Uber has a better shot at reaching profitability than its competitors, CEO says

Dara Khosrowshahi, CEO of Uber, appears on CNBC’s Squawk Box at the 2020 World Economic Forum in Davos, Switzerland on Jan,. Uber is better equipped than its competitors to turn ride-hailing into a profitable business, the company’s CEO told CNBC. “We are by far the global leader in ride-sharing,” Dara Khosrowshahi told CNBC’s “Squawk Box” at the World Economic Forum in Davos, Switzerland. Uber is down nearly 10% since its initial public offering, while Lyft has slumped almost 40%. Their fortune


Dara Khosrowshahi, CEO of Uber, appears on CNBC’s Squawk Box at the 2020 World Economic Forum in Davos, Switzerland on Jan,.
Uber is better equipped than its competitors to turn ride-hailing into a profitable business, the company’s CEO told CNBC.
“We are by far the global leader in ride-sharing,” Dara Khosrowshahi told CNBC’s “Squawk Box” at the World Economic Forum in Davos, Switzerland.
Uber is down nearly 10% since its initial public offering, while Lyft has slumped almost 40%.
Their fortune
Uber has a better shot at reaching profitability than its competitors, CEO says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-22  Authors: ryan browne
Keywords: news, cnbc, companies, business, lyft, reaching, better, world, turn, ridehailing, shares, uber, profitability, competitors, shot, switzerland, told, squawk, ceo


Uber has a better shot at reaching profitability than its competitors, CEO says

Dara Khosrowshahi, CEO of Uber, appears on CNBC’s Squawk Box at the 2020 World Economic Forum in Davos, Switzerland on Jan,. 22nd, 2020.

Uber is better equipped than its competitors to turn ride-hailing into a profitable business, the company’s CEO told CNBC.

“We are by far the global leader in ride-sharing,” Dara Khosrowshahi told CNBC’s “Squawk Box” at the World Economic Forum in Davos, Switzerland. “We are structurally set up more efficiently and more optimally than anyone else to move to profitability. So actually this environment is perfect for us.”

Uber has looked to wind back operations in markets where it’s struggled to gain a foothold and generate profits in recent years. The company on Tuesday agreed to sell its Eats food delivery business in India to Zomato, a local start-up that counts Alibaba affiliate Ant Financial as one of its investors.

Notably in 2016, Uber sold its Chinese business to domestic giant Didi Chuxing, while in 2018 the firm exited Southeast Asia through a deal with Singapore’s Grab. It also has a joint venture with Russian internet giant Yandex to provide its taxi services in the country.

U.S. ride-hailing firms Uber and Lyft have faced questions from investors over their cash-burning business models, following listings of their shares in New York last year. Shares of both companies have fallen significantly since their market flotations.

Uber is down nearly 10% since its initial public offering, while Lyft has slumped almost 40%. Their fortunes could be starting to turn around though — shares of Uber and Lyft are now up 26% and 12% respectively since the start of 2020.


Company: cnbc, Activity: cnbc, Date: 2020-01-22  Authors: ryan browne
Keywords: news, cnbc, companies, business, lyft, reaching, better, world, turn, ridehailing, shares, uber, profitability, competitors, shot, switzerland, told, squawk, ceo


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Tesla short sellers could help Elon Musk score a payday worth hundreds of millions

Aly Song | ReutersThe very short sellers that Elon Musk skewers frequently for betting against Tesla could ironically help the eccentric chief executive score a big payday. Nearly a fifth of Tesla shares available for trading are sold short, according to S3 Partners. Two years ago Tesla’s board agreed to a compensation plan for Musk based on Tesla stock milestones. If a stock price instead trends higher, short sellers are forced to buy back the equity at a higher price in order to cut their moun


Aly Song | ReutersThe very short sellers that Elon Musk skewers frequently for betting against Tesla could ironically help the eccentric chief executive score a big payday.
Nearly a fifth of Tesla shares available for trading are sold short, according to S3 Partners.
Two years ago Tesla’s board agreed to a compensation plan for Musk based on Tesla stock milestones.
If a stock price instead trends higher, short sellers are forced to buy back the equity at a higher price in order to cut their moun
Tesla short sellers could help Elon Musk score a payday worth hundreds of millions Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-22  Authors: michael sheetz
Keywords: news, cnbc, companies, shares, score, teslas, stock, shorts, sellers, tesla, musk, higher, ives, short, payday, millions, hundreds, help, worth


Tesla short sellers could help Elon Musk score a payday worth hundreds of millions

Tesla Inc CEO Elon Musk dances onstage during a delivery event for Tesla China-made Model 3 cars in Shanghai, China January 7, 2020. Aly Song | Reuters

