ReportWire

Tag: Retail/Wholesale

  • Tupperware’s stock craters after food-storage company warns it may go bust

    Tupperware’s stock craters after food-storage company warns it may go bust

    [ad_1]

    Tupperware Brands Corp.’s stock slid 45% Monday to the lowest level in three years, after the maker of food-storage goods issued a going-concern warning late Friday, saying it has hired financial advisers to help navigate its near-term challenges.

    The news is just the latest blow to the company
    TUP,
    -46.90%    ,
    whose products were once a fixture in American homes, made popular in the 1950s by stay-at-home moms who would gather at special parties to introduce the product line to friends and family.

    The company’s website opens on an image from the Amazon Prime show “The Marvelous Mrs. Maisel,” with the title character hosting her own party and showing friends a pastel-colored vintage line.

    That direct-selling model is no longer fashionable in the U.S., although it has traction in markets like Indonesia, where women have limited earnings opportunities but often gather to eat and drink.

    From the archive: You won’t believe what Tupperware says is a key challenge

    The company has struggled for years to retain its selling force, which has been shrinking thanks to the proliferation of other gig-economy opportunities around the world. 

    In March, the company told analysts on its fourth-quarter earnings call that the sales force fell 18% last year.

    That wasn’t even the worst news from that call, because Tupperware had warned in its earning release that it had identified weakness in internal control over financial reporting and that it expected to restate prior financials.

    On Friday, it said that once it finalizes its 10-K annual report, which is now late, that the numbers announced in March would differ significantly from the restated numbers. It expects to file the 10-K with the Securities and Exchange Commission in the next 30 days.

    Then there’s the issue of the company’s debt burden, which has led to repeated efforts to squeeze concessions from bank lenders so it can remain compliant with financial covenants.

    See now: Tupperware stock craters after company warns its debt burden may force it out of business

    Due “to the challenging internal and external business economics, coupled with the increased levels and cost of borrowings under its credit facility, the company currently forecasts that, if it is unable to obtain adequate capital resources or amendments to its credit agreement, it may not have adequate liquidity in the near term,” the company said on Friday.

    Chief Executive Miguel Fernandez said Tupperware had embarked on a journey to turn around its operations and address its capital and liquidity positions.

    The company is looking for additional financing and is discussing its options with potential investors or financing partners. Tupperware is also reviewing its real-estate portfolio with an eye toward potential sales or lease-back transactions, it said.

    On its third-quarter earnings call in November, Fernandez acknowledged that some of the company’s problems are of its own making. “The global macro environment continues to be challenging, and we are not executing internally at a level or consistency that we believe we should be,” he told analysts on the call, according to a FactSet transcript.

    One key challenge is connecting with younger consumers, who are unlikely to attend Tupperware parties. The company started to sell its goods at 1,900 Target
    TGT,
    +2.12%
    stores in the U.S. at the start of the third quarter as part of a strategy of reducing its reliance on direct selling.

    But those sales accounted for just 1% of total sales in the fourth quarter, suggesting the strategy has not gained traction.

    One challenge facing Tupperware is price. Amazon
    AMZN,
    -0.27%
    and other retailers such as dollar stores offer far cheaper food-storage containers. In addition, Americans are increasingly shopping online.

    Tupperware’s stock has fallen 98% in the last 12 months, while the S&P 500
    SPX,
    -0.12%
    has fallen 9%.

    Also from the archives: Think the Avon Lady is American? Think again

    [ad_2]

    Source link

  • JPMorgan Chase, Delta, Inflation Data, the Fed, and More to Watch This Week

    JPMorgan Chase, Delta, Inflation Data, the Fed, and More to Watch This Week

    [ad_1]

    First-quarter earnings season kicks off this week. Results from big U.S. banks later in the week will be heavily scrutinized for the impact of the past month’s turmoil in the sector. Economic-data highlights will include the latest inflation data and minutes from the Federal Open Market Committee’s late-March meeting.



    Albertsons


    and


    CarMax


    will report on Tuesday, followed by


    Delta Air Lines


    and


    Fastenal


    on Thursday. Things pick up on Friday:


    Citigroup



    JPMorgan Chase



    Wells Fargo



    BlackRock


    and


    UnitedHealth Group


    are all scheduled to release their first-quarter results.

    [ad_2]

    Source link

  • U.S. private-sector ‘pulling back’ adding 145,000 jobs in March, ADP

    U.S. private-sector ‘pulling back’ adding 145,000 jobs in March, ADP

    [ad_1]

    The numbers: U.S. private payrolls climbed by 145,000 in March, according to the ADP National Economic report released on Wednesday. 

    Economists polled by The Wall Street Journal had forecast a gain of 210,000 private sector jobs.

