DAILY MARKET REPORTS
- U.S. stock indexes opened little changed on Monday, with losses for banking and technology stocks helping put a halt to Wall Street’s strongest start to a year in over a decade.
- Investors are waiting for earnings reports to see how much companies would benefit from the recent tax cuts.
- Shares of Nvidia climbed about 4% after the graphics chipmaker announced partnership with Uber and Volkswagen as its artificial intelligence platforms expand into technology for self-driving cars.
US FINANCIAL MARKET
Celgene to Buy Impact Biomedicines
- Celgene agreed to buy blood-disease biotechnology company Impact Biomedicines for as much as $7 billion.
- Celgene will make an upfront payment of $1.1 billion for the privately held San Diego company.
- Should global net sales surpass $5 billion, there could be another payment of as much as $4.5 billion.
Nvidia partners with Uber, Volkswagen and Baidu on driverless cars
- Nvidia has partnered with Uber, Volkswagen and China’s Baidu in driverless cars.
- Uber will use Nvidia’s graphics chips for the artificial intelligence computing system in its fleet of self-driving cars and trucks.
- Volkswagen will use the Nvidia Drive IX software kit in its new I.D. Buzz microbus concept.
- Baidu and Nvidia are creating an autonomous driving platform for China.
GoPro issues weak guidance and plans to cut workforce by 20%, shares plunge
- GoPro will lay off at least 250 employees.
- The company is leaving the drone business, citing future regulation and intense competition.
Kohl’s boosts full-year outlook on strong holiday sales, shares soar
- Kohl’s on Monday reported same-store sales during the holidays climbed nearly 7% from 2016.
- Kohl’s raised its full-year profit outlook and now expects fiscal 2017 earnings per share to range from $4.10 to $4.20, versus a prior forecast of $3.72 to $3.92.
Lululemon says holiday season sales better than it expected
- Lululemon Athletica said on Monday the holiday shopping season was even better that it had expected and raised its profit and revenue forecasts for the fourth quarter.
- The Vancouver-based company said its forecast for a stronger profit excluded the impact of the recent U.S. tax reform, but it expects to take a significant tax charge in the quarter related to the one-time deemed repatriation tax on foreign earnings.
- The company now expects net revenue of $905 million to $915 million for the quarter, implying year-over-year growth of roughly 15-16 percent and higher than the forecast of $870 million to $885 million it gave on Dec. 6.
Bristol-Myers sees $3 billion tax hit in fourth quarter 2017
- Bristol-Myers will record a $3 billion charge in the fourth quarter of 2017 as a result of the U.S. tax reform law passed last month.
- The expense is primarily related to taxes on unremitted offshore earnings.
Dave & Buster’s stock plunges after lowered profit and sales guidance
- Shares of Dave & Buster’s Entertainment tumbled in premarket trade, after the restaurant and games venue operator cut its 2017 profit and sales outlook.
- The company now expects fiscal 2017 net income of $108 million to $110 million, down from previous guidance of $110 million to $112 million.
- Revenue is now expected to be $1.138 billion to $1.142 billion, compared with a prior outlook of $1.148 billion to $1.155 billion, while the same-store sales guidance range was cut to down 1.0% to down 0.7% from flat to up 0.75%.
iPhones and Children Are a Toxic Pair, Say Two Big Apple Investors
- A leading activist investor and a pension fund are saying the smartphone maker needs to respond to what some see as a growing public-health crisis of youth phone addiction.
- Obsessive teenage smartphone usage has sparked a debate among academics, parents and even the people who helped create the iPhone.
- Apple phones made up 43% of U.S. smartphones in use in 2016, according to comScore , and an estimated 86 million Americans over age 13 own an iPhone.
Exact Sciences to report $265.5-266.5 million in revenue, 168 percent growth for 2017
- Exact Sciences announced that the company expects to report revenue between $86.9 million and $87.9 million for the fourth quarter.
- That is an increase of 148 percent from the same quarter of 2016.
- For the full-year 2017, the company anticipates reporting revenue between $265.5 million and $266.5 million, a year-over-year increase of 168 percent.
Ford to launch diesel truck to grab fuel economy edge
- Ford executives said they expect the F-150 diesel model with a 10-speed transmission to achieve 30 miles per gallon highway fuel efficiency, a level comparable to some midsize cars.
- The diesel F-150 will cost between $2,400 and $4,000 more than a comparable gasoline truck, depending on the specific model, Ford executives said.
- Ford in 2017 sold 896,764 F-series trucks, more than in any year since 2005.
Starbucks wins dismissal in U.S. of underfilled latte lawsuit
- Starbucks has won the dismissal of a U.S. lawsuit accusing the coffee chain of overcharging customers by underfilling lattes and mochas to reduce milk costs.
- The Oakland, California-based judge also rejected a claim that milk foam added to lattes and mochas should not count toward advertised volumes.
US ECONOMY & POLITIC
Economists Stick With Long View for Slower U.S. Growth Despite Recent Uptick
- U.S. economic growth picked up last year and that could continue into 2018 if tax cuts enacted into law last month spur business investment and consumer spending, as many forecasters expect.
- The economy grew at a 3.1% annual pace in the second quarter and a 3.2% annual rate in the third quarter.
- That was well above the post-recession pace of near 2%.
EUROPE & WORLD
Oil approaches 2015 highs on fewer U.S. rigs, OPEC
- U.S. West Texas Intermediate (WTI) crude futures had risen to $61.67 a barrel.
- Brent crude futures were at $67.78 a barrel.
VW 2017 group sales rose to around 10.7 million cars, beating Toyota
- VW group sales probably rose to around 10.7 million cars last year and kept the German behemoth ahead of Toyota as the world’s largest automaker, Bild am Sonntag reported, citing in-house VW estimates.
- In 2016, the first full year after VW’s emissions test-cheating “Dieselgate” scandal, group sales rose 3.8 percent to a record 10.3 million cars, helped by a double-digit increase in China and gains in Europe.
- Toyota said last month it expected to sell 10.35 million cars worldwide in 2017 across its Toyota, Lexus, Daihatsu and Hino brands, up 2 percent from 2016, and 10.5 million this year.
Takata adds 3.3 million air bag inflators to massive recall
- Japanese air bag maker Takata is recalling an additional 3.3 million faulty air bag inflators.
- The latest recalls cover frontal air bags in certain 2009, 2010 and 2013 vehicles made Honda, Toyota, Audi, BMW, Daimler Vans, Fiat Chrysler, Ford, General Motors, Jaguar-Land Rover, Mazda, Mercedes-Benz, Mitsubishi, Nissan, Subaru and Tesla.
‘Star Wars: The Last Jedi’ Falls Short in China
- The movie opened to just $28.7 million, a sign Disney hasn’t hooked Chinese moviegoers yet.
- “Star Wars: The Force Awakens” opened to $52.5 million over two days in 2016.
- Last year’s spinoff “Rogue One” took in $32.4 million on its first three-day weekend.
- Worldwide, “The Last Jedi” has now grossed just over $1.2 billion.
TODAY in HISTORY
- Woodrow Wilson outlined his Fourteen Points peace program. (1918)
- Charles de Gaulle became the first president of France’s Fifth Republic. (1959)
- President Lyndon Johnson announced his War on Poverty. (1964)
- The AT&T Bell System telephone monopoly agreed to divest itself of 22 Bell System companies and split itself into seven “Baby Bells.” (1982)
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