- MarketPulse

MarketWatch, a leading publisher of business and financial news, offers users up-to-the minute news, investment tools, and subscription products.

Union Pacific's stock paces Dow transports losers after Loop Capital downgrades 'unluckiest' railroad

1 hour ago

Shares of Union Pacific Corp. sank 3.3% in afternoon trade Tuesday, to pace the Dow Jones Transportation Average's decliners, after Loop Capital analyst analyst Rick Paterson downgraded the railroad operator, citing concerns that the potential negative effects of recent weather events have yet to be priced in. Paterson cut his rating to hold, after being at buy for the past six months, and slashed his price target to $182 from $193. "Union Pacific wins the award for the world's unluckiest railroad in our view," Paterson wrote in a note to clients. "We thought last May's Oregon tunnel collapse was a cruel blow, but it as nothing compared to the one-two punch of the polar vortex and the Nebraska flooding that currently has the network reeling." Paterson said that while the weather events haven't hurt the stock--it closed at a record on Feb. 19--given the perception that the effects are short-term in nature, he believes what has happened is "going to pose a challenge to cost efficiency, service and growth" in at least the first half of the year. The stock has rallied 16.4% year to date while the Dow transports have climbed 12.3% and the Dow Jones Industrial Average has gained 11.2%.

Google confirms AMD will power streaming-videogame service

2 hours ago

Alphabet Inc.'s Google-branded streaming-videogame service will be powered by Advanced Micro Devices Inc. chips, Google executives confirmed Tuesday. AMD shares were more than 7% higher in Tuesday trading, after Morgan Stanley analysts predicted the announcement ahead of trading. AMD Chief Executive Lisa Su revealed earlier this year at CES that AMD and Google had worked together on the beta test of the service, known as Project Stream. At an event Tuesday in connection with the Game Developers Conference in San Francisco, Google executives said that the partnership will lead to thousands of exclusive custom AMD gaming chips in Alphabet data centers to run the service, which Google calls Stadia. Alphabet shares were trading about 0.6% higher Tuesday.

Dow cuts intraday gain amid conflicting reports on progress in U.S.-China tariff negotiations

2 hours ago

U.S. stock benchmarks were off their best levels in Tuesday afternoon trade, coming amid a pair of reports signaling various stage of progress between the U.S. and China in its trade negotiations. According to Bloomberg News, some U.S. officials were worried that Beijing might roll back some concessions as the world's largest economies attempt to resolve a yearlong trade dispute. Meanwhile, the Wall Street Journal indicated that the parties were in the 'final stages' of trade talks. The Dow Jones Industrial Average, most recently, was up 90 points, or 0.3%, at 26,002, pulling back from an intraday high at 26,109. Meanwhile, the S&P 500 index advanced 0.4% to 2,843 and the Nasdaq Composite Index rose 0.4% to 7,745. Both benchmarks were off their best levels on Tuesday. On Monday, Bloomberg reported that a meeting between President Xi Jinping and President Donald Trump that had been rescheduled to April from March, was being further pushed back to June. The purported purpose of the gathering was to complete any trade agreement between the parties, Bloomberg reported.

Kazakh President Nazarbayev resigns suddenly after 30 years in office

2 hours ago

The president of Kazakhstan, Nursultan Nazarbayev, has resigned suddenly after nearly 30 years in office, but will retain his lifetime post as chairman of the Security Council and lead the ruling party, Radio Free Europe reported Tuesday. The news was announced in a televised address to the nation by Nazarbayev, who has led Kazakhstan since the collapse of the former Soviet Union in 1991. The 78-year-old has been criticized for suppressing dissent and resisting moves to push the country toward democracy, as well as for immunizing himself from criminal and civil prosecution through the status of "leader of the nation" imposed on him in 2010. A former steelworker, Nazarbayev held on to power by rigging elections and has been accused of human-rights abuses. He famously moved the capital of Kazakhstan to Astana from Almaty in 1997. The move comes after protests that were prompted by anger at the deaths of five children from a single family in a house fire in Astana in February. The parents of the children were both away working night shifts. Protests were also driven by harsh economic conditions facing many people in the oil-rich nation.