The very short sellers that Elon Musk skewers frequently for betting against Tesla could ironically help the eccentric chief executive score a big payday. Nearly a fifth of Tesla shares available for trading are sold short, according to S3 Partners. As the shares hit record highs on what seems like a daily basis, more and more of those shorts are forced to capitulate and buy the stock back, fueling the run even further. This so-called short squeeze has lifted Tesla’s stock past a key benchmark: The market value of the company is more than $100 billion. That’s a closely watched level because, if Tesla’s market cap stays above $100 billion on both a 30-day and six-month trailing average, Musk will earn the first part of a potentially enormous compensation package. Two years ago Tesla’s board agreed to a compensation plan for Musk based on Tesla stock milestones. If the shares continue to rally in the next decade, Musk could earn options worth more than $55 billion.

Short sellers borrow shares from an investment bank and then sell them. Their hope is that the stock will go down and then they can buy them back at lower prices and return them to the investment bank, turning a profit on the difference. But the opposite is happening with Tesla. If a stock price instead trends higher, short sellers are forced to buy back the equity at a higher price in order to cut their mounting losses. If enough short sellers buy in tandem, it can create higher demand and itself drive the equity price even higher, aka a short squeeze.

Musk ‘joy ride’

To be sure, there are fundamental reasons behind the surge. Most analysts point to Tesla’s record vehicle production, new factory in China or stabilizing financials for driving the stock higher. But part of the name’s rally is coming from shorts forced to “cover” their positions, analysts and traders said. “The pain trade for the shorts has been a joy ride for Musk,” said Wedbush analyst Dan Ives. Ives, like other analysts, thinks an inflection in demand for electric vehicles has been the major catalyst for Tesla. The stock has had “not just a short squeeze but also fundamental buying,” Ives said. “I’ve heard from even some of the most bearish, doomsday investors on this and the China thesis has come out of left field much quicker than expected,” Ives said. “The pain trade for the shorts is too hard to stomach, as they can’t be short going into earnings and with a China inflection point.”


Company: cnbc, Activity: cnbc, Date: 2020-01-22  Authors: michael sheetz
Keywords: news, cnbc, companies, shares, score, teslas, stock, shorts, sellers, tesla, musk, higher, ives, short, payday, millions, hundreds, help, worth


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Netflix shares fall after earnings — here’s what could come next

Netflix shares were under pressure Wednesday after North American subscriber growth came in below estimates. However, if you look at it, as you look at a portfolio, they’ve actually done pretty well with vastly exceeding subscriber growth overall. So, in the U.S. with 60 million subscribers, you’re already almost 60% of U.S. broadband households, and then internationally, over 100 million subs internationally. They’re going to continue to grow just based on the demographic trend. That’s a trend


Netflix shares were under pressure Wednesday after North American subscriber growth came in below estimates.
However, if you look at it, as you look at a portfolio, they’ve actually done pretty well with vastly exceeding subscriber growth overall.
So, in the U.S. with 60 million subscribers, you’re already almost 60% of U.S. broadband households, and then internationally, over 100 million subs internationally.
They’re going to continue to grow just based on the demographic trend.
That’s a trend
Netflix shares fall after earnings — here’s what could come next Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-22  Authors: keris lahiff
Keywords: news, cnbc, companies, shares, heres, subs, stock, company, subscriber, fall, million, growth, theyre, earnings, going, think, come, netflix


Netflix shares fall after earnings — here's what could come next

Netflix shares were under pressure Wednesday after North American subscriber growth came in below estimates.

The streaming service added 550,000 U.S. and Canadian subscribers in its fourth quarter, weaker than the 589,000 the company had targeted. Netflix did top earnings and revenue for the period.

Four experts weigh in on what could come next.

Stephen Weiss, founder of Short Hills Capital Partners, is concerned Netflix may have hit a peak in one high-growth market.

“What you’ve got to question is have you reached a saturation point in the U.S. of subscribers? Who’s the marginal subscriber now? Netflix has been around quite some time. However, if you look at it, as you look at a portfolio, they’ve actually done pretty well with vastly exceeding subscriber growth overall. So, look, I’m not in this stock. I don’t foresee myself getting the stock at any point soon. But the foreign growth, which is what they tell you the story is, is impressive.”

Bernie McTernan, internet and media analyst at Rosenblatt Securities, explained what’s behind volatile stock moves as investors digest the results.

“The 1Q miss for the guidance was bigger than the 4Q beat, and I think that that, combined with expectations, clients that we’ve spoken to have gotten long the stock after being short it in the summer, so I think those two combinations are why you’re seeing the stock [moves]. … It’s still a sub[scriber] game, absolutely. What’s interesting is free cash flow. They actually reported … or the guidance was negative [$]2.5 billion in free cash flow, which is roughly in line with expectations for 2020. … Over the short term, you see something like Peacock launching, [which] could be in up to 40 million households in the U.S., but Disney+, Apple TV+ all came in lower than expectations, so, that’s why we think, really, it’s a subscriber game. So, in the U.S. with 60 million subscribers, you’re already almost 60% of U.S. broadband households, and then internationally, over 100 million subs internationally. We’re just later in the innings now in terms of share gains to go.”

