|Day's Range||2,988.56 - 3,005.90|
|52 Week Range||2,346.58 - 3,017.80|
Yahoo Finance's Jared Blikre joins Adam Shapiro to highlight a Yahoo Premium Investment Idea from the YFi Interactive touch screen.
Stay focused on corporate fundamentals as opposed to President Trump's re-election bid, says one veteran strategist.
Dow Jones futures: Amazon, Facebook, Google and Apple fell on a report of a DOJ Big Tech antitrust probe. Chipotle Mexican Grill, Snap and Texas Instruments soared on earnings.
If ever we needed convincing that only two things matter to the market—the Federal Reserve and the trade war with China—we got it today when news broke that U.S. Trade Representative Robert Lighthizer would head to China next week for trade talks.
European Central Bank President Mario Draghi moves back into the spotlight as stock-market investors cheer a shift back toward easier monetary policy by major central banks. The ECB is widely expected on Thursday to lay the groundwork for a rate cut, and possibly further action.
Stocks closed higher Tuesday on news of progress on U.S. - China trade talks, an announcement of a White House and Congressional deal on the federal budget and debt ceiling and good corporate earnings.
U.S. stocks added to their gains on Tuesday following news of potential progress in U.S.-China trade negotiations, while the pound fell after Brexit hard-liner Boris Johnson won the leadership of Britain's Conservative Party, clearing the way for him to become prime minister. A host of strong earnings gave U.S. stock indexes an early boost, with Dow components Coca-Cola Co and United Technologies Corp both beating second-quarter earnings estimates. Stocks extended their gains on reports that U.S. negotiators were headed to China on Monday for face-to-face trade talks, a sign of potential progress in the two countries' prolonged, acrimonious tariff spat.
The S&P 500 and Nasdaq approached record highs on Tuesday, lifted by upbeat quarterly reports from Coca-Cola and United Technologies and on optimism the United States would resolve its trade conflict with China. The U.S. corporate earnings season is off to a strong start, with nearly 80% of 104 S&P 500 companies topping earnings expectations so far in the second quarter, according to Refinitiv IBES data. Fellow Dow component United Technologies Corp gained 1.5% after raising its full-year profit and sales outlook.
IRobot Corp. shares plunged roughly 15% in the extended session Tuesday after the company beat earnings expectations but missed consensus estimates for revenue. The company reported second-quarter net income of $7.2 million, or 25 cents a share, compared with $10.5 million, or 37 cents a share, in the year-ago period. Adjusted for stock-based compensation and tax effects, among other items, earnings were 48 cents a share. Revenue rose to $260.2 million from $226.3 million in the year-ago period. Analysts surveyed by FactSet had estimated earnings of 3 cents a share on revenue of $267.8 million. For the third quarter, analysts model earnings of 87 cents a share on revenue of $38.79 million. IRobot stock has gained 22% this year, with the S&P 500 index rising 6.3%.
U.S. stocks closed solidly higher Tuesday, and the Dow narrowly missed a closing record, as investors appeared to react positively to reports that the U.S. and China would hold face-to-face talks for the first time since May. The Dow Jones Industrial Average closed 177 points, or 0.7%, higher at 27,350 (on a preliminary basis), just off its July 15 closing record at 27,359.16. The S&P 500 index ended 0.7% higher at 3,005, marking its best finish since July 3, according to FactSet data. Meanwhile, the Nasdaq Composite Index wrapped up the session with a 0.6% gain to reach 8,251. U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will travel to China for meetings with China's Vice Premier Liu He, following their collapse in May, the Wall Street Journal reported. Better-than-expected earnings from Dow components, Coca-Cola and United Technologies reported before the market opened also helped stocks rise, marking a second straight day of gains.
