Chewy stock rises after release of its first results since IPO, loss narrows in line with forecast

A dog sits in front of the New York Stock Exchange (NYSE) during Chewy Inc.’s initial public offering (IPO) in New York, U.S., on Friday, June 14, 2019. Chewy shares rose Thursday after the pet e-tailer reported first-quarter sales climbed 45% as its loss narrowed, in line with the forecast it issued at the time of its recent IPO. For the quarter ended May 5, Chewy said its loss narrowed to $29.6 million from a loss of $59.8 million in the year-ago period. Chewy’s growth initiatives include expa


A dog sits in front of the New York Stock Exchange (NYSE) during Chewy Inc.’s initial public offering (IPO) in New York, U.S., on Friday, June 14, 2019. Chewy shares rose Thursday after the pet e-tailer reported first-quarter sales climbed 45% as its loss narrowed, in line with the forecast it issued at the time of its recent IPO. For the quarter ended May 5, Chewy said its loss narrowed to $29.6 million from a loss of $59.8 million in the year-ago period. Chewy’s growth initiatives include expa
Chewy stock rises after release of its first results since IPO, loss narrows in line with forecast Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-18  Authors: lauren hirsch
Keywords: news, cnbc, companies, loss, forecast, release, york, ipo, quarter, stock, pet, rises, shares, chewy, sales, narrows, pharmacy, company, line, million, results


Chewy stock rises after release of its first results since IPO, loss narrows in line with forecast

A dog sits in front of the New York Stock Exchange (NYSE) during Chewy Inc.’s initial public offering (IPO) in New York, U.S., on Friday, June 14, 2019.

Chewy shares rose Thursday after the pet e-tailer reported first-quarter sales climbed 45% as its loss narrowed, in line with the forecast it issued at the time of its recent IPO.

For the quarter ended May 5, Chewy said its loss narrowed to $29.6 million from a loss of $59.8 million in the year-ago period. Chewy’s profitability has been a concern for some. Dog food is heavy, and therefore expensive to ship.

Sales rose to $1.1 billion from $763.5 million a year ago, continuing Chewy’s strong momentum with pet owners. The company reported roughly 11.3 million active customers for the quarter and $343 in net sales per active customer.

Chewy’s growth initiatives include expansion of its private label business and the launch of Chewy Pharmacy, an online pet pharmacy. In the first quarter, Chewy opened a pharmacy in its Phoenix, Arizona, fulfillment center. It also rolled out improvements to its mobile app.

The retailer recorded auto-ship sales of $743.9 million, up nearly 56% from the quarter prior.

The first-quarter results, which are in line with previous guidance set forth in the company’s prospectus for its June initial public offering, sent shares of Chewy up about 1% in aftermarket trading. Shares of the company are down 9.5% since its debut, which had valued the company at more than $14 billion.

Chewy, founded in 2011 by Ryan Cohen and Michael Day, calls itself the “largest pure-play pet e-tailer in the United States.” It has distinguished itself from many of its competitors with customer service that includes 24/7 access and two-day shipping of online orders.

PetSmart, which is backed by private equity firm BC Partners, acquired Chewy in 2017 for $3 billion.


Company: cnbc, Activity: cnbc, Date: 2019-07-18  Authors: lauren hirsch
Keywords: news, cnbc, companies, loss, forecast, release, york, ipo, quarter, stock, pet, rises, shares, chewy, sales, narrows, pharmacy, company, line, million, results


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Netflix is set to report earnings after the bell

Netflix is expected to release its earnings report for its second quarter of 2019 after the bell on Wednesday. Already, Netflix is preparing to part ways with two of its most-watched shows, “The Office” and “Friends,” according to analytics firm Jumpshot. CNBC previously reported that Netflix was willing to pay up to $90 million a year for the rights. Netflix previously spent $80 million to keep “Friends” just through the end of this year, according to Vulture. Netflix previously said 2019 would


Netflix is expected to release its earnings report for its second quarter of 2019 after the bell on Wednesday. Already, Netflix is preparing to part ways with two of its most-watched shows, “The Office” and “Friends,” according to analytics firm Jumpshot. CNBC previously reported that Netflix was willing to pay up to $90 million a year for the rights. Netflix previously spent $80 million to keep “Friends” just through the end of this year, according to Vulture. Netflix previously said 2019 would
Netflix is set to report earnings after the bell Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-17  Authors: lauren feiner
Keywords: news, cnbc, companies, previously, forecast, earnings, expected, friends, million, set, billion, bell, streaming, refinitiv, netflix, report


Netflix is set to report earnings after the bell

Reed Hastings attends Reed Hastings panel during Netflix ‘See What’s Next’ event at Villa Miani on April 18, 2018 in Rome, Italy.