Brian Kelly, founder and managing member of Brian Kelly Capital, discusses the company’s decision to switch its viewership metrics from 70% of a movie or TV watched to the first two minutes.

“I would argue that if you watched the first two minutes of ‘The Irishman,’ you didn’t need to watch the other three hours of it. So, you got it from the beginning. Yeah, I’m coming at it with fire. But … you don’t like to see a company change their metrics when they’re going through some competition or some struggles or that type of thing. What concerns me more here is the slowing growth in subscribers coming up. They burned through $3.3 billion worth of cash. They say that’s a peak, but their long-term debt is increasing. Now you’ve got a company that has multiple competitors that are actually online, actually coming in, and I think they are going to take some market share from Netflix, so, for me, it’s a no-touch at best.”

Tom Rogers, WinView executive chairman, said the company has a bright future.

“I am quite optimistic about the future in Netflix. You’ve got to remember: they’re playing a different game than everybody else. Next year, they’re likely to introduce 130 international series. We’re talking about a company that is growing globally at close to 30 million subs. Just to put that in perspective, HBO, over the last five years with ‘Game of Thrones’ – I think, probably once-in-a-decade kind of hot property to have on paid television – grew 4 million subs over the course of that tenure. Netflix is in a very different league than everybody else. The issue, I don’t think, is so much, ‘Are they slowing because of competition?’ Look, people thought they were going to slow because it was going to be binge and disconnect. Find your favorite series, binge and disconnect. That didn’t hurt them. Is new competition going to slow them a bit? Maybe, but the real issue is they’ve hit 60 million, two-thirds of all broadband subs. They’re going to continue to grow just based on the demographic trend. We’re probably going to see below 80 million cable and satellite households next year for the first time since 2000, 20 years ago. That’s a trend of continued disconnect and they’re going to benefit from that. Slower growth than they’ve had, but growth. … I’m talking about growth in the U.S. They will grow with the demographic trend that young people are not taking cable and satellite anymore, younger households are going to continue to take Netflix and streaming services, and as that demo grows older and older, they will continue to benefit from that overall trend. It will not be as fast as overseas, but it will continue to grow. Now, the idea that they’re spending overwhelmingly on programming compared to everybody else is absolutely true, but if you do the math and you believe that there are going to be – there are 165 million global subs now – probably 175 million by the end of next quarter, something close to that, although they guided a little lighter, I think it’s not hard to see 300 million subs in their future. At $15 RPU globally, which, with the price increases they’ve taken, you can see that happening. Even spending [$]20 billion a year, 12 billion on originals, you can see this thing throwing off real cash when they hit those kind of numbers.”

Disclosure: Peacock is the streaming service of NBCUniversal, parent company of CNBC.

Disclaimer


Company: cnbc, Activity: cnbc, Date: 2020-01-22  Authors: keris lahiff
Keywords: news, cnbc, companies, shares, heres, subs, stock, company, subscriber, fall, million, growth, theyre, earnings, going, think, come, netflix


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Earnings, ECB decision, job market check: 3 things to watch for in the markets on Thursday

Technology company Intel reports earnings after the bell on Thursday. Analysts polled by FactSet are expecting Intel to report earnings per share of $1.25, compared with the $1.28 per share earned in the fourth quarter the year prior. Sales are expected to come in at $19.23 billion, topping last year’s $18.657 billion in sales in the fourth quarter. Analysts are estimating earnings of $1.37 per share, topping last year’s second quarter of $1.25 per share, according to FactSet. Airlines American


Technology company Intel reports earnings after the bell on Thursday.
Analysts polled by FactSet are expecting Intel to report earnings per share of $1.25, compared with the $1.28 per share earned in the fourth quarter the year prior.
Sales are expected to come in at $19.23 billion, topping last year’s $18.657 billion in sales in the fourth quarter.
Analysts are estimating earnings of $1.37 per share, topping last year’s second quarter of $1.25 per share, according to FactSet.
Airlines American
Earnings, ECB decision, job market check: 3 things to watch for in the markets on Thursday Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-22  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, ecb, decision, watch, share, job, market, things, sales, report, markets, check, intel, bell, topping, shares, quarter, earnings, billion


Earnings, ECB decision, job market check: 3 things to watch for in the markets on Thursday

Here are the most important things to know about Thursday before you hit the door.