    The private sector added a revised 261, 000 jobs in January.

    Key details: Service sector providers added 75,000 jobs in March. Leisure and hospitality added 98,000 workers. Meanwhile, goods producers added 70,000 jobs. Manufacturing shed 30,000 jobs.

    By company size, small businesses added 101,000 private-sector jobs in March while medium businesses added 33,000. Large-sized businesses added 10,000 jobs.

    Pay growth decelerated for both job stayers and job changers, ADP said.

    For job stayers, year-over-year gains fell to 6.9% from 7.2%. For job changers, pay growth was 14.2%, down from 14.4%.

    Big picture: The job market has been strong, with jobless claims trending below 200,000. Companies seem wary of letting workers go.

    Economists are forecasting that the U.S. Labor Department’s employment report will show the economy added 238,000 jobs in March. That estimate includes government jobs. If the data comes in as expected, it could show over one million jobs created in the first three months of the year.

    What ADP said: “Our March payroll data is one of several signals that the economy is slowing,” said Nela Richardson, chief economist, ADP. “Employers are pulling back from a year of strong hiring and pay growth, after a three-month plateau, is inching down.”

    Market reaction: Stocks
    DJIA,
    +0.24%

    SPX,
    -0.25%
    were set to open lower after the data. The yield on the 10-year Treasury note
    TMUBMUSD10Y,
    3.282%
    fell to 3.32% after the data was released.

    [ad_2]

    Source link

  • J&J, C3.ai, Albemarle, Walmart, and More Stock Market Movers

    J&J, C3.ai, Albemarle, Walmart, and More Stock Market Movers

    [ad_1]

    This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com.

    https://www.barrons.com/articles/stock-market-movers-88cae2de

    • Order Reprints
    • Print Article

    [ad_2]

    Source link

  • AMC, Virgin Orbit, Marathon Oil, Walmart, and More Stock Market Movers

    AMC, Virgin Orbit, Marathon Oil, Walmart, and More Stock Market Movers

    [ad_1]

    Stock futures fluctuated Tuesday following a mixed session on Wall Street that saw the


    Dow Jones Industrial Average


    and


    S&P 500


    rise after a spike in oil prices.

    These stocks were poised to make moves Tuesday:

    [ad_2]

    Source link

  • The surprise OPEC+ oil production cuts will increase gas prices — here’s how much

    The surprise OPEC+ oil production cuts will increase gas prices — here’s how much

    [ad_1]

    Surprise crude oil production cuts from Saudi Arabia and other oil-rich countries shouldn’t produce worries of skyrocketing gas costs for U.S. drivers still smarting from last year’s pump price shocks, according to fuel industry experts.

    At a time when gas prices are already increasing because of rising seasonal demand, the slashed crude oil output that Saudi Arabia announced Sunday will translate into higher prices, they say. But compared to last year — when energy markets were absorbing the initial impact of Russia’s invasion of Ukraine — the altitude on those gas price increases may not feel so steep.

    On Monday, the national average for a gallon of gas was $3.50, according to AAA. That’s around 10 cents more than a month ago, but almost 70 cents less than the $4.19 average cost one year ago.

    The effects of decreased oil production could translate into initial price increases of up to 15 cents per gallon, according to two different energy sector watchers.

    There’s Patrick De Haan, head of petroleum analysis at GasBuddy.

    At OPIS, an outlet focused on energy sector news and analytics, Chief Oil Analyst Denton Cinquegrana said he was previously expecting summer gas prices to average around $3.60.

    “This move probably boosts that by about 10 – 15 cents to about $3.70-3.75/gal.” Cinquegrana told MarketWatch.

    OPIS is owned by Dow Jones, which also owns MarketWatch.

    It’s possible for gas price averages to hit around $3.60 in the next week or so, he said. The other 10 to 15 cents might filter into retail pump prices later this month or in early May, according to Cinquegrana.

    The surprise move came from Saudi Arabia and other members of OPEC+, the Organization of the Petroleum Exporting Countries and allies, including Russia. In Saudi Arabia, officials were reportedly “irritated” by recent remarks from U.S. Energy Secretary Jennifer Granholm.

    After the Biden administration tapped the country’s strategic petroleum reserve to combat last year’s high gas costs, Granholm said it will difficult to restock the reserve.

    By May, more than 1 million barrels of oil a day will be slashed from output in the global energy markets. That’s in addition to OPEC+ production cuts announced last fall.

    In cost breakdowns for a gallon of gas, the price of crude oil is responsible for more than half the price tag, according to the U.S. Energy Information Administration.

    In Monday morning trading, the price of West Texas Intermediate crude for May delivery jumped 6% to just over $80 on the New York Mercantile Exchange.

