Gold dips slightly on profit booking, US-China trade optimism

Gold prices dipped slightly on Tuesday as investors booked profits following robust gains over the past weeks, while rising hopes of a trade deal between China and the United States lifted equities. Spot gold dipped slightly to $1,327.41 per ounce. Global Investors, adding that strong gains last week prompted some profit booking. Lower interest rates reduce the opportunity cost of holding nonyielding bullion and weigh on the dollar. “I dont think it (gold prices) has the fundamentals to move muc


Gold prices dipped slightly on Tuesday as investors booked profits following robust gains over the past weeks, while rising hopes of a trade deal between China and the United States lifted equities. Spot gold dipped slightly to $1,327.41 per ounce. Global Investors, adding that strong gains last week prompted some profit booking. Lower interest rates reduce the opportunity cost of holding nonyielding bullion and weigh on the dollar. “I dont think it (gold prices) has the fundamentals to move muc
Gold dips slightly on profit booking, US-China trade optimism Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-11
Keywords: news, cnbc, companies, uschina, tariffs, optimism, rates, gold, gains, prices, trade, president, slightly, profit, investors, ounce, booking, interest, dips


Gold dips slightly on profit booking, US-China trade optimism

Gold prices dipped slightly on Tuesday as investors booked profits following robust gains over the past weeks, while rising hopes of a trade deal between China and the United States lifted equities.

However, increasing expectations the U.S. Federal Reserve would proceed with an interest rate cut this year pressured the dollar, supporting bullion rates.

Spot gold dipped slightly to $1,327.41 per ounce. Prices had hit a 14-month high of $1,348.08 on June 7.

U.S. gold futures settled 0.1% higher at $1,328.50 per ounce.

With fears easing that the United States would impose trade tariffs with Mexico, investors are now optimistic that U.S. President Donald Trump could shelve threats to impose more tariffs on China as well. He is expected to meet with President Xi Jingping at a Group of 20 summit on June 28-29.

“People think there is going to be a sort-of resolution at the end of this month with tariffs when President Trump meets with Xi,” said Michael Matousek, head trader at U.S. Global Investors, adding that strong gains last week prompted some profit booking.

The trade dispute between Beijing and Washington has toppled markets since its inception more than a year ago and raised concerns of a global economic slowdown, prompting central banks around the world to keep a hold on interest rates.

“The rhetoric around Fed rates cut is weakening the dollar, which will help drive gold,” Matousek said. Lower interest rates reduce the opportunity cost of holding nonyielding bullion and weigh on the dollar.

Investors now see the U.S. Federal Reserve cutting rates as well, with Fed fund futures now pricing in more than two 25-basis point rate cuts by year-end.

Markets await consumer price index data on Wednesday, closely watched by the Fed as an inflation indicator, and Retail sales on Friday for indication on whether tariffs are slowing the economy.

“Stronger equity markets has drawn money away from gold,” said Rob Lutts, chief investment officer at Cabot Wealth Management. “I dont think it (gold prices) has the fundamentals to move much higher. It has exhausted its run right here.”

Other precious metals did not resonate with bullion’s move, with silver up 0.6% at $14.75 per ounce and platinum gaining nearly 1% to $809.50 per ounce.

Among other precious metals, palladium extended gains for a fourth straight session, climbing 0.9% to a six-week high at $1,395.01 per ounce.


Company: cnbc, Activity: cnbc, Date: 2019-06-11
Keywords: news, cnbc, companies, uschina, tariffs, optimism, rates, gold, gains, prices, trade, president, slightly, profit, investors, ounce, booking, interest, dips


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Stock futures rise ahead of US jobs report

U.S. stock index futures rose early Friday as Wall Street looks set for another day of gains as Wall Street awaited key jobs data. ET, Dow Jones Industrial Average futures pointed to a gain of 106 points at the open. S&P 500 and Nasdaq 100 futures also indicated gains to start the day. Economists polled by Dow Jones forecast employment in the U.S. grew by 180,000 jobs last month. The Dow Jones Industrial Average gained 181.09 points Thursday, bringing total gains for the week to more than 900 po


U.S. stock index futures rose early Friday as Wall Street looks set for another day of gains as Wall Street awaited key jobs data. ET, Dow Jones Industrial Average futures pointed to a gain of 106 points at the open. S&P 500 and Nasdaq 100 futures also indicated gains to start the day. Economists polled by Dow Jones forecast employment in the U.S. grew by 180,000 jobs last month. The Dow Jones Industrial Average gained 181.09 points Thursday, bringing total gains for the week to more than 900 po
Stock futures rise ahead of US jobs report Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-07  Authors: fred imbert elliot smith, fred imbert, elliot smith
Keywords: news, cnbc, companies, street, trade, ahead, jobs, futures, wall, week, jones, points, stock, gains, dow, mexican, report, rise


Stock futures rise ahead of US jobs report

U.S. stock index futures rose early Friday as Wall Street looks set for another day of gains as Wall Street awaited key jobs data.

