Selasa, 28 Januari 2020

Stock market live updates: Dow up 100, airlines & chips rebound, Cramer's take, 3M down big - CNBC

Visitors wearing masks walk past Shanghai Disney Resort, that will be closed during the Chinese Lunar New Year holiday following the outbreak of a new coronavirus, in Shanghai, China January 24, 2020.

Aly Song | Reuters

This is a live blog. Check back for updates.

10:05 am: Not much of a rebound for coronavirus-impacted stocks

Wynn Resorts, one of the stocks that took the hardest hit from the coronavirus, gave up premarket gains of nearly 2% and was last down more than 1%. The stock has tanked 14% in the past week. Another casino company Las Vegas Sands also dipped slightly. Airlines came back a tad after days of selling off, with American Airlines up 1% and Delta and United Airlines both rising slightly. —Li

10:00 am: Consumer confidence beats expectations

January consumer confidence from the Conference Board came in at 131.6, much higher than estimates. The reading gave a slight boost to the market, with the Dow now up more than 100 points again, though still short of the highs of the day. —Melloy

9:51 am: Stocks off their highs

Stocks couldn't follow through on the strong open. News that the CDC was advising Americans avoid travel to China is not helping the market's attempted rebound. 3M down nearly 5% is also holding back the market. The Dow was up 119 points at its high and is up 95 points now. On the positive side, market breadth is healthy with advancers outpacing decliners on the NYSE by nearly 3-to-1.  —Melloy

9:47 am: JPMorgan boosts Q4 GDP to 1.7% after durable goods report

JP Morgan economists said they boosted their forecast for fourth quarter GDP growth to 1.7% from 1.6%, after an upside surprise in inventories in the December durable goods report.Durable goods was a mixed bag. Headline orders rose 2.4% and were better than expected. But Boeing took a bite out of orders, with nondefense aircraft down 75% in December, at the lowest level since 2009. But the government made up for it with a surge in defense aircraft orders, which were up almost 170%.The government releases Q4 GDP data on Thursday. -Domm

9:33 am: Dow climbs 100 points at the open

The Dow rose 100 points at the open, while the S&P 500 and Nasdaq Composite were also higher, rebounding from a big sell-off Monday. However, 3M and Harley-Davidson fell 2.6% and 4.1%, respectively, on disappointing quarterly results, capping the gains in the broad market. The Dow as last up about 70 points. —Li

9:20 am: Monday's sell-off did not have unusual volume

The Dow plunged more than 450 points Monday on heightened coronavirus fears, suffering its biggest one-day fall since October and wiping out the average's gains for the year. However, the pullback was not on unusually heavy volume, perhaps suggesting less conviction, Matt Maley, chief market strategist at Miller Tabak, pointed out. "The market gapped lower on the opening, so it was not forced lower by selling," said Maley. He noted the trading volumes were slightly more than 3 billion shares Monday, which was not a big jump from an average Monday. —Li

9:06 am: Harley-Davidson falls on earnings

Shares of the motorcycle company fell more than 6% in premarket trading on Tuesday after a big miss on revenue for its fourth quarter earnings. Harley-Davidson reported revenue of $874.1 million, falling short of estimates of $920.1 million, according to Refinitiv. The company also issued weaker-than-expected revenue guidance for the new year. Harley-Davidson expects to post sales between $4.53 billion and $4.66 billion in 2020, while analysts forecast annual revenue of $4.65 billion. 2020 is a "pivotal year" in the transformation of the company as it tries to "build the next generation of Harley-Davidson riders," the company said. Earnings per share came in a 20 cents, topping estimates of 9 cents per share. -Fitzgerald

8:50 am: China ETFs in correction territory

Some of the largest funds that track the performance of Chinese stocks closed in correction territory on Monday as fears over the impact the coronavirus could have on business grew. Major exchange-traded funds including the iShares China Large-Cap ETF and the iShares MSCI China ETF closed down 11.5% and 10% from their respective 52-week highs on Monday. The MSCI China fund's dive into correction comes just days after it hit a 52-week high on Jan. 13. — Franck

