Chip stocks are tanking after ‘depressing’ Broadcom earnings in a bad sign for market

Broadcom led a plunge in chip stocks Friday after the chipmaker missed revenue expectations and lowered guidance for 2019 citing a “broad-based” slowdown in demand and the U.S. crackdown on Huawei. The VanEck Vectors Semiconductor ETF (SMH) dropped 2.9% and was headed for its biggest decline in about a month. Broadcom’s revenue for the fiscal second quarter came in Thursday evening at $5.52 billion vs. the $5.68 billion expected by analysts polled by Refinitiv. The chipmaker also said it now exp


Broadcom led a plunge in chip stocks Friday after the chipmaker missed revenue expectations and lowered guidance for 2019 citing a “broad-based” slowdown in demand and the U.S. crackdown on Huawei. The VanEck Vectors Semiconductor ETF (SMH) dropped 2.9% and was headed for its biggest decline in about a month. Broadcom’s revenue for the fiscal second quarter came in Thursday evening at $5.52 billion vs. the $5.68 billion expected by analysts polled by Refinitiv. The chipmaker also said it now exp
Chip stocks are tanking after ‘depressing’ Broadcom earnings in a bad sign for market Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-14  Authors: john melloy
Keywords: news, cnbc, companies, customers, chip, broadbased, slowdown, market, billion, polled, broadcom, bad, demand, fiscal, tanking, sign, chipmaker, earnings, revenue, depressing, stocks


Chip stocks are tanking after 'depressing' Broadcom earnings in a bad sign for market

Broadcom led a plunge in chip stocks Friday after the chipmaker missed revenue expectations and lowered guidance for 2019 citing a “broad-based” slowdown in demand and the U.S. crackdown on Huawei.

Broadcom shares lost more than 9% in premarket trading Friday. Skyworks, Xilinx, Micron, Advanced Micro Devices, Nvidia and Qualcomm all followed suit with losses greater than 3%. Intel was down more than 2%. The VanEck Vectors Semiconductor ETF (SMH) dropped 2.9% and was headed for its biggest decline in about a month.

Broadcom’s revenue for the fiscal second quarter came in Thursday evening at $5.52 billion vs. the $5.68 billion expected by analysts polled by Refinitiv. The chipmaker also said it now expects $22.60 billion in revenue for fiscal 2019, well bellow the $24.31 billion seen by analysts polled by Refnitiv.

“We currently see a broad-based slowdown in the demand environment, which we believe is driven by continued geopolitical uncertainties, as well as the effects of export restrictions on one of our largest customers,” Broadcom CEO Hock Tan said in a statement. “As a result, our customers are actively reducing their inventory levels, and we are taking a conservative stance for the rest of the year.”


Company: cnbc, Activity: cnbc, Date: 2019-06-14  Authors: john melloy
Keywords: news, cnbc, companies, customers, chip, broadbased, slowdown, market, billion, polled, broadcom, bad, demand, fiscal, tanking, sign, chipmaker, earnings, revenue, depressing, stocks


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Lululemon stock jumps after strong earnings, raises full-year guidance

The men’s assormtment on the inside of a Lululemon store. Lululemon on Wednesday reported first-quarter earnings and sales that outpaced analyst estimates, sending shares up nearly 4% in after-hours trading. Here’s what the athletic apparel maker reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:Earnings per share: 74 cents per share, vs. 70 cents per share, expectedRevenue: $782 million, vs. $755 million, expectedThe company also raised its full-y


The men’s assormtment on the inside of a Lululemon store. Lululemon on Wednesday reported first-quarter earnings and sales that outpaced analyst estimates, sending shares up nearly 4% in after-hours trading. Here’s what the athletic apparel maker reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:Earnings per share: 74 cents per share, vs. 70 cents per share, expectedRevenue: $782 million, vs. $755 million, expectedThe company also raised its full-y
Lululemon stock jumps after strong earnings, raises full-year guidance Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-12  Authors: emma newburger lauren thomas, emma newburger, lauren thomas
Keywords: news, cnbc, companies, cents, strong, jumps, fullyear, reported, billion, lululemon, share, guidance, 74, earnings, vs, stock, wall, raises, tradingheres, million


Lululemon stock jumps after strong earnings, raises full-year guidance

The men’s assormtment on the inside of a Lululemon store.

Lululemon on Wednesday reported first-quarter earnings and sales that outpaced analyst estimates, sending shares up nearly 4% in after-hours trading.

