|Day's Range||7.42 - 7.44|
Expeditors International, Norwegian Cruise line, WalMart and Deere are part of Zacks Earnings Preview
Deere's (DE) Q1 results likely to reflect benefits from advanced technologies, precision agriculture and cost management despite a choppy agricultural sector.
Deere (DE) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
(Bloomberg) -- President Donald Trump’s pick for the Federal Reserve Board, Judy Shelton, came under fire from Republican lawmakers on Thursday, signaling trouble ahead for her nomination.Speaking to reporters after a Senate Banking Committee hearing on her appointment, Senators Richard Shelby from Alabama, Patrick Toomey from Pennsylvania and John Kennedy from Louisiana all said they had not decided if they would vote for her confirmation.A single Republican “no” vote on the committee is enough to block the Shelton nomination, assuming Democrats -- who were pointed in their criticism of her at the hearing -- are united in opposition.“I think the Fed should be independent and we should have mainstream people on there,” Shelby, the committee’s longest-serving member, told reporters. “I don’t think she’s a mainstream economist. She’s different. Another voice.”While the White House expressed confidence that Shelton would be confirmed, a person familiar with the matter said Thursday night that Trump’s top economic adviser, Larry Kudlow, would be pressing members of the committee to approve her nomination.The former economic adviser to Trump’s presidential campaign is a controversial pick because of her past comments on the gold standard, the dollar, and whether the Fed’s congressional mandate to pursue maximum employment and stable prices is meaningful.Shelton’s confirmation could place a Trump loyalist at the very heart of the central bank as she’s publicly supported the president’s policies. Trump has repeatedly attacked the Fed and its chairman, Jerome Powell, for not doing more to boost the economy. If the president is re-elected in November and Shelton joins the board, she could be Trump’s pick to succeed Powell as chair in 2022.Speaking to reporters outside the hearing room, Toomey said Shelton’s answers didn’t eliminate his concerns about her, adding that he hasn’t made up his mind whether to support her nomination. During his questioning of her, he voiced concern about what he saw as Shelton’s past suggestions that the Fed respond to other countries’ attempts to devalue their currencies by pursuing a similar path of its own.“I just want to stress this is a dangerous path to go down,” Toomey said.While saying that Shelton was academically qualified for the Fed job, Shelby said in the hearing he was troubled by some of her past writings and questioned her on whether she backs a return to the gold standard as a value of money.“You never go back with money,” Shelton replied, adding that it can be beneficial to look at something that worked in past decades.Trump’s other Fed nominee, economist Christopher Waller, faced few questions at the hearing. He is a Ph.D. economist and head of research at the St. Louis Fed.‘Nutty Ideas’Kennedy said he wasn’t bothered by apparent shifts in some of Shelton’s views.“At the same time, and I’m not suggesting this is the case with either one of the nominees, nobody wants anybody on the Federal Reserve that has a fatal attraction to nutty ideas,” he told reporters.QuickTake: What Trump Can (And Can’t) Do to Steer Fed PolicyResponding to questions about whether Shelton’s nomination was in jeopardy, White House spokesman Judd Deere said “the nominations of Judy Shelton and Christopher Waller are not being pulled. Both were in front of the Banking Committee today and the White House expects both to be confirmed by the Senate to the Federal Reserve.”Fed IndependenceShelton answered multiple challenges on her allegiance during the hearing, saying: “I pledge to be independent in my decision making. Frankly, no one tells me what to do.”She also came under fire from Democrats about her suitability for the role. Senator Sherrod Brown, an Ohio Democrat, pressed Shelton on her controversial views in his opening remarks at the hearing.“Ms. Shelton has too many alarming ideas,” Brown said, adding that she’s also “flip flopped” on her views. “A vote for Ms. Shelton is a vote against Fed independence,” he said.Panel chairman Mike Crapo, a Republican from Idaho, closed the meeting with some words of support for Shelton, telling her “you have been very solid in defending your writing and your positions.”He later told reporters that a committee vote on the nominations was possible after Congress returns from next week’s recess, but he wasn’t sure.“I’m going to see how it plays out.”(Updates with Larry Kudlow’s involvement, in fifth paragraph)\--With assistance from Max Reyes, Steve Matthews, Rich Miller, Justin Sink and Saleha Mohsin.To contact the reporters on this story: Craig Torres in Washington at firstname.lastname@example.org;Christopher Condon in Washington at email@example.com;Erik Wasson in Washington at firstname.lastname@example.orgTo contact the editors responsible for this story: Margaret Collins at email@example.com, John HarneyFor 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.