At around 7 a.m. ET, Dow Jones Industrial Average futures pointed to a gain of 106 points at the open. S&P 500 and Nasdaq 100 futures also indicated gains to start the day.

The Dow comes into Friday’s session riding a four-day winning streak as expectations for easier monetary policy from the Federal Reserve increased. The 30-stock index is also on pace to snap a six-week losing streak.

The Labor Department is scheduled to release the May job report at 8:30 a.m. ET. Economists polled by Dow Jones forecast employment in the U.S. grew by 180,000 jobs last month. The data comes amid worries over a potential economic slowdown while global trade tensions persist.

Talks between U.S. and Mexican officials continued Thursday afternoon, with Mexican ambassador to the U.S. Martha Barcena Coqui telling CNBC that negotiations involved a “very good discussion.”

Mexico has also agreed to send its national guard to its border with Guatemala to stem the flow of undocumented migrants hoping to reach the U.S., Reuters reported Thursday.

Markets will be monitoring Friday’s ongoing talks, after stocks surged Thursday on reports that the U.S. was considering delaying the imposition of a 5% tariff on Mexican imports, which is set to take effect on Monday.

Elsewhere, Russia weighed in on the escalating trade war between the U.S. and China Friday, with the head of its sovereign investment fund urging the U.S. to back up its claims that Chinese telecommunications giant Huawei represents a national security threat. The CEO of Russia’s top mobile operator MTS also told CNBC’s Geoff Cutmore that he did not believe warnings from U.S. officials.

The Dow Jones Industrial Average gained 181.09 points Thursday, bringing total gains for the week to more than 900 points and putting it on course for the best week of the year. The S&P 500 rose 0.61% and the Nasdaq Composite gained 0.53%.


Company: cnbc, Activity: cnbc, Date: 2019-06-07  Authors: fred imbert elliot smith, fred imbert, elliot smith
Keywords: news, cnbc, companies, street, trade, ahead, jobs, futures, wall, week, jones, points, stock, gains, dow, mexican, report, rise


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Stock futures rise ahead of US jobs report

U.S. stock index futures rose early Friday as Wall Street looks set for another day of gains as Wall Street awaited key jobs data. ET, Dow Jones Industrial Average futures pointed to a gain of 106 points at the open. S&P 500 and Nasdaq 100 futures also indicated gains to start the day. Economists polled by Dow Jones forecast employment in the U.S. grew by 180,000 jobs last month. The Dow Jones Industrial Average gained 181.09 points Thursday, bringing total gains for the week to more than 900 po


U.S. stock index futures rose early Friday as Wall Street looks set for another day of gains as Wall Street awaited key jobs data. ET, Dow Jones Industrial Average futures pointed to a gain of 106 points at the open. S&P 500 and Nasdaq 100 futures also indicated gains to start the day. Economists polled by Dow Jones forecast employment in the U.S. grew by 180,000 jobs last month. The Dow Jones Industrial Average gained 181.09 points Thursday, bringing total gains for the week to more than 900 po
Stock futures rise ahead of US jobs report Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-07  Authors: fred imbert elliot smith, fred imbert, elliot smith
Keywords: news, cnbc, companies, street, trade, ahead, jobs, futures, wall, week, jones, points, stock, gains, dow, mexican, report, rise


Stock futures rise ahead of US jobs report

U.S. stock index futures rose early Friday as Wall Street looks set for another day of gains as Wall Street awaited key jobs data.

At around 7 a.m. ET, Dow Jones Industrial Average futures pointed to a gain of 106 points at the open. S&P 500 and Nasdaq 100 futures also indicated gains to start the day.

The Dow comes into Friday’s session riding a four-day winning streak as expectations for easier monetary policy from the Federal Reserve increased. The 30-stock index is also on pace to snap a six-week losing streak.

The Labor Department is scheduled to release the May job report at 8:30 a.m. ET. Economists polled by Dow Jones forecast employment in the U.S. grew by 180,000 jobs last month. The data comes amid worries over a potential economic slowdown while global trade tensions persist.

Talks between U.S. and Mexican officials continued Thursday afternoon, with Mexican ambassador to the U.S. Martha Barcena Coqui telling CNBC that negotiations involved a “very good discussion.”