    For context, when gas prices were breaking records last year, the costs of West Texas Intermediate crude were in the triple digits. While retail prices surged in early March 2022, West Texas Intermediate crude briefly traded for more than $130 during the trading day on March 7, 2022.

    The national average for a gallon of gas hit a record $5.01 in mid-June, according to AAA. In the current context, Cinquegrana doesn’t see a return to $5 gas averages, he said. Gas prices vary across the nation. California drivers are paying $4.80 on average while Mississippi drivers are paying $3.02 per gallon. 

    Even if price increases are not as sharp as last year, hot inflation is retreating slowly. So any extra costs are unwelcome to millions of American drivers who are living their lives and more frequently commuting to the office.

    Like last year, oil prices are poised to increase, said AAA spokesman Devin Gladden.

    But the economy’s background noise right now could dampen the impact as downturn worries keep sticking around, he added. Furthermore, there can be discrepancies in the announced production reductions and the amounts that are actually reduced, Gladden said.

    “If recessionary concerns persist in the market, oil price increases may be limited due to the market believing lower oil demand will lead to lower prices this year,” he said.

    On Monday, energy sector stocks and related exchange traded funds were climbing after the production cut news. In early afternoon trading, the Dow Jones Industrial Average
    DJIA,
    +0.81%
    was up more than 200 points, or 0.7%, while the S&P 500
    SPX,
    -0.03%
    is little changed and the Nasdaq Composite
    COMP,
    -0.98%
    dropped 100 points, or 0.8%.

    [ad_2]

    Source link

  • Alibaba’s Shakeup Is Unrivaled. What It Means for the Stock.

    Alibaba’s Shakeup Is Unrivaled. What It Means for the Stock.

    [ad_1]



    Alibaba


    stock was on track for its best day in months after the Chinese technology giant announced that it would split itself into six units, opening the door for its subsidiary businesses to go public.

    Akin to Alibaba (ticker: BABA) shifting from conglomerate to holding company, the move is designed to unlock shareholder value and foster market competitiveness, said the group, which is one of China’s largest and most important companies. It’s a nod both to investors who have weathered years of losses for the stock—caused largely by regulatory pressures—as well as regulators who have hammered Alibaba and the rest of the Chinese tech sector over competition concerns since late 2020.

    [ad_2]

    Source link

  • Walgreens stock rallies after profit and sales beat expectations, helped by an acceleration of business in February

    Walgreens stock rallies after profit and sales beat expectations, helped by an acceleration of business in February

    [ad_1]

    Shares of Walgreens Boots Alliance Inc.
    WMB,
    +0.66%
    rallied 2.6% in premarket trading Tuesday, after the health care services and drug store chain reported fiscal second-quarter profit that beat expectations, but fell from a year ago due in part to lower COVID-19 testing and vaccinations. Net income for the quarter to Feb. 28 fell to $703 million, or 81 cents a share, from $883 million, or $1.02 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $1.16 was above the FactSet consensus of $1.10. Sales grew 3.3% to $34.86 billion, well above the FactSet consensus $33.53 billion, boosted by an “acceleration” in February. U.S. Retail Pharmacy sales slipped 0.3% to $27.6 billion, but was above the FactSet consensus of $26.5 billion, while international increased 1.6% to $5.7 billion and U.S. Healthcare revenue more than doubled, to $1.6 billion from $500 million. Gross margin contracted to 20.2% from 22.8%, as cost of sale rose more than sales, up 6.8% to $27.81 billion. Looking ahead, the company affirmed its fiscal 2023 adjusted EPS guidance range of $4.45 to $4.65, which surrounds the FactSet consensus of $4.50. The stock has shed 11.8% year to date through Monday, while the Consumer Staple Select Sector SPDR exchange-traded fund
    XLP,
    +0.53%
    has eased 1.6% and the Dow Jones Industrial Average
    DJIA,
    +0.60%
    has slipped 2.2%.

    [ad_2]

    Source link

  • Lululemon, Intel, Carnival, Micron, Walgreens, and More Stocks to Watch This Week

    Lululemon, Intel, Carnival, Micron, Walgreens, and More Stocks to Watch This Week

    [ad_1]

    Data on the U.S. consumer and housing market, plus several notable earnings reports, will be this week’s highlights. Barring any surprises, federal financial regulators’ Congressional testimony will be the main event on the banking front.

    On Wednesday, Fed Vice Chair for Supervision Michael Barr and Federal Deposit Insurance Corp. Chairman Martin Gruenberg are scheduled to testify before the House Financial Services Committee. They’ll discuss the collapses of Silicon Valley Bank and Signature Bank and efforts to maintain confidence in the U.S. banking system.

