Category: Business

The Dow Jones Industrial Average sold off Thursday after a key inflation reading, threatening to extend this week’s already-sharp losses. Key earnings movers were Acuity Brands (AYI), Constellation Brands (STZ) and Dow Jones stock Walgreens Boots Alliance (WBA). Meanwhile, Micron Technology (MU) earnings are due out after the close.

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Acuity shares rallied around 1% after the company reported strong earnings and sales results. Constellation stock traded down 3% even after topping earnings and sales estimates.

Tesla (TSLA) skidded 2% early Thursday. Elsewhere, Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) both lost more than 2% after today’s stock market open.

In a volatile stock market environment, Dow Jones leaders Johnson & Johnson (JNJ) and Merck (MRK), as well as AutoZone (AZO), Bristol Myers Squibb (BMY), Eli Lilly (LLY) and Quanta Services (PWR), are among the stocks to watch. Keep in mind that ongoing stock market volatility is a reason to stay defensive.

Quanta is an IBD Leaderboard watchlist stock. Eli Lilly is an IBD SwingTrader stock. And Bristol was IBD Stock Of The Day on June 22. AutoZone featured in this week’s Stocks Near A Buy Zone column.

Dow Jones Today: Treasury Yields, Oil Prices, Inflation Report

After Thursday’s open, the Dow Jones Industrial Average sold off 1.8%, and the S&P 500 moved down 1.9%. The Nasdaq dived 2.4% in morning trade.

Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) moved down 2.3%. The SPDR S&P 500 ETF (SPY) lost 1.9% in early trade.

The 10-year Treasury yield retreated to 3.02% Thursday following Wednesday’s slide to 3.09%. The 10-year Treasury yield is trying to rebound after a sharp pullback. In mid-June, it hit its highest level since April 2011 at 3.48%.

Meanwhile, U.S. oil prices fell 2%, with West Texas Intermediate trading below $108 a barrel. In early March, WTI briefly topped out above $130.

The Federal Reserve’s preferred measure of inflation came out Thursday morning, with the personal consumption expenditure price index rising 0.6% for the month of May, with a year-over-year increase of 6.3%. Both numbers came in slightly lower than consensus Econoday estimates. Personal income rose 0.5% in May, in line with estimates.

The PCE price index is one measure of U.S. inflation, tracking the change in prices of goods and services purchased by consumers throughout the economy.

Meanwhile, first-time unemployment claims fell to 231,000, down from a revised 233,000 in the prior week, per the Labor Department.

Stock Market Volatility

The stock market posted mixed action Wednesday, as the Dow Jones industrials held a modest gain. The Nasdaq and S&P 500 notched slight losses.

Wednesday’s The Big Picture column commented, “The S&P 500, down 2% on Tuesday, edged 2 points lower. In contrast, gains of 2 points or more by at least eight of the Dow Jones Industrial Average’s 30 components — including Leaderboard position UnitedHealth (UNH) and IBD Long Term Leader Microsoft — helped hoist the blue-chip average to a nearly 0.3% gain.”

If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.

Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.

Dow Jones Earnings: Walgreens

Walgreen Boots Alliance reported better-than-expected quarterly results early Thursday, but shares fell more than 5% in early morning trade.

WBA shares finished Wednesday about 26% off their 52-week high and sharply below their 200-day lines

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Four Dow Jones Stocks To Watch Now

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Dow Jones Stocks To Watch: Johnson & Johnson, Merck

Dow Jones leader Johnson & Johnson is about 3% below a double bottom’s 181.84 buy point following Wednesday’s modest decline, according to IBD MarketSmith chart analysis. JNJ shares inched higher Thursday morning.

JNJ stock shows a 94 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.

Drug giant Merck gave up its flat base’s 95.02 buy point Tuesday, and is still about 3% below the entry after a 0.7% gain Wednesday. Early Thursday, the stock inched lower.

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4 Top Growth Stocks To Watch In The Current Stock Market Rally

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Top Stocks To Watch: AutoZone, Bristol, Eli Lilly, Quanta

AutoZone shares regained their cup with handle’s 2,130.60 buy point Wednesday amid a 0.7% rise. Shares were down 0.4% Thursday.

