|Day's Range||2,995.04 - 3,014.57|
|52 Week Range||2,346.58 - 3,027.98|
Big name companies like McDonald's and P&G reported earnings that left major indexes mixed. Global Market Strategist at Invesco Brian Levitt and Chief Investment Officer of Liquid Strategies Shawn Gibson join Yahoo Finance's Alexis Christoforous, Brian Sozzi, and Jared Blikre to discuss.
The resolution of Brexit and the U.S.-China trade war, however, are key to what happens with earnings and the economy from the end of this year through the start of 2020, Hahn warned. And those two issues are too volatile to predict.
Stock futures: Nike CEO Mark Parker will exit, with ServiceNow CEO John Donahoe stepping in. Chipotle, Snap, Texas Instruments were big earnings movers.
(Bloomberg) -- Stocks in Asia were mixed after developments on Brexit sapped risk appetite, dragging U.S. shares lower with Treasury yields. The pound retained its slide.Shares were little changed in Tokyo and Seoul, and declined in Sydney. The U.K. Parliament blocked Boris Johnson’s plan to rush his Brexit deal into law, leaving proceedings in limbo and a British election looking likely. European Council President Donald Tusk said he’d recommend the EU accept the U.K.’s request for an extension. Hong Kong assets will be in focus as the Financial Times reported the Chinese government is drafting a plan to replace Carrie Lam.Away from politics, it’s a huge week for earnings, with about 20% of S&P 500 Index members slated to report results. So far the numbers have generally surprised positively, reassuring investors that companies are weathering slowing growth and the trade war. All the same, analysts are cutting estimates for next year as the dispute between the world’s biggest economies continues to take a toll. “The market wants to move higher and it is conflicted because the earnings are pretty good but the geopolitics are worrisome,” Kirk Hartman, chief investment officer at Wells Fargo Asset Management, told Bloomberg TV. “We’ll see how this plays out but certainly it is a mixed message.”Elsewhere, oil dipped, retracing some of Tuesday’s jump triggered by a report that OPEC and allied crude producers will discuss deepening supply cuts next month.Here are some key events coming up this week:Earnings season is in full swing with companies reporting including: Microsoft, Caterpillar, Amazon.com, Daimler and Kia Motors.Thursday brings monetary policy decisions from the European Central Bank and Bank Indonesia.U.S. factory orders for business equipment will provide a look into the strength of capital investment in September. The figures will show to what extent the latest tranche of tariffs on China and others is impacting investment decisions.These are some of the main moves in markets:StocksJapan’s Topix index dipped 0.1% as of 9:06 a.m. in TokyoFutures on the S&P 500 Index lost 0.4%. The underlying gauge lost 0.4% on Tuesday.South Korea’s Kospi index slid 0.2%.Australia’s S&P/ASX 200 Index dropped 0.5%.CurrenciesThe yen was at 108.49 per dollar, up 0.1%.The offshore yuan held at 7.0740 per dollar.The Bloomberg Dollar Spot Index was steady after increasing 0.1% the previous session.The euro bought $1.1129, little changed.The British pound was at $1.2884, up 0.1% after Tuesday’s 0.7% decline.BondsThe yield on 10-year Treasuries fell one basis point to 1.75%.Australian 10-year yields slid four basis points to 1.13%.CommoditiesWest Texas Intermediate crude dropped 0.5% to $54.21 a barrel.Gold was at $1,488.95 an ounce, up 0.1%.\--With assistance from Sarah Ponczek, Rita Nazareth and Caroline Hyde.To contact the reporter on this story: Adam Haigh in Sydney at firstname.lastname@example.orgTo contact the editors responsible for this story: Christopher Anstey at email@example.com, Andreea PapucFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Chipotle Mexican Grill Inc., the best performer in the S&P 500 Index this year, is maintaining its torrid pace of growth -- but concerns about the rising cost of wages and delivery are starting to weigh on the company.The key gauge of same-store sales rose 11% in the third quarter -- the ninth straight gain. Analysts had estimated 9.3%, according to Consensus Metrix. The company said it sees full-year comparable sales at the high end of its previous forecast, which is for growth in the high-single digits.Key InsightsChipotle is getting results from digital and delivery, along with increased traditional advertising. The company also has been investing in pick-up shelves to speed up to-go orders. Digital sales increased 88%, the company said.All the growth comes with a price, however. The burrito seller said delivery costs weighed on margins in the quarter, and the higher expense isn’t going away as more diners opt for convenience. While Chipotle is working with DoorDash and Postmates, others are rushing to add delivery, too, making it a hyper-competitive category.Chipotle said its target for new locations this year will be at the low end or slightly below its previous guidance for 140 to 155 stores. Some are being delayed into 2020 because the company is adding pick-up windows.Costs were higher for several ingredients, the company said, highlighting beef in particular. Wage inflation also increased. On a conference call with analysts, Chipotle executives said they see commodity prices stable next year.Market ReactionThe stock fell as much as 1.9% to $815.05 in late trading, reversing an earlier gain. Through the close, Chipotle’s stock has nearly doubled this year.Click here for financial detailsClick here for company statement(Updates share trading and adds bullet on delivery costs.)To contact the reporter on this story: Leslie Patton in Chicago at firstname.lastname@example.orgTo contact the editors responsible for this story: Anne Riley Moffat at email@example.com, Jonathan RoederFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
All three major stock indexes closed in the red on Tuesday. There was good and bad news for supporters of both Brexit and Canadian Prime Minister Justin Trudeau. U.S. existing-home sales fell in September, while crude oil futures rose.