Technology company Intel reports earnings after the bell on Thursday. Bank of America said it will be watching for how Intel is working to combat market share loss, especially to AMD.

Analysts polled by FactSet are expecting Intel to report earnings per share of $1.25, compared with the $1.28 per share earned in the fourth quarter the year prior. Sales are expected to come in at $19.23 billion, topping last year’s $18.657 billion in sales in the fourth quarter. Shares of Intel are up nearly 30% in the past 12 months.

We’ll also get earnings from consumer goods company Procter & Gamble before the bell on Thursday. Analysts are estimating earnings of $1.37 per share, topping last year’s second quarter of $1.25 per share, according to FactSet. Sales are forecast to come in at $18.417 billion, compared to the $17.438 billion earned in the same quarter last year. Shares of Procter & Gamble have rallied nearly 40% in the past 12 months.

Airlines American and Southwest will also report quarterly earnings before the bell on Thursday. Airline stocks have been hit this week due to concerns that the coronavirus outbreak in China would dent international travel.


Company: cnbc, Activity: cnbc, Date: 2020-01-22  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, ecb, decision, watch, share, job, market, things, sales, report, markets, check, intel, bell, topping, shares, quarter, earnings, billion


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Stocks making the biggest moves after hours: Texas Instruments, Raymond James, Sallie Mae and more

The semiconductor company did beat estimates, reporting earnings of $1.11 per share on revenue of $3.35 billion, while analysts expected earnings of $1.02 per share on revenue of $3.22 billion, according to Refinitiv. Raymond James — Shares of Raymond James fell more than 3% after-hours following an earnings report that showed net revenue declining slightly compared with the previous quarter. Sallie Mae – Sallie Mae stock surged more than 19% in extended trading on Wednesday after it announced a


The semiconductor company did beat estimates, reporting earnings of $1.11 per share on revenue of $3.35 billion, while analysts expected earnings of $1.02 per share on revenue of $3.22 billion, according to Refinitiv.
Raymond James — Shares of Raymond James fell more than 3% after-hours following an earnings report that showed net revenue declining slightly compared with the previous quarter.
Sallie Mae – Sallie Mae stock surged more than 19% in extended trading on Wednesday after it announced a
Stocks making the biggest moves after hours: Texas Instruments, Raymond James, Sallie Mae and more Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-22  Authors: jesse pound sunny kim, jesse pound, sunny kim
Keywords: news, cnbc, companies, stock, texas, sallie, company, share, revenue, instruments, mae, expected, raymond, making, shares, hours, quarter, moves, stocks, earnings, james, extended, million


Stocks making the biggest moves after hours: Texas Instruments, Raymond James, Sallie Mae and more

Take a look at the companies making headlines after the bell.

Texas Instruments – Texas Instruments’ stock fell 1% in extended trading on Wednesday after the company said its revenues declined in the fourth quarter and may do so against in the current three-month period. The semiconductor company did beat estimates, reporting earnings of $1.11 per share on revenue of $3.35 billion, while analysts expected earnings of $1.02 per share on revenue of $3.22 billion, according to Refinitiv. However, revenue decreased 10% from the same quarter a year ago, and the midpoint of its first-quarter guidance is about 9% below the first quarter of 2019.

Citrix Systems — Shares of Citrix Systems rose more than 4% in extended trading after the company beat expectations for the fourth quarter on the back of strong subscription revenue growth and announced it was expanding its stock buyback program. The tech company reported revenue for the quarter of $810 million and $1.71 in adjusted earnings per share, above the $802 million in revenue and $1.68 EPS expected by Wall Street analysts, according to Refinitiv. The company said its board approved a $1 billion increase in its stock buyback authorization, which is now at $1.75 billion.

Raymond James — Shares of Raymond James fell more than 3% after-hours following an earnings report that showed net revenue declining slightly compared with the previous quarter. The bank reported $2.01 billion in revenue for the fourth quarter, up 8% year-over-year but 1% lower than the third quarter. Raymond James’ interest income and investment bank income fell compared with both prior time periods.

Sallie Mae – Sallie Mae stock surged more than 19% in extended trading on Wednesday after it announced a new stock buyback program in its fourth-quarter earnings release. The financial company, which has a market cap of around $3.7 billion, said it planned to buy back $600 million worth of stock over the next year. The company also said its net interest income and average private education loans outstanding were both up for the quarter compared with the same period in 2018.

PTC – Shares of the computer software company jumped nearly 8% after it released fourth-quarter results that beat expectations for revenue. PTC reported earnings of 57 cents per share on revenue of $356 million, while analysts expected earnings of 44 cents per share on revenue of $342 million, according to Refinitiv. The company said it saw strong growth in Europe and Asia during the quarter.