8:32 am: 3M drops on disappointing earnings, new round of job cuts

Shares of 3M are down more than 2% in the premarket after the manufacturing giant posted weaker-than-forecast results for the previous quarter. The company posted a profit of $1.95 per share on revenue of $8.11 billion, both of which are below analyst expectations. Investors also sold the stock after the company announced a new round of job cuts. Shares of 3M are the second-worst performers in the Dow over the past 12 months. They are down more than 9% in that time. —Imbert

8:30 am: BorgWarner acquiring Delphi Technologies

Shares of auto supplier Delphi Technologies jumped more than 15% in Tuesday's premarket trading after BorgWarner announced that it will acquire the company in an all-stock transaction valued at $3.3 billion. A press release said that the acquisition will strengthen BorgWarner's "power electronics products, capabilities and scale." Delphi Technologies was one of two companies spun out of Delphi Automotive in 2017. The other was Aptiv, which focuses on tech systems in cars. — Stevens

8:28 am: United Technologies shares slip in face of climbing 737 Max costs

United Technologies delivered fourth-quarter earnings of $1.94 a share, better than the $1.84 analysts surveyed by FactSet expected. But shares slipped 1.3% in premarket trading as United reported its aerospace division would face "an estimated headwind of approximately $550 to $600 million resulting from the 737 MAX" in 2020. The industrials giant also told shareholders it would forecast year ahead earnings and cash flow once its acquisition of Raytheon is complete. —Sheetz

8:26 am: Suppliers warn Apple coronavirus could impact iPhone production

Despite Apple's plans to ramp up iPhone production in the first half of 2020, its suppliers are warning that the rapid pace of production could be derailed by the outbreak of the coronavirus in China's Hubei Province, the Nikkei Asian Review reported Tuesday.Apple has asked its Asian suppliers to make up to 80 million iPhones in the first half comprised of 65 million of its older iPhones and up to 15 million of a less-expensive model it plans to unveil in March, according to the report. However, the mass production that's scheduled to begin in late February might be delayed due to the virus outbreak, the Nikkei reported.Apple is set to report first-quarter earnings Tuesday afternoon after the closing bell. Shares were up 1.1% in premarket trading. —Franck

8:19 am: Portion of yield curve briefly inverts

The 3-month Treasury bill yield was briefly higher than the 10-year yield in the early morning hours New York time.
The coronavirus has set off a stampede into 10-year Treasurys as investors seek a safe haven, and the yield touched a low of 1.57%. It was at 1.63% as stock futures rebound Tuesday morning from Monday's selling. The inversion of the yield curve is sometimes an ominous sign of a coming recession, but the yield curve had inverted last year and steepened again as investors were cheered by improved trade relations between the U.S. and China. —Domm

8:17 am: Chip stocks rally after Huawei gets limited access to UK's 5G networks

8:12 am: Coronavirus-related names rebound with the broad market

Travel companies affected by the deadly coronavirus are bouncing back along with the broad market after a deep sell-off since last week. Shares of Wynn Resorts, one of the hotel and casino stocks that took the hardest hit because of its Macau exposure, are up nearly 2% in premarket. Airlines Delta and United Airlines both climbed almost 1%, while Carnival Cruise Lines also rebounded 1.2%. —Li

8:10 am: Stock futures rise as Wall Street tries to rebound from worst day in more than 3 months

Wall Street is trying to rebound from its worst session since October, with U.S. stock futures trading higher. Dow Jones Industrial Average futures are up more than 140 points, while S&P 500 and Nasdaq 100 futures pointed to solid opening gains. On Monday, the Dow dropped more than 450 points and wiped out its gains for the year as coronavirus fears deepened. But while futures pointed to a decent start, not everyone is ready to look past the coronavirus fallout. CNBC's Jim Cramer said in a tweet: "I wouldn't trust the market until the future are down, perhaps dramatically to flush out those who think the virus is unstoppable." —Imbert

—With reporting from Tom Franck, Michael Sheetz, Pippa Stevens, Maggie Fitzgerald, John Melloy.

