Business

Stocks fall but end off session lows as investors continue to rotate out of tech and momentum sectors

Stocks finished with losses but off session lows in choppy trade on Wall Street on Friday, with some previously unloved sectors finding support as technology and other highflying segments felt the pressure of continued profit-taking.

U.S. markets on Monday will be closed in observance of Labor Day, a factor that might have added to market volatility by sapping volume in the run-up to the long holiday weekend.

How did stock-market benchmarks perform?

The Dow Jones Industrial Average
DJIA,
-0.56%

closed 159.42 points lower, down 0.6%, at 28133.31, after falling 628 points at its session low. The blue-chip gauge bounced in the final hour of trading, briefly pushing back into positive territory before falling back. The S&P 500 index
SPX,
-0.81%

dropped 28.10 points, or 0.8%, to finish at 3,426.96, while the Nasdaq Composite Index
COMP,
-1.26%

declined 144.97 points, or 1.3%, to end at 11,313.13. The tech-heavy Nasdaq saw

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Oil slips below $44, heads for weekly drop on demand concerns

A man walks on a path in front of an oil derrick near the Huntington Beach Oil Fields on April 20, 2020 in Huntington Beach, California.

Michael Heiman | Getty Images

Oil slipped below $44 a barrel on Friday and was on course for its biggest weekly decline since June as weak demand figures added to concern over a slow recovery from the COVID-19 pandemic.

A U.S. government report showed that domestic gasoline demand fell in the latest week. Middle distillates inventories at Asia’s Singapore oil hub have soared above a nine-year high, official data showed..

Brent crude, the international benchmark, fell 41 cents, or 0.9%, to $43.66, heading for a 3% drop this week. West Texas Intermediate slipped 41 cents, or 1%, to $40.96, set for its first weekly drop in five.

“The bigger market picture is overall bearish sentiment that kicked off with lower gasoline demand reports

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Salesforce Reports Big Jump in Profits

Salesforce, a maker of cloud software, saw surging revenue and profit in the second quarter as customers have increasingly turned to its tools in the coronavirus pandemic.

The San Francisco company’s revenue rose to $5.15 billion, up 29 percent from a year ago, driven by the demand for its customer-relations software and new Work.com tools, which help people return to work. Profit jumped to $2.6 billion, up from $91 million a year ago, helped by a change to its international corporate structure that created tax benefits.

On Monday, the S&P Dow Jones Indices said Salesforce would replace Exxon Mobil on the Dow Jones index at the end of the month.

Credit…Shannon Stapleton/Reuters

Nordstrom’s sales took a nosedive for a second

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Honeywell Stock Is Going Back in the Dow Jones Industrial Average

Text size


Sean Gallup/Getty Images


Honeywell

is going back in the

Dow Jones Industrial Average.

It makes perfect sense. And it is good news for the stock, but not in the way investors might initially assume.


S&P Global

(ticker: SPGI) announced the changes Monday evening. The industrial giant is going back in the Dow—after a 10-year hiatus—beginning August 31, along with

Salesforce.com

(CRM) and

Amgen

(AMGN). Leaving the Dow are

Raytheon Technologies

(RTX),

Pfizer

(PFE), and

Exxon Mobil

(XOM). The Dow is price-weighted, which means stock positions are created based on which ones have the highest prices.

Back in 2008, Honeywell (HON) and

Altria

(MO) were replaced by

Bank of America

(BAC) and

Chevron

(CVX), making the Dow Industrial a bit less industrial.

It’s difficult to say which company replaced what in that switch. This time, though, it seems easier to line up the changes: Honeywell appears to be

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Luckin Stock Isn’t the Answer for Investors Seeking Consumer Exposure



Luckin (LKNCY) logo on the wall of a coffee shop with a customer sitting at a table below it.


© Source: abolukbas / Shutterstock.com
Luckin (LKNCY) logo on the wall of a coffee shop with a customer sitting at a table below it.

Purveyor of coffee and fraud, Luckin Coffee (OTCMKTS:LKNCY) still commands plenty of attention and, for one reason or another, some investors remain captivated by Luckin stock.



a person standing in front of a sink: Luckin (LKNCY) logo on the wall of a coffee shop with a customer sitting at a table below it.


© Provided by InvestorPlace
Luckin (LKNCY) logo on the wall of a coffee shop with a customer sitting at a table below it.

Lingering enthusiasm for Luckin equity could be a symptom of the current climate in which younger investors are turning to investing apps and tempting fate with day trading. One thing those brazen traders haven’t been shy about doing this year is embracing controversial, low-priced equities on the brink of or already in bankruptcy.