Here’s what the athletic apparel maker reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

Earnings per share: 74 cents per share, vs. 70 cents per share, expected

Revenue: $782 million, vs. $755 million, expected

The company also raised its full-year guidance. It expects revenue between $3.73 billion and $3.77 billion, and earnings per share between $4.51 and $4.58 in 2019.

For the first quarter ended May 5, net income rose to $96.6 million, or 74 cents a share, from $75.2 million, or 55 cents a share.


Company: cnbc, Activity: cnbc, Date: 2019-06-12  Authors: emma newburger lauren thomas, emma newburger, lauren thomas
Keywords: news, cnbc, companies, cents, strong, jumps, fullyear, reported, billion, lululemon, share, guidance, 74, earnings, vs, stock, wall, raises, tradingheres, million


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The trade war is taking an enormous bite out of profits for Wall Street’s biggest names

ReutersThe trade war and global slowdown are combining to trigger a sharp drawdown in profits for U.S. multinational companies. Of the S&P 500’s 11 sectors, information technology is expected to see the biggest drop-off in earnings at 11.8%. “Policy uncertainty is high, especially on trade,” John Lynch, chief investment strategist at LPL Financial, said in a recent note. For the year to date, bond ETFs have seen $63.9 billion of inflows, compared with just $28.4 billion for equity funds. Apple,


ReutersThe trade war and global slowdown are combining to trigger a sharp drawdown in profits for U.S. multinational companies. Of the S&P 500’s 11 sectors, information technology is expected to see the biggest drop-off in earnings at 11.8%. “Policy uncertainty is high, especially on trade,” John Lynch, chief investment strategist at LPL Financial, said in a recent note. For the year to date, bond ETFs have seen $63.9 billion of inflows, compared with just $28.4 billion for equity funds. Apple,
The trade war is taking an enormous bite out of profits for Wall Street’s biggest names Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-12  Authors: jeff cox
Keywords: news, cnbc, companies, bite, profits, war, expected, names, global, biggest, billion, enormous, trade, according, sales, earnings, companies, taking, streets, decline, investors, wall


The trade war is taking an enormous bite out of profits for Wall Street's biggest names

Workers load goods for export onto a crane at a port in Lianyungang, Jiangsu province, China June 7, 2019. Reuters

The trade war and global slowdown are combining to trigger a sharp drawdown in profits for U.S. multinational companies. Companies that derive more than half their sales outside the U.S. are expected to see a 9.3% slump in second-quarter earnings as the reporting season looms about a month away, according to FactSet estimates that see the S&P 500 broadly reporting a 2.3% decline. That means big companies like Apple and Boeing that have far-flung operations and count on business and lower costs from other countries as a big ingredient in their recipe for success. Of the S&P 500’s 11 sectors, information technology is expected to see the biggest drop-off in earnings at 11.8%. A number of multinationals have seen huge downward revisions to their second-quarter earnings outlooks, including Take-Two Interactive Software, Noble Energy and VF Corp. In contrast, for companies that see half their business come from inside the U.S., earnings are expected to grow 1.4% as they are not subject to the rising costs of imported goods and seeing their wares subjected to duties in foreign markets. On the revenue side, companies with an international bias are expected to see a decline of 1.2% while domestic-facing companies are projected to see a sales gain of 6%. The biggest gainers in earnings for Q2 are expected to be energy (3%), utilities (2.3%) and health care (2%), while losers, in addition to tech, are materials (-7.2%), staples (-2.8%) and discretionary (-2.5%). Winners on the revenue side are projected to be communication services (14.1%), health care (12%) and discretionary (3.8%), while the worst-performing sectors will be materials (-9.3%), tech (-0.9%) and industrials (1.2%), according to FactSet estimates.

The market doesn’t care, so far

“Tariffs are part of the story,” said David Lefkowitz, senior equity strategist for the Americas at UBS Global Wealth Management. “But I also think there are a number of other factors that are driving some pockets of weakness in the global economy and the earnings picture for the U.S. economy.” Thus far, the U.S. has been largely shielded from any dramatic effects from either the tariffs or weakness in other developed economies. Domestic GDP rose 2.9% in 2018 and 3.1% in the first quarter of 2019, inflation has been subdued and the jobs market has held up, though it has been showing weakness lately.

