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Stock market today: US futures muted as Wall Street watches and waits – Yahoo Finance

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US stocks were mixed on Tuesday after a pullback from all-time highs, with retail earnings on tap to occupy investors counting down to a crucial inflation report.

The Dow Jones Industrial Average (^DJI) fell about 0.3%, while the S&P 500 (^GSPC) was little changed in the wake of a retreat from record levels. Tech stocks were more upbeat, with a rise of 0.2% for the Nasdaq Composite (^IXIC).

Stocks have lost momentum as investors regroup after the tumultuous run-up last week and as focus sharpens on the health of the US economy. Looming over investors is the PCE index report due Thursday, a key inflation input into the Federal Reserve’s rate-setting decisions.

Read more: What the Fed rate decision means for bank accounts, CDs, loans, and credit cards

Given the market’s preoccupation with the timing of a rate cut, the PCE print is seen as a potential catalyst for stocks to move in either direction. In the meantime, consumers appear less confident about the US economy.

The Conference Board’s Consumer Confidence Index for February came in at a reading of 106.7, down from a revised 110.9 in January. January’s preliminary reading was 114, a two-year high for the measure. Economists surveyed by Bloomberg had expected a reading of 115 for February.

Investors digested other economic updates on Tuesday, including another rise in home prices and the largest drop in US durable goods orders in four years.

By contrast, the price of bitcoin (BTC-USD) soared to two-year highs, briefly breaking above $57,000 per token, with gains buoyed by a big investment from MicroStrategy (MSTR). Shares of bitcoin miners and crypto exchanges such as Coinbase (COIN) rose alongside the leading digital currency.

Early morning earnings reports from major retailers provided a window into how the consumer is faring. Macy’s (M) shares slipped as it revealed plans to shutter 150 stores in a turnaround bid and reported another quarter of sales. Lowe’s (LOW) downbeat 2024 sales and profit outlook weighed on the home improvement chain’s stock.

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  • Bitcoin hits two-year high

    The bitcoin rollercoaster is not done yet.

    The price of bitcoin (BTC-USD) soared to two-year highs on Tuesday, surpassing $57,000 a token as big buyers enter the market.

    On Monday, crypto investor MicroStrategy (MSTR) announced it purchased 3,000 bitcoins for $155 million while prices have also been buoyed by recent approvals of spot bitcoin exchange-traded funds (ETFs) in the US.

    Shares of other cryptocurrencies and exchanges echoed Bitcoin’s move to the upside. Ether (ETH-USD) topped $3,200 for the first time since 2022 while shares of Coinbase (COIN) rose about 3%.

    Bitcoin has gained nearly 35% so far in February. If current levels hold, it will be the token’s largest one-month gain since January 2023.

  • Viking Therapeutics stock rips 70% after positive trial results

    The weight-loss trade is alive and well on Wall Street.

    Shares of Viking Therapeutics (VKTX) rose as much as 70% early Tuesday after the company reported a phase II trial of its weight-loss treatment reached its primary and secondary endpoints.

    The trial showed its weight-loss treatment, VK2735, which is “a dual agonist of the glucagon-like peptide 1 (GLP-1) and glucose-dependent insulinotropic polypeptide (GIP) receptors,” saw patients lose up to a placebo-adjusted 13.1% of their body weight after 13 weeks.

    The company will now meet with the FDA to discuss the next steps in development.

    Viking stock has risen sixfold over the last year, and the company’s market cap is now closing in on $7 billion.

    Elsewhere on Tuesday, shares of Fractyl Health (GUTS) rose as much as 6% after Bank of America initiated coverage on the stock with a Buy rating and a $26 price target.

    Shares of Fractyl are down about 50% since their public debut earlier this month.

    Fractyl is developing diabetes and obesity treatments as the pharmaceutical industry continues to rush toward the opportunity unlocked by Novo Nordisk (NVO) and Eli Lilly (LLY).

    “We initiate coverage on Fractyl with a Buy and $26 PO,” BofA wrote in its note.