Each earnings season, traders obsess over two numbers above all else: EPS and revenue. But seasoned traders know share prices often respond to the direction of EPS and revenue growth rather than their ...
U.S. stocks closed lower Tuesday as investors kept a close eye on a deluge of corporate earnings reports, increased pressure on social media stocks and a new U.K. vote on a potential path to splitting with the European Union
IRobot Corp. shares plunged more than 16% in the extended session Tuesday after it beat earnings and revenue expectations but lowered its holiday quarter guidance, citing U.S. tariffs on robotic vacuum cleaners, among other issues. The robot vacuum maker reported fourth-quarter net income of $35.5 million, or $1.24 a share, compared with $31.9 million, or $1.12 a share, in the year-ago period. Revenue rose to $289.4 million from $264.5 million in the year-ago period. Analysts surveyed by FactSet had estimated earnings of 52 cents a share on revenue of $259.4 million. For the fourth quarter, analysts model earnings of $1.03 a share on sales of $444 million. IRobot lowered its full-year guidance to earnings of $2.60 to $2.80 a share on sales of $1.2 billion to $1.21 billion. Previously iRobot had expected full-year earnings of $2.40 to $3.15 a share on sales of $1.2 billion to $1.25 billion. In a statement, iRobot Chief Executive Colin Angle said it lowered guidance because of marketing conditions and the company's plans, which include several strategies to moderate the impact of U.S. tariffs on robotic vacuum cleaners. IRobot stock has fallen 36% this year, with the S&P 500 index rising 20%.
Earlier on Tuesday, the S&P 500 and the Dow Jones Industrial Average had risen modestly as upbeat forecasts from Procter & Gamble Co and United Technologies Corp offset lower-than-expected results from McDonald's Corp and Travelers Cos Inc. With Tuesday's losses the S&P 500 fell below 3000, but remained within 1% of its record closing high in July. The Dow Jones Industrial Average fell 39.54 points, or 0.15%, to 26,788.1, the S&P 500 lost 10.73 points, or 0.36%, to 2,995.99 and the Nasdaq Composite dropped 58.69 points, or 0.72%, to 8,104.30.
(Bloomberg) -- Stocks fell as uncertainty over Brexit sank the pound after U.K. Prime Minister Boris Johnson lost a key vote to fast-track legislation. Traders also parsed a flurry of corporate earnings.The S&P 500 Index erased gains as a slide in tech shares outweighed a rally in energy companies. A sell-off in Facebook Inc. and Netflix Inc. helped push the Nasdaq-100 Index down. Boeing Co. climbed on the eve of its results, despite a cut in outlook by S&P Global Ratings. Treasuries and the U.S. dollar rose.In a very volatile session, the pound slid as Johnson’s mission to take the U.K. out of the European Union in nine days’ time was thrown off course. Members of Parliament blocked his plan to rush the Brexit deal into law. Sterling could “see a 2% or so sell-off in a longer-delay scenario,” said Brendan McKenna, a currency strategist at Wells Fargo in New York.“The U.K. is not as large a trading partner as China, but at the same time it does create some additional instability in the trading landscape,” said Peter Jankovskis, Oakbrook Investments LLC’s co-chief investment officer. “The whole Brexit situation entails all of Europe. That’s really where you’re seeing it. It goes beyond just the U.K. to be another potential drag on all of Europe.”In earnings news:After the close of regular trading, Texas Instruments Inc. tumbled on a weaker-than-expected forecast for the current quarter. Snap Inc. reported revenue and user growth that beat analysts’ estimates. Chipotle Mexican Grill Inc.’s sales outpaced expectations, but wage and commodity costs increased.Procter & Gamble Co. climbed on Tuesday after raising the high end of its full-year sales forecast.United Technologies Corp. boosted its profit outlook, lifting shares.Harley-Davidson Inc. jumped as earnings beat estimates.McDonald’s Corp.’s home market lost momentum in the latest quarter amid fierce competition. Shares fell.United Parcel Service Inc.’s profit margin expanded, but shares slid on the retirement of Chief Operating Officer Jim Barber.Hasbro Inc. tumbled on weaker-than expected earnings as tariffs weighed on sales growth.Travelers Cos. sank as profit missed estimates.It’s a huge week for earnings, with around one-fifth of S&P 500 members due to report their results. So far the numbers have generally surprised to the upside, reassuring investors that companies are weathering slowing growth and the trade war. All the same, analysts are cutting estimates for next year as the dispute between the world’s biggest economies continues to take a toll.