The stock market has been volatile but has largely shrugged off the tariff issue as major indexes are all up double figures year to date and have gained more than 4% apiece in June. However, more company executives, in sentiment surveys and elsewhere, have been expressing unease and warning that rising costs will begin to eat into profitability. Wall Street analysts have taken note and are anticipating some more tangible impact to begin showing up. “Policy uncertainty is high, especially on trade,” John Lynch, chief investment strategist at LPL Financial, said in a recent note. “We have reduced earnings estimates to acknowledge the increased risk of a prolonged trade conflict. We remain optimistic that these trade disputes can be resolved this summer, though probably not until more economic pain is inflicted on the U.S. and China economies.” Investors have taken caution as well. After yanking a record $19.9 billion out of stock-focused exchange-traded funds during the tumultuous May slide, flows have come back somewhat, but investors are still looking for safety. So far in June, fixed income ETFs have taken in $15.1 billion, just $2 billion shy of the record, according to State Street Global Advisors. For the year to date, bond ETFs have seen $63.9 billion of inflows, compared with just $28.4 billion for equity funds. “You still have China, and it remains an unforecastable dynamic given our current administration’s proclivity for randomness,” said Matthew Bartolini, State Street’s head of SPDR Americas research. “Investors are letting bonds be bonds and mitigating episodic risk.”

Apple, Boeing, Intel see impact

That move comes at a time when some of the market’s biggest names could see noticeable downward moves in earnings. Apple, which saw 57.9% of its business come from abroad in 2017, the most recent year for which full data was available, is expected to see a 14.6% quarterly drop in earnings and a 10.3% decline from the same period a year ago, according to data from FactSet and S&P Dow Jones Indices. Boeing, which derives 54.7% of its sales internationally and also has experienced serious issues with its 737 Max model, is looking at a 43.7% quarterly earnings drop and a 45.6% decline from a year ago. And chipmaker Intel, which gets a full 80% of its revenue overseas, is projected to be off 14.4% from its profit for the same period in 2018. It’s not just earnings — individual company stock prices have fallen as well. Bartolini screened for stocks with a majority of foreign sales versus those with more domestic-facing businesses, and found that as of Tuesday the former group is down about 2.5% since May 1 while the latter is off just 0.48%. “We have investors moderately moving back into risk. It will be interesting to see if this continues, particularly as earnings season begins,” he said.

Retail risk


Company: cnbc, Activity: cnbc, Date: 2019-06-12  Authors: jeff cox
Keywords: news, cnbc, companies, bite, profits, war, expected, names, global, biggest, billion, enormous, trade, according, sales, earnings, companies, taking, streets, decline, investors, wall


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Cloud companies warning of ‘sales execution’ problems are getting crushed by Wall Street

It’s become a familiar theme among cloud software companies in recent weeks. Longer sales cycles and difficulty in sales execution were themes that popped up in earnings calls from Box, Zuora, Cloudera and Pivotal Software as well. “Normally, we would have had a more straightforward e-signature only,” said Springer, who was previously CEO of marketing software company Responsys, which Oracle acquired for $1.5 billion in 2014. Prior to this week’s earnings report, DocuSign’s stock price was up 89


It’s become a familiar theme among cloud software companies in recent weeks. Longer sales cycles and difficulty in sales execution were themes that popped up in earnings calls from Box, Zuora, Cloudera and Pivotal Software as well. “Normally, we would have had a more straightforward e-signature only,” said Springer, who was previously CEO of marketing software company Responsys, which Oracle acquired for $1.5 billion in 2014. Prior to this week’s earnings report, DocuSign’s stock price was up 89
Cloud companies warning of ‘sales execution’ problems are getting crushed by Wall Street Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-09  Authors: jordan novet
Keywords: news, cnbc, companies, crushed, company, springcm, docusign, execution, cloud, sort, companies, warning, software, problems, wall, getting, weeks, street, springer, earnings, sales


Cloud companies warning of 'sales execution' problems are getting crushed by Wall Street

DocuSign shares plunged 12% on Friday even though the electronic signature company had just reported better-than-expected earnings. The problem had to do with challenges the company is having pulling in additional revenue from customers.

It’s become a familiar theme among cloud software companies in recent weeks. Longer sales cycles and difficulty in sales execution were themes that popped up in earnings calls from Box, Zuora, Cloudera and Pivotal Software as well. All of them got punished by Wall Street, some much more than others.

In part, they’re dealing with the growing pains that come with being maturing companies and the complexities of dealing with large enterprises while at the same time trying to meet the demands of public market investors.

