Cannabis Gets License for Aurora Sky Facility
    Finance
    Market Realist

    Aurora Cannabis Gets License for Aurora Sky Facility

    Key Updates from the Cannabis Sector after Legalization in Canada (Continued from Prior Part) Aurora Sky license On October 17, Aurora Cannabis (ACB) (ACBFF) announced that it received sales licenses from Health Canada. Aurora Cannabis stated that with

  • Activision Slips as Call of Duty Launch Sales May Disappoint
    Business
    Bloomberg

    Activision Slips as Call of Duty Launch Sales May Disappoint

    (Bloomberg) -- Activision Blizzard Inc. fell as much as 9 percent after announcing that its newest release, Call of Duty: Black Ops 4, passed $500 million in worldwide sales in its first three days of release -- a launch that Bloomberg Intelligence’s

  • 7 Stocks Warren Buffett Can’t Stop Buying
    Finance
    InvestorPlace

    7 Stocks Warren Buffett Can’t Stop Buying

    Sometimes identifying the best stocks to buy can be difficult, but you could do a lot worse than checking out the stocks selected by one of the world’s savviest hedge fund managers — Warren Buffett. Buffett’s stock picks are a popular source for investors, and for good reason. The billionaire Buffett is many things: He’s among the world’s most successful fund managers, a legendary philanthropist and owns more than 60 companies.

  • Netflix needs lower prices to woo India
    Business
    Reuters

    Netflix needs lower prices to woo India

    MUMBAI/BENGALURU (Reuters) - Netflix Inc's (NFLX.O) Indian operation drew attention in a surge of international subscribers in the third quarter, but it faces fierce competition and a difficult cultural conundrum to make inroads with the country's more than one billion TV viewers. In a few short months, the world leader in video streaming has launched a blockbuster Mumbai-based crime thriller, been sued over comments about a former Indian Prime Minister and seen the future of two of its hit shows threatened by the #MeToo movement in India. Helped by a roster that includes top-grossing movie franchise "Baahubali", it has won fans among a young, tech savvy middle class and Chief Executive Officer Reed Hastings has said India could deliver the service's next 100 million subscribers.

  • Why American Airlines Group Stock Jumped 6% -- Then Gave Most of It Back
    Business
    Motley Fool

    Why American Airlines Group Stock Jumped 6% -- Then Gave Most of It Back

    Shares of American Airlines Group (NASDAQ: AAL) popped 6.4% in early trading Wednesday before retracting to close the day up less than 1% -- just 0.9%, to be precise. An upgrade assigned to the stock by Deutsche Bank appears to be the primary reason for the move. A Deutsche Bank analyst upgraded American Airlines stock from "hold" to "buy" on Wednesday, as we're told by our friends at StreetInsider.com.

  • Death of Saudi dissident may gut Bay Area tech investment
    Finance
    American City Business Journals

    Death of Saudi dissident may gut Bay Area tech investment

    New gruesome details have emerged about the killing of dissident journalist Jamal Khashoggi by Saudi agents. As evidence mounts that the Washington Post columnist’s brutal death is tied to Saudi Arabia's ruling crown prince, Bay Area tech companies could see the river of money from Saudi investments dry up. The Kingdom has pumped billions of dollars into the region's tech startups and giants in recent years.

  • Robinhood fires back after criticism
    SPY
    Yahoo Finance Video

    Robinhood fires back after criticism

    When Robinhood launched in 2015, it was touted as an app that allows commission-free trading for everything from stocks to ETFs to cryptocurrencies. But a report from Bloomberg says Robinhood makes more than 40 percent of its revenue from selling its data to high-frequency trading firms. Yahoo Finance's Seana Smith, Dan Roberts and Adam Shapiro talk with Robinhood co-founder Vlad Tenev.

  • Intel restructures manufacturing organization
    Finance
    American City Business Journals

    Intel restructures manufacturing organization

    Chip giant Intel is restructuring its technology and manufacturing business group as it chases more connected device markets and grapples with delays on its next chip generation. In a memo to employees, reviewed by the Business Journal, Group President and Chief Engineering Officer Murthy Renduchintala described splitting the technology and manufacturing business into three groups. The three new groups are technology development, manufacturing and operations and global supply chain.