It’s undeniably risky to own shares of a company that’s going belly up. That risk is elevated when the reasons for the

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S&P 500 shakes off a bumpy start, pushes to another record

The market has been making a lot of small moves recently on snippets of news about the virus, developments on a potential vaccine for it and other concerns. But the economy is still hurting, with airlines running at a fraction of their capacities and restaurants still mostly empty.

“That’s not an economy that’s back to normal,” said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management. “Ultimately, the economy doesn’t fully reopen until we get a vaccine or a therapeutic,” he said.

For the moment, though, he said, “People are willing to see that the world’s cup is slightly half-full right now.”

Adding to the cup was an announcement from the U.S. Trade Representative that “both sides see progress” following trade talks between the world’s two largest economies. China’s Ministry of Commerce said the two sides discussed strengthening coordination of their economic policies, though it gave no details.

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British start-up Culture Trip confirms CEO is stepping down

(L-R) Executive Producer Daniel Montalto, Executives in charge of Culture Trip Michael Fox and Dr. Kris Naudts and Executive Producer Elizabeth Carter attend Culture Trip premiere of the “The Soul of Soho” film at SXSW on March 09, 2019 in Austin, Texas.

Getty

British travel and entertainment start-up Culture Trip has confirmed that founder Kris Naudts is stepping down as the company’s chief executive. 

Naudts, who will retain his position as chairman, will be replaced by Didier Stoessel, who has worked for Modern Times Group, HSBC Investment Bank, and Merrill Lynch International. The news was first reported by Business Insider on Tuesday and later confirmed to CNBC. 

Culture Trip said Naudts will now focus on the company’s wider strategy, external relations, and corporate governance, while the day-to-day management of the business will be controlled by Stoessel. 

“I am looking forward to focusing on my role as chairman after having led

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J.M. Smucker lifts annual forecast on strong demand for coffee, frozen foods

(Reuters) – J.M. Smucker Co (SJM.N) on Tuesday raised its full-year targets after beating Wall Street estimates for first-quarter earnings and revenue on strong demand for its coffee, frozen sandwiches and peanut butter from stuck-at-home consumers.

FILE PHOTO: Containers of Smuckers’s Jam are displayed in a supermarket in New York City, U.S. February 15, 2017. REUTERS/Brendan McDermid

Shares rose as much as 9% as the Jif peanut butter maker posted a 23% jump in sales at its U.S. retail coffee business.

“It has been a long time since Smucker did anything but lower its revenue outlook after reporting fiscal Q1; so, today’s raise is rare,” J.P. Morgan analyst Ken Goldman wrote in a note.

Demand for packaged foods and coffee has remained strong, with extended work-from-home policies and the closure of schools as the COVID-19 pandemic prompted people to stick to eating at home rather than dining out.

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Consumer Confidence Drops Unexpectedly in August | National News

Consumer confidence fell unexpectedly in the first two weeks of August to its lowest level in six years as households grew increasingly worried about the economy following a sustained surge in coronavirus cases this summer.

The Conference Board said Tuesday that its consumer confidence index, which measures how optimistic consumers feel about the economic outlook, dropped to a reading of 84.8 this month, down from 91.7 in July.

The reading is significantly lower than what analysts predicted and a drastic drop from a year ago. In August 2019, the index sat at 134.2.

The measure is a worrying sign that comes as the economy struggles to recover from a pandemic-induced recession.

“Consumer spending has rebounded in recent months but increasing concerns amongst consumers about the economic outlook and their financial well-being will likely cause spending to cool in the months ahead,” Lynn Franco, senior director of economic indicators at The

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Coronavirus update: U.S. death toll tops 177,000 as FDA head acknowledges he misspoke on convalescent plasma

The U.S. death toll from the coronavirus illness COVID-19 climbed above 177,000 on Tuesday, as experts continued to question claims made about the use of convalescent plasma as a treatment for hospitalized COVID-19 patients and a leading government official conceded he misspoke at a Sunday press briefing.

Food and Drug Administration Commissioner Stephen Hahn acknowledged in a tweet posted late Monday that his comment that a study had shown plasma achieving a 35% improvement in survival was inaccurate. Hahn made the comment, accompanied by President Donald Trump, while announcing an emergency-use authorization for convalescent plasma.

”What that means is — and if the data continue to pan out — 100 people who are sick with COVID-19, 35 would have been saved because of the administration of plasma,” Hahn said at the White House news conference, where Trump described plasma as a “breakthrough.”

Scientists and experts, including the World Health Organization,

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