Paycom Software – Shares of the human resource software company jumped more than 4% in extended trade after the announcement that the company will replace WellCare Health in the S&P 500 on Jan. 28. WellCare is being acquired by Centene and that deal is expected to be completed soon, the S&P Dow Jones Indices said in a release announcing the change.

HB Fuller – Shares of the specialty chemical product company fell about 2% in extended trade after the company missed analyst expectations for fourth-quarter earnings. HB Fuller posted earnings of 88 cents per share, excluding some items, on revenues of $739 million in the fourth quarter. Analysts expected EPS of 92 cents on revenue of $744 million, according to Refinitiv.

CNBC’s Chris Eudaily contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2020-01-22  Authors: jesse pound sunny kim, jesse pound, sunny kim
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Live stock market updates: S&P 500 record, mystery housing move, coronavirus, chips jump

—Domm10:21 am: US home sales numbers help sentimentU.S. home sales easily beat expectations, jumping to a nearly 2-year high. However, Piper Sandler said in a note to clients that higher than expected expenses would put pressure on the stock and shares are down roughly 3.3%. S&P 500 and Nasdaq hit recordsThe S&P 500 added about 0.3% and touched a new intraday record. -Melloy9:03 am: Tesla set to top $100 billion at the openShares of Tesla rose about 5% in premarket trading. If the gains hold, th


—Domm10:21 am: US home sales numbers help sentimentU.S. home sales easily beat expectations, jumping to a nearly 2-year high.
However, Piper Sandler said in a note to clients that higher than expected expenses would put pressure on the stock and shares are down roughly 3.3%.
S&P 500 and Nasdaq hit recordsThe S&P 500 added about 0.3% and touched a new intraday record.
-Melloy9:03 am: Tesla set to top $100 billion at the openShares of Tesla rose about 5% in premarket trading.
If the gains hold, th
Live stock market updates: S&P 500 record, mystery housing move, coronavirus, chips jump Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-22  Authors: cnbccom staff
Keywords: news, cnbc, companies, stock, live, housing, coronavirus, level, record, netflix, tesla, mystery, market, jump, stocks, trading, bank, shares, higher, earnings, updates


Live stock market updates: S&P 500 record, mystery housing move, coronavirus, chips jump

This is a live blog. Check back for updates.

10:28 am: Homebuilders started to pop even before existing homes data hit

Homebuilder stocks and the SPDR S&P Homebuilders ETF all moved to highs after the 10 a.m. ET report of better than expected existing home sales. But the XHB, Lennar, DR Horton, Pulte, KB Home all kicked into gear and started moving higher in the minutes ahead of the 10 a.m. release. Some gains were given back after peaking, after the report. “They’ve been having pretty good news. I think it’s just carry through,” said Art Cashin, director of floor operations at UBS. Home sales in December totaled 5.54 million, vs. 5.43 million expected. It’s the highest level since February 2018. The clincher is the supply of homes for resale at 3 months, a record low, and that in itself is enough to put a lift in the homebuilders .

Recent housing data has been very strong. —Domm

10:21 am: US home sales numbers help sentiment

U.S. home sales easily beat expectations, jumping to a nearly 2-year high. U.S. home sales increased 3.6% in December to a seasonally adjusted 5.54 million. Economists polled by Reuters expected a gain of 1.3% to 5.43 million units sold. The report from the National Association of Realtors is the latest sign the U.S. housing market is getting a boost from the three rate cuts implemented by the Federal Reserve last year. Data released last week showed housing stars surged last month to a 13-year high. Homebuilders Toll Brothers and Lennar were higher. —Imbert

10:16 am: Regional banks among the few big losers Wednesday

Regional banks are the losers in early trading, with Zions Bancorporation and Northern Trust suffering two of the largest declines. Zions was down 5.3% after reporting earnings for the fourth-quarter Tuesday night. The Utah-based bank holding company reported a decline in its loan balance, and Raymond James lowered its price target on the stock to $59 per share from $61 per share while lowering its earnings estimate. Zions was also downgraded to neutral from buy at Bank of America, according to FactSet. Northern Trust reported its fourth-quarter results Wednesday morning, and its $1.56 billion in revenue was above the $1.55 billion expected, according to Refinitiv. However, Piper Sandler said in a note to clients that higher than expected expenses would put pressure on the stock and shares are down roughly 3.3%. – Pound

10:11 am: Chip stock ETF hits all-time high

The VanEck Vectors Semiconductor ETF (SMH) hit a record led by Teradyne, Lam Research, Skyworks, and Micron

Tearadyne trading at multi-year highs back to July 2000

Skyworks is trading at all-time high levels back to the creation of the company after the merger of Alpha Industries and Conexant in June, 2002