    “GUTS is a pre-commercial stage, hybrid medtech/biopharma company that develops treatments for type 2 diabetes (T2D) and obesity. Lead asset Revita (pivotal stage) is a non-invasive endoscopic procedure that restores part of digestive system (duodenum) to a healthier state for better and durable glycemic control.

    “Follow-on asset Rejuva (preclinical) is a one-time, GLP1 gene therapy aims at remission of diabesity, potentially with better tolerability than on-market GLP1 drugs. We like GUTS for actionable catalysts with upside potential in 2024-25 eg pivotal data of Revita that can support approval in multi-bn T2D market.”

  • Consumer confidence falls from two-year high

    Consumers are feeling less confident about the current state of the US economy, according to new data released Tuesday morning.

    The Conference Board’s Consumer Confidence Index for February came in at a reading of 106.7, down from a revised 110.9 in January. January’s preliminary reading was 114, a two-year high for the measure. Economists surveyed by Bloomberg had expected a reading of 115 for February.

    The Expectations Index, which measures consumers’ short-term outlook for income, business, and labor market conditions, fell to 79.8 in February from a revised 81.5 in January. Historically, a reading below 80 in that category signals a recession in the coming year.

    “The decline in consumer confidence in February interrupted a three-month rise, reflecting persistent uncertainty about the US economy,” said Dana Peterson, chief economist at The Conference Board.

    “The drop in confidence was broad-based, affecting all income groups except households earning less than $15,000 and those earning more than $125,000. Confidence deteriorated for consumers under the age of 35 and those 55 and over, whereas it improved slightly for those aged 35 to 54,” she added.

  • Stocks mostly muted

    US stocks were mostly muted in early trading on Tuesday as investors digested a slew of retail earnings reports and awaited upcoming PCE inflation data, due Thursday.

    Both the Dow Jones Industrial Average (^DJI) and S&P 500 (^GSPC) were little changed in the wake of a pullback from all-time highs. Tech stocks were more upbeat, with a rise of 0.3% for the Nasdaq Composite (^IXIC).

  • Macy’s says it’s closing 150 more stores

    Just wow, Macy’s (M).

    In an effort to fend off an overthrowing of its board by activist investor Arkhouse (who has nominated nine directors to the board), Macy’s dropped a bombshell this morning: It plans to close 150 “underproductive” stores, with 50 shutting down this year.

    The goal is to boost profit margins and cash flow and, potentially, push the stock price higher.

    This is a huge, huge number for a company that has shuttered hundreds of stores across the country in the past decade.

    I will push to the side on what this could mean to the battle with Arkhouse for now.

    But what I will say is that this is likely bullish for the general merchandise departments at discounters Walmart (WMT), Target (TGT), and TJX Companies (TJX) long term. Essentially, Macy’s is exiting a fresh round of neighborhoods in the United States and, in turn, sending market share to competitors both in stores and online.

    I think the closures say a lot about how the shift to digital shopping continues to impact legacy retailers such as Macy’s.

    By the way, Amazon (AMZN) naturally is a winner here. It has made great strides in apparel and general merchandise selections, and considering it continues to cut delivery times, expect the tech beast to continue to put major pressure on department store retailers.

  • It still isn’t pretty in the housing market

    The vibe around the US housing market still isn’t pretty and likely won’t be any better until later this year.

    Appliance giant Whirlpool (WHR) just dropped some guidance ahead of an investor day down at the New York Stock Exchange today that says a lot about the continued pressures in the market.

    Despite a major innovation push this year (notably an aggressive push into new small appliances, such as automated KitchenAid espresso makers) the company guided to flat sales in North America year over year.

    The company doesn’t really see top-line improvement until 2026, when it outlined a 2% to 3% compound annual sales growth rate for its largest market — North America.

    I will be diving into the guide more with Whirlpool chairman and CEO Marc Bitzer in a chat that will air on Yahoo Finance Live today in the 3 p.m. ET hour.

    The positive here: The notorious industrial cost-cutter thinks it could expand its profit margins this year, next year, and in 2026 by removing a good amount of costs.