Citibank fined for violating Fair Housing Act

3 hours ago

Citibank was fined $25 million by the Office of the Comptroller of the Currency for violating the Fair Housing Act. The regulator said Tuesday that the bank had "certain control weaknesses" in its Relationship Loan Pricing program which promised to provide a credit on closing costs or interest rate reductions to borrowers. But the bank did not provide some borrowers with either benefit, and those borrowers "were adversely affected on the basis of their race, color, national origin, or sex." The bank has initiated and mostly completed a plan to reimburse all customers who did not receive the benefit, the OCC said in a release. In addition, it will provide reimbursement to approximately 24,000 customers of approximately $24 million. Citi shares were up nearly 1% mid-afternoon.

Tesla delays price increase to Wednesday after 'unusually high volume'

3 hours ago

Tesla Inc. tweeted Tuesday that it was postponing price increases on its vehicles, scheduled to take effect late Monday, to Wednesday due to "unusually high volume" ahead of the increases. Tesla was unable to process all orders by midnight on Monday, so the price increase, around 3% on average, is scheduled for midnight Wednesday. The shorter range Model 3 remains at $35,000. Shares of Tesla rose more than 1% on Tuesday. They are down 13% for the past 12 months, contrasting with gains around 5% for the S&P 500 index.

Dow stands less than 750 points shy of a record, as a 'golden cross' forms in the blue-chip benchmark

3 hours ago

The Dow Jones Industrial Average on Tuesday looked set to extend a bullish turn that has seen it register four consecutive gains, putting the index less than 800 points from its October record. Most recently, the Dow was up 173 points, or 0.7%, at 26,086, as of midday Thursday. On Oct. 3, the Dow hit a record at 26,828.39, with its current level putting it about 745 points short of that level. The blue-chip gauge's rally, headed for a fifth straight day, also has formed a bullish golden cross, where its 50-day moving average crossed above its 200-day moving average, a feature often viewed by market technicians as a bullish sign in an asset. The Dow's 50-day stands at 25,180.51, while the 200-day is at 25,166. The bullish cross comes 60 sessions after a bearish death cross appeared on Dec. 19. The last golden cross appeared on April 19, 2016, which was 66 sessions after a death cross appeared. Meanwhile, the S&P 500 index was up 0.6% at 2,851, while the Nasdaq Composite Index advanced 0.7% at 7,766.

FDA says Nutra Pharma illegally markets unapproved products claiming to treat addiction and chronic pain

5 hours ago

The Food and Drug Administration said on Tuesday it had posted a warning letter to Nutra Pharma Corp. for illegally marketing unapproved products for treating pain and addiction. "Health fraud scams like these are inexcusable," said FDA Commissioner Scott Gottlieb. Nutra Pharma makes a line of products that supposedly contain cobra venom, something the company says can be used to treat chronic pain, cancer, arthritis and heroin addiction. "These products have not been demonstrated to be safe or effective and may keep some patients from seeking appropriate, FDA-approved therapies," the FDA said in a statement. The regulatory agency is seeking a response from Nutra Pharma within 15 working days. Nutra Pharma trades over the counter.

MoviePass launches new $9.95 a month 'uncapped' subscription plan

5 hours ago

MoviePass, which is owned by Helios & Matheson Analytics Inc. , said Tuesday it was launching a new "uncapped" subscription plan for $9.95 a month for a 12-month subscription, for a limited time. The monthly plan for MoviePass Uncapped is $14.95, for a limited time. The standard price will rise to $19.95 a month when the limited-time offers expire. MoviePass Uncapped includes no cap on the number of 2D movies in MoviePass's theater network, which has more than 30,000 screens in the U.S., a "large" selection of blockbusters and independent films and the ability to reserve tickets three hours before showtime. "We are - and have been - listening to our subscribers every day, and we understand that an uncapped subscription plan at the $9.95 price point is the most appealing option to our subscribers," said Helios & Matheson Chief Executive Ted Farnsworth. "While we've had to modify our service a number of times in order to continue delivering a movie-going experience to our subscribers, with this new offering we are doing everything we can to bring people a version of the service that originally won their hearts." H&M shares gained 1.1% in morning trade. They have lost virtually all their value over the past 12 months, while the Russell 2000 has slipped 0.5% and the S&P 500 has gained 4.8%.

