JP Morgan lays out a blueprint for how this record run in the stock market will keep going

They expect companies to provide a boost for stock prices with their positive forward guidance. “We expect fundamentals to improve on the back of stronger global growth,” the analysts wrote. Wall Street strategists’ S&P targets range from 2,750 to 3,200 for year end. Temporary factors impacting margins should fade as the year goes on, and recovering global growth and reflationary policies should help. They see energy as having the best risk-reward with stock prices de-coupled from oil prices, an


They expect companies to provide a boost for stock prices with their positive forward guidance. “We expect fundamentals to improve on the back of stronger global growth,” the analysts wrote. Wall Street strategists’ S&P targets range from 2,750 to 3,200 for year end. Temporary factors impacting margins should fade as the year goes on, and recovering global growth and reflationary policies should help. They see energy as having the best risk-reward with stock prices de-coupled from oil prices, an
JP Morgan lays out a blueprint for how this record run in the stock market will keep going Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-24  Authors: patti domm
Keywords: news, cnbc, companies, companies, run, going, strategists, prices, stock, lays, market, global, sp, jp, blueprint, morgan, trade, growth, record, expect


JP Morgan lays out a blueprint for how this record run in the stock market will keep going

A recovery in global growth, as well as another record year for corporate buybacks should boost earnings and stock prices, driving the the S&P 500 to 3,000 this year, according to J.P. Morgan equity strategists.

The strategists reiterated their call Wednesday for the S&P to reach 3,000 this year, based on a fundamental recovery in global growth and an end to temporary headwinds from such issues as trade. They expect companies to provide a boost for stock prices with their positive forward guidance.

“We expect fundamentals to improve on the back of stronger global growth,” the analysts wrote.

The S&P 500 Wednesday was trading near record levels, after closing at a new high of 2,933 on Tuesday. Wall Street strategists’ S&P targets range from 2,750 to 3,200 for year end.

The strategists also believe the outlook for earnings was too pessimistic and they expect the anticipated decline in first quarter profits to turn around by the end of the reporting period, with S&P 500 companies delivering a 4% to 5% earnings surprise and profit growth of 2-3%.

Revenues are growing at an above-trend 5%, which the strategist said is a sign of healthy demand. Temporary factors impacting margins should fade as the year goes on, and recovering global growth and reflationary policies should help.

“As for performance, we expect equities to remain resilient during the reporting season as results should hint at a global growth recovery at a time when investor positioning and sentiment remains relatively low,” the strategists wrote.

Companies are likely to continue to reinvesting in growth opportunities, but the strategists see the bulk of incremental profits gong to stock buybacks. “After a record year for buybacks in 2018, this year should be even higher at ~$850b, which would alone drive EPS growth of ~2%. This view is supported by record buyback announcements YTD of $213b led by Tech ~$46b and Industrials ~$40b,” they noted.

There are also existing buyback authorizations that have not been realized yet of about $700 billion, as of the fourth quarter. Companies also still have excess cash of about $1.5 trillion, excluding financial companies they added. They also expect operating cash flow to be the predominant source for capital return, with debt funded buybacks now at just 14% after having peaked in 2017 at 34%.

They also expect fewer negative surprises related to trade and tariffs during the first-quarter reporting period. Technology companies, household products retailers, capital goods companies and auto makers all discussed trade last quarter.

“While trade and tariffs remains a headwind for margins, companies are softening the drag by raising prices where possible, idling and shifting production to geographies unaffected by tariffs, and/or passing cost to suppliers. If a trade deal were to materialize, it could be a source of positive revisions (mainly through margins) since this catalyst is mostly not in consensus numbers,” the analysts noted. “Goods producers will increasingly highlight rising commodity prices as a risk; however, we expect the majority of the headwind to be passed down to end users given expanding labor markets and reaccelerating global growth.”

The strategists say they remain overweight cyclical sectors, including technology, consumer discretionary, industirals and energy. They see energy as having the best risk-reward with stock prices de-coupled from oil prices, and positive guidance should help the sector’s earnings momentum.