Mexico has also agreed to send its national guard to its border with Guatemala to stem the flow of undocumented migrants hoping to reach the U.S., Reuters reported Thursday.

Markets will be monitoring Friday’s ongoing talks, after stocks surged Thursday on reports that the U.S. was considering delaying the imposition of a 5% tariff on Mexican imports, which is set to take effect on Monday.

Elsewhere, Russia weighed in on the escalating trade war between the U.S. and China Friday, with the head of its sovereign investment fund urging the U.S. to back up its claims that Chinese telecommunications giant Huawei represents a national security threat. The CEO of Russia’s top mobile operator MTS also told CNBC’s Geoff Cutmore that he did not believe warnings from U.S. officials.

The Dow Jones Industrial Average gained 181.09 points Thursday, bringing total gains for the week to more than 900 points and putting it on course for the best week of the year. The S&P 500 rose 0.61% and the Nasdaq Composite gained 0.53%.


Company: cnbc, Activity: cnbc, Date: 2019-06-07  Authors: fred imbert elliot smith, fred imbert, elliot smith
Keywords: news, cnbc, companies, street, trade, ahead, jobs, futures, wall, week, jones, points, stock, gains, dow, mexican, report, rise


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Greater China markets struggle for gains even as investors expect the Fed to cut rates

Asia Pacific traded mixed on Thursday as markets in the Greater China region struggled for gains, while South Korea remained shut for a public holiday. The Nikkei 225 in Japan erased earlier gains to finish near flat at 20,774.04 while the Topix index declined 0.34% to 1,524.91. In China, the Shanghai composite fell 1.17% to 2,827.80 and the Shenzhen composite was down 2.08% at 1,463.70. The European Central Bank is set to announce its monetary policy decision on Thursday. Meanwhile, a Reuters p


Asia Pacific traded mixed on Thursday as markets in the Greater China region struggled for gains, while South Korea remained shut for a public holiday. The Nikkei 225 in Japan erased earlier gains to finish near flat at 20,774.04 while the Topix index declined 0.34% to 1,524.91. In China, the Shanghai composite fell 1.17% to 2,827.80 and the Shenzhen composite was down 2.08% at 1,463.70. The European Central Bank is set to announce its monetary policy decision on Thursday. Meanwhile, a Reuters p
Greater China markets struggle for gains even as investors expect the Fed to cut rates Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-06  Authors: saheli roy choudhury
Keywords: news, cnbc, companies, traded, expect, markets, central, struggle, rates, cut, ecb, gains, fed, investors, china, wrote, trump, mexico, greater, bank


Greater China markets struggle for gains even as investors expect the Fed to cut rates

Asia Pacific traded mixed on Thursday as markets in the Greater China region struggled for gains, while South Korea remained shut for a public holiday.

The session followed overnight gains on Wall Street where investors grew more confident that the U.S. Federal Reserve may slash interest rates this year to support an economy affected by the ongoing trade war.

The Nikkei 225 in Japan erased earlier gains to finish near flat at 20,774.04 while the Topix index declined 0.34% to 1,524.91.

Australia’s ASX 200 rose 0.39% to 6,383 as most sectors traded up. The heavily weighted financial subindex rose 0.6% as major banking stocks gained.

In China, the Shanghai composite fell 1.17% to 2,827.80 and the Shenzhen composite was down 2.08% at 1,463.70. Taiwan’s Taiex fell 0.5% to 10,409.20 while Hong Kong’s Hang Seng index was fractionally higher in the final hour of trade.

India’s Nifty 50 was down 0.95% and the Sensex lost about 0.69%.

Analysts said that markets were already beginning to price in the possibility of rate cuts after Fed Chair Jerome Powell said the U.S. central bank will keep an eye on developments in the domestic economy, and would do what it must to “sustain the expansion. ”

“US markets firmed slightly overnight on the anticipation of rate cuts and news that President (Donald) Trump wants a deal with Mexico, although little progress was made,” analysts at ANZ Research wrote in a morning note.

The U.S. and Mexico failed to reach a deal on immigration issues during a Wednesday meeting, just days before 5% tariffs on all Mexican imports are set to kick in. Trump announced those duties in a surprise tweet last week, saying they would be imposed “until such time as illegal migrants coming through Mexico, and into our Country, STOP.”

Strategists at Singapore’s DBS Bank pointed out in a note that Fed’s comments over the past several days have turned “notably more dovish as uncertainties over the US’s trade policies weigh.”

“With the Fed seen succumbing to the aggressive easing priced into the rates space, attention will shift to the European Central Bank (ECB) today,” the DBS strategists wrote, adding the ECB has a “lot less room” on policy easing than the U.S. central bank.