    [ad_2]

    Source link

  • AMC, Bed Bath & Beyond stocks get a big lift as ‘meme’ peer GameStop shares soar

    AMC, Bed Bath & Beyond stocks get a big lift as ‘meme’ peer GameStop shares soar

    [ad_1]

    Shares of AMC Entertainment Holdings Inc.
    AMC,
    +3.28%
    and Bed Bath & Beyond Inc.
    BBBY,
    +0.98%
    soared in premarket trading Wednesday, as fellow “meme” stock GameStop Corp.
    GME,
    +4.62%
    skyrocketed after the consumer electronics and video games seller reported a surprise fiscal fourth-quarter profit. Bed Bath’s stock shot up 11.4%, after bouncing 1.0% Tuesday off Monday’s record-low close of 81 cents, but was still headed for a sub-$1 open. AMC’s stock climbed 10.2%, after having tumbled 38.2% month to date through Tuesday. And AMC’s preferred equity units
    APE,
    +8.82%    ,
    known as APEs, jumped 10.8% ahead of the open, after they rallied 13.8% over the past two sessions, but were still down 28.5% month to date through Tuesday. Meanwhile, GameStop shares ran up 42.8% premarket, putting them on track to open at a 3 1/2-month high.

    [ad_2]

    Source link

  • Nike stock rallies after another earnings beat

    Nike stock rallies after another earnings beat

    [ad_1]

    Shares of Nike Inc. rallied after hours on Tuesday after the athletic-gear giant reported third-quarter results that topped expectations.

    The maker of sneakers and sports apparel reported third-quarter net income of $1.24 billion, or 79 cents a share, compared with $1.4 billion, or 87 cents a share, in the same quarter a year ago. Revenue increased 14% to $12.39 billion, compared with $10.87 billion in the prior-year quarter.

    Analysts polled by FactSet expected earnings per share of 56 cents, on sales of $11.48 billion.

    Nike’s
    NKE,
    +3.64%
    gross margin fell 330 basis points to 43.4%. Inventories stood at $8.9 billion, up 16%, amid “higher product input costs and elevated freight costs.”

    For Nike’s fourth quarter, FactSet estimates called for earnings per share of 81 cents, on revenue of $12.55 billion. For the full year, those analysts expected earnings of $3.15 a share, on sales of $50.11 billion.

    Shares rose 3.5% after hours. The stock also jumped after Nike’s last earnings report, in December, which also topped estimates.

    Nike reported earnings after it cut prices in an effort to clear clothing and other items from its warehouses, following supply-chain hiccups that led to an excess of off-season goods and rising prices for basics. Those higher prices made customers less interested in dropping money on a new pair of sneakers.

    However, Jefferies analyst Randal Konik, in a research note last week, suggested that rival Adidas AG’s struggles could become Nike’s gains, as Adidas
    ADDYY,
    +0.41%
    finds itself stuck with a bunch of Kanye West-branded shoes. West’s antisemitic remarks last year led to the termination of a collaboration between the two.

    “The athletic footwear space is highly fragmented, and we believe that NKE will likely continue to benefit as Adidas regroups,” he said in a note.

    Konik said that Jefferies’ own data suggested that holiday-season interest in sneakers was still strong, despite inflation. And he said trends in China were getting better, as that nation’s economy reopens.

    Foot Locker Inc.
    FL,
    +7.07%
    on Monday said that it had “revitalized” its relationship with Nike — to focus on data-sharing and sneaker culture — after Nike began focusing on selling products online and through its own retail stores. And after weaker sales of Nike products in the past, Foot Locker Chief Executive Mary Dillon said the new arrangement with Nike would return both to growth in 2024.

    Shares of Nike are down 4.4% over the past 12 months. By comparison, the S&P 500 Index
    SPX,
    +1.30%
    is down 10.4% over that period.

    [ad_2]

    Source link

  • GameStop stock soars nearly 50% on surprise quarterly profit, higher sales

    GameStop stock soars nearly 50% on surprise quarterly profit, higher sales

    [ad_1]

    GameStop Corp. stock jumped 48% in the extended session Tuesday after the specialty retailer reported a surprise quarterly profit and sales that were above Wall Street expectations.

    The retailer is “aggressively focused on year-over-year profitability improvement while still pursuing pragmatic long-term growth,” Chief Executive Matt Furlong said at the company’s call after the results.

    GameStop
    GME,
    +4.62%
    earned $48.2 million, or 16 cents a share, in the fourth quarter, contrasting with a loss of $147.5 million, or 49 cents a share, in the year-ago quarter.

    Sales dropped slightly to $2.23 billion, from $2.25 billion a year ago, in the prior year’s fourth quarter.