Goodyear to cut 1,100 jobs in Germany as it cuts tire production, modernizes plants

5 hours ago

Goodyear Tire & Rubber Co. disclosed Tuesday that it expects to cut 1,100 jobs in Germany, as part of its plan to modernize tire manufacturing facilities and curtail production. Goodyear's stock rose 1.7% in morning trade. The tire maker said it expects to record charges of $135 million, with $90 million recorded in the first quarter of 2019, as a result of the facility rationalization plan, which is expected to be completed during 2022. The facilities in the plan are the Goodyear Dunlop Tires Germany GMbH's facilities in Hanau and Fulda. The company expects changes to the layout of the plants, efficiency gains from new equipment and the decision to curtail production of tires for declining, less profitable segments of the tire market to lead to the job cuts. Goodyear said the savings from the plan is expected to boost operating income for its Europe, Middle East and Africa business by an annualized $60 million to $70 million over a 3-year period beginning 2020. The stock, which closed at a near 6-year low earlier this month, has tumbled 35.5% over the past 12 months, while the Dow Jones Industrial Average has gained 5.9%.

U.S. factory orders edge up 0.1% in January, point to slower economy

6 hours ago

WASHINGTON (MarketWatch) - U.S. factory orders rose a scant 0.1% in January, another sign pointing to slower economic growth in the first quarter. Economists polled by MarketWatch had forecast a 0.4% increase. Orders for durable goods, or products meant to least at least three years, rose 0.3%. But orders for cheaper products not meant to last a long time, known as nondurable goods, sank 0.5% in January. The 0.1% increase in factory orders in December, meanwhile, was left unchanged.

Chesapeake Energy's stock jumps after bullish analyst call, crude oil rally

6 hours ago

Shares of Chesapeake Energy Corp. jumped 4.5% toward a 4-month high in active morning trade Tuesday, after an upbeat call by Raymond James analyst James Freeman and a rally in crude oil futures toward a 4-month high. Freeman affirmed his outperform rating while boosting his stock price target to $4.50, which is 43% above Monday's closing price, from $4.00. "While we believe that [Chesapeake] will modestly outspend cash flow in 2019, we believe that the company has a good chance of being roughly cash flow neutrality in 2020, a very positive step as the firm looks to continue paring down debt," Freeman wrote in a note to clients. Separately, crude futures rose 0.3%, putting them on track for the highest close since Nov. 12. Chesapeake's stock has soared 57% year to date, while continuous crude futures have run up 31% and the S&P 500 has climbed 13%.

Dow clambers above 26,000 at open, attempts to match longest win streak of 2019 ahead of Fed update

6 hours ago

U.S. stocks on Tuesday opened solidly higher ahead of a policy update by the Federal Reserve set to be released Wednesday afternoon. Investors appeared to shake off news reports that President Donald Trump and Chinese leader Xi Jinping to formally end a U.S.-China trade dispute is unlikely to occur until June. A report from Bloomberg News last week placed April as a tentative time for that gathering, delayed from sometime this month. The Dow Jones Industrial Average was up solidly, gaining 113 points, or 0.4%, to 26,029, on pace for its fifth gain in a row, which would match the blue-chip index's longest string of gains since the period ended Jan. 10, according to FactSet data. The S&P 500 index rose 0.4% at 2,844, while the Nasdaq Composite Index climbed 0.5% to 7,756. A meeting of the rate-setting Federal Open Market Committee is set to commence later Tuesday morning, with an update to policy set to be released at 2 p.m. Eastern Time. In corporate news, shares of Nvidia Corp. were in focus Tuesday after the company announced Monday evening that Inc. would now be using its T4 data-center chips.