The European Central Bank is set to announce its monetary policy decision on Thursday. Meanwhile, a Reuters poll found that economists believe the ECB has no prospect of raising interest rates through to the end of 2020.


Company: cnbc, Activity: cnbc, Date: 2019-06-06  Authors: saheli roy choudhury
Keywords: news, cnbc, companies, traded, expect, markets, central, struggle, rates, cut, ecb, gains, fed, investors, china, wrote, trump, mexico, greater, bank


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Dollar near flat, heading for fourth straight month of gains

The dollar was little changed on Thursday, on track to post a fourth straight month of gains, as the trade stand-off between China and the United States prompted traders to put money into perceived safe currencies including the greenback. Safe-haven demand lifted the dollar to a 2-year high against a basket of currencies last week. Appetite for the greenback was somewhat curbed on Thursday as Wall Street stabilized following steep losses due to the trade worries and U.S. bond yields briefly rose


The dollar was little changed on Thursday, on track to post a fourth straight month of gains, as the trade stand-off between China and the United States prompted traders to put money into perceived safe currencies including the greenback. Safe-haven demand lifted the dollar to a 2-year high against a basket of currencies last week. Appetite for the greenback was somewhat curbed on Thursday as Wall Street stabilized following steep losses due to the trade worries and U.S. bond yields briefly rose
Dollar near flat, heading for fourth straight month of gains Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-30
Keywords: news, cnbc, companies, near, yen, greenback, currencies, dollar, euro, fourth, week, heading, worries, gains, straight, month, lower, flat, trade


Dollar near flat, heading for fourth straight month of gains

The dollar was little changed on Thursday, on track to post a fourth straight month of gains, as the trade stand-off between China and the United States prompted traders to put money into perceived safe currencies including the greenback.

Safe-haven demand lifted the dollar to a 2-year high against a basket of currencies last week. Appetite for the greenback was somewhat curbed on Thursday as Wall Street stabilized following steep losses due to the trade worries and U.S. bond yields briefly rose before resuming their recent fall.

The euro and sterling held above key support levels at $1.11 and $1.26, respectively, also restraining the greenback’s momentum, analysts said.

“With the U.S.-China trade situation, people don’t want to do anything until there’s a resolution,” Joseph Trevisani, senior analyst at FX Street, said of this week’s light volume and tight trading ranges.

In late U.S. trading, an index that tracks the dollar against six major currencies was down -0.01% at 98.151. It reached 98.371 a week ago, its strongest since May 2017.

The S&P 500 was down 0.08%, wiping out initial gains, while the benchmark 10-year U.S. Treasury note yield was 1.2 basis points lower at 2.224%, reversing an earlier rise.

The dollar index has increased 0.76% in May, putting it on track for four straight months of gains. Its strength has persisted even as traders have increased their bets on multiple rate cuts by the Federal Reserve.

The greenback will likely extend its monthly winning streak against the euro, which began in January. Signs of a sagging euro zone economy, together with worries about the rise of euro-sceptic political parties within EU member countries, have hurt the zone’s common currency.

The euro was up 0.04% at $1.1135, within striking distance of $1.11055 hit a week ago, which was a two-year low. The dollar has also remained resilient against the yen, despite the risk-averse environment.

The greenback was 0.05% lower at 109.535 yen, staying above a two-week low set on Wednesday. Analysts said the yen, a safe-haven currency backed by Japan’s status as the world’s biggest creditor nation, remained relatively weak because of domestic demand for dollars.

“As there’s persistent yen selling and dollar buying from Japanese investors when the rate approaches the 109.10 yen per dollar level, it’s not easy for the yen to rise above the 109 level,” said Yukio Ishizuki, senior currency strategist at Daiwa Securities.

Sterling was poised for the biggest monthly drop against the dollar in a year as the imminent departure of Theresa May as prime minister deepened fears about a chaotic exit for Britain from the European Union.

On Thursday, the pound was 0.13% lower at $1.261, while the euro was up 0.17% at 88.31 pence.