For DocuSign, the issue stemmed from the $220 million purchase last year of SpringCM, which took the company beyond a single product for digitally signing documents and into an area called contract lifecycle management (CLM), which involves managing the creation of documents for people to sign and then keeping track of changes.

“By becoming a two-product company, in the short run, it’s harder to sell,” DocuSign CEO Dan Springer told CNBC in an interview on Thursday before the company announced earnings. “You elongate the sales cycle. You put a short-term dampening, I think, on your billings, but you increase your long-term billings, because we have more to sell.”

Springer elaborated on the financial implications of DocuSign’s expansion during a conference call with analysts, who were asking about the trend. He used a European bank as an example.

“Normally, we would have had a more straightforward e-signature only,” said Springer, who was previously CEO of marketing software company Responsys, which Oracle acquired for $1.5 billion in 2014. “They were interested in also looking at some of the CLM capabilities of SpringCM. And as we got to the sort of end of the quarter, we realized our normal sort of pacing and process would take longer. And it’s a deal that closed 10 days after the end of the quarter.”

Prior to this week’s earnings report, DocuSign’s stock price was up 89 percent from the company’s IPO last year. It’s part of a crop of subscription cloud-based software companies that have gone public in recent years and provided growth stories to enterprise technology investors.


Company: cnbc, Activity: cnbc, Date: 2019-06-09  Authors: jordan novet
Keywords: news, cnbc, companies, crushed, company, springcm, docusign, execution, cloud, sort, companies, warning, software, problems, wall, getting, weeks, street, springer, earnings, sales


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Mondelez ends pursuit of Campbell’s Arnott’s biscuit brand

Mondelez’s efforts to buy Campbell Soup’s iconic Australian Arnott’s biscuit brand have ended, people familiar with the matter told CNBC. Mondelez had submitted a final offer for Campbell’s international snacking business, including Arnott’s, below Campbell’s roughly $3-billion price expectation. Mondelez, which owns brands like Oreos, Belvita and Chips Ahoy, has been looking to expand its snack portfolio as millenials eat on-the-go. A spokesperson for Campbell said the company does not comment


Mondelez’s efforts to buy Campbell Soup’s iconic Australian Arnott’s biscuit brand have ended, people familiar with the matter told CNBC. Mondelez had submitted a final offer for Campbell’s international snacking business, including Arnott’s, below Campbell’s roughly $3-billion price expectation. Mondelez, which owns brands like Oreos, Belvita and Chips Ahoy, has been looking to expand its snack portfolio as millenials eat on-the-go. A spokesperson for Campbell said the company does not comment
Mondelez ends pursuit of Campbell’s Arnott’s biscuit brand Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-06  Authors: lauren hirsch
Keywords: news, cnbc, companies, mondelez, biscuit, earnings, brands, campbells, told, buyers, snacking, arnotts, company, pursuit, ends, brand


Mondelez ends pursuit of Campbell's Arnott's biscuit brand

Mondelez’s efforts to buy Campbell Soup’s iconic Australian Arnott’s biscuit brand have ended, people familiar with the matter told CNBC.

The two had been in a stalemate over price, CNBC previously reported. Mondelez had submitted a final offer for Campbell’s international snacking business, including Arnott’s, below Campbell’s roughly $3-billion price expectation. Within the past few weeks, those talks have formally ended, the people said.

Valuation was a key issue in the dispute, the people said. Mondelez, which owns brands like Oreos, Belvita and Chips Ahoy, has been looking to expand its snack portfolio as millenials eat on-the-go. It is approaching deals cautiously though.

“In the case of Arnott’s, it’s Australia, it’s biscuits, it’s quite (a) sizable business. It fits in that white space thinking … It’s probably a little bit higher than what we would originally start when we thought about acquisitions. But at the same time, we have very clear expectations in the term of returns and in term of leverage, and we want to stay very disciplined buyers,” Mondelez CEO Dirk Van de Put told analysts in April during the company’s first quarter earnings call.

The people who spoke with CNBC requested anonymity because the information is confidential. A spokesperson for Campbell said the company does not comment on rumor or speculation, while Mondelez declined to comment.

Other buyers for Campbell’s international snack brands, including private equity firm KKR, remain in the running, some of the people said. Those buyers would likely face fewer questions around antitrust than would Mondelez, which already has a snacking presence in Australia, some of the people who spoke with CNBC noted.