Carbon Black names Steve Webber as its new CFO

6 hours ago

Carbon Black Inc. said Tuesday it named Steve Webber as its chief financial officer, joining from BackOffice Associates. Carbon Black, the cybersecurity company, which went public in May 2018, previous CFO was Mark Sullivan, who is resigned and retired as of March 11 after being in the role since October 2015. The stock was indicated down nearly 2% in premarket trade. It has gained 7.8% year to date through Monday, while the Renaissance IPO ETF has run up 31.6% and the S&P 500 has climbed 13.0%.

AbbVie stock down 0.8% after FDA places hold on clinical trials of venetoclax as a treatment for multiple myeloma

7 hours ago

Shares of AbbVie Inc. fell 0.8% in premarket trade Tuesday after the Food and Drug Administration placed a partial hold on all the company's clinical trials of venetoclax as a potential treatment for multiple myeloma. The hold came after a review of Phase 3 data showed a higher proportion of deaths in the treatment arm than in the control arm. "As a result of this action, no new patients should be enrolled in any studies of venetoclax for multiple myeloma until a further analysis of the data is completed. Patients who are currently enrolled in studies and receiving benefit from the therapy may continue with treatment, after consultation with their physician," the company said in a statement. The FDA's hold will not impact any of the already-approved indications for venetoclax, such as chronic lymphocytic leukemia or acute myeloid leukemia, AbbVie said. Shares of AbbVie have fallen 12.5% in the year to date, while the S&P 500 has gained 13%.

Dow's bullish 'golden cross' set to appear, exactly 3 months after a bearish 'death cross'

7 hours ago

The Dow Jones Industrial Average chart is set on Tuesday to produce a bullish "golden cross" pattern, exactly three months after a bearish "death cross" appeared. A golden cross is when the 50-day moving average (DMA), a shorter-term trend tracker, crosses above the 200-DMA, a longer-term trend divider. Many technicians believe the cross marks the spot where a shorter-term bounce turns into a longer-term uptrend. Dow futures are up about 102 points before the open. The 50-DMA is on track to open at $25,177.96 and the 200-DMA at 25,165.81, according to FactSet. The bullish cross comes 60 sessions after a bearish death cross appeared on Dec. 19. The last golden cross appeared on April 19, 2016, which was 66 sessions after a death cross appeared. After that last golden cross, the Dow rallied 29% before the next death cross appeared. Meanwhile, the S&P 500 and Nasdaq Composite are both about two weeks away from producing golden cross patterns.

Apple announces new iMacs with greater computing and graphics performance

7 hours ago

Apple Inc. said Tuesday it has updated its iMac lines, which the company boasts will deliver "dramatic increases" in computing and graphics performance. Apple's stock edged up 0.4% in premarket trade. The new lines will have up to 8-core Intel 9th-generation processors for the first time and Vega graphics option. Apple said the new 21.5 inch iMac with Retina 4K display starts at $1,299 and the new 27-inch iMac with Retina 5K display starts at $1,799, both available starting Monday. The non-Retina display model will still be available for $1,099. "Customers are going to love the huge boost in iMac performance," said Tom Boger, senior director of Mac product marketing. The new iMac announcement comes a day after Apple launched new a iPad Air and iPad mini. The stock has rallied 19.2% year to date through Monday, while the Dow Jones Industrial Average has gained 11.1%.