“Earnings are coming in OK,” said Jeff Mills, chief investment officer at Bryn Mawr Trust Co., which manages $15 billion. “But my point of view quiet honestly is that we’re still going to end up trading in this tight-ish range that we’ve been in at least through the end of the year.”Read: The Short-Volatility Trade Is Now So Big It’s Starting to BreakNetflix sank as Verizon Communications Inc. announced a partnership with Walt Disney Co. Facebook’s antitrust woes widened as dozens more states joined New York’s probe into whether its business practices have stifled competition or put users at risk. Biogen Inc. surged on news it will ask U.S. regulators to approve an experimental Alzheimer’s therapy. Lyft Inc. jumped after executives said the company would turn a profit by the end of 2021.Elsewhere, the Canadian dollar was little changed after lower-than-expected retail sales. The currency rose earlier Tuesday after Prime Minister Justin Trudeau won a second term in a federal election that pointed to more fiscal stimulus. Oil jumped after a report that OPEC and allied crude producers will discuss deepening supply cuts next month.Here are some key events coming up this week:Earnings season is in full swing with companies reporting including: Microsoft, Caterpillar, Amazon.com, Daimler and Kia Motors.Thursday brings monetary policy decisions from the European Central Bank and Bank Indonesia.U.S. factory orders for business equipment will provide a look into the strength of capital investment in September. The figures will show to what extent the latest tranche of tariffs on China and others is impacting investment decisions.These are some of the main moves in markets:StocksThe S&P 500 lost 0.4% to 2,995.99 as of 4 p.m. New York time.The Stoxx Europe 600 Index rose 0.1%.The MSCI Asia Pacific Index advanced 0.2%.CurrenciesThe Bloomberg Dollar Spot Index increased 0.1%.The euro fell 0.2% to $1.113.The British pound decreased 0.5% to $1.2896.The Japanese yen strengthened 0.1% to 108.47 per dollar.BondsThe yield on 10-year Treasuries sank three basis points to 1.77%.Germany’s 10-year yield slid two basis points to -0.37%.Britain’s 10-year yield declined four basis points to 0.711%.CommoditiesThe Bloomberg Commodity Index gained 0.3%.West Texas Intermediate crude jumped 1.6% to $54.16 a barrel.Gold rose 0.2% to $1,490.80 an ounce.\--With assistance from Justina Vasquez, Andreea Papuc, Todd White, Samuel Potter, Nancy Moran and Sophie Caronello.To contact the reporters on this story: Rita Nazareth in New York at firstname.lastname@example.org;Sarah Ponczek in New York at email@example.comTo contact the editors responsible for this story: Jeremy Herron at firstname.lastname@example.org, Rita NazarethFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
U.S. stock indexes skidded lower into Tuesday's close, amid negative headlines on Brexit and reports related to President Donald Trump's impeachment inquiry. The Dow Jones Industrial Average closed nearly 40 points, or 0.2%, lower at 26,788, with a post-earnings skid for shares of Travelers Cos. Inc. , off $11.76, or 8.3%, and McDonald's Corp. , down $10.58, or 5%, combining to deliver a 151-put headwind to the blue-chip index. Meanwhile, the S&P 500 index closed down 0.4% at 2,996, slipping below a psychologically significant level at 3,000, while the Nasdaq Composite Index finished 0.7% lower at 8,104. All closing levels are on a preliminary basis. The Wall Street Journal and others reported that U.S. diplomat Kurt Volker told the Ukrainian president he needed to convince Trump he was willing to investigate corruption and alleged Ukrainian 2016 election interference against former Vice President Joe Biden and his son, said the paper, citing people familiar with the former envoy's recent testimony to Congress. The disclosures may intensify the Congressional investigation into allegations that Trump withheld federal funds in exchange for a probe into a political rival. Separately, investors focused on on Brexit after U.K. lawmakers endorsed Prime Minister Boris Johnson's plan to leave the EU but voted against a fast-track plan that would have seen the country leave the trade bloc by Oct. 31, increasing some uncertainty around Brexit.