KKR did not immediately respond to a request for comment.

Campbell CEO Mark Clouse told analysts earlier Wednesday when delivering the company’s earnings that it is “evaluating multiple options with strategic and financial buyers” for the Arnott’s business.

The soup company on Wednesday raised its profit forecast for the year and delivered earnings that beat estimates, sending its shares up nearly 10%.

Campbell put Arnott’s and its fresh food brands up for sale last year, to help pay down debt left in the wake its $6.2-billion purchase of pretzel and chip company Snyder’s-Lance, in a push to build out its Pepperidge Farm snacking business.

Clouse said Wednesday the company is “making steady progress” on the integration of its U.S. snacks businesses, with organic sales in the unit growing by low to mid-single digits.


Company: cnbc, Activity: cnbc, Date: 2019-06-06  Authors: lauren hirsch
Keywords: news, cnbc, companies, mondelez, biscuit, earnings, brands, campbells, told, buyers, snacking, arnotts, company, pursuit, ends, brand


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Stocks making the biggest moves midday: AMD, Stitch Fix, Cloudera & more

Stitch Fix reported earnings per share of 7 cents, while analysts polled by Refinitiv expected a loss of 3 cents. Same-store sales dropped 1.3%, while analysts estimated a drop of 0.8%. Tesla sales rose 73% last month compared to last year. Dermira — Shares of the dermatology drug company rose 4.8% after an analyst at Mizuho upgraded them to buy from neutral. The company posted revenue of $1.094 billion, missing expectations.


Stitch Fix reported earnings per share of 7 cents, while analysts polled by Refinitiv expected a loss of 3 cents. Same-store sales dropped 1.3%, while analysts estimated a drop of 0.8%. Tesla sales rose 73% last month compared to last year. Dermira — Shares of the dermatology drug company rose 4.8% after an analyst at Mizuho upgraded them to buy from neutral. The company posted revenue of $1.094 billion, missing expectations.
Stocks making the biggest moves midday: AMD, Stitch Fix, Cloudera & more Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-06  Authors: fred imbert
Keywords: news, cnbc, companies, stitch, posted, revenue, cents, samestore, sales, fix, company, amd, moves, cloudera, earnings, stocks, share, shares, midday, biggest, rose, making


Stocks making the biggest moves midday: AMD, Stitch Fix, Cloudera & more

Check out the companies making headlines midday Thursday:

Advanced Micro Devices — AMD rose 7.9% after Morgan Stanley upgraded the stock to equal weight from underweight and raised the price target to $28 from $17, saying being cautious on AMD has “obviously been the wrong call.” The bank said AMD has consistently performed well among its competitors Intel and Nvidia.

Ciena — Shares of the telecom supplier surged more than 26% on fiscal second-quarter earnings that topped expectations. Ciena reported adjusted earnings per share of 48 cents. Analysts polled by Refinitiv expected a profit of 33 cents a share.

Stitch Fix — Stitch Fix soared more than 14% after the online personal styling company beat on the top and bottom lines of its fiscal third quarter results. Stitch Fix reported earnings per share of 7 cents, while analysts polled by Refinitiv expected a loss of 3 cents. Revenue came in at $409 million, notching seven consecutive quarters of more than 20% growth.

Signet Jewelers — Shares of Signet fell 1.2% after reporting lower-than-expected same-store sales for the first quarter. Same-store sales dropped 1.3%, while analysts estimated a drop of 0.8%. Signet posted earnings per share of 8 cents on revenue of $1.432 billion. Wall Street estimated a loss of 23 cents per share on revenue of $1.415 billion, according to Refinitiv.

Tesla — Tesla shares jumped 4.8% as Wall Street cheered the company’s sales in May. Tesla sales rose 73% last month compared to last year. That outperformed electric vehicle sales from Audi, BMW, Jaguar, Chevrolet and Nissan.

Dermira — Shares of the dermatology drug company rose 4.8% after an analyst at Mizuho upgraded them to buy from neutral. The analyst cited expectations its lebrikizumab will get licensed for commercialization in the European Union later this year.

MongoDB — The database programming company fell 0.8% after its second-quarter guidance disappointed investors. MongoDB expects a to lose between 27 cents and 29 cents per share. FactSet expected guidance of a loss of 27 cents.

Cloudera — Shares of the cloud company plunged more than 40% the company announced CEO Tom Reilly is retiring from his post, effective July 31.