Bristol Myers finished just below a flat base’s 78.72 buy point after Wednesday’s 0.5% loss. The 5% chase zone runs up to 82.66. Shares inched lower Thursday.

SwingTrader stock Eli Lilly rose 1.7% Wednesday, rebounding from Tuesday’s sharp decline. Shares are in the 5% buy area that goes up to 329.81. Eli Lilly shares were down 0.2% early Thursday.

Leaderboard watchlist stock Quanta Services is tracing a messy cup with handle that has a 138.56 buy point, according to IBD MarketSmith chart analysis. Shares are back at their 50-day line, which is a key level to watch. Quanta stock fell nearly 1% Thursday morning.

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Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live

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Tesla Stock

Tesla stock skidded 1.8% on Wednesday, extending a losing streak to three sessions. Shares threatened to add to those losses Thursday morning, falling 2%. The stock is sharply below its 50- and 200-day moving averages.

Tesla is likely to announce second-quarter sales late this week. Analysts polled by FactSet expect Tesla to have delivered 273,000 vehicles in the second quarter, with the range between 249,000 and 323,000. Tesla delivered 310,048 vehicles in the first quarter.

Tesla stock traded as high as 1,243.49 on Nov. 4. Shares are about 45% off that record high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares rose 1.3% Wednesday, snapping a three-day win streak. The stock is far below its long-term 200-day line and is about 25% off its 52-week high. Apple shares moved down 2.9% Thursday morning.

Software leader Microsoft gained 1.5% Wednesday, as it continues lower after finding stout resistance around its key 50-day line. The stock closed about 27% off its 52-week high. Microsoft shares declined 2.1% early Thursday.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.

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Singapore’s markets regulator has reprimanded Three Arrows Capital for filing false information, dealing a further blow to the crypto hedge fund being liquidated over its failed bets.

The Monetary Authority of Singapore said on Thursday that Three Arrows had breached its allowed threshold for S$250mn assets under management. It also said the fund manager had failed to notify it of changes to directorships or shareholdings.

MAS’s public rebuke is a rare step and compounds the problems at Three Arrows, one of the largest investors in the crypto market.

Co-founder Su Zhu has previously made the case for a crypto “supercycle”, in which prices would be immune from collapse on account of increasing adoption of crypto tokens. Among its big positions were holdings in Grayscale Bitcoin Trust, the world’s largest crypto investment vehicle.

Tumbling prices have undermined its holdings and the investment firm has failed to meet demands from lenders to put up extra funds to back its loans. This week Teneo, the consultancy, was appointed as joint liquidator for Three Arrows in the British Virgin Islands, where the sole fund it managed was based.

MAS said Three Arrows had been under investigation for a year. “In light of recent developments which call into question the solvency of the fund managed by Three Arrows, MAS is assessing if there were further breaches by Three Arrows of MAS’ regulations,” it said.

The company became a registered fund management company in Singapore in 2013, permitted to manage assets of up to S$250mn. MAS said it has exceeded the limit twice, between July and September 2020 and between November 2020 and August 2021.

At the start of September last year Three Arrows shifted the management of its sole fund to an offshore entity in the BVI. However it failed to notify the Singapore regulator that Zhu was also a shareholder of the BVI entity.

Three Arrows did not immediately respond to a request for comment.

Earlier this week Canadian crypto broker Voyager Digital issued Three Arrows with a default notice after failing to make good on a $650mn loan. The loan was made up of approximately $350mn worth of USDC — a stablecoin — as well as more than 15,000 bitcoin.

Bitcoin, by far the world’s most popular cryptocurrency, has lost approximately 70 per cent of its value since posting an all-time high of almost $70,000 last November. The industry’s market cap has also plummeted from more than $3tn — a high posted during last year’s bull run — to about $900bn in recent weeks.

1. The race to driverless cars: SoftBank (SFTBF) and Toyota (TM) are forming a joint venture that will use driverless-car technology to offer new services, such as mobile convenience stores and delivery vehicles in which food is prepared en route.

SoftBank will own just over half of Monet, the new business, while Toyota will hold the rest.

It’s the latest in a series of driverless development partnerships announced by tech companies and carmakers. SoftBank’s $100 billion Vision Fund, its tech-focused investment arm, had already committed $2.3 billion to General Motors’ self-driving car unit GM Cruise.

