Disclosure NewswireTMiCrowdNewswire - Jul 17, 2017
NEW YORK —
U.S equities rose to all-time highs on Thursday as retail companies rallied the most in the year and Federal Reserve Chair, Janet Yellen, signaled a gradual increase in interest rates. The Dow Jones Industrial average rose 0.1 percent, or 20.95 points, to its new record high. The S&P 500 closed 0.19 percent higher at 2,447.93, slightly below its record-high of 2,453.46. While the tech-heavy NASDAQ 100 Index rallied for a fifth straight gain. XRT, a ETF that replicates the performance of the S&P Retail Industry Index, rose 2.3 percent on Thursday, as Target raised its second-quarter earnings forecast. Yandex NV (NASDAQ: YNDX), Target Corporation (NYSE: TGT), Delta Air Lines, Inc. (NYSE: DAL), J C Penney Company Inc. (NYSE: JCP)
U.S. stock also rose on Wednesday after Janet Yellen signaled that the rate hike would be gradual during her testimony to Congress. She also said that the Fed may start to reduce its $4.5 trillion asset portfolio later this year. The change of tune sent stocks higher as it eased the concern that the Fed may act on an aggressive rate hike schedule this year. Jeff Kravetz, Regional Investment Strategist at the Private Client Reserve at U.S. Bank, said in a CNBC report: “We’re getting a positive reaction to her testimony. What happened was she was more dovish than the market expected in her prepared remarks.”
Yandex NV (NASDAQ: YNDX) shares jumped more than 15% after an announcement that, together with Uber, the two companies reached an agreement to combine their ridesharing businesses in Russia, Kazakhstan, Azerbaijan, Armenia, Belarus and Georgia into a new company (“NewCo”). Uber will also contribute its UberEATS business in the region to NewCo. In addition, Uber has agreed to invest $225MM and Yandex has agreed to invest $100MM into NewCo, valuing it at $3.725Bn on a post-money basis. After these investments, and subject to certain adjustments at closing, NewCo will be owned approximately 59.3% by Yandex, 36.6% by Uber, and 4.1% by employees of the company, on a fully-diluted basis. Tigran Khudaverdyan, currently the CEO of Yandex.Taxi, will become the CEO of the combined business.
Target Corporation (NYSE: TGT) stock surged more than 4.5%, updated its guidance for second quarter 2017 comparable sales and earnings per share (EPS). As a result of improved traffic and sales trends through the first two months of the quarter, Target is now expecting to report a modest increase in its second quarter comparable sales. In addition, the Company now expects to report second quarter GAAP and Adjusted EPS1 above the high end of its previous guidance range of $0.95 to $1.15. Both GAAP and Adjusted EPS are expected to reflect a 5 to 9 cent benefit driven by the net tax effect of the Company’s global sourcing operations.
Delta Air Lines, Inc. (NYSE: DAL) reported financial results for the June quarter 2017. Adjusted pre-tax income for the June 2017 quarter was $1.85 billion, a $172 million increase from the June 2016 quarter, primarily driven by higher revenue. Delta recorded a June quarter 2017 adjusted operating margin of 18.4 percent. Delta delivered these results despite a $125 million negative impact from the operational disruption following severe storms in Atlanta in early April. “The June quarter ranks among the best in Delta’s history as our people delivered top financial, operational, and customer satisfaction results – and it is an honor to recognize that performance with an additional $338 million toward our 2017 profit sharing,” said Ed Bastian, Delta’s Chief Executive Officer. “While 2017 is a transition period for Delta, we are encouraged by the improvement in unit revenues, leading to increasing conviction in our ability to expand margins as we move through the back half of the year.”
JCPenney Company Inc. (NYSE: JCP) stock jumped 8% after the retailer announced that it is opening toy shops in all of its brick-and-mortar locations with a significantly expanded assortment available at JCPenney.com. Strategically adjacent to the Disney Collection inside JCPenney, the shops feature an extensive selection of toys for kids of all ages including dolls, action figures, racing cars, arts and crafts, board games and learning sets from leading brands such as Hasbro®, Mattel®, Playmobil® and Fisher Price®, to name a few. “JCPenney has a nostalgic history of selling sought-after toys in our early Christmas catalogs, so we brought toys back last holiday season to see if they would resonate once again. We were extremely pleased by customer response and confidently made the decision to grow our toy assortment in stores and at JCPenney.com. We know that shoppers buy toys year-round and by creating a fun, inviting toy shop, with some of the biggest brands and hottest products, we will entice families to shop and spend more at JCPenney,” said John Tighe, Executive Vice President and Chief Merchant for JCPenney.
Follow us on Twitter for real time Financial News Updates: https://twitter.com/FinInsiders
Follow and talk to us on Instagram: https://www.instagram.com/financialinsiders/
Facebook Like us to receive live feeds: https://www.facebook.com/financialinsiders/
FinancialInsiders.com, a leading financial news informational web portal designed to provide the latest trends in Market News, Investing News, Personal Finance, Politics, Entertainment, in-depth broadcasts on Stock News, Market Analysis and Company Interviews. A pioneer in the financially-driven digital space, video production and integration of social media, FinancialInsiders.com creates 100% unique original content. FinancialInsiders.com also provides financial news PR dissemination, branding, marketing and advertising for third parties for corporate news and original content through our unique media platform that includes Newswire Delivery, Digital Advertising, Social Media Relations, Video Production, Broadcasting, and Financial Publications.
For further information:
Media Contact e-mail: info@Financialinsiders.com