Netflix is expected to release its earnings report for its second quarter of 2019 after the bell on Wednesday.

Here are the key numbers:

Earnings per share: 56 cents expected, per Refinitiv consensus estimate

56 cents expected, per Refinitiv consensus estimate Revenue: $4.93 billion expected, per Refinitiv

$4.93 billion expected, per Refinitiv Domestic paid subscriber additions: 352,000, forecast by FactSet

352,000, forecast by FactSet International paid subscriber additions: 4.81 million, forecast by FactSet

The report is a chance for Netflix to prove how it plans to compete against legacy media companies that are now expanding into streaming. As Disney, AT&T’s WarnerMedia, and Comcast’s NBCUniversal all plan to launch direct-to-consumer streaming services by the first quarter of 2020, Netflix stands to lose both content and customers. Already, Netflix is preparing to part ways with two of its most-watched shows, “The Office” and “Friends,” according to analytics firm Jumpshot.

NBC announced in June that it plans to remove “The Office” from Netflix in 2021 and move it to its own streaming service. CNBC previously reported that Netflix was willing to pay up to $90 million a year for the rights. In the end, NBC beat the offer and agreed to pay $100 million.

Earlier this month, WarnerMedia announced its new streaming service, HBO Max, will include exclusive rights to stream “Friends” when it launches publicly in the spring of 2020. Netflix previously spent $80 million to keep “Friends” just through the end of this year, according to Vulture.

The threat of new streaming services has highlighted the importance of creating proprietary content for Netflix. The company has been on a spending tear, fueling its cash burn by twice offering $2 billion in debt since October. Netflix previously said 2019 would be its peak year for cash burn. It later revised that statement to say its cash flow would be consistent with the negative $3 billion of the prior year.

Netflix has raised its prices to help offset its costs, but has resisted pressure to bring in advertising. While industry executives anticipate Netflix will someday have ads, a recent study found that 23% of respondents would definitely or probably drop their subscription if it began running ads at its current price or a dollar cheaper.

Disclosure: Comcast owns NBCUniversal, the parent company of CNBC and NBC.

Subscribe to CNBC on YouTube.

WATCH: Netflix’s DVD business is still alive and profitable — here’s what it looks like


Company: cnbc, Activity: cnbc, Date: 2019-07-17  Authors: lauren feiner
Keywords: news, cnbc, companies, previously, forecast, earnings, expected, friends, million, set, billion, bell, streaming, refinitiv, netflix, report


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JP Morgan posted an earnings beat, but the bank’s stock falls on lowered interest forecast

J.P. Morgan Chase posted earnings that exceeded analysts’ expectations, aided by an income tax benefit that boosted results by $768 million. J.P. Morgan said that the presumably one-time tax boost came from the resolution of “certain tax audits” that lifted the company’s per share earnings by 23 cents. Shares of J.P. Morgan dipped 1.5% at 7:01 a.m. in premarket trading. Analysts will be watching to see if J.P. Morgan can continue the momentum from the first quarter, when higher interest rates he


J.P. Morgan Chase posted earnings that exceeded analysts’ expectations, aided by an income tax benefit that boosted results by $768 million. J.P. Morgan said that the presumably one-time tax boost came from the resolution of “certain tax audits” that lifted the company’s per share earnings by 23 cents. Shares of J.P. Morgan dipped 1.5% at 7:01 a.m. in premarket trading. Analysts will be watching to see if J.P. Morgan can continue the momentum from the first quarter, when higher interest rates he
JP Morgan posted an earnings beat, but the bank’s stock falls on lowered interest forecast Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-16  Authors: hugh son, fred imbert, elliot smith
Keywords: news, cnbc, companies, street, bank, billion, morgan, jp, falls, beat, revenue, increase, forecast, stock, posted, trading, share, interest, earnings, lowered


JP Morgan posted an earnings beat, but the bank's stock falls on lowered interest forecast

J.P. Morgan Chase posted earnings that exceeded analysts’ expectations, aided by an income tax benefit that boosted results by $768 million.