Company: cnbc, Activity: cnbc, Date: 2019-04-24  Authors: patti domm
Keywords: news, cnbc, companies, companies, run, going, strategists, prices, stock, lays, market, global, sp, jp, blueprint, morgan, trade, growth, record, expect


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Lululemon unveils growth plan for the next 5 years

Lululemon released a fresh, five-year growth plan on Wednesday ahead of its first investor day five years and the first under new CEO Calvin McDonald. And it’s now expecting operating income growth to exceed revenue growth each year, with “modest” gross margin expansion, and earnings-per-share growth either equating to or exceeding operating income growth annually. To help boost online sales, Lululemon says it plans to take its buy online, pick up in store option from 35 shops today to its entir


Lululemon released a fresh, five-year growth plan on Wednesday ahead of its first investor day five years and the first under new CEO Calvin McDonald. And it’s now expecting operating income growth to exceed revenue growth each year, with “modest” gross margin expansion, and earnings-per-share growth either equating to or exceeding operating income growth annually. To help boost online sales, Lululemon says it plans to take its buy online, pick up in store option from 35 shops today to its entir
Lululemon unveils growth plan for the next 5 years Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-24  Authors: lauren thomas, steve russell, toronto star, getty images
Keywords: news, cnbc, companies, shoppers, opportunity, online, unveils, mens, growth, billion, store, plan, stores, sales, lululemon


Lululemon unveils growth plan for the next 5 years

Lululemon released a fresh, five-year growth plan on Wednesday ahead of its first investor day five years and the first under new CEO Calvin McDonald.

The sports-bra and leggings maker says it plans to double sales of its men’s and online businesses and quadruple international revenues, by 2023. It’s targeting annual revenue growth in the low teens over the next five years. And it’s now expecting operating income growth to exceed revenue growth each year, with “modest” gross margin expansion, and earnings-per-share growth either equating to or exceeding operating income growth annually.

Analysts and investors are looking to see if McDonald, who joined Lululemon as CEO in August from cosmetics company Sephora after Laurent Potdevin was ousted amid misconduct allegations, can keep the momentum going at the athletic apparel company.

Lululemon shares were about 1% higher by Wednesday afternoon. They have surged more than 80% over the past 12 months, compared with the S&P 500 Retail ETF’s (XRT’s) growth of just 1.5%.

“It’s now been nine months since I joined Lululemon. … And the one word that kept resonating in any market I’ve [traveled to] was the opportunity that still rests ahead for Lululemon in both North America, in any international market, in our stores,” McDonald told analysts. “There’s a huge opportunity for us to build upon where we are today.”

Key areas of focus at Lululemon include the expansion of its men’s business, growth overseas in markets like China, shaping a stronger e-commerce platform and building a base of loyal shoppers. One initiative has been its testing of a new loyalty program, where members pay an annual fee for perks including expedited shipping and workout classes.

To help boost online sales, Lululemon says it plans to take its buy online, pick up in store option from 35 shops today to its entire fleet in North America by this back-to-school shopping season. It’s also growing its online assortment to be double what it sells in stores. And to better serve men, Lululemon says it’s adding more items designed specifically for them, like better-fitting running shirts, instead of just building on previous women’s lines.

“We have very low brand awareness with men,” still, McDonald said. “The opportunity isn’t just to be known,” he said, “but also being understood” as a brand that men — not just women — can shop. Lululemon recently signed a deal with former Eagles quarterback Nick Foles to become its first men’s ambassador, as it makes strides to raise awareness among male consumers.

Rivals Nike and Under Armour, meantime, have said they plan to target female shoppers more with new yoga pants and sports bras, threatening to wade into Lululemon’s turf. But Lululemon, in turn, has said its men’s business presents the biggest growth opportunity. It has said it’s on track to get that business to $1 billion in sales annually by next year. It’s also getting into personal-care products, like deodorant, searching for other ways to lure shoppers to its stores. And it says it soon plans to launch its own shoes.

McDonald said Lululemon is also planning to invest more “in creating dynamic experiential moments” for customers. That includes opening a 25,000-square-foot store in Lincoln Park in Chicago this July, which will have yoga studios, meditation spaces, and juice and food. And by 2023, about 10% of Lululemon’s total bricks-and-mortar fleet will be considered “experiential” like this Chicago store, the CEO said.

In the latest fiscal year, Lululemon’s sales amounted to $3.3 billion, with sales at stores open for at least 12 months surging 18%, compared with growth of 7% during the prior year.

Nike, which brought in $36.4 billion in sales globally in 2018, holds 18.3% of the overall U.S. sportswear market, which includes apparel and footwear, according to data compiled by Euromonitor. Adidas is second with 6%, Under Armour with 4.1%, Skechers with 2.6% and Lululemon with 1.9% as of the end of 2018, according to the firm.

In the women’s athletic apparel category, though, Lululemon is second to Nike, according to data compiled by NPD Group.

Ahead of Wednesday’s meeting, a handful of analysts said they believe Lululemon will reach its revenue goal — for $4 billion by next year — ahead of schedule. Nomura Instinet analyst Simeon Siegel believes the retailer’s sales can eclipse $6.5 billion by 2023.