    Analysts polled by FactSet expected the videogame retailer to report an adjusted loss of 13 cents a share on sales of $2.18 billion.

    GameStop said it trimmed its inventory to $682.9 million at the close of the quarter, compared with $915 million at the close of the fourth quarter of 2022.

    That reflected its “ongoing focus on maintaining a healthy inventory position,” the company said.

    GameStop said it completed most of its upgrades related to infrastructure, systems, shipping capabilities, and online and mobile platforms.

    On the call with analysts after the results, Furlong said that the company is taking steps this fiscal year to improve efficiency and reach profitability goals.

    Those include continuing to cut costs, including in Europe, leveraging GameStop’s “strengthened financial position” to continue to improve terms from suppliers, and getting its full allocation of consoles to meet demand, he said.

    Building “a stronger presence” in high-margin categories such as collectibles and toys, where the company is also seeing “pockets of growth,” is also on the table, Furlong said.

    “GameStop is a much healthier business today than it was at the start of 2021,” the CEO said.

    GameStop stock ended the regular trading day up 4.6%, and has gained about 12% in the four days since it closed at a two-year low.

    GameStop has reported wider-than-expected losses in three of the past four quarters, but the stock has gained the day after each of the past four reports, by an average of 8.2%, according to FactSet data.

    The onetime meme stock has lost about 13% over the past three months, while the S&P 500 index
    SPX,
    +1.30%
    has gained 2.6%.

    [ad_2]

    Source link

  • Amazon’s stock dips 1% as another 9,000 layoffs announced

    Amazon’s stock dips 1% as another 9,000 layoffs announced

    [ad_1]

    Amazon.com Inc. is eliminating another 9,000 jobs, the company announced Monday morning.

    In a memo to staff, Amazon
    AMZN,
    -1.25%
    Chief Executive Andy Jassy said the cuts would take place over the next few weeks and primarily affect Amazon Web Services, People Experience and Technology Solutions, advertising and Twitch. [Twitch CEO Dan Clancy broke the news of 400 layoffs to employees in a blog post later Monday.]

    “This was a difficult decision, but one that we think is best for the company long term,” Jassy wrote.

    “For several years leading up to this one, most of our businesses added a significant amount of headcount,” Jassy added. “This made sense given what was happening in our businesses and the economy as a whole. However, given the uncertain economy in which we reside, and the uncertainty that exists in the near future, we have chosen to be more streamlined in our costs and headcount.”

    The news sent the retailer’s stock down 1% in trading Monday.

    The latest layoffs, amid a challenging macroeconomic climate that has claimed tens of thousands of jobs in the tech industry, follow an earlier round at Amazon, announced in November, that affected more than 18,000 employees. Additionally, Amazon has paused construction of its second headquarters in Virginia.

    At the same time, there are rumblings out of the Beltway that the Biden administration is preparing legal actions against Amazon stemming from investigations into its business practices, according to a report in Politico.

    Amazon is the second Big Tech company this month to announce additional job cuts. Last week, Mark Zuckerberg, CEO of Facebook parent Meta Platforms Inc.
    META,
    +1.12%    ,
    wrote in a blog post the social-networking company would slash 10,000 more employees as it focuses on a “year of efficiency.” The move drove Meta shares up 7% and helped the company top $500 billion in market value for the first time since June.

    In November, the company said it would cut 11,000 employees, or about 13% of its workforce, in the first layoffs in the company’s 18-year history.

    [ad_2]

    Source link

  • ‘We don’t ask for spring break in our city’: Miami Beach officials impose curfew after two fatal shootings amid nightly chaos

    ‘We don’t ask for spring break in our city’: Miami Beach officials impose curfew after two fatal shootings amid nightly chaos

    [ad_1]

    MIAMI BEACH, Fla. (AP) — Miami Beach officials imposed a curfew beginning Sunday night during spring break after two fatal shootings and rowdy, chaotic crowds that police have had difficulty controlling.

    The city said in a news release the curfew would be from 11:59 p.m. Sunday until 6 a.m. Monday, with an additional curfew likely to be put in place Thursday through next Monday, March 27. The curfew mainly affects South Beach, the most popular party location for spring breakers.

    The release said the two separate shootings Friday night and early Sunday that left two people dead and “excessively large and unruly crowds” led to the decision. The city commission plans a meeting Monday to discuss potential further restrictions next week.

    Miami Beach Mayor Dan Gelber said in a video message posted Sunday that the crowds and presence of numerous firearms has “created a peril that cannot go unchecked” despite massive police presence and many city-sponsored activities meant to keep people busy.

    “We don’t ask for spring break in our city. We don’t want spring break in our city. It’s too rowdy, it’s too much disorder, and it’s too difficult to police,” Gelber said.

