|Day's Range||3,355.61 - 3,375.01|
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Dallas Fed President Robert Kaplan said Tuesday that the economy is "likely at or past" full employment, hinting at a weaker case for lowering rates.
Trading of Groupon Inc. shares were halted in extended trading Tuesday before the online marketplace reported fourth-quarter revenue and said it planned to exit the Goods category so it can focus on the $1 trillion "local experiences" market. The company also named Melissa Thomas its chief financial officer, and said it plans to pursue a reverse-stock split to boost the price of its stock. Groupon reported net income of $77 million, or 13 cents a share, in the quarter, compared with net income of $46.2 million, or 8 cents a share, in the year-ago fourth quarter. Revenue plunged 23% to $612.3 million from $799.9 million a year ago. Analysts surveyed by FactSet had expected earnings of 12 cents a share on sales of $705 million. Groupon shares are down 13% over the last 12 months. The S&P 500 index has gained 21% ocer the past year.
Dow, S&P 500 closed lower Tuesday, after Apple Inc. said a viral outbreak in China would hurt its second-quarter results, reigniting fears that the global economy could be harmed.
Alibaba is “the China e-commerce category killer with a large secular growth opportunity ahead,” Susquehanna Investment Group’s Shyam Patil said.
U.S. stocks ended mostly lower Tuesday, dragged down after tech giant Apple Inc. warned a day earlier that it wouldn't hit its sales target for the current quarter because the spread of COVID-19 in China was affecting production of and demand for its iPhones. U.S. financial markets were closed Monday for the Presidents Day holiday. The Dow Jones Industrial Average fell around 166 points, or 0.6%, to end near 29,232, according to preliminary figures, while the S&P 500 lost around 10 points, or 0.3%, to close near 3,370. The Nasdaq Composite rose by a little more than 1.5 points, or less than 0.1%, to finish near 9,733, eking out a record close. Shares of Dow component Apple fell 1.8%.
Renaissance Technologies, added more than 3 million shares of Tesla to its holdings in the fourth quarter of last year, as the electric-vehicle maker’s shares catapulted higher, according to public filings.
As the COVID-19 spreads and the patient count and death toll grow, economists are slashing their once-rosy expectations for global growth in 2020.
Canopy Growth Corp.’s U.S.-listed shares rose Monday, extending gains made Friday after the Canadian cannabis company surprised investors with better-than-expected earnings.
(Bloomberg) -- Legendary investor Warren Buffett’s Berkshire Hathaway Inc. just gave its blessing to the $4.6 trillion exchange-traded fund market -- at least in one of its pension plans.Berkshire added to the Vanguard S&P 500 ETF, ticker VOO, and SPDR S&P 500 ETF Trust, known as SPY, in the final quarter of 2019, according to a regulatory filing. The relatively small investments, which totaled $25 million across both funds, are Berkshire’s only publicly disclosed ETF holdings in its most recent quarterly 13F filing. The investments are in a pension plan, according to Buffett’s assistant, Debbie Bosanek.Buffett, whose Berkshire holds a record $128 billion in cash and U.S. Treasury bills, has been questioned before about why he didn’t put the firm’s unused cash into an index fund. The 89-year-old investor said last year at his annual shareholder meeting that he thinks Berkshire should have some cash available to quickly deploy if the chance to strike a big acquisition arises, even though he’d rather own an index fund than U.S. Treasury bills. He argued back in 2007 that he thought Berkshire’s stock picks could do better than the S&P 500 Index. Berkshire’s set to release its annual letter to shareholders on Saturday.The fourth-quarter addition is arguably the “ultimate endorsement” for ETFs and their different usages, according to Bloomberg Intelligence’s Eric Balchunas. Large institutions will often park money in ETFs to keep exposure to the market while minimizing cash drag in their portfolios, he said -- which is likely what Berkshire has started to do with its record cash pile.“They use it almost as a temporary parking spot, and I think the liquidity is what they’re attracted to,” Balchunas said.In that scenario, ETFs are essentially being used as an alternative for derivatives contracts, Balchunas said. He estimates that this manner of institutional usage accounts for roughly 5% to 10% of ETF assets.Climbing Cash PileBerkshire has accumulated a more than $71 billion stake in Apple Inc. in recent years and purchased stock in Kroger Co. and Biogen Inc. during the last three months of 2019.Still, Berkshire’s failed to find a massive acquisition of a company to keep growing the conglomerate in recent years. That’s weighed on Berkshire stock with the Class A shares increasing nearly 11% last year, short of the almost 29% gain in the S&P 500 during the same period.In the meantime, Berkshire is likely using these ETFs as a liquidity way-station of sorts, according to Todd Rosenbluth, CFRA Research’s New York-based director of ETF research.“SPY and VOO provide institutional investors the ability to stay in the market, while keeping their options open as they seek out individual stocks,” Rosenbluth said.To contact the reporters on this story: Katherine Greifeld in New York at email@example.com;Katherine Chiglinsky in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Jeremy Herron at email@example.com, ;Michael J. Moore at firstname.lastname@example.org, Rita Nazareth, Dave LiedtkaFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Steel stocks are getting hammered even though steel prices aren't. And no steel stock is getting hit harder than United States Steel.