“However, it seems either sales or margins are approaching a peak,” Siegel said in a note to clients. “It seems more likely [management] works to maintain sales growth at the expense of some margin than vice versa.”


Company: cnbc, Activity: cnbc, Date: 2019-04-24  Authors: lauren thomas, steve russell, toronto star, getty images
Keywords: news, cnbc, companies, shoppers, opportunity, online, unveils, mens, growth, billion, store, plan, stores, sales, lululemon


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Facebook jumps as Stories users and ads show promising growth

The company exceeded revenue expectations and matched estimates for its daily active user growth. The company said it counts 2.7 billion monthly users across the its family of apps, which is unchanged compared to last quarter. Facebook saw its user base in Europe grow to 286 million daily active users, up from 282 million last quarter. The FTC has been probing Facebook since March 2018 following reports that political consulting firm Cambridge Analytica had improperly access the data of 87 milli


The company exceeded revenue expectations and matched estimates for its daily active user growth. The company said it counts 2.7 billion monthly users across the its family of apps, which is unchanged compared to last quarter. Facebook saw its user base in Europe grow to 286 million daily active users, up from 282 million last quarter. The FTC has been probing Facebook since March 2018 following reports that political consulting firm Cambridge Analytica had improperly access the data of 87 milli
Facebook jumps as Stories users and ads show promising growth Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-24  Authors: salvador rodriguez, niall carson, pa images, getty images
Keywords: news, cnbc, companies, promising, billion, user, vs, forecast, jumps, company, active, growth, facebook, ads, users, million, revenue


Facebook jumps as Stories users and ads show promising growth

Facebook beat on top and bottom—Here’s what three experts are watching now 1 Hour Ago | 02:59

Facebook stock rose as much as 9% in after-hours trading despite the company announcing that it could take a one-time charge of as much $5 billion due to an ongoing Federal Trade Commission inquiry.

The company exceeded revenue expectations and matched estimates for its daily active user growth. Here’s what Facebook reported:

Earnings: 85 cents per share

85 cents per share Revenue: $15.08 billion, vs. $14.98 billion, forecast by Refinitiv

$15.08 billion, vs. $14.98 billion, forecast by Refinitiv Daily active users: 1.56 billion, vs. 1.56 billion forecast by FactSet

1.56 billion, vs. 1.56 billion forecast by FactSet Monthly active users: 2.38 billion, vs. 2.37 billion forecast by FactSet

2.38 billion, vs. 2.37 billion forecast by FactSet Average revenue per user: $6.42, vs. $6.39 forecast by FactSet

The company’s earnings per share analyst expectations are not comparable due to the anticipated FTC charge.

The company said it counts 2.7 billion monthly users across the its family of apps, which is unchanged compared to last quarter. Facebook saw its user base in Europe grow to 286 million daily active users, up from 282 million last quarter. The company’s user base in the U.S. and Canada remained flat quarter-to-quarter at 186 million. The company said average revenue per user was $6.42, up 16% from $5.53 a year ago.

The FTC has been probing Facebook since March 2018 following reports that political consulting firm Cambridge Analytica had improperly access the data of 87 million Facebook users. To date, the FTC’s biggest fine against a tech company was in 2012 when Google agreed to pay a $22.5 million penalty due to its privacy practices.

“We estimate that the range of loss in this matter is $3.0 billion to $5.0 billion,” Facebook said in a statement. “The matter remains unresolved, and there can be no assurance as to the timing or the terms of any final outcome.”


Company: cnbc, Activity: cnbc, Date: 2019-04-24  Authors: salvador rodriguez, niall carson, pa images, getty images
Keywords: news, cnbc, companies, promising, billion, user, vs, forecast, jumps, company, active, growth, facebook, ads, users, million, revenue


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Zuora CEO: Manufacturers must adopt a subscription model in order to grow

More and more companies are turning to the emerging subscription economy, and it could be time for the manufacturing industry to tune in, Zuora CEO Tien Tzuo told CNBC Wednesday. In the past 7 years, Cramer pointed out, subscription businesses have grown revenue five times faster than the S&P 500, according to a subscription economy index. Zuora provides software to help businesses launch and manage their subscription-based services. “What we’re seeing is the early adopters of the subscription e