The bank on Tuesday posted record second-quarter profit of $9.65 billion, 16% higher than a year earlier, or $2.82 a share, beating the $2.50 estimate of analysts surveyed by Refinitiv. The company’s revenue also edged out expectations at $29.57 billion, a 4% increase from a year earlier, compared to the $28.9 billion estimate.

J.P. Morgan said that the presumably one-time tax boost came from the resolution of “certain tax audits” that lifted the company’s per share earnings by 23 cents.

Importantly, the bank cut its forecast for net interest income — a main driver of bank profits — by $500 million to $57.5 billion, compared to the $58 billion target in the previous quarter’s presentation. Shares of J.P. Morgan dipped 1.5% at 7:01 a.m. in premarket trading.

Analysts will be watching to see if J.P. Morgan can continue the momentum from the first quarter, when higher interest rates helped it beat profit and revenue expectations. They’ll be keen to ask executives about the impact of the Federal Reserve’s looming interest rate cuts, as that could compress margins on banks’ core lending businesses.

The bank’s fixed income trading division produced $3.69 billion in revenue, a 7% increase that exceeded the $3.36 billion estimate. Meanwhile, its equities trading business generated $1.73 billion in revenue, a 12% drop that missed analysts’ $1.84 billion estimate.

The biggest U.S. bank by assets is closely watched by investors looking for signs of how the industry’s Main Street and Wall Street businesses did in the period. Bank stocks have rebounded in recent months as strong results from lenders’ retail businesses helped drive firms including J.P. Morgan to record profits, offsetting declining revenues from trading and other Wall Street activities.

In May, J.P. Morgan announced it was acquiring medical payments firm InstaMed for more than $500 million, its biggest takeover since the financial crisis, to push more deeply into the healthcare spending market.

The bank also rolled out a digital robo-adviser in a bid to persuade banking customers to make investments with the firm.

Last month, J.P. Morgan got approval from regulators to boost its dividend to 90 cents a share from 80 cents, and announced a $29.4 billion share repurchasing program.

Earlier this week, Citigroup posted second-quarter profit that exceeded analysts’ expectations on a $350 million boost in revenue from the IPO of bond trading platform Tradeweb.

Here’s what Wall Street expected:

Earnings: $2.50 per share, a 9.1% increase from a year earlier, according to Refinitiv.

Revenue: $28.9 billion, a 1.8% increase from a year earlier.

Net Interest Margin: 2.51%, according to FactSet

Trading Revenue: Fixed income $3.36 billion, Equities $1.84 billion

This is breaking news. Please check back for updates.


Company: cnbc, Activity: cnbc, Date: 2019-07-16  Authors: hugh son, fred imbert, elliot smith
Keywords: news, cnbc, companies, street, bank, billion, morgan, jp, falls, beat, revenue, increase, forecast, stock, posted, trading, share, interest, earnings, lowered


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JP Morgan raises its stock market forecast, sees a China trade deal and an easy Fed

J.P. Morgan raised its 12-month S&P 500 forecast on Monday, telling clients the market is set for even more gains in the second half of the year as the Federal Reserve pivots toward easier monetary policy and the Trump administration looks to end its entrenched trade war with China. The brokerage raised its S&P 500 price target to 3,200 from 3,000, representing 6.2% upside from Friday’s close. The S&P 500 notched an all-time and closing high on Friday, finishing the session at 3,013.77. We are “


J.P. Morgan raised its 12-month S&P 500 forecast on Monday, telling clients the market is set for even more gains in the second half of the year as the Federal Reserve pivots toward easier monetary policy and the Trump administration looks to end its entrenched trade war with China. The brokerage raised its S&P 500 price target to 3,200 from 3,000, representing 6.2% upside from Friday’s close. The S&P 500 notched an all-time and closing high on Friday, finishing the session at 3,013.77. We are “
JP Morgan raises its stock market forecast, sees a China trade deal and an easy Fed Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: thomas franck
Keywords: news, cnbc, companies, market, 12month, morgan, jp, fed, sees, sp, price, stock, raises, 500, easy, policy, 3200, upside, forecast, raised, target, trade, trump


JP Morgan raises its stock market forecast, sees a China trade deal and an easy Fed

J.P. Morgan raised its 12-month S&P 500 forecast on Monday, telling clients the market is set for even more gains in the second half of the year as the Federal Reserve pivots toward easier monetary policy and the Trump administration looks to end its entrenched trade war with China.

