Amazon.com Inc. AMZN, -0.68% said Monday it will create more than 2,500 full-time jobs in Ohio as it plans to open two new fulfillment centers. The e-commerce and cloud giant plans to open one center in Akron and the other in Rossford. Each center will be more than 700,000 square feet, will ship small items such as books, electronics and toys and will operate with advanced robotics. Amazon’s stock, which gained 0.5% in premarket trading, has rallied 31% year to date through Friday, while the Dow Jones Industrial Average DJIA, -0.25% has advanced 16%.
China opened a Nasdaq-style stock market for technology stocks on Monday, which saw one firm’s share price rise 520pc when trading began.
The new technology board of the Shanghai stock exchange, which has been named the Star Market, opened on Monday with 25 stocks listed.
The Chinese government hopes to use the new market to encourage investment in domestic technology firms, and to give firms an alternative way to float that rivals the New York and Hong Kong stock exchanges.
Monday’s Star Market debut saw the 25 listed stocks gain 160pc on average. Anji Microelectronics Technology, a semiconductor firm, saw its share price rise around 520pc.
24 of the companies went public for the first time,…
Shares of Kansas City Southern KSU, +3.54% surged 2.4% in morning trading Friday, after the railroad operator reported second-quarter earnings and revenue that beat expectations. The rally was enough to pace the Dow Jones Transportation Average’s DJT, +0.82% gainers, as the Dow transports rose 77 points, or 0.7%. The company reported earlier net income that fell to $128.7 million, or $1.28 a share, from $148.2 million, or $1.45 a share, in the same period a year ago. Excluding non-recurring items, adjusted EPS rose 6% to $1.64, above the FactSet consensus of $1.54. Revenue increased 5% to $714.0 million, beating the FactSet consensus of $706.5 million. The company said operational efficiency helped boost its performance. ” We’re handling the same volume levels overall that we handled last year with 12% fewer locomotives, 7% fewer railcars and 10% fewer crew starts,” said Chief Executive Patrick Ottensmeyer on the post-earnings conference call with analysts, according to a transcript provided by FactSet. The stock has run up 26.7% year to date, while the Dow transports has advanced 15.7% and the Dow Jones Industrial Average DJIA, +0.16% has gained 16 .8%.
Shares of Kansas City Southern KSU, +4.61% surged 2.4% in morning trading Friday, after the railroad operator reported second-quarter earnings and revenue that beat expectations. The rally was enough to pace the Dow Jones Transportation Average’s DJT, +0.63% gainers, as the Dow transports rose 77 points, or 0.7%. The company reported earlier net income that fell to $128.7 million, or $1.28 a share, from $148.2 million, or $1.45 a share, in the same period a year ago. Excluding non-recurring items, adjusted EPS rose 6% to $1.64, above the FactSet consensus of $1.54. Revenue increased 5% to $714.0 million, beating the FactSet consensus of $706.5 million. The company said operational efficiency helped boost its performance. ” We’re handling the same volume levels overall that we handled last year with 12% fewer locomotives, 7% fewer railcars and 10% fewer crew starts,” said Chief Executive Patrick Ottensmeyer on the post-earnings conference call with analysts, according to a transcript provided by FactSet. The stock has run up 26.7% year to date, while the Dow transports has advanced 15.7% and the Dow Jones Industrial Average DJIA, -0.25% has gained 16 .8%.
NEW YORK (Reuters) – U.S. stocks moved higher on Thursday after a slow start as comments from New York Fed President John Williams helped cement expectations for an interest rate cut from the U.S. central bank at the end of the month.
Williams said that when rates and inflation are low, policymakers cannot afford to keep their “powder dry” and wait for potential economic problems to materialize.
“He’s toeing the party line at the Fed, basically implying that an insurance rate cut is the right thing to do for the economy at this point in time,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance in Charlotte, North Carolina.
Before Williams’ comments, stocks had been lower as shares of Netflix Inc (NFLX.O) tumbled 10.3% after the company’s quarterly results, which missed targets for new subscribers overseas.
Losses in Netflix triggered a 0.9% fall in the communication services sector .SPLRCL, which has been one of the best-performing S&P sectors so far this year.
“I think there was this assumption that no matter what happened globally that people would sit at home and watch television and tune in to Netflix,” said Jack Ablin, founding partner and chief investment officer at Cresset Asset Management in Chicago. “I think that investors have viewed these large-cap growth technology companies as somewhat defensive.”
The Dow Jones Industrial Average .DJI rose 3.12 points, or 0.01%, to 27,222.97, the S&P 500 .SPX gained 10.69 points, or 0.36%, to 2,995.11 and the Nasdaq Composite .IXIC added 22.04 points, or 0.27%, to 8,207.24.