More and more companies are turning to the emerging subscription economy, and it could be time for the manufacturing industry to tune in, Zuora CEO Tien Tzuo told CNBC Wednesday. In the past 7 years, Cramer pointed out, subscription businesses have grown revenue five times faster than the S&P 500, according to a subscription economy index. Zuora provides software to help businesses launch and manage their subscription-based services. “What we’re seeing is the early adopters of the subscription e
Zuora CEO: Manufacturers must adopt a subscription model in order to grow Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-24  Authors: tyler clifford
Keywords: news, cnbc, companies, tzuo, economy, value, product, manufacturers, adopt, model, zuora, order, businesses, ceo, help, subscription, growth, grow, service


Zuora CEO: Manufacturers must adopt a subscription model in order to grow

More and more companies are turning to the emerging subscription economy, and it could be time for the manufacturing industry to tune in, Zuora CEO Tien Tzuo told CNBC Wednesday.

“They know how you use your product. They provide a service to you,” Tzuo said in a sit down with Jim Cramer on “Mad Money.” “What you’re gonna see is every physical product, from appliances [at] Whirlpool, cars from Ford, tractors from Caterpillar, they’re all going to go through a transformation and become services.”

In the past 7 years, Cramer pointed out, subscription businesses have grown revenue five times faster than the S&P 500, according to a subscription economy index. That equates to about 300% of growth during that period, Tzuo added.

Zuora provides software to help businesses launch and manage their subscription-based services. The cloud company has a $2.2 billion market cap.

“What we’re seeing is the early adopters of the subscription economy are finding growth and that’s why everybody is moving into the space,” he said.

A large subscriber base of long-term customers could help influence a company’s value, Tzuo said. That explains why Wall Street has placed a lot of value in the more nascent subscription businesses, he added, such as Netflix.

“This business is about building customer-centric business models taking technology today – IoT, mobile, whatever it is – and then transforming what you do as a service,” he said. “This is the heart of these digital transformations that the companies are going through.”

Shares of Zuora rose 0.30% Wednesday to close north of $20. The stock is up more than 10% this year.


Company: cnbc, Activity: cnbc, Date: 2019-04-24  Authors: tyler clifford
Keywords: news, cnbc, companies, tzuo, economy, value, product, manufacturers, adopt, model, zuora, order, businesses, ceo, help, subscription, growth, grow, service


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Snap rally fades after earnings beat

Snap kept its user growth momentum going on Tuesday, saying it now counts 190 million daily active users, up from 186 million last quarter. Besides resurging user growth, Snap has announced a new gaming platform, new original shows, an ad network and more augmented reality features. Snap competitor Twitter had a strong earnings report earlier in the day on Tuesday, with better-than-expected earnings and user growth sending the stock up more than 15%. “Our primary concern is when you have a young


Snap kept its user growth momentum going on Tuesday, saying it now counts 190 million daily active users, up from 186 million last quarter. Besides resurging user growth, Snap has announced a new gaming platform, new original shows, an ad network and more augmented reality features. Snap competitor Twitter had a strong earnings report earlier in the day on Tuesday, with better-than-expected earnings and user growth sending the stock up more than 15%. “Our primary concern is when you have a young
Snap rally fades after earnings beat Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-23  Authors: salvador rodriguez, mark lennihan, getty images
Keywords: news, cnbc, companies, vs, users, user, growth, cents, million, snap, forecast, daily, earnings, rally, beat, fades


Snap rally fades after earnings beat

Snap surged after its earnings report, and here’s what the CEO said that had investors so excited 42 Mins Ago | 05:34

The company posted a slimmer-than-expected loss for the first quarter as it continued to grow its user base and advertising revenue.

Here’s how the company did compared with analyst projections:

Loss per share: 10 cents vs. 12 cents forecast by Refinitiv

10 cents vs. 12 cents forecast by Refinitiv Revenue: $320 million vs. $307 million forecast by Refinitiv

$320 million vs. $307 million forecast by Refinitiv Global daily active users (DAUs): 190 million vs. 187.22 million forecast by FactSet

190 million vs. 187.22 million forecast by FactSet ARPU: $1.68 vs. $1.62 forecast by FactSet

“In the first quarter we delivered strong results across our business with growth in daily active users and revenue,” said CEO Evan Spiegel in a statement.

Snap kept its user growth momentum going on Tuesday, saying it now counts 190 million daily active users, up from 186 million last quarter.

Snap’s share price is up more than 100% year to date after a fast start in 2019. Besides resurging user growth, Snap has announced a new gaming platform, new original shows, an ad network and more augmented reality features. The company has also completed the roll out of its re-engineered Android app.

“As we look towards the future, we see many opportunities to increase our investments, and will continue to manage our business for long-term growth,” Spiegel said.

