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Despite turmoil overseas, the US economy continues to grow, increasing opportunities for domestically-focused companies.
Shares of Toll Brothers continue to be under pressure today despite the company reporting above earnings-per-share estimates. Yahoo Finance's Scott Gamm breaks it down.
The companies plan to open a 5G innovation lab and incubator based at T-Mobile's Bellevue headquarters, according to an application filed with the state of Washington.
Toll Brothers Inc (NYSE: TOL ) reported a top-and-bottom-line beat in its fiscal third-quarter on Tuesday. The luxury homebuilder followed up with encouraging commentary on the fiscal fourth quarter. ...
(Bloomberg) -- Wealthy buyers are pulling back from some of the most expensive housing markets in the U.S., the latest sign that sky-high prices and fears of a recession are weighing on a key sector of the economy.Toll Brothers Inc., the nation’s largest publicly traded luxury-home builder, said late Tuesday that purchase agreements fell 3% from a year earlier, worse than a decline of less than 1% that was expected by a Bloomberg survey of six analysts. The company’s orders in California, home to some of the priciest markets in the country, tumbled 36% from a year earlier.The shares were down 4.1% to $35.40 at 12:55 p.m. New York time after earlier falling as much as 6.3%. It was the worst performance in an S&P index of homebuilders, which rose 0.8%.Toll’s results underscore a shift taking place in the U.S. housing market. The return of low mortgage rates is heating up competition for starter homes and fueling steep price gains in cities that have long been more affordable. Meanwhile, expensive markets, like San Jose and Seattle, as well as the luxury homes that Toll builds, have seen a drop-off in demand.Purchases of previously owned U.S. homes, which cost less than half of Toll’s offerings on average, rose to a five-month high in July, the National Association of Realtors said Wednesday.Toll’s buyers “are a little more sensitive to what’s going on in the broader economy,” said Drew Reading, an analyst at Bloomberg Intelligence. “They’re paying more attention to the stock market.”Slowdown SignsWall Street and Washington have been buzzing this month about the potential for an economic slowdown after U.S. equities suffered one of the deepest sell-offs of the year on Aug. 14 and a key portion of the U.S. Treasury yield curve inverted for the first time in 12 years. New-home sales also were weaker than expected in June.Homebuilders that cater to entry-level buyers are better positioned to weather shifting demand, Reading said. Shares of D.R. Horton Inc., which focuses on starter homes, have climbed 41% this year through Tuesday, while Toll Brothers was up 12%.The luxury builder’s biggest challenge may be its concentration in California, where its homes under contract had an average price of $1.74 million in the quarter. Chinese buyers have pulled back there and the federal tax overhaul limited deductions for property levies and mortgage interest.As at other homebuilders, Toll’s profits have gotten squeezed by the need to drive sales with buyer incentives. Fewer California deals, with their relatively fat margins, also didn’t help. Toll’s full-year guidance for adjusted gross margin of 23% was slightly lower than the consensus of 23.2%, based on a Bloomberg survey of analysts.‘Tailwinds’ IntactToll is off to a good start in August, Chief Executive Officer Doug Yearley said on a call with analysts. The company was able to increase prices in about half its markets, he said.“With demographics improving, low interest rates, record-low unemployment, continued wage growth and limited new and resale inventory in many markets, we are optimistic about the opportunities ahead,” Yearley said.The company said the weakness in California was primarily in the northern part of the state and that order growth will improve in subsequent quarters because the year-over-year comparisons will be with periods that were softer. The sales slowdown for new homes took hold late last summer.“It’s no secret that lower prices is a better place to be right now,” Jack Micenko, an analyst with Susquehanna International Group, said after the call. “But I think the numbers this quarter were very much a function of how good things were well into the summer last year and then they fell off a cliff.”The company has been looking to scale up its business in other parts of the country and build slightly less-expensive homes for wealthy millennials. That will lead to lower average prices and potentially an increase in sales because the pool of more-affordable homes is greater.“They are diversifying the type of product they’re building, but it’s not a transformation that happens overnight,” said Alex Barron, an analyst with the Housing Research Center in El Paso, Texas. “Toll Brothers is luxury. They’re not going to go from being a Nordstrom to being Walmart.”(Updates with existing-home sales, CEO and analyst comments.)To contact the reporters on this story: Noah Buhayar in Seattle at email@example.com;Prashant Gopal in Boston at firstname.lastname@example.orgTo contact the editors responsible for this story: Debarati Roy at email@example.com, Christine Maurus, Josh FriedmanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Most of the top institutional investors increased their stakes in T-Mobile. Capital World Investors added 7.7 million shares during the second quarter.
Wall Street's main indexes rose about 1% on Wednesday, as upbeat earnings from retailers Lowe's and Target reinforced confidence in consumer demand, while investors awaited the release of the Fed minutes for further clues on the path of interest rate cuts. Big-box retailer Target Corp surged 19.5%, set for its biggest one-day percentage jump, after it raised its annual earnings forecast.
Toll Brothers stock was down after the company reported fiscal third-quarter earnings. Though earnings per share solidly beat expectations, analysts were disappointed by a decline in unit orders.
U.S. stocks advanced on Wednesday following upbeat earnings from retailers Lowe's and Target that reinforced confidence in consumer demand, while investors awaited the release of the Fed minutes for further clues on the path of future rate cuts. Big-box retailer Target Corp surged 18.2%, the most on the S&P 500 index, after it beat quarterly profit estimates and raised its annual earnings forecast.
Although reduced mortgage rates and solid job market have helped Toll Brothers (TOL) to post better-than-expected fiscal Q3 numbers, lower orders raise a concern.