Company: cnbc, Activity: cnbc, Date: 2019-05-30
Keywords: news, cnbc, companies, near, yen, greenback, currencies, dollar, euro, fourth, week, heading, worries, gains, straight, month, lower, flat, trade


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

European stocks higher in the wake of EU elections; Renault jumps 15% on Fiat merger talks

European shares climbed on Monday, as an EU Parliament election showed Europhile parties still performing reasonably well despite a rise in support for nationalists. Investors in Europe will largely be focused on results of the EU parliamentary elections. Initial results suggested a strong showing for Liberal and Green parties, while euroskeptic groups in Britain and France holding the gains they saw in 2014. Pro-EU parties are still expected to make up the majority of the Parliament, however, h


European shares climbed on Monday, as an EU Parliament election showed Europhile parties still performing reasonably well despite a rise in support for nationalists. Investors in Europe will largely be focused on results of the EU parliamentary elections. Initial results suggested a strong showing for Liberal and Green parties, while euroskeptic groups in Britain and France holding the gains they saw in 2014. Pro-EU parties are still expected to make up the majority of the Parliament, however, h
European stocks higher in the wake of EU elections; Renault jumps 15% on Fiat merger talks Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-27  Authors: chloe taylor ryan browne, chloe taylor, ryan browne
Keywords: news, cnbc, companies, jumps, wake, results, parliament, parties, holding, uk, climbed, talks, renault, france, eu, higher, merger, gains, beating, stocks, fiat, european


European stocks higher in the wake of EU elections; Renault jumps 15% on Fiat merger talks

European shares climbed on Monday, as an EU Parliament election showed Europhile parties still performing reasonably well despite a rise in support for nationalists.

Germany’s DAX rose about 0.5% while France’s CAC climbed 0.3%. Italy’s FTSE MIB jumped 0.6%. Markets in the U.K. are closed on Monday due to a public holiday.

Investors in Europe will largely be focused on results of the EU parliamentary elections. Initial results suggested a strong showing for Liberal and Green parties, while euroskeptic groups in Britain and France holding the gains they saw in 2014.

Pro-EU parties are still expected to make up the majority of the Parliament, however, holding on to about two-thirds of the seats. But right-wing populist parties in both the U.K. and France made solid gains, with Nigel Farage’s Brexit Party comfortably beating Britain’s two main parties and Marine Le Pen’s National Rally narrowly beating President Emmanuel Macron’s centrist party.

The euro lost some ground against the dollar on Monday afternoon, trading just below $1.12 and trimming its earlier gains.


Company: cnbc, Activity: cnbc, Date: 2019-05-27  Authors: chloe taylor ryan browne, chloe taylor, ryan browne
Keywords: news, cnbc, companies, jumps, wake, results, parliament, parties, holding, uk, climbed, talks, renault, france, eu, higher, merger, gains, beating, stocks, fiat, european


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Europe stocks close higher in the wake of EU elections; Renault jumps 12% on Fiat merger talks

European shares climbed on Monday, as an EU Parliament election showed Europhile parties still performing reasonably well despite a rise in support for nationalists. Markets in the U.K. and U.S. were closed Monday, meaning trading volumes were low. Investors in Europe were largely focused on results of the EU parliamentary elections. Results showed a strong showing for Liberal and Green parties, while euroskeptic groups in Britain and France held the gains they saw in 2014. The euro lost some gr


European shares climbed on Monday, as an EU Parliament election showed Europhile parties still performing reasonably well despite a rise in support for nationalists. Markets in the U.K. and U.S. were closed Monday, meaning trading volumes were low. Investors in Europe were largely focused on results of the EU parliamentary elections. Results showed a strong showing for Liberal and Green parties, while euroskeptic groups in Britain and France held the gains they saw in 2014. The euro lost some gr
Europe stocks close higher in the wake of EU elections; Renault jumps 12% on Fiat merger talks Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-27  Authors: chloe taylor ryan browne, chloe taylor, ryan browne
Keywords: news, cnbc, companies, showed, uk, talks, wake, europe, stocks, closed, fiat, results, parliament, eu, gains, merger, france, renault, trading, higher, parties, jumps


Europe stocks close higher in the wake of EU elections; Renault jumps 12% on Fiat merger talks

European shares climbed on Monday, as an EU Parliament election showed Europhile parties still performing reasonably well despite a rise in support for nationalists.

Germany’s DAX closed about 0.5% higher while France’s CAC climbed 0.3%. Italy’s FTSE MIB jumped 0.6% initially, but fell into negative territory during the afternoon session after a report Brussels is considering disciplinary action over Rome’s failure to rein in public debt.

Markets in the U.K. and U.S. were closed Monday, meaning trading volumes were low.

Investors in Europe were largely focused on results of the EU parliamentary elections. Results showed a strong showing for Liberal and Green parties, while euroskeptic groups in Britain and France held the gains they saw in 2014.

Pro-EU parties are still expected to make up the majority of the Parliament, however, holding on to about two-thirds of the seats. Right-wing populist parties in both the U.K. and France made solid gains, with Nigel Farage’s Brexit Party comfortably beating Britain’s two main parties and Marine Le Pen’s National Rally narrowly beating President Emmanuel Macron’s centrist party.