On Wednesday, Honda (HMC) and General Motors (GM) said they were teaming up to create a new generation of fully autonomous vehicles. BMW (BMWYY) has joined the board of Apollo, an autonomous driving project from Chinese internet firm Baidu (BIDU).

2. Facebook under investigation: The Irish Data Protection Commission has launched a formal probe into a Facebook (FB) hack that affected as many as 50 million accounts.

The commission will investigate whether the company complied with its obligations under new European data protection laws that came into effect in May. Facebook said last week that it closed the loophole, but 90 million users were forcefully logged out of their accounts as a precaution.

Irish regulators are investigating because Facebook’s international headquarters is in Dublin.

There are still many unanswered questions about the hack: Who carried it out? And what were they trying to access?

3. Bonds sell-off: The yield on 10-year US Treasuries has spiked to the highest level in seven years following the release of positive economic data.

US hiring data published Wednesday was stronger than expected, and momentum could continue Thursday if initial claims numbers add to the optimism. A strong US economy and the expectation of rate hikes by the Federal Reserve are fueling the trend.

“The underlying message is that the US economy isn’t just in fine fettle, it’s on fire,” said Kit Juckes, strategist at Societe Generale.

4. CNN means business: On Thursday, CNNMoney becomes the all-new CNN Business, covering the companies, personalities, and innovations driving business forward.

This new initiative will focus on the single biggest financial story of our generation: how technology is upending every corner of the global economy, forcing businesses, workers, and society itself to adapt rapidly, or be left behind.

5. Global market overview: US stock futures were lower.

European markets dropped in early trade following a negative trading session in Asia. The Shanghai Composite was closed for a holiday.

The Dow Jones industrial average closed 0.2% higher on Wednesday, while the S&P 500 added 0.1% and the Nasdaq gained 0.3%.

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6. Earnings and economics: Constellation Brands (STZ) will release earnings before the open. Costco (COST) is set to follow after the close.

Shares in Danske Bank (DNKEY) opened 3% lower after the Danish lender said it had received requests for information from the US Department of Justice in connection to its money laundering scandal.

Markets Now newsletter: Get a global markets snapshot in your inbox every afternoon. Sign up now!

7. Coming this week:
Thursday — Costco (COST) earnings; CNN Business launches
Friday — US jobs report

CNNMoney (London) First published October 4, 2018: 5:07 AM ET

On June 25, 2018 I woke up to yet another social media trend – a news story with the bold and quite salacious headline “How Safe Are Customer Deposits At FCMB?” had taken over the digital airwaves. Between the shares and likes and comments, a storm in a cup had brewed to great proportions in a matter of hours. Yet again, a demonstration that the basic ethics of responsible journalism and ethical reporting have been thrown away in business and, indeed, everyday life.

In writing the article, the author had made detailed reference to alleged cases of fraud involving staff of FCMB and went ahead to imply that perhaps the bank’s depositors funds are unsafe.

It is quite of great concern to see so-called professionals go to town with such alarming headlines, with the full knowledge that most Nigerians will not bother to read the actual details. It is indeed of greater concern that this sort of material was released in the way it was, when by his own admission, the author had received specific information from the bank about its financial performance and ability to remain a growth driven and existentially sustainable institution.

I do not have an account with FCMB, neither am I in any way connected to the bank or its principals. I, however, do have the simple capacity to read between the lines and remove chaff from substance.

In the first place, for FCMB to have increased its shares in Legacy Pension to make it a full-fledged subsidiary as reported in this article, it means the bank is forward-thinking and focused on both diversifying and improving its service offerings and earnings. That’s a bold move, when you consider that the Pensions industry in Nigeria has the potential to be bigger than the banking industry in another decade or so.

But even more interesting is the fact that by his very own article, the author admitted that FCMB’s deposits grew to N689.9billion as at the end of December 2017, an increase of 5%, from N657.6billion in the corresponding year. Do customers increase their deposit in a bank they have fears over or which is on the brink? Is it not only logical that customers are only likely to increase deposits in a bank where they enjoy good service and feel at home? For a fact, I know that the KPMG Banking Industry Customer Satisfaction Survey 2017 placed FCMB in 5th position in the entire Nigerian banking industry in Retail Banking, SME Banking and Wholesale Banking. That’s no mean feat when you take into account the number of operators in the industry.

