|Day's Range||2,760.27 - 2,797.77|
|52 Week Range||2,532.69 - 2,940.91|
Bristol-Myers Squibb Co. shares dropped nearly 3% in Monday premarket trade after the company said that, because of new information from a cancer clinical trial, the U.S. Food and Drug Administration is extending the review period for the company's new drug application by three months. The FDA now aims for an approval decision of May 20, 2019. The trial, called CheckMate-227, is an ongoing phase 3 study testing Bristol-Myers' drug Opdivo plus a low dose of another Bristol-Myers drug, Yervoy, against chemotherapy in metastatic first-line non-small cell lung cancer. The new information that Bristol-Myers submitted to the FDA pertains to overall survival for patients whose tumors have a relatively low level of mutations, or a "tumor mutational burden" (TMB) of less than 10 mutations/megabase. TMB is thought to have promise in cancer treatment, as a way of matching patients with the best therapies for their disease, but the way Bristol-Myers has approached the topic has been controversial, because the drugmaker made changes to its clinical trial to measure TMB while the research was already ongoing. Rival Merck & Co. , meanwhile, is seen as leading the space. The FDA considered the new TMB analysis a "major amendment" to the company's drug application, which is why the review period was extended. Bristol-Myers shares have dropped 4.3% over the last three months, compared with a 1.2% decline in the S&P 500 and a 1.5% rise in the Dow Jones Industrial Average .
China’s markets soared after its leaders announced new steps to help boost its economy, and counteract the impact of the trade war. U.S. markets gained as well.
Shares of Alibaba Group Holding Ltd. shot up 3.4% in premarket trade Monday as part of a broad rally in China-based company stocks, following reassuring comments by China President Xi Jinping. The stock had tumbled 24% over the past three months through Friday, while the S&P 500 had slipped 1.2%, amid concerns over a trade war with the U.S. and a slowing economy. Monday's rally comes despite Benchmark analyst Fawne Jiang cutting the price target to $220 from $245, citing concerns that near-term earnings growth could come under pressure. Over the weekend, Xi emphasized support for the private sector, according to reports, and new details on proposed tax cuts were released, helping send the Shanghai Composite up 4.1%. The iShares China Large-Cap ETF , which had closed at a 17-month low on Thursday, ran up 3.0% ahead of Monday's open. Among other U.S.-listed shares of China-based companies, Nio Inc. hiked up 4.5%, iQiyi Inc. rallied 2.8% and JD.com advanced 3.3%.
EBay Inc. said Monday that it has launched a program, eBay Instant Selling, to help consumers sell used, unwanted smartphones. Users will get paid instantly with an eBay voucher once the phone is listed. An eBay study showed that 40% of Americans have two or more smartphones that they no longer use, but 61% have never sold or traded a smartphone. EBay also says it provides a higher return than trade-in values, for instance offering up to $639 for an iPhone X while AT&T Inc. offers $550. EBay shares are up 0.3% in Monday premarket trading, but down nearly 24% for the year to date. The S&P 500 index has gained 3.5% for 2018 so far.
The Section 232 steel and aluminum tariffs have already led to higher input costs for several companies and some like the Coca-Cola Company (KO) have announced price hikes, citing tariffs as one of the reasons. Others like Apple (AAPL) and Walmart (WMT) have warned that they might increase prices if tariffs are imposed on Chinese goods. To be sure, Trump provided a little hope to markets by announcing a less-than-expected 10% tariff on Chinese goods last month.
Equity markets have come under pressure this month. The Invesco QQQ ETF has lost 6.9% in October, while the SPDR S&P 500 ETF (SPY) has shed 5.0%. Chinese equity markets have been pressured by a slowing economy amid its trade spat with the United States.
What is greatness? A whopping 202 companies among those that make up the S&P 500 will report their quarterly results over the next five days. The investor take-away might just be rising costs at YouTube, as competition across the streaming business rises, despite how well the rest of the firm's business lines perform.
Kimberly-Clark Corp. shares rose 3% in Monday premarket trading after the Kleenex parent reported third-quarter earnings and revenue that beat expectations. Net income for the quarter was $451 million, or $1.29 per share, down from $567 million, or $1.60 per share, for the same period last year. Adjusted EPS was $1.71. Revenue totaled $4.58 billion, down from $4.67 billion last year. The FactSet consensus was for EPS of $1.63 and sales of $4.52 billion. Chief Executive Thomas Falk said profits were hurt by "significant commodity and currency headwinds," and the company generated cost savings of $145 million. The company still expects organic sales to increase about 1% in 2018. Other Kimberly-Clark brands include Huggies, Cottonelle and Depend. Kimberly-Clark also announced that it has named Michael Hsu chief executive, effective Jan. 1, 2019. He has served as chief operating officer since Jan. 1, 2017. Kimberly-Clark shares have tumbled 8.6% for the year to date while the S&P 500 index has gained 3.5% for the period.
Chipotle Mexican Grill Inc. was upgraded to outperform from sector perform at RBC Capital Markets on same-store sales growth potential. RBC's price target was lifted to $510 from $450. RBC surveys show menu, digital and delivery opportunities that analysts led by David Palmer think the company can execute on in 2019. "[I]t is encouraging to hear that 73% of customers that have not eaten at Chipotle in the past six months would consider returning to Chipotle if a new item was added to the menu," the note said. Among the items RBC suggests Chipotle should add are nachos, which are currently being tested in Colorado and Minneapolis; bacon, which is being tested in Orange County; quesadillas; and a revamped queso. Still, analysts expect earnings, scheduled to be announced on Oct. 25, to be "lackluster" and sales to be volatile from quarter to quarter. Chipotle shares are up 1.7% in Monday premarket trading and up 48.3% for the year to date. The S&P 500 index has gained 3.5% for 2018 so far.
Premarket U.S. futures are rising ahead of Monday's market open as markets look to climb out of a recent funk that has seen the S&P 500 drop in 10 of the last 12 sessions. Dow futures are climbing 0.
U.S. stock index futures rose at the start of a busy week for U.S. earnings on Monday, feeding into a rise in global stocks on hopes of economic stimulus in China and easing tensions over Italy's debt. Shanghai's benchmark blue-chip index surged over 4 percent after China promised to provide stimulus to stabilize its economy and offset the impact of U.S. tariffs, which lifted U.S. listed shares of Chinese stocks.