The euro lost some ground against the dollar on Monday afternoon, trading just below $1.12 and trimming its earlier gains.


Company: cnbc, Activity: cnbc, Date: 2019-05-27  Authors: chloe taylor ryan browne, chloe taylor, ryan browne
Keywords: news, cnbc, companies, showed, uk, talks, wake, europe, stocks, closed, fiat, results, parliament, eu, gains, merger, france, renault, trading, higher, parties, jumps


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Target shares jump 8% as e-commerce gains fuel earnings beat

Target shares jumped nearly 8% in premarket trading on the news. Sales at Target stores open for at least 12 months were up 4.8%, better than expected growth of 4.2%. Target said traffic at stores was up 4.3%, transactions overall were up 4.3% and the average transaction amount was up 0.5%. The company is one of many retailers today trying to take market share from struggling Victoria’s Secret. As of Tuesday’s market close, Target shares are up about 9% for the year, bringing its market cap to a


Target shares jumped nearly 8% in premarket trading on the news. Sales at Target stores open for at least 12 months were up 4.8%, better than expected growth of 4.2%. Target said traffic at stores was up 4.3%, transactions overall were up 4.3% and the average transaction amount was up 0.5%. The company is one of many retailers today trying to take market share from struggling Victoria’s Secret. As of Tuesday’s market close, Target shares are up about 9% for the year, bringing its market cap to a
Target shares jump 8% as e-commerce gains fuel earnings beat Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-22  Authors: lauren thomas courtney reagan, lauren thomas, courtney reagan, sam meredith
Keywords: news, cnbc, companies, sales, 42, vs, traffic, fuel, billion, market, jump, earnings, share, ecommerce, beat, target, gains, stores, shares


Target shares jump 8% as e-commerce gains fuel earnings beat

Target shares soared Wednesday after the discount retailer reported fiscal first-quarter earnings and sales that topped analysts’ expectations, as it brought more people to its stores and convinced them to spend more money there.

Target’s e-commerce sales also surged 42%, as shoppers increasingly turned to its curbside pickup service for online orders, something Amazon can’t offer.

Even with the looming threat of 25% tariffs on apparel and footwear imported from China going into effect, Target maintained its outlook for the full year. The upbeat report contrasts those of department store chains earlier in the week, which largely disappointed investors.

Target shares jumped nearly 8% in premarket trading on the news.

Here’s what the big-box retailer reported compared with what analysts were expecting, based on Refinitiv data:

Earnings per share, adjusted: $1.53 vs. $1.43 expected

Revenues: $17.63 billion vs. $17.52 billion expected

Same-store sales: up 4.8% vs. growth of 4.2% expected

CEO Brian Cornell said Target is “well-positioned to deliver strong financial performance in 2019 and beyond.”

Net income grew to $795 million, or $1.53 per share, compared with $718 million, or $1.33 a share, a year ago. That was 10 cents ahead of analysts’ estimates.

Total revenues were up 5% to $17.63 billion from $16.78 billion last year. That beat estimates for $17.52 billion.

Sales at Target stores open for at least 12 months were up 4.8%, better than expected growth of 4.2%. This marks eight consecutive quarters of same-store sales growth for Target. Target said traffic at stores was up 4.3%, transactions overall were up 4.3% and the average transaction amount was up 0.5%.

Digital sales surged 42%, and purchases that originate online now represent 7.1% of Target’s total transactions, up from 5.2% a year ago.

Target is still calling for same-store sales to be up a low-to-mid-single digit percentage for the year, with a mid-single digit increase in operating income, and adjusted earnings per share falling within a range of $5.75 to $6.05.

Target’s earnings follow those of rival Walmart, which showed pressure on margins easing thanks to greater sales of its in-house apparel and home brands and private-label food options. Target has been hoping to see more of the same in its results.

During the latest quarter, Target said its recently launched intimates and sleepwear brands Auden, Stars Above and Colsie were well received. The company is one of many retailers today trying to take market share from struggling Victoria’s Secret. Target also launched an environmentally friendly cleaning-products brand called Everspring this quarter.

Morgan Stanley earlier this month upgraded shares of Target, calling it a “survivor” in retail. The firm said it believed Target was beyond its “peak margin pain,” as it’s been making investments in its stores, website and supply chain. Those investments had previously eaten into profits.

“Now, there are signs Target’s shipping-related deleverage is narrowing, particularly as it invests in fulfillment options … which promote higher traffic and reduce costs,” Morgan Stanley said ahead of earnings.