Micron is trading at its highest level since June 2018 -Francolla

9:56 am: Pandemic fears drive 10-year Treasury yield to important test

The 10-year Treasury yield has been resting at 1.76%, after dropping to that level as the world worried about the new Chinese coronavirus Tuesday. Risk markets are rallying, and yields are higher Wednesday, but the 10-year still hovers near Tuesday’s lows, a key level on the charts. “That 1.76 level has provided support at a few different moments in January. It also corresponds to the bottom of an opening gap, back to some of the volatility around the Iranian tensions,” said Jon Hill of BMO. “But the intraday low of Jan. 8 was 1.70. That to me is the defacto range bound.” He said it’s now testing resistance for further rallies in duration. Yields move lower when bond prices rise. Treasurys were expected to trade quietly this week due to the light data calendar, lack of new supply, and dearth of Fed speak ahead of next week’s FOMC meeting. — Domm

9:51 am: Coronavirus death toll rises

CNBC’s Eunice Yoon reported Chinese state TV confirmed the coronavirus has killed 17 people with confirmed cases climbing to 444 in total. The virus stemmed from Wuhan, China, less than a week before Lunar New Year, when millions of Chinese travel at home and abroad. Related stocks were still higher, however. Wynn Resorts was up 0.4% and United Airlines added 0.6%. —Li

9:45 am: Bank of America’s retail clients bought stocks for the first time in eight weeks

Bank of America said its retail clients were net buyers of stocks last week after an eight-week selling streak. The S&P 500 gained 2% in the week ending Jan. 17, hitting new records. The buying was largely driven by inflows into exchange-traded funds, the bank noted. Meanwhile, buybacks by Bank of America’s corporate clients picked up as earnings season kicked off and the amount has been consistent with the historical trends, the bank said. Its hedge funds and institutional clients, however, continued to sell for four and three weeks, respectively. — Li

9:30 am: Stocks rise at the open. S&P 500 and Nasdaq hit records

The S&P 500 added about 0.3% and touched a new intraday record. The Nasdaq Composite also hit a record. Shares of Tesla jumped 4%. IBM added more than 3% and was the biggest gainer in the S&P 500. Netflix, meanwhile, was lower, falling almost 2%. -Melloy

9:03 am: Tesla set to top $100 billion at the open

Shares of Tesla rose about 5% in premarket trading. If the gains hold, the company’s market value would climb to more than $103 billion at the open of trading. That’s a closely watched level for the electric automaker’s stock, as CEO Elon Musk would land the first of a possibly massive payout if Tesla can stay above $100 billion in value on both a 30-day and six-month trailing average. -Sheetz

8:59 am: Vertical Research Partners is ‘throwing in the towel’ on Boeing and downgrading the stock to a hold

The fallout from Boeing’s 737 Max keeps getting worse. On Tuesday the company said it doesn’t expect regulators to sign off on the jet until June or July, which is later than some, including Vertical Research’s Robert Stallard, were predicting. On Wednesday Stallard downgraded the stock to a hold and lowered his target to $294, saying the “ramifications” of the grounded jet have “yet to reverberate.” He slashed his estimates for 2019-2022, and said the company will likely halt buybacks until 2022. With shares of Boeing down nearly 17% in the last six months, Stallard acknowledged that the call is belated. -Stevens

8:57 am: Barclays upbeat on coming earnings of top tech stocks

The firm’s internet analyst Ross Sandler said he expects “management teams to sound upbeat” when technology companies reporting fourth quarter results soon. Sandler noted continuing strength of Alphabet and Amazon, saying to buy any weakness in the stocks as “large caps likely see growth accelerate in 1Q20.” The Barclays analyst also called out its three best picks for investors looking to buy before tech earnings: Snap, Facebook and Uber. – Sheetz

8:54 am: Wedbush expects Tesla earnings “will not disappoint”

Wedbush analyst Dan Ives raised his price target on shares of Tesla to $550 from $370, saying “we believe Musk & Co. will not disappoint” when the electric automaker reports earnings on Jan. 29. Ives’ note was incrementally more optimistic about Tesla’s outlook in China, as he updated the potential for those operations to “at least $100” a share from “$75 to $100″ two weeks ago. Wedbush has a neutral rating on Tesla. -Sheetz

8:39 am: Coronavirus-related names are rebounding

Travel and hotel stocks rebounded on Wednesday, after falling Tuesday on fears that the coronavirus outbreak in China would dent international travel. Shares of casino and hotel companies Wynn Resorts and Las Vegas Sands gained nearly 1% each, after falling 6% and 5%, respectively on Tuesday. United Airlines jumped nearly 1%, American Airlines rose more than 1% and Delta Air and Southwest all gained slightly in premarket trading. -Fitzgerald

8:38 am: Investors using better-than-expected earnings to take profits in individual stocks