  • The same question that can chart a path to early retirement is the one Warren Buffett used to build Berkshire Hathaway into a powerhouse
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    Business Insider

    The same question that can chart a path to early retirement is the one Warren Buffett used to build Berkshire Hathaway into a powerhouse

    Inversion is a mental model that involves flipping your outlook to prevent the opposite of what you want to happen from happening. Warren Buffett and his business partner Charlie Munger employed inversion as a business strategy to build Berkshire Hathaway into a powerhouse. In a recent podcast with Brandon of the Mad Fientist, who retired early at 34, productivity expert James Clear said the same strategy Buffett used can help set someone on the path for early retirement.

  • Kinder Morgan Beats Q3 Earnings Estimates, Improves Leverage
    Finance
    Market Realist

    Kinder Morgan Beats Q3 Earnings Estimates, Improves Leverage

    Kinder Morgan Beats Q3 Earnings Estimates, Improves Leverage Kinder Morgan’s third-quarter results Kinder Morgan (KMI) announced its third-quarter results on October 17 after the markets closed. The company announced an adjusted EPS of $0.21—up ~40%

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    Benzinga

    Goldman Sachs Turns Bullish On NetApp, Upgrades Pure Storage To Neutral

    The outlook for the storage market bodes especially well for NetApp Inc. (NASDAQ: NTAP) while the bearish case for Pure Storage Inc (NYSE: PSTG) is no longer warranted, according to Goldman Sachs. The Analyst Goldman Sachs' Rod Hall upgraded NetApp'

  • Pfizer Offers Early Retirement to U.S. Employees Ahead of Layoffs
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    Fortune

    Pfizer Offers Early Retirement to U.S. Employees Ahead of Layoffs

    Pfizer is offering U.S. employees early retirement ahead of company cuts that will hit around 2% of its 90,000 workers worldwide, CNBC reports. In an internal message to employees Tuesday, the company said the layoffs are a part of restructuring that aims to “simplify the organization to avoid duplication, create single points of accountability and reduce the number of layers within teams,” the New York Business Journal reports. “As we prepare for growth we are creating a simpler more efficient structure which will affect some managerial roles and responsibilities,” a Pfizer spokeswoman told CBNC.

  • Alibaba (BABA) Dips More Than Broader Markets: What You Should Know
    Finance
    Zacks

    Alibaba (BABA) Dips More Than Broader Markets: What You Should Know

    Investors will be hoping for strength from BABA as it approaches its next earnings release, which is expected to be November 2, 2018. On that day, BABA is projected to report earnings of $1.16 per share, which would represent a year-over-year decline of 10.08%. Investors should also note any recent changes to analyst estimates for BABA.

  • Senators Call on President Trump to Disclose Business Ties to Saudi Arabia
    World
    Time

    Senators Call on President Trump to Disclose Business Ties to Saudi Arabia

    A group of Senators are demanding President Donald Trump and his sons disclose information about the family’s business ties to Saudi Arabia following the disappearance of U.S.-based Saudi journalist Jamal Khashoggi. The 11 Senators, all Democrats, asked Trump to reveal any business ties between the Trump Organization and Saudi officials.

  • Is Tilray a Better Marijuana Stock to Buy Than Aurora Cannabis?
    Finance
    Motley Fool

    Is Tilray a Better Marijuana Stock to Buy Than Aurora Cannabis?

    Marijuana users are cheering the legalization of marijuana for recreational use in Canada, but it's not just pot advocates who are excited. Investors are also upbeat because the recreational market for marijuana represents a massive opportunity for sales growth for leading Canadian cannabis companies, including Tilray Inc. (NASDAQ: TLRY) and Aurora Cannabis (NASDAQOTH: ACBFF). Medical marijuana has been legal in Canada for years, and while medical marijuana sales total in the hundreds of millions of dollars annually, the potential market opportunity associated with recreational use is significantly bigger.

  • GE to pay penalty if falls short of French job pledges: ministry
    Business
    Reuters

    GE to pay penalty if falls short of French job pledges: ministry

    General Electric's new CEO told France's finance minister on Wednesday that it would stick to his predecessor's French job pledges or pay a penalty, the Finance Ministry said. Former CEO John Flannery warned French Finance Minister Bruno Le Maire in June that the target was "out of reach", and the government raised the possibility of fines worth 50,000 euros ($57,570) for each job not created. GE's new CEO Larry Culp, who took up his post at the start of the month, told Le Maire in a meeting on Wednesday that France remained a strategic country for the company, the ministry said in statement.