(Bloomberg) -- JPMorgan Chase & Co. is planning to shut down its Chase Pay app in the bank’s third reversal on digital offerings in three months.The company started informing customers Wednesday that they’ll no longer be able to use the product to pay with their smartphones when shopping in stores starting early next year, according to an email seen by Bloomberg. They’ll still be able to use Chase Pay on the websites and apps of retailers that accept it.It’s an about-face on a product introduced four years ago to compete with rivals such as Apple Inc. that are working to transform how consumers pay for products and services. New technologies have spurred a revolution in mobile payments, with Chinese companies leading the way in helping consumers bypass credit and debit cards. The U.S. market has been slower to develop.“When we started this, it was four years ago -- the payment space has changed a lot over the period of time and customer behavior has changed,” Eric Connolly, head of Chase Pay, said in an interview. “A lot of merchants have shifted to ‘buy online, pick up in store’ and have invested in their online presence and their apps.”The bank says it wants to capture a larger share of a market long dominated by PayPal Holdings Inc., whose digital wallet was accepted by about 70% of online merchants at the end of the second quarter. Fewer than 1% accepted JPMorgan’s, according to a study by industry publication PYMNTS.com.Pablo Rodriguez, a JPMorgan spokesman, declined to say how many online retailers currently accept Chase Pay, adding that the bank expects that number to increase. In a statement on Wednesday, the company said that GrubHub Inc. will soon accept it.Shares of the bank, which have climbed 11% this year, advanced 0.8% to $108.16 at 9:33 a.m. in New York.Finn, On DeckJPMorgan has shown a greater willingness than rivals to cut bait on unsuccessful projects as it spends more than $11 billion on technology initiatives designed in part to position the bank to stay ahead of changes in how consumers spend money.Some of the bank’s other digital experiments have failed to take hold. In June, it shut down digital bank Finn a year after rolling out the brand nationally. A month later, it cut ties with fintech company On Deck, whose technology platform it had used to originate online small-business loans.JPMorgan has been testing other technologies to lure consumers to spend more on its cards. It has been adding tap-to-pay technology to its cards and joined with Cardlytics Inc. to offer coupons for select merchants inside its mobile app. In February, it unveiled a prototype cryptocurrency, dubbed JPM Coin, that it plans to use to speed up payments between companies.(Updates with JPMorgan’s digital experiments starting in seventh paragraph.)To contact the reporters on this story: Michelle F. Davis in New York at firstname.lastname@example.org;Jenny Surane in New York at email@example.comTo contact the editors responsible for this story: Michael J. Moore at firstname.lastname@example.org, Steve Dickson, Daniel TaubFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Some news just came out that could be another obstacle facing Sprint (NYSE:S) in its ongoing merger saga with T-Mobile (NASDAQ:TMUS). Oregon just joined the multi-state lawsuit to block the merger, and Texas joined the suit earlier this month. 16 states are now part of the suit which alleges that the new combined company would be anticompetitive.Source: BrandonKleinVideo / Shutterstock.com The Department of Justice announced that it had reached an agreement which would allow the merger between T-Mobile and Sprint to move forward. As part of the agreement, DISH Network (NASDAQ:DISH) will buy some of Sprints assets. The DOJ said that without these actions by DISH the merger could "substantially harm competition." The idea behind this thinking is that afterwards there will be four companies and the competition between them will prevent anticompetitive practices. Despite this, the states decided to pursue their lawsuits because they believe that the deal will ultimately lead to higher prices for consumers. * 10 Marijuana Stocks to Ride High on the Farm Bill Wall Street isn't sure whether or not this deal will close. 18 firms follow Sprint stock on a research basis. 14 of them have hold ratings on the stock while three firms have sell ratings on it. The average target price is $6.50, which is below current levels.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThere is one buy recommendation on Sprint stock. The analysts at UBS believe the deal will close. They recently upgraded S stock from hold to buy and put a $10 price target on it. Though the upgrade was before the news about Oregon joining the lawsuit came out, it does not seem to have changed their opinion. Sprint's Earnings ReviewSprint just reported a net loss of $111 million, or a loss of 3 cents a share. This was in line with estimates, but well below last year's net income of $176 million or 4 cents a share. Revenues dropped from $8.44 billion to $8.14 billion. This was slightly above estimates of $8 billion. The company also announced that had lost 120,000 subscribers which was less than the loss of 150,000 that analysts were expecting.Overall, the Street seems to be slightly bullish on the numbers, but some analysts believe at this point the earnings do not really matter and will not influence the Sprint stock price. The question now for Sprint shareholders is if and when the deal will be closed.Don't hold your breath, because it isn't going to happen anytime soon. The court date just got pushed back from October to December. This means that the deal will almost certainly not close this year, unless by some chance all the suits are settled before then. What's Next for Sprint Stock?Sprint stock rallied up to the $8 level when UBS upgraded it, but news of additional lawsuits knocked it back down. There is support at $6.50. This was the top of the range from September through June and is also the average target price of the firms that cover it.It is currently consolidating, or trading sideways around the $6.80 level. S stock will probably continue to do so until there is some more clarity with regards to the outcome of the lawsuit.At the time of this writing Mark Putrino did not hold any positions in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post Sprint Faces Another Obstacle as Oregon Joins Lawsuit Against Merger appeared first on InvestorPlace.
With CenturyLink's (CTL) SIMPLE service expansion, small business customers can now purchase more business-critical services with ease.
T-Mobile's (TMUS) new device lab will carry out its 5G spectrum test with the help of specialized rooms like the Sub-6GHz 5G Radio Performance Chamber and the 5G Millimeter-Wave Antenna Range.
Luxury-home builder Toll Brothers beat fiscal third-quarter earnings estimates despite a drop in new orders. The company posted earnings of $1 a share vs. $1.26 in the year-earlier period. Analysts were expecting a profit of 82 cents a share, according to Zacks.