UPDATE: Jones Lang LaSalle to acquire HFF in deal with equity value of about $2 billion

7 hours ago

Real estate and investment management firm Jones Lang LaSalle Inc. said Tuesday it has agreed to acquire HFF Inc. in a cash-and-stock deal with an equity value of about $2 billion. JLL will pay $24.63 in cash and 0.1505 JLL shares for each HFF share owned, equal to a total consideration of $49.16 per HFF share, or a 22% premium over the volume weighted average price of HFF over 60 trading days. On close, JLL shareholders will own about 87% of the combined company. HFF is a commercial real-estate capital markets intermediary, closing more than $800 billion in more than 27,000 transactions since 1998. "Increasing the scale of our Capital Markets business is one of the key priorities in our Beyond strategic vision to drive long-term sustainable and profitable growth," JLL Chief Executive Christian Ulbrich said in a statement. The deal is expected to close in the third quarter. HFF shares soared 7% premarket after resuming trade following a halt. JLL shares were not active.

Air Canada accelerating in-take of Airbus A321 planes after grounding of Boeing 737 Max jets

7 hours ago

Air Canada said Tuesday it has covered 98% of the routes affected by the grounding of Boeing 737 Max jets following two fatal crashes by the aircraft in the last five months. Air Canada said it intends to remove the 737 Max jets from its fleet until at least July 1, 2019. "The Boeing 737 MAX accounted for six per cent of Air Canada's total flying, but there is a domino effect from removing the 737s from our fleet that impacts the schedule and ultimately will impact some customers," Chief Commercial Officer Lucie Guillemette said in a statement. The airline has been substituting different aircraft on 737 Max routes, and has extended leases for aircraft that were scheduled to exit the fleet. It is also accelerating the in-take of Airbus A321 aircraft from WOW Airlines and his hired other carriers to provide extra capacity. It has made changes to certain routes and temporarily suspended others until further notice. But it has also implemented a flexible re-booking policy with full fee waiver and refund options for affected customers. Boeing shares were slightly lower premarket and are down 11% in the past month, while the Dow Jones Industrial Average is flat and the S&P 500 is down 1.9%.

BorgWarner names Kevin Nowlan its new CFO, who joins from Meritor

7 hours ago

BorgWarner Inc. said Tuesday it named Kevin Nowlan its new chief financial officer, effective April 1. The maker of engine and drivetrain products said Nowlan was previously CFO of Meritor Inc. since 2013. BorgWarner said Thomas McGill, who has been acting as interim CFO, will become controller on April 1, succeeding Anthony Hensel, who will become vice president of special projects. BorgWarner's stock, which was still inactive in premarket trade, has rallied 10.7% year to date, while the S&P 500 has climbed 13.0%.

Altimmune's stock soars on heavy volume after positive trial data of flu vaccine candidate

7 hours ago

Shares of Altimmune Inc. soared 36% in active premarket trade Tuesday, after the immunotherapeutics company reported "additional positive data" from its flu treatment and said it was seeking development and commercialization partnerships. Volume swelled to more than 1.5 million shares, compared with the full-day average of about 1.7 million shares. The company said a phase 2 extension study of its NasoVAX intranasal influenza vaccine candidate showed that 100% of the evaluated subjects remained seroprotected, and the rate was unchanged more than a year after vaccination. "Based on the continued positive data, we are seeking development and commercialization partnerships for our NasoVAX program," said Chief Executive Vipin Garg. "This will allow us to focus on our strategy of building a pipeline of multiple early to mid-stage assets. We are currently engaged in a rigorous acquisition review process focused on novel immunotherapeutic approaches for cancer, including immunostimulants and oncolytic viruses, and innovative product candidates for liver diseases." The stock has rallied 40.3% year to date through Monday, but has plunged 94% over the past 12 months, while the S&P 500 has climbed 13% the past three months and gained 4.4% the past year.

Starbucks to launch new tiered rewards program

8 hours ago

Starbucks Corp. announced Tuesday a new tiered rewards structure to its loyalty program, to provide more choices in how rewards are used, effective April 16. Members will still earn two stars for every $1 spent, but new tiered rewards will include an extra espresso shot, dairy substitute or additional flavor for 25 stars, brewed hot coffee, hot tea or select bakery items for 50 stars and a handcrafted drink, hot breakfast or yogurt parfait for 150 stars. Other tiers include 200 stars and 400 stars. The company said stars earned by Starbucks Rewards Visa Credit and prepaid members will no longer expire. Starbucks said loyalty program membership has increased more than 25% over the past two years to 16 million active members, with rewards transactions accounting for 40% of tender at U.S. company-operated stores. The stock, which is still inactive in premarket trade, has climbed 10.6% over the past three months while the S&P 500 has gained 13.0%.