Michaels Companies — Shares of the arts and crafts retailer plunged 12.4% after sales disappointed and the company cut its full-year earnings forecast. The company posted revenue of $1.094 billion, missing expectations. It also posted weaker-than-expected same-store sales.

—CNBC’s Maggie Fitzgerald contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2019-06-06  Authors: fred imbert
Keywords: news, cnbc, companies, stitch, posted, revenue, cents, samestore, sales, fix, company, amd, moves, cloudera, earnings, stocks, share, shares, midday, biggest, rose, making


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There’s a drawback to the Fed rate cuts the market so craves: It could wreck bank earnings

Traders are begging the Federal Reserve for several rate cuts this year to salvage an economy they see set to slow significantly because of worsening trade disputes. But if the central bank did cut rates, a group of important stocks to the market would suffer. Bank margins could take a hit if they are paying out deposit rates at a higher level than market rates. Traders are pricing in a more than 90% chance of a September rate cut and about 60% probability of three rate cuts this year, according


Traders are begging the Federal Reserve for several rate cuts this year to salvage an economy they see set to slow significantly because of worsening trade disputes. But if the central bank did cut rates, a group of important stocks to the market would suffer. Bank margins could take a hit if they are paying out deposit rates at a higher level than market rates. Traders are pricing in a more than 90% chance of a September rate cut and about 60% probability of three rate cuts this year, according
There’s a drawback to the Fed rate cuts the market so craves: It could wreck bank earnings Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-05  Authors: yun li
Keywords: news, cnbc, companies, earnings, rates, craves, bank, wreck, deposit, theres, fed, market, cut, cuts, rate, drawback, basis


There's a drawback to the Fed rate cuts the market so craves: It could wreck bank earnings

Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., May 30, 2019.

Traders are begging the Federal Reserve for several rate cuts this year to salvage an economy they see set to slow significantly because of worsening trade disputes. The market cheered this week when Fed Chairman Jerome Powell opened the door to the possibility.

But if the central bank did cut rates, a group of important stocks to the market would suffer.

Large-cap banks could see their earnings on a per share basis decline by 10%, on average, if the Fed cuts rates by 75 basis points, according to Bank of America Merrill Lynch.

“…Lower short-term rates are expected to negatively impact bank earnings,” said Erika Najarian, financials analyst at Bank of America said in a note on Wednesday. “Feedback from bank management teams implies mixed sentiment over the ability to cut deposit rates quickly.”

Bank margins could take a hit if they are paying out deposit rates at a higher level than market rates. Their earnings are also hurt when the spread between short-term and long-term rates flattens, a phenomenon that could worsen if the Fed cuts.

Bank stocks already took a hit recently as Treasury yields sank on concerns of a slowing global economy. The SPDR S&P Bank ETF tumbled 10% in May as the yield on the 10-year Treasury note plummeted 14% last month. Part of the so-called yield curve also inverted amid the escalating trade war between the U.S. and China, and now also Mexico, sending a recession signal watched by the Fed and experts.

The stocks were notably red on the board Wednesday as the rest of the stock market continued to rally for second day after Powell said the Fed will “act as appropriate to sustain the expansion, ” essentially opening the door to rate cuts.

Traders are pricing in a more than 90% chance of a September rate cut and about 60% probability of three rate cuts this year, according to the CME FedWatch tool. Bank of America’s economists believe there will be three cuts by early next year. Barclays now also expects a 75 basis point cut this year.

J.P. Morgan’s earnings could get slashed by 10% by year-end 2020, if the Fed cuts interest rates by 75 basis points, according to Bank of America. Regional lenders including Citizens Financial and M&T Bank could take an even bigger hit by the rate decrease.

“Banks are not expected to benefit as much this cycle (vs. past cycle) from cutting deposit costs given the lower absolute level in rates today,” Najarian said.

However, some banks are better positioned to slash deposit costs following any rate cut. Citigroup and Signature Bank both have above-average deposit costs and larger percentages of money market accounts, so they should have less impact from Fed rate cuts, Bank of America said. BB&T should also outperform due to its merger with SunTrust, the bank said.