China faced mounting isolation in the face of increasing international travel curbs and flight suspensions on Saturday, as the death toll from a spreading coronavirus outbreak rose to 259. China's National Health Commission said there were 2,102 new confirmed infections in China as of Friday, bringing the total to 11,791. All of the reported deaths from the virus have been in China.
Deere & Co. on Friday said it has decided to close its facilities in China because of the outbreak of a coronavirus outbreak until the company determines it appropriate to reopen. The company said it also has decided to restrict travel of its employees to and from China until a later time.
SHANGHAI/WASHINGTON, Jan 31 (Reuters) - The United States ramped up its response to the coronavirus epidemic on Friday, declaring a public health emergency and saying it would halt entry to foreign nationals who had been to China within the 14-day incubation period. Originating in the Chinese city of Wuhan, the flu-like virus first identified earlier in January has resulted in 213 deaths in China, according to local health authorities.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. China’s promises in its phase-one trade deal to increase purchases from the U.S. -- which experts already were calling unrealistic -- will be even tougher to fulfill now that a new virus is hammering demand and interfering with supply chains.In the first year of the deal, which takes effect in mid-February, China committed to buy an extra $76.7 billion worth of American goods beyond what it purchased in 2017, and an additional $123.3 billion in the second year. The agreement signed just over two weeks ago marked an easing in tensions that flared as the world’s two largest economies waged a trade war.As the novel coronavirus spreads, attention is focusing on a part of the agreement which states the U.S. and China will consult “in the event that a natural disaster or other unforeseeable event” delays either nation from complying with the agreement.“It obviously is going to have some ramifications economy-wide, which we hope will not inhibit the purchase goal that we have for this year,” U.S. Agriculture Secretary Sonny Perdue said Wednesday. “We’ll have to look ahead and see.But the honest answer is we just don’t know yet. But we’re hoping for a very quick conclusion.”The deadly virus may push jobs back to the U.S., Commerce Secretary Wilbur Ross said.“Well, first of all, every American’s heart has to go out to the victims of the coronavirus,” Ross said during an interview on Fox Business Network Thursday. “I don’t want to talk about a victory lap over a very unfortunate, very malignant disease. But the fact is, it does give businesses yet another thing to consider when they go through their review of their supply chain, on top of all the other things.”“I think it will help to accelerate the return of jobs to North America. Some to U.S. Probably some to Mexico as well.”The health crisis has hit financial and commodity markets in recent days.China’s yuan sank through 7 per dollar Thursday, breaching that threshold for the first time this year. The spread between U.S. 10-year Treasury yields and three-month OIS rates turned negative, inverting the yield curve for the first time since October. Futures prices for soybeans -- a key component of China’s import commitments in the deal -- fell for an eighth straight day, the longest skid in almost two months.Meanwhile, economists are ratcheting up their estimates of the blow to economic growth. Nomura International Ltd. says the drag could exceed that seen during the SARS outbreak of 2003.So far, the world’s two biggest economies seem more focused on measures to prevent the spread of the disease.“The U.S. and China are in close coordination on the coronavirus and protecting the public health of both countries,” White House spokesman Judd Deere said. “The president appreciates President Xi’s cooperation.”(Updates with comments from commerce secretary in fifth paragraph)To contact Bloomberg News staff for this story: James Mayger in Beijing at firstname.lastname@example.orgTo contact the editors responsible for this story: Jeffrey Black at email@example.com, Malcolm Scott, Michael S. ArnoldFor 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.