Snap competitor Twitter had a strong earnings report earlier in the day on Tuesday, with better-than-expected earnings and user growth sending the stock up more than 15%.

One analyst expressed caution with Snap’s user base and how attractive it can be to advertisers.

“Our primary concern is when you have a younger millennial audience on this platform, can you monetize this audience?” said Brent Thill of Jefferies.

Disclosure: CNBC parent NBCUniversal is an investor in Snap .

WATCH: Facebook, Snapchat and TikTok have a massive underage user problem — here’s why it matters


Company: cnbc, Activity: cnbc, Date: 2019-04-23  Authors: salvador rodriguez, mark lennihan, getty images
Keywords: news, cnbc, companies, vs, users, user, growth, cents, million, snap, forecast, daily, earnings, rally, beat, fades


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Domino’s shares jump after earnings beat, shrugging off slowing sales

Investors are applauding Domino’s Pizza after the company reported better-than-expected quarterly earnings and same-store sales that weren’t as bad as Wall Street had feared. Skeptics argue that Domino’s aggressive expansion leads to cannibalization, negatively impacting same-store sales growth. Domino’s reported U.S. same-store sales growth of 3.9%, but Wall Street was expecting the company to report domestic growth of 4.22%. Still, Domino’s same-store sales were better than some analysts’ pess


Investors are applauding Domino’s Pizza after the company reported better-than-expected quarterly earnings and same-store sales that weren’t as bad as Wall Street had feared. Skeptics argue that Domino’s aggressive expansion leads to cannibalization, negatively impacting same-store sales growth. Domino’s reported U.S. same-store sales growth of 3.9%, but Wall Street was expecting the company to report domestic growth of 4.22%. Still, Domino’s same-store sales were better than some analysts’ pess
Domino’s shares jump after earnings beat, shrugging off slowing sales Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-23  Authors: amelia lucas, daniel acker, bloomberg, getty images
Keywords: news, cnbc, companies, quarter, slowing, shares, jump, dominos, analysts, beat, million, company, samestore, reported, sales, growth, shrugging, strategy, earnings


Domino's shares jump after earnings beat, shrugging off slowing sales

Investors are applauding Domino’s Pizza after the company reported better-than-expected quarterly earnings and same-store sales that weren’t as bad as Wall Street had feared.

Shares of the company jumped more than 7.5% in Wednesday afternoon trading. The stock, which has a market value of about $12 billion, is up 25% over the last year.

“It was a good quarter for our U.S. business, and I am very pleased with our balanced retail sales growth, driven by a healthy combination of solid same-store sales and unit growth,” Domino’s CEO Ritch Allison said in a statement.

Still, sales at stores open at least a year across both its U.S. and international divisions missed analysts’ expectations.

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

Earnings per share: $2.20 vs. $2.09 expected

Revenue: $836.0 million vs. $849.6 million expected

Same-store sales growth: 3.9% vs. 4.22% expected

Some have pointed to the company’s “fortressing” strategy as the reason. Under the strategy, stores are added to existing markets to be closer to customers, making deliveries faster and to increase driver tips. Skeptics argue that Domino’s aggressive expansion leads to cannibalization, negatively impacting same-store sales growth. With the rise of third-party delivery services, the pizza chain has not only been battling for customers from rivals Pizza Hut and Papa John’s, but also every restaurant using Uber Eats, DoorDash and GrubHub.

CFO Jeff Lawrence told analysts on an earnings conference call that “aggressive marketing from third-party aggregators” put pressure on domestic same-store sales. DoorDash and Uber Eats launched their first national advertising campaigns during Domino’s first quarter, and restaurants like Chipotle Mexican Grill ran promotions for free delivery for a limited time.

“It’s hard to imagine that the current approach is sustainable over the long term. But we don’t know. We’ll have to see how that plays out,” Allison said. “What’s clear for us is that our strategy has to remain the same, and that’s to continue to fortress the markets that we operate in.”

Domino’s reported U.S. same-store sales growth of 3.9%, but Wall Street was expecting the company to report domestic growth of 4.22%. Outside of the U.S. and excluding the impact of foreign currency, same-store sales increased by 1.8%, less than the 2.43% anticipated by analysts.

Still, Domino’s same-store sales were better than some analysts’ pessimistic predictions.

“Franchise comps of 4.1% were in line with [consensus] and towards the high end of buyside whispers (2-4%),” Bernstein analyst Sara Senatore wrote in a note.

Domino’s reported fiscal first-quarter net income of $92.7 million, or $2.20 per share, up from $88.8 million, or $2 per share, a year earlier. Analysts surveyed by Refinitiv expected the pizza chain to earn $2.09 per share.