Wall Street may be using the earnings season to take profits off the table after the market’s stunning run to record highs this past one year. Data compiled by Bespoke Investment Group shows stocks have opened higher by an average of 0.62% after a company reports quarterly earnings. However, those stocks decline by an average of 0.56% into market close.”We’re seeing investors use earnings as a reason to lighten up a bit,” Bespoke said in a tweet.—Imbert

8:33 am: Netflix rebounds as Wall Street analysts shrug off subscriber miss

Netflix was the first of the so-called FANG stocks to report fourth-quarter results. The streaming giant beat on the top and bottom line, but gave disappointing guidance and posted a miss on domestic subscriber growth. Wall Street analysts largely looked past the weakness and believe Netflix is on the right track to profitability. Goldman Sachs said the company’s content investments, distribution partnerships and global positioning should drive subscriber growth “significantly above consensus expectations.” Bank of America expects Netflix to be “increasingly dominant overseas” in the next year. Credit Suisse said the set-up is “quite favorable for Netflix heading into 2020,” and the subscriber guidance looks “conservative.” Shares of Netflix rose more than 1% in premarket trading on Wednesday, after losing as much as 2% Tuesday after the bell following the earnings report.Click here to read more about what every major analyst had to say about Netflix’s latest earnings. -Li

8:30 am: Dow set to rise


Company: cnbc, Activity: cnbc, Date: 2020-01-22  Authors: cnbccom staff
Keywords: news, cnbc, companies, stock, live, housing, coronavirus, level, record, netflix, tesla, mystery, market, jump, stocks, trading, bank, shares, higher, earnings, updates


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Clothing retailer Express shares jump on plans to shutter 100 stores by 2022, cut costs

Pedestrians walk past an Express Inc. store in New York, U.S., on Wednesday, May 31, 2017. Clothing retailer Express said Wednesday it plans to shutter roughly 100 of its stores by 2022, as part of its strategy to save $80 million in costs annually over the next three years. Express has a market value of roughly $313 million. Express currently operates more than 600 stores, including factory outlet locations, in the U.S. and Puerto Rico. But it said the lower costs will help boost its earnings b


Pedestrians walk past an Express Inc. store in New York, U.S., on Wednesday, May 31, 2017.
Clothing retailer Express said Wednesday it plans to shutter roughly 100 of its stores by 2022, as part of its strategy to save $80 million in costs annually over the next three years.
Express has a market value of roughly $313 million.
Express currently operates more than 600 stores, including factory outlet locations, in the U.S. and Puerto Rico.
But it said the lower costs will help boost its earnings b
Clothing retailer Express shares jump on plans to shutter 100 stores by 2022, cut costs Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-22  Authors: lauren thomas
Keywords: news, cnbc, companies, retailer, costs, past, expected, express, store, shares, plans, jump, cut, clothing, strategy, company, earnings, million, roughly, shutter, stores


Clothing retailer Express shares jump on plans to shutter 100 stores by 2022, cut costs

Pedestrians walk past an Express Inc. store in New York, U.S., on Wednesday, May 31, 2017.

Clothing retailer Express said Wednesday it plans to shutter roughly 100 of its stores by 2022, as part of its strategy to save $80 million in costs annually over the next three years.

Express shares were last up more than 18% on the news. Express has a market value of roughly $313 million. As of Tuesday’s market close, it had watched its stock fall roughly 21% over the past 12 months.

The company also announced a restructuring of its workforce, which it says will impact roughly 10% of the jobs at Express’ headquarters in Columbus, Ohio, and a design studio in New York. CNBC was not immediately able to determine exactly how many jobs are being cut.

The store closures add to the malaise that U.S. shopping malls have been hit with in recent years. A record of more than 9,000 store closures were announced by retailers — ranging from Gap to Forever 21 to Sears — in 2019. The apparel category within retail has been under pressure especially with more shoppers either pulling back their spending on clothing, or turning to subscription and rental services like Stitch Fix and Rent the Runway.

“When I joined Express, I outlined three priorities: changing the trajectory of the business, developing a corporate strategy, and putting the right team in place,” CEO Tim Baxter said in a statement. “We have spent the past six months developing a strategy with the intent to return Express to long-term growth and a mid-single digit operating margin. Today we took the necessary steps to put the right organization in place to support that strategy.”

Baxter was appointed CEO in June of last year. Previously, he had spent more than two decades working at Macy’s. He succeed Matthew Moellering, who had served as Express’ interim CEO since January 2019.

The company said Wednesday that nine of the roughly 100 stores set for closure are already dark, with another 31 expected to close by the end of this month, and another 35 shuttering by the end of January 2021.

Express currently operates more than 600 stores, including factory outlet locations, in the U.S. and Puerto Rico.