Speaking on CNBC on Tuesday, the outspoken billionaire Cooperman says that he views the infectious disease, known as COVID-19, as a short-lived problem.
Conagra Brands cut financial guidance Monday, sending its stock down more than 5% in Tuesday trading. Management cited softness in the food service business. That could signal choppy upcoming earnings reports from restaurant operators.
Investors have become more comfortable with the likes of UnitedHealth as Elizabeth Warren’s political fortunes have soured.
U.S.-listed shares of China brand and marketing company Acorn International Inc. slid 10% Tuesday, after its executive chairman said he was pulling an offer for the company made in November because of risks relating to the coronavirus. Robert Roche said in a letter to the Shanghai-based company that he and shareholders of a buyer vehicle were not willing to pursue a $19.50 per American Depositary Share offering made in a Nov. 4 letter. The parties are willing to continuing talks with a special committee formed to review the offer. "No additional terms or proposals have been discussed at this time and there can be no assurance that negotiations will continue or that a revised offer will be made, that any agreement related to the Acquisition will be reached, or that the Acquisition or any other similar transaction will be consummated," said the letter. Shares have fallen 42% in the last 12 months, while the S&P 500 has gained 22%.
Shares of Macy's Inc. took an midday dive Tuesday, after S&P Global Ratings downgraded the department store chain's credit to "junk" status, citing a weaker profitability outlook after the company unveiled its three-year strategic plan. The stock was down 3.9%, after being down about 1.4% prior to the downgrade. S&P cut its rating one notch to BB+, which is the highest speculative grade rating, from BBB-. The rating's outlook is stable. S&P said Macy's three-year "Polaris" plan, which includes a significant reduction of the store network, focus on growth in private label brands and off-price stores and cost cutting, has "considerable" execution risks. "While we believe management's strategic plan is a necessary step toward rightsizing the enterprise, it demonstrates to us that the company's competitive advantage has diminished more than we expected, and to a point that we no longer believe is consistent with an investment-grade rating," S&P wrote in a research note. "We now project operating performance will deteriorate over the next several quarters, with declines in comparable same-store sales." Fellow rating agencies Moody's Investors Service rates Macy's at Baa3, the lowest investment-grade rating, and said last week that the strategic plan was "credit positive." Macy's stock has lost 5.1% over the past three months, while the SPDR S&P Retail ETF has eased 0.1% and the S&P 500 has gained 7.8%.
Investors will be looking to Zillow’s fourth quarter and full year earnings on February 19 for the answer. Zillow’s stock tumbled nearly 16% the day following the company’s second quarter earnings report. At the time, Zillow CEO told Barron’s the drop was due to a change in when the company gets paid for its services.
Technically speaking, the S&P 500 has staged a thus far orderly pullback from record highs, though the downturn is worth tracking for potential acceleration, writes Michael Ashbaugh.
Public Service Enterprise Group Inc. , known as PSE&G, said Friday it raised its quarterly dividend by two cents to 49 cents a share. The new dividend will be payable March 31 to shareholders of record on March 10. The electric and gas utility company's stock rose 0.6% in midday trading. Based on current stock prices, the stock new annual dividend rate would imply a dividend yield of 3.33%, compared with the yield for the SPDR Utilities Select Sector ETF of 2.69% and the implied yield for the S&P 500 of 1.80%, according to FactSet. PSE&G's stock has lost 3.6% over the past three months, while the utilities ETF has run up 12.7% and the S&P 500 has gained 7.6%.
Buffett disclosed late on Friday that he had taken a position in the beaten-down grocer, and after a long holiday-weekend, Kroger stock jumped on Tuesday.
It’s virtually certain the stock market over the next decade will not come anywhere close to equaling its historical total return of 6.9% annualized above inflation. The reason for this confidence: There are only a few ways in which the stock market can grow faster than the overall economy, and none of them appears likely. According to the Congressional Budget Office, real GDP in the U.S. is projected to grow at a 1.7% annualized pace through 2030.