The brokerage raised its S&P 500 price target to 3,200 from 3,000, representing 6.2% upside from Friday’s close. The S&P 500 notched an all-time and closing high on Friday, finishing the session at 3,013.77.

We are “raising our S&P 500 12-month price target to 3,200 as our upside case for equities is increasingly in play with Fed and Trump easing on policy while investor positioning/sentiment remains low,” chief U.S. equity strategist Dubravko Lakos-Bujas wrote in a note.


Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: thomas franck
Keywords: news, cnbc, companies, market, 12month, morgan, jp, fed, sees, sp, price, stock, raises, 500, easy, policy, 3200, upside, forecast, raised, target, trade, trump


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Cramer: We have ‘real reason to be worried’ about the global economy

The market “threw us a bit of a curve ball” Tuesday as investors avoided reliable defensive stocks even after Wall Street received critical evidence that the global economy is stumbling, CNBC’s Jim Cramer said. “Now we’ve got real concern, real reason to be worried. “It flowed into the stocks of tech companies with fast growth that do not need a strong economy to make the numbers. Cramer also pointed to defense technology and medical technology stocks such as L3harris Technologies and Edwards Li


The market “threw us a bit of a curve ball” Tuesday as investors avoided reliable defensive stocks even after Wall Street received critical evidence that the global economy is stumbling, CNBC’s Jim Cramer said. “Now we’ve got real concern, real reason to be worried. “It flowed into the stocks of tech companies with fast growth that do not need a strong economy to make the numbers. Cramer also pointed to defense technology and medical technology stocks such as L3harris Technologies and Edwards Li
Cramer: We have ‘real reason to be worried’ about the global economy Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-09  Authors: tyler clifford
Keywords: news, cnbc, companies, reason, growth, cramer, worried, real, goods, companies, money, global, stocks, investors, forecast, economy


Cramer: We have 'real reason to be worried' about the global economy

The market “threw us a bit of a curve ball” Tuesday as investors avoided reliable defensive stocks even after Wall Street received critical evidence that the global economy is stumbling, CNBC’s Jim Cramer said.

BASF, the gigantic German chemical manufacturer connected to the semiconductor, autos, pesticides and consumer products industries, revealed Monday that it may need to cut its full-year earnings forecast by 30%. The company blamed low car and crop sales, along with the U.S.-China trade war.

Cramer called the dim outlook “a very big deal.”

“Now we’ve got real concern, real reason to be worried. While the Federal Reserve believes business is strong because we just got a terrific labor report last Friday,” the “Mad Money” host said, “the weak forecast from chemical giant BASF suggests that the global economy might be in rougher shape than that employment number might indicate.”

When industrial companies begin to falter, money managers usually put their money into the safe, consumer packaged goods sector because those consistent names tend to perform well even when the economy is slowing down. But Cramer said it was surprising to see PepsiCo, which reported solid quarterly results Tuesday morning and maintained its forecast, fall 0.62% during the session.

Pepsi’s action impacted the rest of the soft goods sector, he added.

“Suddenly, we lost our favorite place to hide in a BASF-highlighted slowdown,” Cramer said. “It flowed into the stocks of tech companies with fast growth that do not need a strong economy to make the numbers. These tech companies are all about making other businesses more productive, either using the cloud or big data or analytics, [and] will do fine in a slowdown.”

Money spilled into cybersecurity stocks like Fortinet, Palo Alto Network and Okta, Cramer said.

“To me, it seemed like much of the bullish action here stemmed from the analysts rolling out a positive coverage of CrowdStrike, the newly-public cloud-based cybersecurity firm, ” he said.

Payment processing companies also got a boost on the market, including Square, PayPal and Wex.

Semiconductor stocks have struggled recently, but investors showed the oversold group some love with Advanced Micro Devices, Western Digital, Micron and Analog Devices, he said. The group rallied as much as 3.46% Tuesday.

Cramer also pointed to defense technology and medical technology stocks such as L3harris Technologies and Edwards Lifesciences. Facebook also moved up more than $3 per share, he noted.

“The bottom line: When investors start worrying about the global economy … either money flows into the slow-and-steady consumer packaged goods stocks, like a PepsiCo, or it goes into the turbo-charged growth stocks that can thrive in a slowdown,” Cramer said. “Today, smoking-hot growth won. Tomorrow? Who knows.”

Disclosure: Cramer’s charitable trust owns shares of Palo Alto Network and Facebook.