(Bloomberg Opinion) -- How long should a manufacturer be responsible for maintaining support for legacy products? Consumer devices have increasingly become smart and connected, only to later be abandoned by the manufacturer. Smart suitcases have turned dumb, talking toys gone mute, and wireless security cameras bricked into paperweights. Most recently, Sonos got a lot of grief for announcing that older versions of their smart home speakers would soon lose access to services and functionality. Customers complained that they had spent thousands on their audio systems, with some products still on the market as recently as 2015.A hardware device is a one-time purchase, while software updates require continuous labor. As technology improves and devices last longer, the initial manufacturing cost may end up being a small proportion of the total lifetime cost of production. Many manufacturers have shifted to business models that treat the device sale as a loss leader for future revenue streams. Amazon can afford to underprice the Echo because it enables consumers to buy more stuff from Amazon, Google and Spotify teamed up to give away Google Home Minis, and even Apple recently lowered prices on its iPhones to grow a user base for its subscription services.At the more controversial end of the spectrum, companies like John Deere have used the Digital Millenium Copyright Act to legally prevent users from repairing their own equipment, forcing their customers to continue paying into a lucrative repair market.Sonos boxed itself into a corner early on by promising customers free software updates for life. As CEO Patrick Spence testified at a Congressional hearing earlier this month, “Our business model is simple — we sell products which people pay for once, and we make them better over time with software updates.”The company is in a particularly difficult position because Sonos began as a home audio company before the advent of smart home assistants. Its earliest speakers weren’t designed with the processing power and storage required to take advantage of today’s features. To minimize complexity, Sonos designed its audio system so that all devices in a home network would share the same software. Once one product is no longer eligible for updates, the whole setup would stop receiving updates. Sonos customers lodged public complaints and bullied the company into submission. Sonos promised to keep the updates coming.A better long-term solution for the company might be found by looking to a different coalition of rebellious customers: a group that has been quietly reverse-engineering their speakers to liberate them from the company’s software entirely. It’s not an easy task. A Sonos speaker integrates a speaker and a microprocessor running a proprietary operating system. In order to jailbreak the speaker, a user must gain access to the internal hardware and install their own software.It would no doubt please these customers were Sonos to make their legacy speakers open source. Sonos has already indicated that the company can remotely erase the software; it could similarly perform a remote reinstallation of an open-source operating system like Linux or Android. The company’s tech-savvy fans could then continue to improve the software — which could be downloaded by other users — while Sonos focuses on its core competency of manufacturing high-end speakers.In the future, device manufacturers may be less generous about promising a lifetime of free software support. After all, most technological improvements these days are done in software. When it comes to cars, the internal combustion engine hasn’t changed much since fuel injectors were introduced in the 1980s. The performance improvements seen in recent decades have come from better sensors and smarter software to interpret sensor data.Autonomous vehicles will have an even tougher sell, as it’s inevitable that self-driving technology will continue to improve after initial release. Will further updates be free, or will the vehicle manufacturer hold consumer safety for ransom?While it’s easy to insist that customers should have free access to software updates running on devices they rightfully own, it’s hard to reconcile a sustainable business model with a lifetime of free software. A device that requires a paid subscription or leaves software updates as an exercise for the customer is better than one that turns into a brick.To contact the author of this story: Elaine Ou at firstname.lastname@example.orgTo contact the editor responsible for this story: Sarah Green Carmichael at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Elaine Ou is a Bloomberg Opinion columnist. She is a blockchain engineer at Global Financial Access in San Francisco. Previously she was a lecturer in the electrical and information engineering department at the University of Sydney.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Arcosa, Deere and Company, McDonald's, Darden Restaurants and Denny's highlighted as Zacks Bull and Bear of the Day
Tractor giant John Deere announced that four new companies have joined its latest startup program that’s designed to test new technologies with customers and dealers.
Deere & Company (NYSE:DE) had a relatively subdued couple of weeks in terms of changes in share price, which continued...
The company has a quarter-trillion dollar opportunity selling new technology and services to farmers, according to Melius Research analyst Rob Wertheimer.
Do US Farmers Trust President Trump? We will see. The “Phase One” trade deal between the United States and China will, once again supposedly, be signed today, the Ides of January. Despite previous reports that China has backed out of firm commitments to increase its purchases of US agricultural products, it now seems that somehow […]The post Market Morning: Trade Deal Signing, Bitcoin Fracas, Trump Rages at Apple, Jet Fuel Rain appeared first on Market Exclusive.
Deere & Co. on Wednesday said it will cut costs and ramp up investment in data-driven agriculture technology and its services business to make itself more profitable. In a pitch to investors, Chief Executive Officer John May said the measures are expected to boost operating profit margin to 15% by 2022 from 12.5% projected for this year. May, who took over Deere's reins in November, aims to shore up the company's fortunes which have taken a hit from Sino-U.S. trade tensions as well as poor weather in the American farm belt that has slowed equipment purchases by farmers.
Delta CEO Ed Bastian offered the CES keynote on Tuesday in Las Vegas. The airline has big plans for artificial intelligence, robots, and offsetting emissions.
The Zacks Analyst Blog Highlights: Pfizer, BP, Fidelity National Information Services, Deere & Company and Equity Residential