    The latest shooting happened about 3:30 a.m. Sunday on Ocean Drive in South Beach, according to Miami Beach police. A male was shot and died later at a hospital, and officers chased down a suspect on foot, police said on Twitter. Their identities were not released, nor were any possible charges.

    In the Friday night shooting, one male victim was killed and another seriously injured, sending crowds scrambling in fear from restaurants and clubs into the streets as gunshots rang out. Police detained one person at the scene and found four firearms, but no other details have been made available.

    Under the curfew, people must leave businesses before midnight, although hotels can operate later only in service to their guests. The city release said restaurants can stay open only for delivery and the curfew won’t apply to residents, people going to and from work, emergency services and hotel guests. Some roads will be closed off and arriving hotel guests may have to show proof of their reservations.

    Last year, the city imposed a midnight curfew following two shootings, also on Ocean Drive. The year before that, there were about 1,000 arrests and dozens of guns confiscated during a rowdy spring break that led Miami Beach officials to take steps aimed at calming the situation.

    [ad_2]

    Source link

  • Here’s why UBS’s deal to buy Credit Suisse matters to U.S. investors

    Here’s why UBS’s deal to buy Credit Suisse matters to U.S. investors

    [ad_1]

    Thousands of miles away from U.S. shores last Wednesday, a headline began working its way across Europe, then Wall Street, sparking fresh panic as it dawned on investors that they may be facing yet another banking crisis.

    Shares of Credit Suisse
    CS,
    -6.94%

    CSGN,
    -8.01%
    would eventually sink 25% last week to a fresh record low, unable to find footing days after the head of top shareholder Saudi National Bank said they won’t invest any more in the bank. By Sunday, the struggling Swiss bank had a new owner, leaving investors to wonder if at least one chapter in a current roller coaster of global banking stress can be closed.

    Swiss authorities steered rival UBS AG
    UBS,
    -5.50%
    to an all-stock deal worth 3 billion francs ($3.25 billion), or 0.76 francs per share, a not-so-slight discount to the 1.86 franc close on Friday of Credit Suisse. So important was the agreement, it was announced by Switzerland’s President Alain Berset, with both banks and the chairman of the Swiss National Bank on either side of him.

    “With the takeover of Credit Suisse by UBS, a solution has been found to secure financial stability and protect the Swiss economy in this exceptional situation,” the SNB said in a statement.

    The Swiss National Bank said either Swiss bank can borrow up to 100 billion francs in a liquidity assistance loan, and Credit Suisse will get a liquidity assistance loan of up to 100 billion francs, backed by a federal default guarantee. The U.S. Federal Reserve had worked with its Swiss counterpart on the deal as well.

    “We welcome the announcements by the Swiss authorities today to support financial stability. The capital and liquidity positions of the U.S. banking system are strong, and the U.S. financial system is resilient,” said a statement Sunday by Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell.

    European Central Bank President Christine Lagarde also praised Swiss authorities for “restoring orderly market conditions and ensuring financial stability,” while reiterating the “resilience” of the euro-area banking sector. She said the ECB stands ready to provide liquidity if needed.

    Her comment comes days after the the ECB pulled the trigger Thursday on a 50-basis-point rate hike, as it warned “inflation is projected to remain too high for too long.”

    The deal for Credit Suisse comes in the wake of stress on the U.S. banking sector, triggered by the collapse of Silvergate Bank, Silicon Valley Bank and Signature Bank, all within the space of a week.

    “Virtually everyone at this high-level Swiss press conference — government officials, regulator, central bank governor, and executives of the two banks — blamed the US banking sector turmoil for being the catalyst for the financial turmoil in #Switzerland,” tweeted Mohamed A. El-Erian, chief economic adviser at Allianz, of the press conference Sunday with Swiss authorities to announce the deal.

    And for U.S. investors who have had quite enough anxiety lately, a logical question would be to ask if the deal that brings together the two Swiss banking giants will now remove one layer of stress from global markets, and hence Wall Street.

    For that reason, many will be watching how Asian and U.S. equity futures trade later on Sunday, as well as Europe’s opening reaction on Monday.

    The Credit Suisse news may only go so far to assuage investors, with some raising an eyebrow over Powell and Yellen’s Sunday statement about the Swiss deal. “Seriously, if everyone truly believed the ‘The capital and liquidity positions of the U.S. banking system are strong, and the U.S. financial system is resilient’ … Would they have to tell us? Are these words enough?” said Jim Bianco, president of Bianco Research, on Twitter. “Or do investors want to see Warren Buffett writing checks to regional banks in the next two hours (before Asia opens)?”