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2020-01-28 13:15:00Z
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National gastropub chain closes last LI location - Newsday

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2020-01-28 11:00:00Z
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Airbus agrees to settle corruption probes with U.S., France, UK - Reuters

(Reuters) - Airbus (AIR.PA) faces billions of dollars of fines after agreeing in principle to a settlement with French, British and U.S. authorities following a crippling three-year investigation into allegations of bribery and corruption.

A settlement would allow it to avoid criminal charges which, if proven, could have led to the company being disbarred from public contracts in the United States and European Union - a massive setback for one of Europe’s top defense and space firms.

The European planemaker has been investigated by French and British authorities for suspected corruption over jet sales dating back over a decade. It has also faced U.S. investigations over suspected violations of export controls.

Announcing the agreement, Airbus - which dominates with U.S. rival Boeing (BA.N) the commercial airliner market - said it could not comment on the size of settlements, which still need court approval.

Press reports cited a figure of around 3 billion euros ($3.3 billion), while some industry analysts have suggested sums as high as 5 billion euros, dwarfing a previous settlement by aero-engine maker Rolls-Royce (RR.L) over the use of middlemen.

One person who has closely followed the case estimated the settlement would be three to four times the $809 million paid by Rolls-Royce in a deal with U.S., UK and Brazilian agencies in 2017.

Airbus shares rose, however, as traders welcomed the closure of one of the most damaging chapters in the company’s 40-year history. The stock was up about 1.3% at 1100 GMT.

“Sorting out the fraud investigation is likely to remove a major overhang for the company,” said Vertical Research Partners analyst Rob Stallard.

British and French investigations began after Airbus drew the attention of regulators to misleading and incomplete declarations it had made to Britain’s export credit finance agency over payments to sales agents. Britain’s Serious Fraud Office (SFO) launched its probe in August 2016, followed seven months later by France’s Parquet National Financier (PNF).

It was not immediately clear to what extent the U.S. part of any settlement would stick to the separate issue of export control violations or include the broader corruption case.

The U.S. Department of Justice has signaled a close interest in the bribery affair while mainly allowing Britain’s SFO to take the lead, according to people familiar with the matter.

Nor was it clear whether a deal would lead to individual prosecutions, which are not covered by corporate plea deals.

AGENT NETWORK

At the center of the case was a decades-old system of third-party sales agents run from a now-disbanded headquarters unit which at its height involved some 250 people in parts of the world and several hundreds of millions of euros of payments a year, sources familiar with the matter have said.

In 2014, then finance director Harald Wilhelm ordered a halt to all third-party payments, triggering a massive internal probe and claims from unpaid consultants.

The investigation, which racked up legal bills of around 100 million euros a year, led to a board-driven clearout of the company’s top management and plunged the company into years of self-examination, hampering its sales efforts.

Nobody has been accused of wrongdoing but Airbus acted to clear out its senior ranks to improve its chances of winning a U.S.-style deferred prosecution agreement (DPA), insiders said.

In a landmark 2017 ruling setting the bar for future settlements, a British judge had described Rolls-Royce as “dramatically changed” with a new leadership and culture.

Airbus has fired more than 100 people over ethics and compliance issues as a result of its own probe into the allegations, which widened to other divisions.

FILE PHOTO: An Airbus A350 takes off at the aircraft builder's headquarters in Colomiers near Toulouse, France, September 27, 2019. REUTERS/Regis Duvignau

But the internal probe led to anger within the Franco-German firm and its jetliner sales teams who said they had no influence over the tightly controlled agent system, insiders said.

It also threatened to reopen Franco-German tensions over Airbus as French sources complained the row diverted attention from a separate probe into fighter jet dealings with Austria, partially overseen by German-born Tom Enders who later served as chief executive. Enders has denied any wrongdoing.

A further German probe into potential misuse of client documents is ongoing.