Among positive earnings reports, shares of Philip Morris International Inc (PM.N) climbed 8.2% after the tobacco company raised its full-year profit outlook. Railroad operator Union Pacific Corp (UNP.N) jumped 5.9% after the company’s profit came in ahead of expectations.
International Business Machines Corp (IBM.N) rose 4.6% as the company’s quarterly profit beat on strong growth in its high-margin cloud business.
Morgan Stanley (MS.N) shares rose 1.5% after the bank posted a better-than-expected quarterly profit. The S&P 500 banks index .SPXBK was up 0.9% after three days of losses.
“I suppose the good news is expectations were pretty low coming into this season’s earnings,” Ablin said. “Analysts had expected a negative decline in profit year over year and so right now it looks like the earnings results themselves are better than expected.”
UnitedHealth Group Inc (UNH.N) shares slipped 2.3% as the insurer said on its conference call that 2019 revenue would not hit its original target.
Profits for S&P 500 companies are expected to rise 0.6% for the second quarter of 2019, according to Refinitiv IBES data. Until Wednesday, there were expectations of a dip in earnings.
Advancing issues outnumbered declining ones on the NYSE by a 1.22-to-1 ratio; on Nasdaq, a 1.23-to-1 ratio favored advancers.
The S&P 500 posted 36 new 52-week highs and four new lows; the Nasdaq Composite recorded 61 new highs and 101 new lows.
Volume on U.S. exchanges was 6.68 billion shares, compared with the 6.67 billion average for the full session over the last 20 trading days.
Reporting by Evan Sully; Additional reporting by April Joyner in New York and Medha Singh and Uday Sampath in Bengaluru; Editing by Sriraj Kalluvila, Anil D’Silva, Jonathan Oatis and Dan Grebler
Advanced Micro Devices Inc. is the chip maker to watch this earnings season, as the company takes on Intel Corp. and Nvidia Corp. amid problems in the sector that are expected to show signs of improvement.
AMD AMD, +3.55% is scheduled to report second-quarter earnings on Wednesday, July 24.
What to expect
Earnings: Of the 29 analysts surveyed by FactSet, AMD on average is expected to post adjusted earnings of 8 cents a share, down from the 9 cents a share expected at the beginning of the quarter. Estimize, a software platform that uses crowdsourcing from hedge-fund executives, brokerages, buy-side analysts and others, calls for earnings of 9 cents a share.
Revenue: Wall Street expects revenue of $1.52 billion from AMD, according to 28 analysts polled by FactSet. AMD predicted revenue of $1.47 billion to $1.57 billion. Estimize expects revenue of $1.54 billion.
Stock movement: AMD shares are up more than 24% since the company last reported earnings. In comparison, the S&P 500 index SPX, +0.02% has gained 2.3%, the tech-heavy Nasdaq Composite Index COMP, +0.17% has advanced 2.6%, and the PHLX Semiconductor Index SOX, +0.77% has declined 2.6% in that time.
Of the 34 analysts who cover AMD, 15 have buy or overweight ratings, 15 have hold ratings and four have sell or underweight ratings, with an average price target of $30.28, 12% lower than Monday’s record high close of $34.39.
What to look for in the call
At the beginning of the year, AMD was forecasting a better year than other chip makers, but relief to the beleaguered chip sector may be coming earlier than expected as research firms Gartner and IDC reported a rise in global PC shipments for the second quarter.
“Although we think there remain risks for the PC markets (and other electronic end markets), we believe that these latest estimates reflect positively on Intel INTC, +0.40% and AMD,” Instinet analyst David Wong wrote in a recent note. “In addition, we anticipate that new products from Intel and AMD could well provide some additional stimulus for the PC and server end markets in the second half of this year.”
AMD launched its Ryzen desktop CPUs and APUs as well as new Navi GPUs recently, and those sales will figure in the third-quarter outlook. Wong has buy ratings on both AMD and Intel.
Susquehanna Financial Group analyst Christopher Rolland, who has neutral ratings on both AMD and Intel, said AMD had already gained share ahead of its recent product launches.
“AMD launched its first Ryzen 7nm CPUs on July 7, but already has achieved desktop share of 19.1% in 2Q19 (highest share in 5+ years),” Rolland said. “To combat these share gains, we have heard (our recent Asia trip) that Intel is offering price cuts of up to 15% on its Coffee Lake CPUs.”
Tech earnings preview: A test amid tumultuous times, and all the chips are on the table
In chip parlance, nanometers, or nm, refers to the size of the transistors that go on a computer chip, with the general rule being that smaller transistors are faster and more efficient in using power.