I think what stumped me the most is the fact that by his own article, the author let us in on key financial metrics of FCMB, including the fact that FCMB reported a gross revenue of N169.9 billion and a profit before tax (PBT) of N11.5billion, while profit after tax (PAT) was N9.4billion.

At face value, it seems to me that the author for reasons best known to him or her was determined to demarket FCMB and portray it in the most negative light possible. I do not dispute the possibility that there were some fraudulent activities – afterall, there is no smoke without fire and that tends to ring through more in Nigeria than elsewhere. However, this is an industry challenge – the Managing Director of the Nigerian Inter-Bank Settlement System (NIBSS) Adebisi Shonubi (who a few weeks ago was nominated a Deputy Governor of Nigeria’s Central Bank) recently shared some startling statistics on fraud in Nigeria’s banking industry, revealing the number of reported fraud cases in Nigerian Banks had steadily risen from 1,461 in 2014 to 10,743 in 2015, 19,531 in 2016 and 25,043 in 2017. It has been argued that frauds in the Banks are not alien. In the United States of America it has been said, with compromised credit cards and data breaches often in the news in the past couple of years, fraud is top of mind with many people.

This deliberate attempt to demarket FCMB for reasons best known to the author also brings to mind the most recent attack on GTBank over the Innoson case.

It is not to be forgotten how earlier this month, social media went agog with news that a court had directed GTBank to pay 12 billion naira to Innoson Group, one of its clients with whom it has had a long-standing court battle. The misleading reports on social media had extremely sensational headlines such as “Court Orders GTBank To Pay 14bn To Innoson”; “GTBank Must Pay Innoson 14Bn Within 14 Days”; “GTBank In Trouble As Court Orders Payment of 14bn to Innoson”.

It was such a terrible jamboree on social media that there were certain broadcasts sent across Whatsapp and other social media asking people to withdraw their funds from GTBank immediately, on the premise that the bank would go bankrupt after payment of N14bn to Innoson. Of course, Nigerians will not pause to ask whether paying N14bn in settlement can actually cripple a bank that is widely considered Nigeria’s biggest bank brand and clearly, one of the most solid financial behemoths within the African continent. Nobody stops to ponder. The fact that this latest melee was a result of seemingly deliberate attempts to smear the GTBank brand raises more suspicion about the recent publication on the same online platforms questioning the safety of depositors funds with FCMB.

The GTBank vs Innoson saga has so terribly deteriorated on the account of sensational journalism and reportage, that it has taken an ugly ethnic dimension amongst the unlearned. Thus, on various online communities and platforms in Nigeria, you see Nigerians taking sides on the basis of GTBank being a “Yoruba company” and Innoson being an “Igbo company”. What a sad reality for a nation!

First Bank of Nigeria also witnessed the harsh and merciless bite of sensational reporting when recently there was commotion over the contempt judgement against the Bank and some of its key officials in the case Chief Isaac Osaro Agbara & 9 Ors. v. Shell Petroleum Development Ltd, Shell International Petroleum Ltd and Shell International Exploration and Production BV. Before fact could be removed from fiction, so many broadcasts and “breaking news” articles had surfaced online, all leading with headlines that were designed to damage and not just state the facts.

To make progress as a country and support businesses to thrive, this approach must be arrested. Must we sensationalize everything just so we can earn readership and our 5 minutes of fame, to the detriment of businesses and companies that provide livelihood for thousands of families across Nigeria? I think not.

Even where we need to address real matters arising, surely, the reporting can be more facts-based and less about blackmail and demarketing. As my Yoruba friends have a saying in their language “Even if they sent you on the errand as a slave, deliver the message as a free born”. Crying wolf falsely too many times has serious downsides. Social media credibility is extremely important for the dissemination of relevant, topical, up to date and authentic information. Using it constantly as a vehicle to settle scores, blackmail and seek for attention will ultimately harm the reputation of not only the charlatans in that field but also the real professionals. The fake news toga will be cast on all. That will be a big shame. Freedom presupposes responsibility. Freedom devoid of responsibility is excessive liberty.

These institutions need protection and we really need to stop portraying ourselves to the rest of the world as people always thinking of fraud and sleight of hand strategies to make ill-gotten wealth. There are many honest and hardworking people all over Nigeria. We deserve better than these constant sensational but fake so called ‘investigative’ write ups.