Net sales rose 6.4% to $836 million, missing expectations of $849.6 million. The company attributed the growth in sales to higher same-store sales and more locations, as well as higher supply chain volumes from higher retail sales.

The company said in January at its investor meeting that it wants to reach 25,000 global locations by 2025. Domino’s opened its 16,000th store during the first quarter. The company also reported global net store growth of 200 locations, with the majority of openings occurring overseas. Only 4 U.S. stores closed during the quarter, Allison said.

Heading into the quarter, analysts were largely optimistic. J.P. Morgan and Morgan Stanley upgraded the stock, citing its attractive valuation relative to slower growing peers. However, Cowen analyst Andrew Charles warned in a research note that Domino’s 2019 store openings — part of its fortressing strategy — could be off to a slower start based on the company’s franchise disclosure filing.


Company: cnbc, Activity: cnbc, Date: 2019-04-23  Authors: amelia lucas, daniel acker, bloomberg, getty images
Keywords: news, cnbc, companies, quarter, slowing, shares, jump, dominos, analysts, beat, million, company, samestore, reported, sales, growth, shrugging, strategy, earnings


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China says its economic growth is improving, but analysts warn it still needs stimulus

China’s claim of stronger-than-expected economic growth in the first part of this year may be tempting policymakers to pare back stimulus. It said those sectors should be closely monitored for possible risks, suggesting worries about possible overheating. Mainland Chinese equity markets fell Monday on concerns stimulus could be reduced. But, Nomura cautioned, China’s growth recovery is “not solid yet” and growth could falter again. “We believe the pace of monetary easing will slow, but it is sti


China’s claim of stronger-than-expected economic growth in the first part of this year may be tempting policymakers to pare back stimulus. It said those sectors should be closely monitored for possible risks, suggesting worries about possible overheating. Mainland Chinese equity markets fell Monday on concerns stimulus could be reduced. But, Nomura cautioned, China’s growth recovery is “not solid yet” and growth could falter again. “We believe the pace of monetary easing will slow, but it is sti
China says its economic growth is improving, but analysts warn it still needs stimulus Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-23  Authors: kelly olsen, getty images
Keywords: news, cnbc, companies, nomura, analysts, growth, possible, china, needs, warn, economy, improving, politburo, including, markets, stimulus, economic, monetary, easing


China says its economic growth is improving, but analysts warn it still needs stimulus

China’s claim of stronger-than-expected economic growth in the first part of this year may be tempting policymakers to pare back stimulus. Analysts say that would be a mistake.

The world’s second-largest economy expanded 6.4% in the first quarter from the same period in 2018, the government announced last week, slightly beating analyst predictions. An array of policies, including encouraging banks to make more loans, put in place last year as the economy took a hit from the U.S.-China trade war have been credited with helping boost activity.

But pronouncements since last week’s GDP figure, including after a meeting of the Communist Party’s powerful politburo, indicate that officials see the growth outlook improving, feeding speculation of a rethink in how much of a boost the economy may need.

A politburo statement issued Monday and reported by the official Xinhua news agency emphasized the economy’s strong start to the year but appeared to express concern about financial and real-estate markets. It said those sectors should be closely monitored for possible risks, suggesting worries about possible overheating.

Mainland Chinese equity markets fell Monday on concerns stimulus could be reduced.

“The slight change in tone is understandable due to the rapid build-up of debt and a potential irrational exuberance in stock markets and big cities’ property markets,” economists at Japanese investment bank Nomura said in a note Monday regarding the politburo statement.

Chinese stocks have been on a tear in 2019 after recording their worst performance in a decade in 2018. The benchmark Shanghai index is up about 29% so far in 2019 after losing almost 25% last year.

But, Nomura cautioned, China’s growth recovery is “not solid yet” and growth could falter again.

“We believe the pace of monetary easing will slow, but it is still too early to withdraw monetary easing measures despite the limited monetary policy scope,” they said.