The closures will reduce sales by $90 million by 2022, the company said. But it said the lower costs will help boost its earnings before interest, taxes, depreciation and amortization by $15 million.

Express also has narrowed the range for its fourth-quarter earnings outlook, pegging it toward the lower end.

Adjusted earnings per share are expected to be between 17 cents and 19 cents, with same-store sales expected to drop roughly 3% during the fourth quarter, which includes the latest holiday season. Analysts polled by Refinitiv were calling for earnings of 19 cents a share.


Company: cnbc, Activity: cnbc, Date: 2020-01-22  Authors: lauren thomas
Keywords: news, cnbc, companies, retailer, costs, past, expected, express, store, shares, plans, jump, cut, clothing, strategy, company, earnings, million, roughly, shutter, stores


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Cramer on the streaming war: Netflix’s algorithms are brilliant

Cramer on the streaming war: Netflix’s algorithms are brilliantCNBC’s “Squawk on the Street” team breaks down Netflix shares after the company reported earnings.


Cramer on the streaming war: Netflix’s algorithms are brilliantCNBC’s “Squawk on the Street” team breaks down Netflix shares after the company reported earnings.
Cramer on the streaming war: Netflix’s algorithms are brilliant Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-22
Keywords: news, cnbc, companies, war, cramer, algorithms, team, netflix, street, shares, streaming, brilliant, squawk, earnings, netflixs, reported


Cramer on the streaming war: Netflix's algorithms are brilliant

Cramer on the streaming war: Netflix’s algorithms are brilliant

CNBC’s “Squawk on the Street” team breaks down Netflix shares after the company reported earnings.


Company: cnbc, Activity: cnbc, Date: 2020-01-22
Keywords: news, cnbc, companies, war, cramer, algorithms, team, netflix, street, shares, streaming, brilliant, squawk, earnings, netflixs, reported


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Tesla shares will rally 50% to $800, says Street’s biggest bull on the stock

Shares of Tesla have more than doubled over the last 3 months, and New Street Research believes strong demand and management execution will drive shares even higher. On Tuesday the firm raised its target on the stock to a Street high of $800, which is roughly 57% above where shares currently trade.


Shares of Tesla have more than doubled over the last 3 months, and New Street Research believes strong demand and management execution will drive shares even higher.
On Tuesday the firm raised its target on the stock to a Street high of $800, which is roughly 57% above where shares currently trade.
Tesla shares will rally 50% to $800, says Street’s biggest bull on the stock Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-21  Authors: pippa stevens
Keywords: news, cnbc, companies, strong, tesla, biggest, raised, roughly, street, stock, rally, 800, bull, streets, trade, target, shares, research


Tesla shares will rally 50% to $800, says Street's biggest bull on the stock

Shares of Tesla have more than doubled over the last 3 months, and New Street Research believes strong demand and management execution will drive shares even higher. On Tuesday the firm raised its target on the stock to a Street high of $800, which is roughly 57% above where shares currently trade.


Company: cnbc, Activity: cnbc, Date: 2020-01-21  Authors: pippa stevens
Keywords: news, cnbc, companies, strong, tesla, biggest, raised, roughly, street, stock, rally, 800, bull, streets, trade, target, shares, research


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Citigroup downgrades Morgan Stanley: ‘We do not see enough upside to justify a buy rating’

A person enters Morgan Stanley headquarters in New York, on Thursday, July 12, 2018. Morgan Stanley’s stock is “fairly valued,” according to Citigroup. The firm downgraded shares of Morgan Stanley to neutral from buy, sending the stock down 1.2% in premarket trading on Tuesday.


A person enters Morgan Stanley headquarters in New York, on Thursday, July 12, 2018.
Morgan Stanley’s stock is “fairly valued,” according to Citigroup.
The firm downgraded shares of Morgan Stanley to neutral from buy, sending the stock down 1.2% in premarket trading on Tuesday.
Citigroup downgrades Morgan Stanley: ‘We do not see enough upside to justify a buy rating’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-21  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, sending, stanleys, rating, citigroup, stock, york, trading, stanley, valued, upside, downgrades, justify, shares, morgan, buy


Citigroup downgrades Morgan Stanley: 'We do not see enough upside to justify a buy rating'

A person enters Morgan Stanley headquarters in New York, on Thursday, July 12, 2018.

Morgan Stanley’s stock is “fairly valued,” according to Citigroup.

The firm downgraded shares of Morgan Stanley to neutral from buy, sending the stock down 1.2% in premarket trading on Tuesday.


Company: cnbc, Activity: cnbc, Date: 2020-01-21  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, sending, stanleys, rating, citigroup, stock, york, trading, stanley, valued, upside, downgrades, justify, shares, morgan, buy


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