— CNBC’s Michael Bloom contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2019-06-05  Authors: yun li
Keywords: news, cnbc, companies, earnings, rates, craves, bank, wreck, deposit, theres, fed, market, cut, cuts, rate, drawback, basis


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Stocks making the biggest moves after hours: Cloudera, Stitch Fix, Five Below and more

The company also announced mixed quarterly results and gave weak guidance for the upcoming quarter and the current fiscal year. Cloudera reported a loss of 13 cents per share, narrower than the expected loss of 23 cents, and revenue of $187.5 million, just short of estimates. Shares of Stitch Fix surged 30% during extended trading after the online personal styling company reported third-quarter results that beat on the top and bottom lines. Five Below reported earnings of 46 cents per share, bea


The company also announced mixed quarterly results and gave weak guidance for the upcoming quarter and the current fiscal year. Cloudera reported a loss of 13 cents per share, narrower than the expected loss of 23 cents, and revenue of $187.5 million, just short of estimates. Shares of Stitch Fix surged 30% during extended trading after the online personal styling company reported third-quarter results that beat on the top and bottom lines. Five Below reported earnings of 46 cents per share, bea
Stocks making the biggest moves after hours: Cloudera, Stitch Fix, Five Below and more Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-05  Authors: nadine el-bawab
Keywords: news, cnbc, companies, revenue, stocks, moves, stitch, cloudera, earnings, hours, fix, loss, million, making, share, reported, cents, company, biggest, expected, stock


Stocks making the biggest moves after hours: Cloudera, Stitch Fix, Five Below and more

Tom Reilly, chief executive officer of Cloudera Inc., stands during the company’s initial public offering (IPO) on the floor of the New York Stock Exchange (NYSE) in New York.

Check out the companies making headlines after the bell:

Cloudera stock plummeted more than 30% after the cloud software company announced CEO Tom Reilly is retiring and intends to leave his position on the board effective July 31. The company also announced mixed quarterly results and gave weak guidance for the upcoming quarter and the current fiscal year.

Cloudera reported a loss of 13 cents per share, narrower than the expected loss of 23 cents, and revenue of $187.5 million, just short of estimates.

Shares of Stitch Fix surged 30% during extended trading after the online personal styling company reported third-quarter results that beat on the top and bottom lines. The company reported earnings of 7 cents per share on revenue of $409 million, while Wall Street had expected a loss of 3 cents per share on revenue of $395 million, according to Refinitiv consensus estimates.

Shares of Five Below rose 1% after the retailer reported better-than-expected first-quarter earnings. Five Below reported earnings of 46 cents per share, beating the expected 35 cents per share, and revenue of $365 million, besting estimates by just $1 million. Comparable sales jumped 3.1%.

MongoDB stock dropped nearly 3% after the software company gave disappointing guidance for the current fiscal year. The company expects a loss per share of between $1.04 and $1.11. Analysts surveyed by Refinitiv had expected a loss of $1.00 per share. MongoDB reported a narrower-than-expected first-quarter loss of 22 cents per share and revenue of $89.4 million, $5.9 million higher than expected.

Shares of Elastic fell as much as 3%, before erasing those losses, after the search company announced that it will acquire Endgame, a security company, for $234 million in the form of Elastic stock, payment of outstanding debt and the assumption of Endgame’s outstanding equity awards.


Company: cnbc, Activity: cnbc, Date: 2019-06-05  Authors: nadine el-bawab
Keywords: news, cnbc, companies, revenue, stocks, moves, stitch, cloudera, earnings, hours, fix, loss, million, making, share, reported, cents, company, biggest, expected, stock


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Stitch Fix spikes after beating earnings and revenue expectations

Shares of Stitch Fix soared 25% in after-market trading Wednesday after the online personal styling company reported it beat earnings and sales expectations in the fiscal third quarter of 2019. It was helped by the healthy growth of its women’s business and the scaling up of its men’s business, it said. Here’s what the company reported compared with what Wall Street expected, based on a survey of analysts by Refinitiv:Earnings per share: 7 cents vs. a loss of 3 cents expectedRevenue: $408.9 mill


Shares of Stitch Fix soared 25% in after-market trading Wednesday after the online personal styling company reported it beat earnings and sales expectations in the fiscal third quarter of 2019. It was helped by the healthy growth of its women’s business and the scaling up of its men’s business, it said. Here’s what the company reported compared with what Wall Street expected, based on a survey of analysts by Refinitiv:Earnings per share: 7 cents vs. a loss of 3 cents expectedRevenue: $408.9 mill
Stitch Fix spikes after beating earnings and revenue expectations Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-05  Authors: ashley turner
Keywords: news, cnbc, companies, revenue, quarter, stitch, earnings, fix, beating, loss, spikes, expectations, share, vs, cents, reported, million, company


Stitch Fix spikes after beating earnings and revenue expectations

Shares of Stitch Fix soared 25% in after-market trading Wednesday after the online personal styling company reported it beat earnings and sales expectations in the fiscal third quarter of 2019. It was helped by the healthy growth of its women’s business and the scaling up of its men’s business, it said.