    Fox News and other media outlets reported over the weekend that the Berkshire Hathaway
    BRK.A,
    -2.76%

    BRK.B,
    -2.81%
    chairman and CEO had been talking to President Joe Biden’s administration in recent days over possible investments in the battered regional bank sector, and offering his advice.

    The billionaire investor was responsible for a capital injection to Bank of America
    BAC,
    -3.97%
    in 2011 as its shares tumbled due to subprime mortgages, as well as $5 billion to Goldman Sachs
    GS,
    -3.67%
    amid the 2008 financial crisis.

    Some had said ahead of the deal last week that global-market stability depended on the Swiss first getting their house in order.

    “I don’t think there are any direct consequences for U.S. investors, but it’s extremely negative for sentiment if a major Swiss bank fails, hot on the heels of SVB/SBNY,” Simon Ree, the founder of Tao of Trading options academy school and author of the book by the same name, told MarketWatch last week.

    “The market will be (temporarily) wondering who’s next. It could start to have the optics of a global banking crisis, rather than an idiosyncratic failure of a niche U.S. regional bank,” said Ree.

    Credit Suisse’s troubles came amid a revamp and five straight money-losing quarters, following a painful legacy that included billions worth of exposure to the collapsed Archegos family office and $10 billion worth of funds tied to Greensil Capital it had to freeze.

    Read: In its delayed annual report, Credit Suisse admitted to financial control weaknesses

    “The SNB and the Swiss government are fully aware that the failure of Credit Suisse or even any losses by deposit holders would destroy Switzerland’s reputation as a financial center,” said Otavio Marenzi, CEO of Opimas, a management consulting firm focused on global capital markets, in a note to clients last week.

    The bank’s plummeting stock price and soaring bond yields was “mimicking Silicon Valley Bank’s recent collapse in a frightening way. In terms of the outflow of deposits, Credit Suisse’s position looks even worse,” said Marenzi.

    Over there?

    As far as some are concerned, the market may have more stress ahead of it.

    “The SVB failure highlights the potential for other skeletons to be hidden in closets and the market will spend the next few weeks/months hunting them out. Even just the extreme volatility we’ve seen on bond markets the last five days renders any attempt to ascribe a value to other asset classes redundant,” said Ree.

    Plus: Here’s what’s really protecting your bank deposits

    His view is shared by many analysts, who in part point to increasing uncertainty around how the Federal Reserve will react going forward as it tries to balance market and economic risks. Some now see full percentage rate cuts by year-end, amid banking stress.

    Samantha LaDuc, the founder of LaDucTrading.com who specializes in timing major market inflections, said she stands by her advice (that she shared with MarketWatch in February) that investors are being “paid to wait,” by staying in cash.

    Read: Looking for a place for your cash? Grab these 5% CDs while you still can.

    “I have been literally recommending and tweeting to clients that we are PAID TO WAIT in T-bills at 5% until [the] bond market can figure out if we have recession or not. All that happened last week pulled forward recession risk,” she told MarketWatch.

    Prior to the SVB crisis, she had been recommending clients short reflation trades, such as banks
    XLF,
    -3.22%

    KRE,
    -5.99%    ,
    energy
    XLE,
    -1.57%
    and metals and mining
    XME,
    -0.78%

    COPX,
    +0.63%

    SLX,
    -1.96%    ,
    and has been saying she sees “unattractive risk-reward for either stocks or bonds.”

    Opimas’ Marenzi said the threat to Wall Street from Credit Suisse was simple:

    “You mean what do American investors who do not own any non-American stocks and do not own a passport and could not find Switzerland on a map and who think that anyone who speaks any language other than English is a bit weird have to worry about? Not a lot, other than the contagion spreading back into the US banking system and causing a meltdown,” he told MarketWatch.

    [ad_2]

    Source link

  • Rivian Stock Falls on Amazon News. It Might Be an Overreaction.

    Rivian Stock Falls on Amazon News. It Might Be an Overreaction.

    [ad_1]

    Shares of


    Rivian Automotive


    fell after a report said the electric truck start-up is in talks to end an exclusivity pact with Amazon.com. That might have been an overreaction, judging by Amazon’s response to the news.

    The Wall Street Journal reported Monday that Rivian (ticker: RIVN) is seeking to remove an exclusivity term in its agreement with Amazon (AMZN) after the e-commerce retailer ordered about 10,000 electric delivery vans for this year, which was on the lower end of Amazon’s range.

    [ad_2]

    Source link

  • Rivian’s stock falls more than 3% as EV maker and Amazon consider changes to electric-van deal

    Rivian’s stock falls more than 3% as EV maker and Amazon consider changes to electric-van deal

    [ad_1]

    Rivian Automotive Inc.’s stock fell more than 3% Monday after news that the electric-vehicle maker and Amazon.com Inc. are discussing possible changes to their deal for electric delivery vans.