DSW stock plunges after full-year adjusted profit misses expectations

8 hours ago

Shares of DSW Inc. plunged 8.7% in premarket trade Tuesday, after the discount footwear retailer reported full-year earnings that missed expectations, while fiscal fourth-quarter revenue beat. The company swung to a net loss for the quarter to Feb. 2 of $45.7 million, or 58 cents a share, from a profit of $12.0 million, or 15 cents a share, in the year-ago period. For fiscal 2018, the net loss per share was 26 cents, after a profit of 84 cents in 2017; excluding non-recurring charges, adjusted EPS was $1.66, below the FactSet consensus of $1.78. DSW said adjusted EPS included a loss of 12 cents from the wide down of operations for exited businesses. The company did not provide adjusted EPS for the fourth quarter. Fourth-quarter revenue rose to $843.4 million from $724.7 million, beating the FactSet consensus of $840.6 million, and same-store sales growth of 5.4% beat expectations of a 4.9% rise. The stock has gained 5.5% over the past three months while the SPDR S&P Retail ETF has rallied 9.9% and the S&P 500 has climbed 13.0%.

Michaels Cos. stock soars 4% premarket as quarterly earnings beat offsets soft guidance

8 hours ago

Michaels Cos. Inc. shares rose 4.3% in premarket trade Tuesday, as better-than-expected quarterly earnings offset guidance that was below consensus. The Irving, Texas-based arts and crafts retail chain said it had net income of $181.4 million, or $1.15 a share, in its fiscal fourth quarter to Feb. 2, down from $202.9 million, or $1.11 a share, in the year-earlier period. Excluding restructuring charges and a tax adjustment, EPS came to $1.44, ahead of the $1.42 FactSet consensus. Sales edged down to $1.789 billion from $1.891 billion, but were also ahead of the FactSet consensus of $1.778 billion. Same-store sales fell 0.4%, compared with the FactSet consensus for a decline of 0.2%. For fiscal 2019, the company is expecting adjusted EPS of $2.34 to $2.46 on sales of $5.19 billion to $5.24 billion. The FactSet consensus is for EPS of $2.48 and sales of $5.246 billion. Shares have fallen 45% in the last 12 months, while the S&P 500 has gained 4.4%.

Apple streaming service won't offer Netflix subscription, Hastings says

16 hours ago

Netflix Inc. will not be part of Apple Inc.'s new streaming service, Chief Executive Reed Hastings said late Monday, Variety reported. Speaking at a press event in Los Angeles, Hastings confirmed what many had already suspected. "Apple is a great company," he said, according to Variety. "We have chosen not to integrate into their services." Netflix is currently available through Apple's app store, and that is not expected to change. Apple is expected to unveil its highly anticipated streaming service next week. While it will feature some original shows, it is expected to also bolster its offerings by selling subscriptions to some third-party streaming services, such as HBO and Showtime, much as Inc.'s Prime service does. Speaking on other subjects, Hastings said Netflix won't be entering the potentially lucrative Chinese market for a while. "We will be blocked in China for a long time," he said

Revlon stock tanks after beauty company finds 'material weakness' in its controls, misses views

22 hours ago

Shares of Revlon Inc. fell more than 16% in the extended session Monday after the cosmetics maker reported unaudited fourth-quarter and 2018 earnings, saying it spotted a "material weakness" in its internal controls over financial reporting for 2018. Revlon said it will file its 2018 Form 10-K no later than March 29. Financial results are not expected to change, Revlon said. The company reported a fourth-quarter net loss of $1.33 a share on sales of $742 million, compared with a loss of $1.46 a share on sales of $787 million in the fourth quarter of 2017. Analysts polled by FactSet had expected a profit of 15 cents a share on sales of $749 million for the quarter. Revlon shares ended the regular trading day 2.6% higher.