Here’s what the company reported compared with what Wall Street expected, based on a survey of analysts by Refinitiv:

Earnings per share: 7 cents vs. a loss of 3 cents expected

Revenue: $408.9 million vs. $394.9 million expected

For the third quarter ended April 27, Stitch Fix said net income dropped to $7 million, or 7 cents a share, from $9.5 million, or 9 cents a share, a year ago. Analysts predicted results at a loss of 3 cents per share, based on a poll by Refinitiv.

Its active clients — people who received a box of clothing in the preceding 12-month period — came in at 3.1 million, an increase of 17% year over year.


Company: cnbc, Activity: cnbc, Date: 2019-06-05  Authors: ashley turner
Keywords: news, cnbc, companies, revenue, quarter, stitch, earnings, fix, beating, loss, spikes, expectations, share, vs, cents, reported, million, company


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If you invested $1,000 in Salesforce 10 years ago, here’s how much you’d have now

Cloud-based software company Salesforce reported better-than-expected fiscal first-quarter earnings, and its shares were up 3.3% on Wednesday to more than $155 on the news. If you invested in the company 10 years ago, that decision would have paid off. Salesforce reported earnings of 93 cents per share for the quarter, excluding certain items, versus 61 cents per share expected by analysts, according to financial markets data provider Refinitiv. For the same quarter a year earlier, the company h


Cloud-based software company Salesforce reported better-than-expected fiscal first-quarter earnings, and its shares were up 3.3% on Wednesday to more than $155 on the news. If you invested in the company 10 years ago, that decision would have paid off. Salesforce reported earnings of 93 cents per share for the quarter, excluding certain items, versus 61 cents per share expected by analysts, according to financial markets data provider Refinitiv. For the same quarter a year earlier, the company h
If you invested $1,000 in Salesforce 10 years ago, here’s how much you’d have now Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-05  Authors: shawn m carter
Keywords: news, cnbc, companies, youd, ago, cloud, earnings, analysts, shares, invested, month, 1000, cents, company, share, stock, heres, salesforce


If you invested $1,000 in Salesforce 10 years ago, here's how much you'd have now

Cloud-based software company Salesforce reported better-than-expected fiscal first-quarter earnings, and its shares were up 3.3% on Wednesday to more than $155 on the news.

If you invested in the company 10 years ago, that decision would have paid off. A $1,000 investment made June 5, 2009, would be worth nearly $15,000 as of June 5, 2019, for a total return of around 1,400%, according to CNBC calculations.

Over the same period, the S&P 500 has returned just over 250%.

Salesforce reported earnings of 93 cents per share for the quarter, excluding certain items, versus 61 cents per share expected by analysts, according to financial markets data provider Refinitiv. For the same quarter a year earlier, the company had earnings of 74 cents a share.

CNBC: Salesforce stock as of June 5, 2019.

Revenue grew 24% and the company’s trademark Service Cloud product generated $1.02 billion in revenue, crossing the $1 billion mark for the first time.

While Salesforce’s stock has mostly performed well over the years, though, any individual stock can over- or underperform, and past returns do not predict future results.

Though the shares are up about 14% to year to date, the stock remains off its high from April. And earlier this month, J.P. Morgan removed Salesforce from its “Analyst Focus List,” which highlights companies that analysts believe will perform well in the month ahead. Some analysts have reservations about the cloud computing industry overall.

Dan Nathan, co-founder and editor of RiskReversal.com, said Monday on CNBC’s “Options Action” that cloud stocks, like Salesforce, have declined in the last month: “The stock had been trading in a very tight range for months now,” underperforming the Nasdaq, he said.

What’s more, last month, the company experienced a major technical issue that caused some customers to lose access to certain services, including Sales Cloud and Service Cloud, two of Salesforce’s biggest revenue generators, which has since been corrected.


Company: cnbc, Activity: cnbc, Date: 2019-06-05  Authors: shawn m carter
Keywords: news, cnbc, companies, youd, ago, cloud, earnings, analysts, shares, invested, month, 1000, cents, company, share, stock, heres, salesforce


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