    Citing people familiar with the matter, the Wall Street Journal reported Monday that the companies are in talks to end the exclusivity part of their electric-van deal. The talks started after Amazon’s order for the year was at the low end of the previous range, the report said.

    A…

    [ad_2]

    Source link

  • Qurate Retail (NASDAQ:QRTEA) Shares Gap Down After Earnings Miss

    Qurate Retail (NASDAQ:QRTEA) Shares Gap Down After Earnings Miss

    [ad_1]

    Qurate Retail, Inc. (NASDAQ:QRTEA – Get Rating)’s stock price gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $2.11, but opened at $1.97. Qurate Retail shares last traded at $1.74, with a volume of 2,795,471 shares changing hands.

    The company reported ($0.05) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.14 by ($0.19). Qurate Retail had a negative net margin of 21.82% and a positive return on equity of 9.86%. The firm had revenue of $3.53 billion during the quarter, compared to analyst estimates of $3.51 billion. During the same quarter in the prior year, the firm earned $0.40 earnings per share. The business’s revenue for the quarter was down 13.1% on a year-over-year basis.

    Analyst Upgrades and Downgrades

    Several brokerages recently commented on QRTEA. StockNews.com lowered shares of Qurate Retail from a “hold” rating to a “sell” rating in a report on Thursday. Bank of America lowered shares of Qurate Retail from a “neutral” rating to an “underperform” rating and cut their price target for the stock from $4.00 to $1.20 in a report on Friday, November 4th.

    Institutional Investors Weigh In On Qurate Retail

    A number of large investors have recently modified their holdings of the business. Natixis purchased a new stake in shares of Qurate Retail during the fourth quarter worth $189,000. Wallace Advisory Group LLC purchased a new stake in shares of Qurate Retail in the fourth quarter valued at about $32,000. Equitable Trust Co. grew its holdings in shares of Qurate Retail by 22.7% in the fourth quarter. Equitable Trust Co. now owns 25,194 shares of the company’s stock valued at $41,000 after purchasing an additional 4,664 shares during the period. Permit Capital LLC grew its holdings in shares of Qurate Retail by 3.7% in the fourth quarter. Permit Capital LLC now owns 4,098,585 shares of the company’s stock valued at $6,681,000 after purchasing an additional 145,455 shares during the period. Finally, Point72 Middle East FZE purchased a new stake in shares of Qurate Retail in the fourth quarter valued at about $143,000. Hedge funds and other institutional investors own 82.06% of the company’s stock.

    Qurate Retail Price Performance

    The company has a debt-to-equity ratio of 15.24, a current ratio of 1.31 and a quick ratio of 0.67. The stock’s fifty day moving average is $2.09 and its 200-day moving average is $2.29. The stock has a market cap of $607.71 million, a PE ratio of -0.22 and a beta of 2.02.

    About Qurate Retail

    (Get Rating)

    Qurate Retail, Inc engages in the business of video and online commerce industries. It operates through the following segments: QxH, QVC International, and Corporate and Others. The QxH segment includes the distribution of live programming, 20 hours per day, 364 days per year, to television households.

    Recommended Stories

    Receive News & Ratings for Qurate Retail Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for Qurate Retail and related companies with MarketBeat.com’s FREE daily email newsletter.

    [ad_2]

    ABMN Staff

    Source link

  • Alibaba’s Recovery Has Momentum. This Is One Potential Risk.

    Alibaba’s Recovery Has Momentum. This Is One Potential Risk.

    [ad_1]

    Analysts are increasingly upbeat about


    Alibaba


    stock in the wake of the group’s quarterly earnings, which supported the narrative that the Chinese tech company’s recovery is on track. But a familiar challenge may be returning.

    Shares in Alibaba Group Holding (ticker: BABA) lost almost half their market value in 2021 as Beijing cracked down on the Chinese technology sector. Things were equally difficult in 2022. Regulatory pressure continued, while economic growth slowed on the mainland, battering Alibaba’s bottom line, as a result of broad lockdowns intended to stamp out Covid-19.

    [ad_2]

    Source link

  • Alibaba Stock Jumps After Earnings Beat. Chinese Lockdowns Still Weighed.

    Alibaba Stock Jumps After Earnings Beat. Chinese Lockdowns Still Weighed.

    [ad_1]



    Alibaba


    reported better-than-expected earnings in the final three months of 2022, giving Wall Street exactly what it wanted as analysts remain positive on the Chinese tech giant. 

    But there are signs that the destructive Covid-19 lockdowns that hurt the world’s second-largest economy last year continue to linger.

    [ad_2]

    Source link