Atlassian acquires planning-software startup for $166 million after record close

23 hours ago

Atlassian Corp. has agreed to acquire a six-year-old startup that helps businesses plan collaboratively among teams for $166 million, the company announced Monday afternoon after establishing another record-high closing price. AgileCraft will cost the company $154 million in a cash payment, with the rest paid out in shares with vesting provisions. The purchase could show Atlassian's refocused direction - the software company previously sold its businesses that attempted to compete with Slack technologies Inc. and Microsoft Corp. in workplace chat to Slack, along with investing in the business-messaging startup. Atlassian said that the deal would add $1 million to $2 million to revenue in fiscal 2019 revenue, which should be three-quarters complete by the time the acquisition closes in April, but is expected to be dilutive to margins both this year and in fiscal 2020. Atlassian shares closed at an all-time high Monday and have gained 87.7% in the past year, as the S&P 500 index has increased 2.6%, pushing the software company's market capitalization higher than $25 billion. The stock dipped about 0.4% in late trading Monday immediately after the acquisition was announced.

Cannabis producer Tilray stock rises after losses widen, revenue tops estimates

23 hours ago

Tilray Inc. shares gained more than 4% in the extended session Monday after the cannabis producer reported wider-than-expected losses but beat Wall Street revenue estimates. The company reported fourth-quarter net losses of $31 million, or 33 cents a share, compared with losses of $2.9 million, or 4 cents a share, in the year-ago period. Revenue rose to $15.5 million from $5.1 million in the year-ago period. Analysts surveyed by FactSet had estimated losses of 14 cents a share on revenue of $14.1 million. For the first quarter, analysts expect losses of 19 cents a share on sales of $19 million. Tilray stock has fallen 53% in the past six months, with the S&P 500 index falling 2.8%.

Stocks finish slightly higher as Dow picks up fourth straight gain

8 min ago

Stocks closed on a positive note on Monday to extend last week's broad-based rally even as Boeing's travails dragged on the blue-chip Dow. The S&P 500 rose less than 0.4% to end near 2,833. The Dow Jones Industrial Average advanced 65 points, or less than 0.3%, to finish near 25,912, based on preliminary numbers. The Nasdaq Composite rose 0.3% to end around 7,714. The Dow notched its fourth straight consecutive gain. The S&P and Nasdaq hit a fresh 52-week high. Major stock-market benchmarks built on last week's rally that lifted the S&P 500 above its long-term resistance level at 2,800. Investors said they would mostly look ahead to the Fed's two-day meeting set to conclude on Wednesday, with expectations for the central bank to lower its forecasts for interest rates. In company news, shares of Boeing Co. were down 2% after The Wall Street Journal said that federal prosecutors and Department of Transportation officials were investigating the development of the firm's 737 Max jetliners.

Aerpio Pharmaceuticals stock plummets after failed trial of diabetic retinopathy treatment

1 hour ago

Shares of Aerpio Pharmaceuticals Inc. plummeted 71% toward a record low in active trade Monday, after the biopharmaceutical company said a phase 2b study of its treatment for diabetic retinopathy failed to meet its primary endpoint of improvement over placebo. The stock was the biggest decliner listed on major U.S. exchanges, with volume reaching 5.5 million shares, or about 22 times the full-day average. Meanwhile, the company said the trial of its lead candidate AKB-9778 was found did to be safe and well tolerated and showed some encouraging in some secondary endpoints. "While we are disappointed in the primary endpoint results of this study, we are nevertheless encouraged by the fact that several other promising findings observed in our prior 3-month Phase 2a trial have been prospectively confirmed in this 1-year trial," said Chief Executive Stephen Hoffman. The company said it plans to provide an update on the status of AKB-9778 after a full analysis. The stock has now lost 37% over the past 3 months while the iShares Nasdaq Biotechology ETF has gained 16% and the S&P 500 has tacked on 11%.