Additional reporting by Kirstin Ridley; editing by Jason Neely and Mark Potter

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2020-01-28 06:51:00Z
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Senin, 27 Januari 2020

Wall St opens 1% lower on growing China virus fears - Reuters

FILE PHOTO: A trader works on the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S., January 24, 2020. REUTERS/Lucas Jackson

(Reuters) - U.S. stocks opened more than 1% lower on Monday, on concerns about the financial fallout of a fast-spreading coronavirus outbreak in China.

The Dow Jones Industrial Average .DJI fell 447.24 points, or 1.54%, at the open to 28,542.49. The S&P 500 .SPX opened lower by 48.31 points, or 1.47%, at 3,247.16. The Nasdaq Composite .IXIC dropped 222.45 points, or 2.39%, to 9,092.46 at the opening bell.

Reporting by Sruthi Shankar in Bengaluru; Editing by Saumyadeb Chakrabarty

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2020-01-27 12:51:00Z
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Dow futures plunge 430 points as fears about coronavirus rattle investors - USA TODAY

U.S. stock futures were sharply lower Monday morning as fears over the spread of a deadly outbreak of coronavirus rattled investors.

Dow futures dropped 430 points while Standard & Poor’s 500 futures slid 1.5%. 

The pan-European Stoxx 600 fell 2% while Germany’s DAX slumped 2.2%. In Asia, Japan’s Nikkei 225 lost 2%. Most markets in Asia were closed for the Lunar New Year. 

The global losses came as the death toll from the outbreak climbed to 81 on Monday. More than 2,700 people have been infected, according to the National Health Commission.

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Investor fears grew overnight on the potential economic fallout from the outbreak.

“The coronavirus is the number one threat to financial markets currently as global investors are becoming jittery on the uncertainty,” Nigel Green, chief executive and founder of financial consultancy deVere Group, said in a note.

While travel and retail stocks will likely come under further pressure, most investors who have a diversified portfolio should still avoid knee-jerk reactions to the latest coronavirus news, he cautioned. 

“History teaches us that most issues of this kind have a short-term impact on stock markets,” Green says. 

Investors have shifted money to safe-haven corners of the market like high-dividend paying stocks, the Japanese yen and government bonds.

The yield on the benchmark U.S. 10-year Treasury note fell to 1.63%. The dollar fell to 108.94 Japanese yen.

Oil prices fell, weighing on energy stocks. U.S. crude dropped 2.8% to $52.66 per barrel. Brent crude, the international benchmark, slid 2.9% to $58.89 a barrel.

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2020-01-27 12:35:40Z
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AbbVie-Allergan $63 billion deal aided by Nestle, AstraZeneca buys - Reuters

ZURICH (Reuters) - U.S. drugmaker AbbVie’s (ABBV.N) $63 billion tie-up with Allergan (AGN.N) is getting help from Nestle (NESN.S) and AstraZeneca (AZN.L) buying up products the Irish-domiciled company is shedding to placate regulators.

FILE PHOTO: The Allergan logo is seen in this photo illustration November 23, 2015. To match special report USA-FDA/CASES REUTERS/Thomas White

AbbVie is swallowing Allergan to give it control of the lucrative wrinkle treatment Botox and to diversify a portfolio heavily dependent on its $19-billion-per-year arthritis drug Humira, the world’s best-selling medicine that is advancing toward U.S. patent expiration.

Swiss food group Nestle bulked up its medical nutrition business with Allergan’s Zenpep, a product with 2018 sales of $237 million which treats people whose pancreases do not provide enough enzymes to digest fats, proteins and sugars.

Nestle did not give financial details, but analysts from Zuercher Kantonalbank estimated the takeover could have cost the Vevey, Switzerland-based company more than $1 billion.

Meanwhile, AstraZeneca is regaining rights to brazikumab, Allergan’s experimental drug against Crohn’s Disease and ulcerative colitis. The European Commission said this month the immunology medicine must be divested because of the risk its development would be halted after AbbVie’s takeover because of competing medicines.

“These definitive agreements represent significant progress toward the completion of our acquisition of Allergan,” Richard Gonzalez, AbbVie’s chairman and chief executive, said.

With regulators wary of the deal’s anti-competitive potential, rivals are getting a chance to stock their own product shelves.