(Bloomberg) -- One of the worst things that can happen to an investor this year is finding out how her companies are actually doing.So says Evercore ISI, whose strategists have been measuring the performance of individual stocks in the period before, during and after earnings days. For seven of 11 industries in the S&P 500, it’s basically the only time returns have been negative.It says a lot about 2019, in which equity gains come hand-over-fist. So powerful has been the promise of fresh stimulus from Jerome Powell’s Federal Reserve, that even persistently bearish reactions to earnings have barely dented a market enjoying one of its best rallies in two decades.“The market’s going up until companies open their mouths,” Dave Lafferty, chief market strategist at Natixis Investment Managers, said by phone “When you actually look at those periods where people are focused on company by company results, and not this warm, fuzzy macro environment of the Fed’s 180, I guess it doesn’t surprise me that those days have seen more pain.”By this point, pretty much everyone is aware that an “earnings recession” is a risk as estimates for profit growth hover precariously near nothing. Bloomberg Intelligence has referred to hopes of a strong recovery as possibly “nothing more than a pipe dream.”But rather than fret, investors have been focused on the positives -- a still relatively steady U.S. economy and above all a dovish Fed, with markets calling for a rate cut as soon as this month.Evercore ISI estimates that as of Friday, 16.7 percentage points of the market’s 18% return was the result of multiple expansion -- investors paying more for the same earnings -- with the 12-month forward price-earnings ratio rising from 14 in January to 17 now. Growth in sales, dividends, and margins have each contributed less than 1%.“Companies have tended to suffer around earnings releases even as the overall market has moved higher,” Dennis Debusschere, the firm’s head of portfolio strategy, wrote in a research note. Investors have been “punished for taking on release risk.”Only consumer staples, health-care, financials, and real-estate stocks have been rewarded when disclosing results, the firm found. The other, mostly cyclical industries have all been punished. Energy stocks have taken the largest hit, down 2.3% on average in the days before and after reports. Consumer discretionary stocks have stumbled 1.8%, and technology companies have fallen nearly 1%.On the other hand, every S&P 500 sector has seen positive returns on days without earnings reports, according to Evercore ISI. Tech stocks have gained the most throughout the quiet periods. Industrials, consumer discretionary, and communications shares are the next best performers. That’s driven these four areas to become the best performing sectors this year.The pattern is playing out again in the current season. Since Citigroup Inc. kicked off the second quarter earnings season on July 15, the S&P is down 0.3%, a number that was worse prior to the biggest rally in three weeks on Tuesday. There’s still plenty of time to go with three-quarters of the benchmark yet to report, but as it stands, companies that miss earnings estimates are being punished more than those that beat are being rewarded.In the 24-hours after releasing earnings, firms that have missed profit forecasts have fallen 1.9% on average, according to data from Wells Fargo Securities. That’s more than the 1.2% gain those that beat have been rewarded with. The pattern of investors being rewarded during earnings season for prescient picks has receded over the years.Evercore ISI holds that as portfolio managers and analysts have grown more knowledgeable and machine-powered quant strategists have proliferated, it’s been difficult to gain a competitive edge and generate excess returns during earnings season. The team of strategists cited a 2017 paper titled, “Time to Change Your Investment Model,” to show that even if you were able to predict precisely which companies would beat or miss on earnings, it wouldn’t matter much.“The average gain from using a ‘perfect prediction model’ has fallen to almost zero,” Debusschere wrote. “Even if you knew the results of all earnings reports ahead of time, generating alpha with that data would still be difficult.”To contact the reporter on this story: Sarah Ponczek in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Jeremy Herron at email@example.com, Chris NagiFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Starbucks Corp. said Tuesday that it will make Starbucks Delivers available across the U.S. in early 2020 through a partnership with Uber Eats, which is a unit of Uber Technologies Inc. . Starbucks said in a statement that the service has the potential to extend the customer base beyond those who make a pit stop at a Starbucks location part of their daily routine. In addition, the two companies will collaborate on innovation and technology. Starbucks and Uber Eats launched a pilot of the delivery program in fall 2018 in Miami, and the service is currently available in 11 U.S. markets. Starbucks is scheduled to announce its third-quarter earnings on Thursday after the closing bell. Starbucks stock has gained 40% in 2019 while the S&P 500 index is up nearly 20% for the period.
The guidelines for taking aspirin to prevent heart disease have changed. The study by researchers from Beth Israel Deaconess Medical Center found that about 29 million U.S. adults aged 40 and older without cardiovascular disease use aspirin daily to prevent cardiovascular disease, with about 6.6 million taking it even though their doctor had not prescribed it to them. What’s more, nearly half of people over 70 without cardiovascular disease — an estimated nearly 10 million people — take low-dose aspirin each day.
Idaho Republican Sen. Mike Crapo suggests there are strong grounds for protecting banks that work with the booming marijuana industry, but analysts still sound downbeat on getting a law that actually would deliver such protections.
The head of UBS Group AG warns that a global rise in asset prices isn’t a development that portends well for markets.
The S&P 500 and Nasdaq approached record highs on Tuesday, lifted by upbeat quarterly reports from Coca-Cola and United Technologies, while a debt ceiling and budget deal between President Donald Trump and Congress also buoyed sentiment. Fellow Dow component United Technologies Corp gained 1.2% after raising its full-year profit and sales outlook. The two-year federal spending between Trump and U.S. congressional leaders would avert a feared government default later this year, but add to rising budget deficits.
Bloomberg reported that U.S. Trade Representative Robert Lighthizer is scheduled to head on Monday to China to begin trade talks. Lighthizer and his team will stay in Shanghai through Wednesday.
Forget the polls. For clues on which political party will win the next presidential election, look no further than the S&P 500. Yahoo Finance's Scott Gamm joins 'The Final Round' to discuss.