Emefulenwanne Ibeayoka is a public analyst writing from Abuja

Refocused and reenergized, Canada’s most influential business magazine will help readers engage with the leaders who are driving innovation in this country

Business in Canada is changing — and so is Canadian Business.

Trusted by executives and entrepreneurs for nearly a century, the country’s preeminent business magazine is refocused, reenergized and ready for its exciting relaunch this October. Online and in print, the publication will offer everything from inspiring profiles to unique thought leadership that reflects the changing face of business from coast to coast — and with an eye to global trends.

“Business leaders today are not the same as they were a decade ago — or even five years ago,” says Charlotte Herrold, the newly appointed editor-in-chief of Canadian Business. “They’re young, diverse and progressively minded. They’re working to build a better future for Canada by fostering meaningful change, not by looking only at the bottom line.”

With this shift already underway, the upending effects of COVID-19 have brought these leaders — and their boundary-pushing ideas — even further to the fore. As they help Canada “build back better” in the post-pandemic world, Canadian Business will be there to serve up the inspiration and resources to fuel their important work.

It’s something that Canadian Business has been doing for more than 90 years. The magazine got its start in 1928 as a newsletter of the nascent Canadian Chamber of Commerce. Though its content was soberly bureaucratic, its aim (and that of the Chamber) was lofty: to foster a spirit of cooperation among business leaders — and in doing so, encourage innovation and improve the economy. 

In 2021 and beyond, Canadian Business is all about bringing together the country’s business community. And whether you’re a small-business owner or a captain of industry, joining our community has real benefits. Sign up now for our e-newsletter to learn more about our relaunch and the many ways we’ll be challenging the status quo to showcase new ways of doing business. Among them, our Canadian Business Leadership Circle offers exclusive insights and experiences courtesy of a new C suite-level executive every month, while our CB Insider membership program will help you connect with other business leaders from across Canada. 

Because those are the things leaders do. They communicate with clarity and authenticity. They embrace change. They build relationships with purpose. Exactly what you can expect from the new Canadian Business.

To be one of the first to receive the inaugural issue of the new Canadian Business, as well as access to subscriber events and more, subscribe now for the special rate of $24 for 8 (eight) issues (regular price $40). 

The Mayor of Mykolaiv has recounted the horrors of Wednesday’s Russian missile attack, which claimed the lives of three in the southern Ukrainian city. Oleksandr Sienkevych said 10 Russian missiles struck various locations, including a Mykolaiv residential complex, and bodies were still trapped in the rubble. 

“Rescue teams are changing, but they have not stopped clearing the rubble in the hope of finding more alive or injured people. Many died, some we can’t even find yet. Parts of the bodies from the explosion site were at a distance of up to 200 meters, Sienkevych told Current TV, a Russian-language television channel based in Prague.

Rubbishing Russian claims that the attack targetted “training base for foreign mercenaries,” Sienkevych said the shelling continues all day long. “This precision weapon, which the President of Russia boasts of, causes irreparable harm and kills civilians in their homes. If this is really a high-precision weapon, why shoot at peaceful houses? If it is not highly accurate, how can it be used in these residential areas? It is a crime,” he added.

Mykolaiv has been a bastion against the bid of Russian troops to push west toward Ukraine’s main port city of Odessa. 

According to Sienkevych, the Russians are shooting either from Crimea or from Kherson. “That is, guided missiles arrive from that side. The fact is that they launch them from a very close distance. And we do not even have time to fix them, or turn on the siren in time,” he said. 

The Mayor added that the shelling is being carried out from multiple launch rocket systems with cluster shells. The shells come from the village of Zelenovka in Kherson and their flight time to the city is also no more than two minutes.

Sienkevych said Russia was “covering up genocide” and Putin hates Ukraine as a nation. “If Putin says that he has decided to denazify and demilitarize Ukraine, then why is he killing civilians? Later, I just realized that behind all this, the usual genocide is covered up. Putin hates Ukrainians as a nation, therefore he wants to destroy as many Ukrainians as possible, to destroy our infrastructure. I think that he destroyed all possible dreams about the existence of two fraternal peoples,” he added. 

Photo: Reuters / EDGAR SU