Company: cnbc, Activity: cnbc, Date: 2019-04-23  Authors: kelly olsen, getty images
Keywords: news, cnbc, companies, nomura, analysts, growth, possible, china, needs, warn, economy, improving, politburo, including, markets, stimulus, economic, monetary, easing


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Coca-Cola is making a big push into coffee

Coca-Cola isn’t new to coffee, but the global beverage giant is planning on making a big push into the industry this year. The company is releasing Coca-Cola Coffee in more than 25 markets around the world by the end of 2019. The drink, which blends Coke with coffee, has slightly less caffeine than a normal cup of coffee but more than a can of the soda. Coca-Cola Coffee contains less sugar than a Coke of the same size. Ready-to-drink coffee is the fastest growing segment in the coffee category,


Coca-Cola isn’t new to coffee, but the global beverage giant is planning on making a big push into the industry this year. The company is releasing Coca-Cola Coffee in more than 25 markets around the world by the end of 2019. The drink, which blends Coke with coffee, has slightly less caffeine than a normal cup of coffee but more than a can of the soda. Coca-Cola Coffee contains less sugar than a Coke of the same size. Ready-to-drink coffee is the fastest growing segment in the coffee category,
Coca-Cola is making a big push into coffee Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-23  Authors: amelia lucas, yui mok, pa images, getty images
Keywords: news, cnbc, companies, coffee, revenue, consumers, making, billion, growth, big, quincey, push, company, growing, coke, cocacola


Coca-Cola is making a big push into coffee

Coca-Cola isn’t new to coffee, but the global beverage giant is planning on making a big push into the industry this year.

The company is releasing Coca-Cola Coffee in more than 25 markets around the world by the end of 2019.

“Coke Coffee was designed to reach consumers during specific occasions and channels like the mid-afternoon energy slump at work,” CEO James Quincey told analysts Tuesday.

The drink, which blends Coke with coffee, has slightly less caffeine than a normal cup of coffee but more than a can of the soda.

The move comes as consumers have shifted from drinking soda to choosing less sugary options, like bottled water and Coca-Cola Zero Sugar. Coca-Cola Coffee contains less sugar than a Coke of the same size.

The drink also allows the company to capitalize on a trend that is working: coffee. Ready-to-drink coffee is the fastest growing segment in the coffee category, growing 31% in 2016 and 2017, according to Mintel. Chilled coffee drinks such as cold brew are also growing in popularity with consumers. From 2013 to 2017, cold coffee grew at least 10% annually in the U.S., Mintel research found. The trend is less appreciated by European consumers, who tend to experiment less.

So far, Coke’s coffee business has largely been focused in Japan, where canned coffee has been popular in vending machines for decades. The Atlanta-based company’s Georgia Coffee brand has surpassed $1 billion in sales and expanded to other Asian countries.

Coke first tried to introduce coffee to its namesake brand back in 2006. The company discontinued the short-lived Coca-Cola Blak two years later.

In 2017, Coke took another whack at it, introducing Coca-Cola Plus Coffee in Australia. The following year, the company brought it to Asia for more tests after retooling the formula to heighten the coffee aroma.

“The early results are very promising, delivering incremental growth for the Coca-Cola brand with very little cannibalization,” Quincey told analysts in July.

The company also plans to start selling ready-to-drink Costa coffee products in European markets during the second quarter. Coke purchased the British coffee chain for $5.1 billion including debt and closed the deal in January.

“We’re in early days of working out exactly how we’re going to bring to life the synergy plans for greater revenue growth and profit growth,” Quincey said on CNBC’s “Squawk on the Street.”

Coke’s stock rose 2% in morning trading Tuesday after the company reported earnings and revenue that beat Wall Street’s estimates. The beverage giant earned 48 cents per share from continuing operations, beating the 46 cents per share expected by analysts surveyed by Refinitiv. Revenue rose 5% to $8.02 billion, topping expectations of $7.88 billion.


Company: cnbc, Activity: cnbc, Date: 2019-04-23  Authors: amelia lucas, yui mok, pa images, getty images
Keywords: news, cnbc, companies, coffee, revenue, consumers, making, billion, growth, big, quincey, push, company, growing, coke, cocacola


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Snap rally fades after earnings beat

Snap kept its user growth momentum going on Tuesday, saying it now counts 190 million daily active users, up from 186 million last quarter. Besides resurging user growth, Snap has announced a new gaming platform, new original shows, an ad network and more augmented reality features. Snap competitor Twitter had a strong earnings report earlier in the day on Tuesday, with better-than-expected earnings and user growth sending the stock up more than 15%. “Our primary concern is when you have a young


Snap kept its user growth momentum going on Tuesday, saying it now counts 190 million daily active users, up from 186 million last quarter. Besides resurging user growth, Snap has announced a new gaming platform, new original shows, an ad network and more augmented reality features. Snap competitor Twitter had a strong earnings report earlier in the day on Tuesday, with better-than-expected earnings and user growth sending the stock up more than 15%. “Our primary concern is when you have a young
Snap rally fades after earnings beat Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-23  Authors: salvador rodriguez, mark lennihan, getty images
Keywords: news, cnbc, companies, vs, users, user, growth, cents, million, snap, forecast, daily, earnings, rally, beat, fades


Snap rally fades after earnings beat

Snap surged after its earnings report, and here’s what the CEO said that had investors so excited 34 Mins Ago | 05:34

The company posted a slimmer-than-expected loss for the first quarter as it continued to grow its user base and advertising revenue.