    Keep in mind this back-end weighted outlook from Whirlpool comes on the heels of a lackluster new home sales report this week.

    The bottom line for housing derivative stocks like Whirlpool and Home Depot (HD) to work higher again is that there will have to be new indications on when the Fed will be cutting interest rates. The expectations of rate cuts this year have been pushed back a lot amid stronger-than-expected inflation readings and various Fed speeches.

    That said, I am a buyer of one of those new KitchenAid automatic espresso makers. It’s a Snazzy tool to deliver caffeine in a super-efficient manner!

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Telus prioritizing ‘most important customers,’ avoiding ‘unprofitable’ offers: CFO

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Telus Corp. says it is avoiding offering “unprofitable” discounts as fierce competition in the Canadian telecommunications sector shows no sign of slowing down.

The company said Friday it had fewer net new customers during its third quarter compared with the same time last year, as it copes with increasingly “aggressive marketing and promotional pricing” that is prompting more customers to switch providers.

Telus said it added 347,000 net new customers, down around 14.5 per cent compared with last year. The figure includes 130,000 mobile phone subscribers and 34,000 internet customers, down 30,000 and 3,000, respectively, year-over-year.

The company reported its mobile phone churn rate — a metric measuring subscribers who cancelled their services — was 1.09 per cent in the third quarter, up from 1.03 per cent in the third quarter of 2023. That included a postpaid mobile phone churn rate of 0.90 per cent in its latest quarter.

Telus said its focus is on customer retention through its “industry-leading service and network quality, along with successful promotions and bundled offerings.”

“The customers we have are the most important customers we can get,” said chief financial officer Doug French in an interview.

“We’ve, again, just continued to focus on what matters most to our customers, from a product and customer service perspective, while not loading unprofitable customers.”

Meanwhile, Telus reported its net income attributable to common shares more than doubled during its third quarter.

The telecommunications company said it earned $280 million, up 105.9 per cent from the same three-month period in 2023. Earnings per diluted share for the quarter ended Sept. 30 was 19 cents compared with nine cents a year earlier.

It reported adjusted net income was $413 million, up 10.7 per cent year-over-year from $373 million in the same quarter last year. Operating revenue and other income for the quarter was $5.1 billion, up 1.8 per cent from the previous year.

Mobile phone average revenue per user was $58.85 in the third quarter, a decrease of $2.09 or 3.4 per cent from a year ago. Telus said the drop was attributable to customers signing up for base rate plans with lower prices, along with a decline in overage and roaming revenues.

It said customers are increasingly adopting unlimited data and Canada-U.S. plans which provide higher and more stable ARPU on a monthly basis.

“In a tough operating environment and relative to peers, we view Q3 results that were in line to slightly better than forecast as the best of the bunch,” said RBC analyst Drew McReynolds in a note.

Scotiabank analyst Maher Yaghi added that “the telecom industry in Canada remains very challenging for all players, however, Telus has been able to face these pressures” and still deliver growth.

The Big 3 telecom providers — which also include Rogers Communications Inc. and BCE Inc. — have frequently stressed that the market has grown more competitive in recent years, especially after the closing of Quebecor Inc.’s purchase of Freedom Mobile in April 2023.

Hailed as a fourth national carrier, Quebecor has invested in enhancements to Freedom’s network while offering more affordable plans as part of a set of commitments it was mandated by Ottawa to agree to.

The cost of telephone services in September was down eight per cent compared with a year earlier, according to Statistics Canada’s most recent inflation report last month.

“I think competition has been and continues to be, I’d say, quite intense in Canada, and we’ve obviously had to just manage our business the way we see fit,” said French.

Asked how long that environment could last, he said that’s out of Telus’ hands.

“What I can control, though, is how we go to market and how we lead with our products,” he said.

“I think the conditions within the market will have to adjust accordingly over time. We’ve continued to focus on digitization, continued to bring our cost structure down to compete, irrespective of the price and the current market conditions.”

Still, Canada’s telecom regulator continues to warn providers about customers facing more charges on their cellphone and internet bills.