Nestle Chief Executive Mark Schneider, who also gets Allergan’s Viokace, another pancreatic enzyme product, in Monday’s deal, is bulking up on nutrition products that combine properties of medicine and food as the Swiss company expands in areas where growth may outpace its mainstream food business.

“This is a significant opportunity for our business in the United States,” Greg Behar, head of Nestle Health Science, said in a statement.

AstraZeneca’s pact for brazikumab marks a return of the inflammation medicine to the British drugmaker’s portfolio. In 2016, Astra had struck a licensing deal with Allergan worth up to $1.5 billion for the medicine.

With its return to AstraZeneca, Allergan has agreed to fund development costs for brazikumab in Crohn’s disease and ulcerative colitis, including the creation of a companion diagnostic, AstraZeneca said in a separate statement.

“This agreement creates an opportunity for us to complete the full development program and bring this potential new treatment option to patients as quickly as possible,” Mene Pangalos, Astra’s biopharmaceuticals research head.

Even if Allergan must foot the development bill, analysts appeared underwhelmed, in part because AbbVie’s Skyrizi, or risankizumab, a similar medicine, has a head start.

“This could be another autoimmune product to add to Astra’s portfolio, although it will be somewhat late to the market,” Liberum’s Alistair Campbell wrote in a note to investors.

Reporting by John Miller in Zurich and Ludwig Burger in Frankfurt; Editing by Alexander Smith

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2020-01-27 09:27:00Z
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India in renewed push to sell Air India, puts entire stake on the block - Yahoo News

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India in renewed push to sell Air India, puts entire stake on the block

An Air India Airbus A320neo plane takes off in Colomiers near Toulouse

By Aftab Ahmed and Aditi Shah

NEW DELHI (Reuters) - The government said on Monday it plans to sell its entire interest in Air India Ltd, in a renewed push to sell the airline after an attempt to auction a majority stake almost two years ago failed to draw any bids.

A document released on Monday showed March 17 as the deadline for submission of initial expressions of interest, and that any bidder must assume liabilities including 232.87 billion rupees ($3.28 billion) in debt.

Substantial ownership and effective control of the airline must remain with an Indian entity, the government also said.

The potential sale of an airline kept aloft by a $4.2 billion 10-year bailout in 2012 comes as the government divests of money-losing assets to manage the fiscal deficit.

The latest offer should garner significant response partly because it involves a clean exit by the government, said CAPA aviation consultancy India head Kapil Kaul.

"As the entire debt excluding aircraft debt is taken out of the deal, it signals a very determined effort to exit Air India to allow taxpayers' funds be utilised for the government's social agenda," said Kaul.

The government in 2018 to sell 76% of Air India and offload about $5.1 billion of its debt, with terms including the retention of all employees.

InterGlobe Aviation Ltd's <INGL.NS> IndiGo and Jet Airways Ltd <JET.NS> - which has since collapsed - initially showed interest but opted out after the terms were disclosed.

Steel-to-autos conglomerate Tata Group, widely viewed as a potential suitor for Air India, also decided not to bid after deeming the terms too onerous, sources told Reuters at the time.

A successful bidder would win control of Air India's 4,400 domestic and 1,800 international landing and parking slots at Indian airports, as well as 900 slots at airports overseas.

It would also get 100% of low-cost arm Air India Express and 50% of AISATS, which provides cargo and ground handling services at major Indian airports, the bid document showed.

The buyer would also have to provide 3% of the value of the airline's equity as stock options for permanent employees.

Air India has about 9,400 permanent employees and 3,600 fixed-term contract staff - including 1,850 pilots and 4,600 cabin crew - with benefits such as discount air tickets and pensions.

Its employees protested against the 2018 sale attempt, and it was not immediately clear if they would also resist the latest effort. The government said it will provide details on safeguarding employee interests in its final bid document.

A spokesman for the airline's employee union did not have immediate comment.


(Reporting by Aditi Shah and Aftab Ahmed; Writing by Euan Rocha; Editing by Muralikumar Anantharaman and Christopher Cushing)

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2020-01-27 07:41:15Z
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