Company: cnbc, Activity: cnbc, Date: 2019-07-09  Authors: tyler clifford
Keywords: news, cnbc, companies, reason, growth, cramer, worried, real, goods, companies, money, global, stocks, investors, forecast, economy


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Lufthansa lowers 2019 profit forecast, cites price competition

Unilever staff took part in DNA experiment to tackle unconscious…Consumer goods giant Unilever has taken the unusual step of having some of its marketing staff read their own DNA profiles to see whether finding out about their heritage has…Marketing.Media.Moneyread more


Unilever staff took part in DNA experiment to tackle unconscious…Consumer goods giant Unilever has taken the unusual step of having some of its marketing staff read their own DNA profiles to see whether finding out about their heritage has…Marketing.Media.Moneyread more
Lufthansa lowers 2019 profit forecast, cites price competition Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-17
Keywords: news, cnbc, companies, price, taken, unilever, step, unusual, cites, forecast, 2019, dna, tackle, read, lowers, took, lufthansa, unconsciousconsumer, staff, competition, profit


Lufthansa lowers 2019 profit forecast, cites price competition

Unilever staff took part in DNA experiment to tackle unconscious…

Consumer goods giant Unilever has taken the unusual step of having some of its marketing staff read their own DNA profiles to see whether finding out about their heritage has…

Marketing.Media.Money

read more


Company: cnbc, Activity: cnbc, Date: 2019-06-17
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Airline industry group slashes its profit forecast as trade war hurts the cargo business

SEOUL — Global trade tensions and increased protectionism prompted the International Air Transport Association (IATA) to slash its 2019 profit outlook for the airline sector. Speaking with CNBC at the trade group’s Annual General Meeting, IATA Director General and CEO Alexandre de Juniac said disruptions to international trade have hurt cargo loads, in particular. The industry body expects airline profits to come in at $28 billion in 2019, a drop from the $30 billion reported in 2018. IATA had p


SEOUL — Global trade tensions and increased protectionism prompted the International Air Transport Association (IATA) to slash its 2019 profit outlook for the airline sector. Speaking with CNBC at the trade group’s Annual General Meeting, IATA Director General and CEO Alexandre de Juniac said disruptions to international trade have hurt cargo loads, in particular. The industry body expects airline profits to come in at $28 billion in 2019, a drop from the $30 billion reported in 2018. IATA had p
Airline industry group slashes its profit forecast as trade war hurts the cargo business Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-02  Authors: yolande chee
Keywords: news, cnbc, companies, profits, airline, trade, iata, hurts, business, profit, slashes, forecast, outlook, war, billion, 2019, international, group, juniac, cargo, industry


Airline industry group slashes its profit forecast as trade war hurts the cargo business

SEOUL — Global trade tensions and increased protectionism prompted the International Air Transport Association (IATA) to slash its 2019 profit outlook for the airline sector.

Speaking with CNBC at the trade group’s Annual General Meeting, IATA Director General and CEO Alexandre de Juniac said disruptions to international trade have hurt cargo loads, in particular.

“It has significantly impacted our outlook, and it’s clear that this stop in the evolution in international trade comes directly from trade wars and protectionist measures,” de Juniac said.

The industry body expects airline profits to come in at $28 billion in 2019, a drop from the $30 billion reported in 2018. IATA had previously forecast 2019 profits to come in at $35.5 billion dollars.

The intensification of the trade war between the United States and China trade war has seen cargo demand drop across the airline industry, with the downward trend expected to continue. Growth for that segment is forecast to be flat this year, after rising 3.4% in 2018 and 9.7% the year before that.


Company: cnbc, Activity: cnbc, Date: 2019-06-02  Authors: yolande chee
Keywords: news, cnbc, companies, profits, airline, trade, iata, hurts, business, profit, slashes, forecast, outlook, war, billion, 2019, international, group, juniac, cargo, industry


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JP Morgan slashes second-quarter GDP forecast to just 1%

“The April durable goods report was bad, particularly the details relating to capital goods orders and shipments. The J.P. Morgan economists also changed their view on the Fed, and now do not expect the next move to be an interest rate hike. The durable goods report follows Thursday’s PPI manufacturing and services data that was also surprisingly weak. The J.P. Morgan economists said the key risks they see for U.S. growth include the uncertainty from the trade war, impacting business sentiment,


