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

Published

7 months ago

February 27, 2024

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.

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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Tue, February 27, 2024 at 11:40 AM EST

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.
Tue, February 27, 2024 at 10:54 AM EST

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.”
Tue, February 27, 2024 at 10:13 AM EST

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.
Tue, February 27, 2024 at 9:32 AM EST

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).
Tue, February 27, 2024 at 8:30 AM EST

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.
Tue, February 27, 2024 at 7:31 AM EST

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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Business

Canada Goose to get into eyewear through deal with Marchon

Published

6 hours ago

September 19, 2024

Anne Joseph

TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.

The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.

The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.

Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.

Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.

Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:GOOS)

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Business

A timeline of events in the bread price-fixing scandal

Published

7 hours ago

September 19, 2024

Anne Joseph

Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.

Here’s a timeline of key events in the bread price-fixing case.

Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.

Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.

Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.

Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).

Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.

June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.

Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”

Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.

July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.

Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)

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Business

TD CEO to retire next year, takes responsibility for money laundering failures

Published

10 hours ago

September 19, 2024

Anne Joseph

TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.

Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.

The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.

As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.

TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.

TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:TD)

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