Stocks on world markets declined, with the S&P 500 turning lower, and the pound weakened on Tuesday after British lawmakers rejected the government's proposed timetable for passing legislation to ratify a deal over Britain's exit from the European Union. U.S. Treasury yields also fell after the vote on British Prime Minister Boris Johnson's ratification timetable.
DEEP DIVE Mark Hulbert, a MarketWatch columnist and stock market analyst with decades of experience, published an article that takes a balanced look at recent evidence that growth strategies may be replaced by value.
The benchmark S&P 500 index gave up modest gains on Tuesday from earlier in the session after British lawmakers rejected the government's proposed timetable for passing legislation to ratify its deal to exit the European Union. Procter & Gamble shares rose gained 2.8% and United Technologies advanced 2.4%, while McDonald's shares fell 4.6% and Travelers shares declined 8.4%. Of the 98 S&P 500 companies that have reported results so far, more than 80% of them have beaten Wall Street estimates, according to data from Refinitiv.
The stock market rally petered out in afternoon trading on Tuesday. Chipotle stock hits a key buy point ahead of earnings.
Investors are hypersensitive to political headlines ranging from trade war to Brexit to impeachment right now. And there’s a good reason why, says one investor.
U.K. Prime Minister Boris Johnson's plan to exit from the European Union appeared less certain on Tuesday, with the British leader losing a vote to fast-track his plan to abandon the European Union by Oct. 31. Johnson lost a program vote to leave the trade bloc 308-322, but won an earlier vote "in principle" for his Brexit plan 329-299. Johnson is expected to go to the European Commission soon to seek an extension but didn't immediately call a snap election as had been feared by some. Johnson had also threatened to pull his plan, which threatened the U.K. crashing out of the EU. The votes on Tuesday come a day after Speaker of the House of Commons John Bercow refused to allow a "straight up-and-down" vote on Brexit because lawmakers voted to delay approving the the vote on Saturday, and parliamentary rules bar the same measure from being considered a second time during a session of parliament unless something has changed. Sterling fell 0.7% against the U.S. dollar, last changing hands at $1.2865 on Tuesday, according to FactSet data. Meanwhile, the FTSE 100 finished the session before the votes up 0.7%. "Traders pushed the sterling on the back of the first vote and then traders quickly took the profit off the table as the second vote came in," wrote Naeem Aslam, chief market analyst at ThinkMarkets U.K., in a Tuesday research note.
Shares of PulteGroup Inc. surged 3.1% toward a 13-year high in afternoon trading Tuesday, after the home builder reported third-quarter profit that fell less than expected, while revenue surprisingly increased. The number of homes delivered during the quarter increased, compared with expectations of a decline, while the number of new orders increased more than expected. On the post-earning conference call with analysts, Chief Executive Ryan Marshall said that while overall U.S. housing demand has been supported by an ongoing economic expansion, "the catalyst for the most recent rise in housing demand has likely been the decline in interest rates" and the impact that has had on affordability. The average interest rate for a 30-year fixed rate mortgage was 3.69% for the week ended Dec. 17, according to Freddie Mac , down from 4.85% around the same time a year ago. The average sales price of homes increased 3% to $491,000, while prices of first-time homes decreased 6% to $340,000, reflecting Pulte's effort to increase entry-level exposure. It worked, as orders from first-time buyers increased 39%. The stock, on track to close at the highest level since April 2006, has soared 51.5% year to date, while the SPDR S&P Homebuilders ETF has rallied 40.5% and the S&P 500 has gained 19.9%.
Tony Dwyer, Canacccord Genuity chief market strategist, says he believes that millennials are a critical component of his bullish stance on where the stock market goes from here.
Netflix Inc. is planning to raise another $2 billion in debt as it moves to raise the financing needed for new content as the battle for streaming customers heats up with a slate of new offerings on tap.
Spotify Technology S.A. said Tuesday it is giving away Google Home Mini smart speakers to premium individual and family account users, for free, while supplies last. The streaming music service said the give-away starts Tuesday. This year's give-away represents and increase from last year, when Spotify unveiled the offer to only Premium for Family account users. Spotify's stock fell 0.5% in afternoon trading, while shares of Google parent Alphabet Inc. inched up 0.1%. Year to date, Spotify's stock has gained 4.3% while the S&P 500 has run up 20.2%.