“The April durable goods report was bad, particularly the details relating to capital goods orders and shipments. The J.P. Morgan economists also changed their view on the Fed, and now do not expect the next move to be an interest rate hike. The durable goods report follows Thursday’s PPI manufacturing and services data that was also surprisingly weak. The J.P. Morgan economists said the key risks they see for U.S. growth include the uncertainty from the trade war, impacting business sentiment,
JP Morgan slashes second-quarter GDP forecast to just 1% Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-24  Authors: patti domm
Keywords: news, cnbc, companies, jp, gdp, risks, report, morgan, forecast, growth, economists, slashes, yields, secondquarter, orders, quarter, goods


JP Morgan slashes second-quarter GDP forecast to just 1%

A truck hauls a shipping container at Yusen Terminals (YTI) on Terminal Island at the Port of Los Angeles in Los Angeles, California

J.P. Morgan economists said they now see much slower second-quarter growth of just 1%, down from their prior forecast of 2.25% and way off the 3.2% reported in the first quarter.

“The April durable goods report was bad, particularly the details relating to capital goods orders and shipments. Coming on the heels of last week’s crummy April retail sales report, it suggests second quarter activity growth is sharply downshifting from the first quarter pace, ” the economists wrote.

The Atlanta Fed’s GDP Now tracker has GDP growth for the first quarter at 1.3% for the quarter.

The J.P. Morgan economists also changed their view on the Fed, and now do not expect the next move to be an interest rate hike.

“We had previously expected the next move from the Fed would be a hike, albeit at the very end of our forecast horizon in late 2020. We now see the risks of the next move as about evenly distributed between a hike and a cut. We still sense little appetite on the FOMC for an insurance ease to goose inflation, but we see rising odds of ‘your father’s rate cut’: one prompted by downside growth risks,” they wrote.

The durable goods report follows Thursday’s PPI manufacturing and services data that was also surprisingly weak. That data helped fuel a stock market sell off and buying in Treasurys, which sent yields to 2017 lows. Yields move opposite price, and the low yields reflected concern about the economy.

The 10-year Treasury yield was at 2.32% Friday, after dipping as low as 2.29% Thursday. The fed funds futures market is reflecting expectations for more than 25 basis points of easing this year, and at least another cut in 2020.

“Net, net, business investment in the future is sputtering at the start of the second quarter as uncertainty and geopolitical risks are a heavy anchor that appears to be a big drag on companies’ willingness to order up new equipment,” noted Chris Rupkey, MUFG Union Bank chief financial economist. “Business confidence is clearly lacking in the manufacturing sector of the economy.”

Rupkey added that corporate chief financial officers may believe, as some surveys suggest, that the odds are increasing for a recession so they have canceled orders in March and ordered less equipment in April.

The J.P. Morgan economists said the key risks they see for U.S. growth include the uncertainty from the trade war, impacting business sentiment, and global economic slowing.

In the April durable goods report, total orders at manufacturers declined 2.1% last month, due to large declines of aircraft and motor vehicle orders. Beyond transportation, the J.P. Morgan economists noted that orders were flat last month and revised significantly lower in March.


Company: cnbc, Activity: cnbc, Date: 2019-05-24  Authors: patti domm
Keywords: news, cnbc, companies, jp, gdp, risks, report, morgan, forecast, growth, economists, slashes, yields, secondquarter, orders, quarter, goods


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Tesla shares could drop to $10 in a worst-case scenario, Morgan Stanley says

Guests look at a Tesla Model 3 during a ground-breaking ceremony for a Tesla factory in Shanghai on January 7, 2019. Morgan Stanley cut its bear (worst-case) forecast on Tesla’s stock from $97 to just $10 on Tuesday, citing concerns about the company’s increased debt load and geopolitical exposure. In particular, Morgan Stanley analysts said the reduction was driven by concerns around Chinese demand for Tesla products. Shares closed down 2.7% Monday, closing at $205.36, and are down 38% year-to-


Guests look at a Tesla Model 3 during a ground-breaking ceremony for a Tesla factory in Shanghai on January 7, 2019. Morgan Stanley cut its bear (worst-case) forecast on Tesla’s stock from $97 to just $10 on Tuesday, citing concerns about the company’s increased debt load and geopolitical exposure. In particular, Morgan Stanley analysts said the reduction was driven by concerns around Chinese demand for Tesla products. Shares closed down 2.7% Monday, closing at $205.36, and are down 38% year-to-
Tesla shares could drop to $10 in a worst-case scenario, Morgan Stanley says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-21  Authors: elliot smith
Keywords: news, cnbc, companies, teslas, shares, scenario, worstcase, cut, stanley, forecast, trading, drop, model, morgan, companys, stock, tesla, price


Tesla shares could drop to $10 in a worst-case scenario, Morgan Stanley says

Guests look at a Tesla Model 3 during a ground-breaking ceremony for a Tesla factory in Shanghai on January 7, 2019.