Monday’s Market Roundup: Global Markets Rise, Commodities Fall, Oil Climbs
Jul 12, 2019 (Investing Alerts via COMTEX) —
U.S. markets closed higher on Friday on gains in oil price and materials stocks, which offset a disappointing jobs report. The Dow Jones closed 0.5% higher, while the Nasdaq Composite Index was up 0.4%. Despite all three indexes closing in the green, each one posted a weekly loss.
Today, Monday, stocks opened higher, while commodities fell and oil climbed. Here’s what you need to know about today’s market:
Global Equity Markets Higher
With the exception of China, global equities markets are higher. The Shanghai Composite Index dove 2.8% after the release of disappointing data over the weekend. The MSCI Asia Pacific Index was also down 0.2%.
Over in Europe, however, the Stoxx 600 Index was up 3.8%. S&P 500 futures were up 0.4% earlier in the morning.
Iron ore prices plummeted again, with the SGX AsiaClear contract in Singapore down 9.1%. Spot ore prices in Qingdao tumbled more than 17% from its recent high. Stockpiles in China reached their highest level in over 12 months, leading to the decline in prices.
Gold futures declined to $1,279.85 a troy ounce, down $14.50 (1.1%). Copper futures dropped to a four-week low on worries of China’s slowing economy.
WTI (West Texas Intermediate) crude was up 2% in morning trade. Disruptions caused by the wildfires in Alberta, Canada have reduced supplies by 1 million barrels per day.
U.S. crude was up 2.4% ($1.07) to $45.73 per barrel. Brent added 87 cents, up 1.9%, trading at $46.24.
Yen Slumps on Intervention Hint
The dollar firmed against major currencies as the yen slumped to a two-week low. The slump was driven by Japan’s finance minister’s remarks that officials were preparing to intervene to stem the yen’s gains if needed.
Weak China Data Reignites Growth Concerns
China released its trade data for the month on Sunday. The report showed that imports and exports both fell more than anticipated in the month of April, reigniting concerns over the health of China’s economy.
Exports were down 1.8% compared to the previous year. Economists estimated a 0.1% decline. Imports were down 10.9%, while analysts were expecting a fall of 5%.
The post Monday’s Market Roundup: Global Markets Rise, Commodities Fall, Oil Climbs appeared first on Investing Alerts.
NEW YORK (Reuters) – The Dow and S&P 500 rose on Thursday to close at record highs as health insurers gained after the Trump administration scrapped a plan designed to rein in prescription drug prices, while financial shares climbed with bond yields.
The abandoned proposal would have required health insurers to pass on billions of dollars in rebates they receive from drugmakers to Medicare patients.
On the flip side, drugmakers such as Merck & Co Inc (MRK.N) and Pfizer Inc (PFE.N) dropped following the news, and the Nasdaq biotech index .NBI was down 1.5%. Merck ended down 4.5% while Pfizer was down 2.5%. The S&P 500 healthcare index .SPXHC ended flat.
The S&P 500 traded above 3,000 for a second day in a row but again failed to close above that milestone, suggesting investor cautiousness.
“The fact that it has not been able to get through it and stay above that level has been a big psychological negative,” said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.
Helping to support stocks were comments from Federal Reserve Chairman Jerome Powell, which supported investor expectations for an interest-rate cut.
In his first day of testimony before Congress on Wednesday, Powell confirmed the U.S. economy was still under threat from disappointing factory activity, tame inflation and a simmering trade war and said the Fed stood ready to “act as appropriate.” Powell testified before the Senate Banking Committee on Thursday.
U.S. benchmark bond yields rose, and the S&P 500 financial index .SPSY gained 0.6%.
The Dow Jones Industrial Average .DJI rose 227.88 points, or 0.85%, to 27,088.08, the S&P 500 .SPX gained 6.84 points, or 0.23%, to 2,999.91 and the Nasdaq Composite .IXIC dropped 6.49 points, or 0.08%, to 8,196.04.
Iron Mountain (IRM.N) slumped after Bank of America Merrill Lynch downgraded the document storage company’s shares to “underperform,” citing recent declines in recycled paper pricing.
A Labor Department report showed U.S. underlying consumer prices rose by the most in nearly 1-1/2 years in June, but that was unlikely to change expectations the Fed would cut rates this month.
Declining issues outnumbered advancing ones on the NYSE by a 1.04-to-1 ratio; on Nasdaq, a 1.25-to-1 ratio favored decliners.
The S&P 500 posted 48 new 52-week highs and 4 new lows; the Nasdaq Composite recorded 77 new highs and 54 new lows.
Volume on U.S. exchanges was 6.17 billion shares.
Additional reporting by Medha Singh and Manas Mishra in Bengaluru; Editing by Shounak Dasgupta, Maju Samuel and Jonathan Oatis