Target also generated buzz this month around the launch of its limited-edition line with preppy apparel and accessories brand Vineyard Vines. When items hit stores this past weekend, throngs of shoppers showed up ahead of opening hours. Target has used collaborations like this in the past to drive traffic. The results of that effort will be in next quarter’s results.

As of Tuesday’s market close, Target shares are up about 9% for the year, bringing its market cap to approximately $37.1 billion. Walmart shares are up about 8.5% so far this year.


Company: cnbc, Activity: cnbc, Date: 2019-05-22  Authors: lauren thomas courtney reagan, lauren thomas, courtney reagan, sam meredith
Keywords: news, cnbc, companies, sales, 42, vs, traffic, fuel, billion, market, jump, earnings, share, ecommerce, beat, target, gains, stores, shares


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Uber, Lyft and Pinterest prove that private investors are sucking up all the value

In 2016, Alex Mittal of FundersClub wrote that today’s top tech companies are raising gobs of private cash, “leaving the bulk of returns out of public investors’ reach.” These are the very people that benefit from companies who stay private longer while their valuations skyrocket, because they’re the early investors. Over the last two-plus years, public investors have gotten consumer brands with big names but few gains. There’s still little pressure for start-ups to change their approach because


In 2016, Alex Mittal of FundersClub wrote that today’s top tech companies are raising gobs of private cash, “leaving the bulk of returns out of public investors’ reach.” These are the very people that benefit from companies who stay private longer while their valuations skyrocket, because they’re the early investors. Over the last two-plus years, public investors have gotten consumer brands with big names but few gains. There’s still little pressure for start-ups to change their approach because
Uber, Lyft and Pinterest prove that private investors are sucking up all the value Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-18  Authors: ari levy
Keywords: news, cnbc, companies, pinterest, companies, gains, investors, uber, value, ipo, billion, sucking, prove, private, venture, capital, public, lyft


Uber, Lyft and Pinterest prove that private investors are sucking up all the value

Dara Khosrowshahi, chief executive officer of Uber Technologies Inc., speaks on a webcast during the company’s initial public offering (IPO) on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, May 10, 2019. Michael Nagle | Bloomberg | Getty Images

Nobody in Silicon Valley should be surprised by Uber’s disappointing IPO. Or Lyft’s. Experts have been predicting this type of performance for years. Marc Andreessen called “the effective death of the IPO” in 2014 and said that with high-flying tech companies staying private longer, “gains from the growth accrue to the private investor, not the public investor.” Fred Wilson of Union Square Ventures told CNBC the following year that these late-stage IPOs mean “all of the gains are captured among a very small cohort of people.” In 2016, Alex Mittal of FundersClub wrote that today’s top tech companies are raising gobs of private cash, “leaving the bulk of returns out of public investors’ reach.” These are the very people that benefit from companies who stay private longer while their valuations skyrocket, because they’re the early investors. They get to ride the valuation up from the millions to $10 billion, $20 billion or $50 billion and then sell their shares to the masses of public market investors who are thirsting for the next Amazon or Google. They were the ones warning us about the emerging Uber-Lyft problem. And they were right. Over the last two-plus years, public investors have gotten consumer brands with big names but few gains. Snap has lost about one-third of its value since its 2017 IPO, while Dropbox and Spotify are up just slightly from their debuts last year. Uber and Lyft have dropped. After falling 13% on Friday on a bad earnings report, Pinterest is back to where it was trading in its first few days in April. “Maybe we made a mistake in having these unicorns sucking in huge amounts of private capital and delaying their IPOs,” said Duncan Davidson, a partner at venture firm Bullpen Capital, in an interview this week. “Maybe we’d be better off having these puppies go public earlier like we used to.”

A good chunk of the capital at the later stage has come from firms like T. Rowe Price and Fidelity, who normally buy public stocks but moved into the private markets in recent years so as not miss out on all the value creation. Since they’re already shareholders it’s hard to get them to buy more when it’s time to take the company public. “A lot of the prime public investors you’d want in your stock after the IPO already own the stock,” said Iris Choi, a partner at early-stage venture firm Floodgate who previously worked in investment banking at Goldman Sachs. “What is their incentive to actually buy at the IPO?” Of course, it’s still too soon to come to any conclusions about where Uber, Lyft and others will be trading months or years down the line. Investors can point to Facebook’s miserable kickoff in May 2012, and the fact that it lost half its value over the next three months before rebounding. Now shareholders who bought in at the IPO and held have seen their investments quintuple. There was plenty of skepticism surrounding Google’s lofty valuation in 2004, but buy-and-holders are up 2,800%. However, if you’re banking on a similar result from this new class, consider two important factors: Facebook and Google are outliers.