Morgan Stanley cut its bear (worst-case) forecast on Tesla’s stock from $97 to just $10 on Tuesday, citing concerns about the company’s increased debt load and geopolitical exposure.

In particular, Morgan Stanley analysts said the reduction was driven by concerns around Chinese demand for Tesla products.

“Our revised bear case assumes Tesla misses our current Chinese volume forecast by roughly half to account for the highly volatile trade situation in the region, particularly around areas of technology, which we believe run a high and increasing risk of government/regulatory attention,” the research team, which included analyst Adam Jonas, said in the note.

Tesla shares fell to near $200 Monday after Wedbush cut its price target from $275 to $230 due to the potential impact of distractions from CEO Elon Musk’s “sci-fi projects” on the company’s ability to shore up demand for its core Model 3.

Shares closed down 2.7% Monday, closing at $205.36, and are down 38% year-to-date. During intraday trading Monday, the stock fell below $200 for the first time since December 2016. The stock was down 2.6% in premarket trading on Tuesday morning.

But it’s not just the Tesla bears making cautious calls. Financial services firm Baird also cut its Tesla estimates Tuesday, lowering the company’s stock to $340 from $400, while T. Rowe Price, for years one of Tesla’s biggest investors, sold around 81% of its holdings over the first three months of 2019.


Company: cnbc, Activity: cnbc, Date: 2019-05-21  Authors: elliot smith
Keywords: news, cnbc, companies, teslas, shares, scenario, worstcase, cut, stanley, forecast, trading, drop, model, morgan, companys, stock, tesla, price


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The Atlanta Fed’s GDP forecast is sliding, and expectations for rate cuts are surging

A Federal Reserve projection on economic growth just weakened substantially, and expectations for a rate cut over the next eight months got a lot stronger. The Atlanta Fed’s closely watched GDPNow tracker is pointing to a 1.1% gain for the economy in the second quarter, according to a revision posted Wednesday. Disappointing retail sales in April fueled the latest leg down in the Atlanta Fed outlook. The Commerce Department reported Wednesday that sales declined 0.2% for the month against expect


A Federal Reserve projection on economic growth just weakened substantially, and expectations for a rate cut over the next eight months got a lot stronger. The Atlanta Fed’s closely watched GDPNow tracker is pointing to a 1.1% gain for the economy in the second quarter, according to a revision posted Wednesday. Disappointing retail sales in April fueled the latest leg down in the Atlanta Fed outlook. The Commerce Department reported Wednesday that sales declined 0.2% for the month against expect
The Atlanta Fed’s GDP forecast is sliding, and expectations for rate cuts are surging Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-15  Authors: jeff cox
Keywords: news, cnbc, companies, substantially, retail, feds, cuts, sliding, watched, weakened, sales, gain, gdp, forecast, expectations, rate, surging, atlanta, months, 02


The Atlanta Fed's GDP forecast is sliding, and expectations for rate cuts are surging

A Federal Reserve projection on economic growth just weakened substantially, and expectations for a rate cut over the next eight months got a lot stronger.

The Atlanta Fed’s closely watched GDPNow tracker is pointing to a 1.1% gain for the economy in the second quarter, according to a revision posted Wednesday. That comes on the back of a strong first three months that saw a 3.2% gain and is substantially lower than CNBC’s Rapid Update survey, which puts the GDP tracking estimate at 2%.

Disappointing retail sales in April fueled the latest leg down in the Atlanta Fed outlook. The Commerce Department reported Wednesday that sales declined 0.2% for the month against expectations of a 0.2% gain. Along with the retail letdown, industrial production fell 0.5% against Wall Street estimates of a 0.1% gain.


Company: cnbc, Activity: cnbc, Date: 2019-05-15  Authors: jeff cox
Keywords: news, cnbc, companies, substantially, retail, feds, cuts, sliding, watched, weakened, sales, gain, gdp, forecast, expectations, rate, surging, atlanta, months, 02


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