On Tuesday, CRTC vice-president of consumer, analytics and strategy Scott Hutton called on providers to ensure they clearly inform their customers of charges such as early cancellation fees.

That followed statements from the regulator in recent weeks cautioning against rising international roaming fees and “surprise” price increases being found on their bills.

Hutton said the CRTC plans to launch public consultations in the coming weeks that will focus “on ensuring that information is clear and consistent, making it easier to compare offers and switch services or providers.”

“The CRTC is concerned with recent trends, which suggest that Canadians may not be benefiting from the full protections of our codes,” he said.

“We will continue to monitor developments and will take further action if our codes are not being followed.”

French said any initiative to boost transparency is a step in the right direction.

“I can’t say we are perfect across the board, but what I can say is we are absolutely taking it under consideration and trying to be the best at communicating with our customers,” he said.

“I think everyone looking in the mirror would say there’s room for improvement.”

This report by The Canadian Press was first published Nov. 8, 2024.

Companies in this story: (TSX:T)

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TC Energy cuts cost estimate for Southeast Gateway pipeline project in Mexico

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CALGARY – TC Energy Corp. has lowered the estimated cost of its Southeast Gateway pipeline project in Mexico.

It says it now expects the project to cost between US$3.9 billion and US$4.1 billion compared with its original estimate of US$4.5 billion.

The change came as the company reported a third-quarter profit attributable to common shareholders of C$1.46 billion or $1.40 per share compared with a loss of C$197 million or 19 cents per share in the same quarter last year.

Revenue for the quarter ended Sept. 30 totalled C$4.08 billion, up from C$3.94 billion in the third quarter of 2023.

TC Energy says its comparable earnings for its latest quarter amounted to C$1.03 per share compared with C$1.00 per share a year earlier.

The average analyst estimate had been for a profit of 95 cents per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Nov. 7, 2024.

Companies in this story: (TSX:TRP)

The Canadian Press. All rights reserved.

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BCE reports Q3 loss on asset impairment charge, cuts revenue guidance

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BCE Inc. reported a loss in its latest quarter as it recorded $2.11 billion in asset impairment charges, mainly related to Bell Media’s TV and radio properties.

The company says its net loss attributable to common shareholders amounted to $1.24 billion or $1.36 per share for the quarter ended Sept. 30 compared with a profit of $640 million or 70 cents per share a year earlier.

On an adjusted basis, BCE says it earned 75 cents per share in its latest quarter compared with an adjusted profit of 81 cents per share in the same quarter last year.

“Bell’s results for the third quarter demonstrate that we are disciplined in our pursuit of profitable growth in an intensely competitive environment,” BCE chief executive Mirko Bibic said in a statement.

“Our focus this quarter, and throughout 2024, has been to attract higher-margin subscribers and reduce costs to help offset short-term revenue impacts from sustained competitive pricing pressures, slow economic growth and a media advertising market that is in transition.”

Operating revenue for the quarter totalled $5.97 billion, down from $6.08 billion in its third quarter of 2023.

BCE also said it now expects its revenue for 2024 to fall about 1.5 per cent compared with earlier guidance for an increase of zero to four per cent.

The company says the change comes as it faces lower-than-anticipated wireless product revenue and sustained pressure on wireless prices.

BCE added 33,111 net postpaid mobile phone subscribers, down 76.8 per cent from the same period last year, which was the company’s second-best performance on the metric since 2010.

It says the drop was driven by higher customer churn — a measure of subscribers who cancelled their service — amid greater competitive activity and promotional offer intensity. BCE’s monthly churn rate for the category was 1.28 per cent, up from 1.1 per cent during its previous third quarter.

The company also saw 11.6 per cent fewer gross subscriber activations “due to more targeted promotional offers and mobile device discounting compared to last year.”

Bell’s wireless mobile phone average revenue per user was $58.26, down 3.4 per cent from $60.28 in the third quarter of the prior year.

This report by The Canadian Press was first published Nov. 7, 2024.

Companies in this story: (TSX:BCE)

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