They were profitable at the time of their IPOs.

‘Unit economics really do matter’

With the latest crop of consumer offerings, public investors are being asked to pick up where the venture community left off and continue to subsidize cash-burning growth while the companies seek to prove they can morph into sustainable long-term businesses. Investors are balking. “The big lesson everybody in Silicon Valley learned is unit economics really do matter,” Davidson said. So what happens from here? There’s still little pressure for start-ups to change their approach because private capital is so plentiful. SoftBank’s Vision Fund, which has poured billions into Uber, WeWork and other capital-heavy businesses, is only planning to get bigger. Venture fundraising hit a record $55.5 billion last year, according to the National Venture Capital Association, and those firms have to put their capital to work. In the first quarter of 2019, five “mega-funds” (over $500 million) closed, the NVCA said, and more prominent firms are in the process of raising $1 billion or more. These funds are increasingly willing to put some of their cash into secondaries, buying shares from founders who can lock in a portion of their riches while steering clear of quarterly earnings and the scrutiny of public markets. “Mega-funds are creating challenges with the oversupply of capital, and it’s reducing discipline in operating companies,” said Robert Mittendorf, who invests in health-tech companies at Norwest Venture Partners. “We forget out here that operating results are more important than the amount of capital raised. We should be applauding operating performance more.” It’s certainly not all gloom and doom. Enterprise software companies continue to reward public investors. Videoconferencing company Zoom, which is profitable, has more than doubled from its IPO price in April and has even generated substantial gains for investors who missed the initial pop. PagerDuty has also more than doubled, and Fastly, whose technology helps companies more quickly deliver online content, surged 50% in its debut on Friday.

Source: CNBC


Company: cnbc, Activity: cnbc, Date: 2019-05-18  Authors: ari levy
Keywords: news, cnbc, companies, pinterest, companies, gains, investors, uber, value, ipo, billion, sucking, prove, private, venture, capital, public, lyft


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

America’s push to upgrade airports gains traction as New Orleans opens new terminal later this year

Fly into New Orleans and you immediately see the construction of the airport’s new north terminal. When the $1.3 billion New Orleans terminal opens later this year, it will completely replace the existing gates at the Louis Armstrong New Orleans International Airport. It’s the latest upgrade and expansion of an airport in the U.S., a key part of America’s infrastructure sorely in need of major renovations. The Airports Council, a global industry trade group estimates U.S. airports will need $128


Fly into New Orleans and you immediately see the construction of the airport’s new north terminal. When the $1.3 billion New Orleans terminal opens later this year, it will completely replace the existing gates at the Louis Armstrong New Orleans International Airport. It’s the latest upgrade and expansion of an airport in the U.S., a key part of America’s infrastructure sorely in need of major renovations. The Airports Council, a global industry trade group estimates U.S. airports will need $128
America’s push to upgrade airports gains traction as New Orleans opens new terminal later this year Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-17  Authors: phil lebeau
Keywords: news, cnbc, companies, gates, market, gains, traction, later, americas, upgrade, flying, need, handle, way, push, airports, orleans, terminal, opens


America's push to upgrade airports gains traction as New Orleans opens new terminal later this year

Fly into New Orleans and you immediately see the construction of the airport’s new north terminal. With 35 gates, 14 TSA lanes and plenty of room to handle the growing number of people flying in and out of the Big Easy.

“As this market continues to grow we are in better position to handle the growth in this market,” said Kevin Dolliole, the director of aviation in New Orleans.

When the $1.3 billion New Orleans terminal opens later this year, it will completely replace the existing gates at the Louis Armstrong New Orleans International Airport. It’s the latest upgrade and expansion of an airport in the U.S., a key part of America’s infrastructure sorely in need of major renovations.

The Airports Council, a global industry trade group estimates U.S. airports will need $128 billion in upgrades by 2023.

“We are way, way, way behind,” former Transportation Secretary Ray LaHood said of the state of America’s airports compared to the other terminals around the world:

LaHood’s assessment is based on years of traveling around the globe both as a congressman and later as a member of former President Barack Obama’s cabinet. And he thinks Americans who fly around the world are tired of flying out of cramped, dated airports in the U.S. and landing in spacious, gleaming new ones overseas.


Company: cnbc, Activity: cnbc, Date: 2019-05-17  Authors: phil lebeau
Keywords: news, cnbc, companies, gates, market, gains, traction, later, americas, upgrade, flying, need, handle, way, push, airports, orleans, terminal, opens


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post