Here’s how the company did compared with analyst projections:

Loss per share: 10 cents vs. 12 cents forecast by Refinitiv

10 cents vs. 12 cents forecast by Refinitiv Revenue: $320 million vs. $307 million forecast by Refinitiv

$320 million vs. $307 million forecast by Refinitiv Global daily active users (DAUs): 190 million vs. 187.22 million forecast by FactSet

190 million vs. 187.22 million forecast by FactSet ARPU: $1.68 vs. $1.62 forecast by FactSet

“In the first quarter we delivered strong results across our business with growth in daily active users and revenue,” said CEO Evan Spiegel in a statement.

Snap kept its user growth momentum going on Tuesday, saying it now counts 190 million daily active users, up from 186 million last quarter.

Snap’s share price is up more than 100% year to date after a fast start in 2019. Besides resurging user growth, Snap has announced a new gaming platform, new original shows, an ad network and more augmented reality features. The company has also completed the roll out of its re-engineered Android app.

“As we look towards the future, we see many opportunities to increase our investments, and will continue to manage our business for long-term growth,” Spiegel said.

Snap competitor Twitter had a strong earnings report earlier in the day on Tuesday, with better-than-expected earnings and user growth sending the stock up more than 15%.

One analyst expressed caution with Snap’s user base and how attractive it can be to advertisers.

“Our primary concern is when you have a younger millennial audience on this platform, can you monetize this audience?” said Brent Thill of Jefferies.

Disclosure: CNBC parent NBCUniversal is an investor in Snap .

WATCH: Facebook, Snapchat and TikTok have a massive underage user problem — here’s why it matters


Company: cnbc, Activity: cnbc, Date: 2019-04-23  Authors: salvador rodriguez, mark lennihan, getty images
Keywords: news, cnbc, companies, vs, users, user, growth, cents, million, snap, forecast, daily, earnings, rally, beat, fades


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Huawei says its first-quarter revenue jumped 39% despite political pressure

Huawei reported a 39 percent year-on-year increase in first-quarter revenue on Monday as it continues to see growth despite continued political pressure. The Chinese networking equipment maker said revenue totaled 179.7 billion yuan ($26.8 billion) for the first three months of 2019. Huawei said in a press release that 2019 “will be a year of large-scale deployment of 5G around the world” and its carrier business “has unprecedented opportunities for growth.” By the end of March, Huawei had signe


Huawei reported a 39 percent year-on-year increase in first-quarter revenue on Monday as it continues to see growth despite continued political pressure. The Chinese networking equipment maker said revenue totaled 179.7 billion yuan ($26.8 billion) for the first three months of 2019. Huawei said in a press release that 2019 “will be a year of large-scale deployment of 5G around the world” and its carrier business “has unprecedented opportunities for growth.” By the end of March, Huawei had signe
Huawei says its first-quarter revenue jumped 39% despite political pressure Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-22  Authors: arjun kharpal, lluis gene, afp, getty images
Keywords: news, cnbc, companies, revenue, 2019, unprecedented, pressure, firstquarter, yuan, yearonyear, political, world, 39, jumped, growth, 5g, despite, huawei, billion


Huawei says its first-quarter revenue jumped 39% despite political pressure

Huawei reported a 39 percent year-on-year increase in first-quarter revenue on Monday as it continues to see growth despite continued political pressure.

The Chinese networking equipment maker said revenue totaled 179.7 billion yuan ($26.8 billion) for the first three months of 2019. The company said it shipped 59 million smartphones in the first quarter.

Huawei said in a press release that 2019 “will be a year of large-scale deployment of 5G around the world” and its carrier business “has unprecedented opportunities for growth.” By the end of March, Huawei had signed 40 commercial contracts for 5G with leading global carriers. 5G refers to the fifth generation of mobile networks that promises super-fast data speeds with the ability to support new technologies like driverless cars.


Company: cnbc, Activity: cnbc, Date: 2019-04-22  Authors: arjun kharpal, lluis gene, afp, getty images
Keywords: news, cnbc, companies, revenue, 2019, unprecedented, pressure, firstquarter, yuan, yearonyear, political, world, 39, jumped, growth, 5g, despite, huawei, billion


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