STOCK MARKET NEWS: Stocks rise, GameStop and Nike report earnings, Congress sets bank hearings
Stocks rebound, GameStop surprises with profit, Nike tops estimates and the Senate sets hearings on Silicon Valley Bank. FOX Business is providing real-time updates on the markets, commodities and all the most active stocks on the move.
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GameStop Corp posted a surprise profit for the fourth quarter and surpassed revenue expectations as the videogame retailer trimmed costs and reduced headcount, sending its shares more than 32% higher in extended trading.
The retailer posted an adjusted profit of 16 cents per share, compared with Wall Street expectations for a loss of 13 cents.
The stock, which is popular among retail investors, lost about half its value last year and has declined 4% so far this year.
Net profit for the quarter ended Jan. 31, GameStop's first in eight quarters, was $48.2 million, compared with a loss of $147.50 million a year earlier.
It reported quarterly revenue of $2.23 billion, compared with analysts' average estimates of $2.18 billion, according to Refinitiv.
Moderna Inc expects to price its COVID-19 vaccine at around $130 per dose in the U.S. going forward as purchases move to the private sector from the government, the company’s president Stephen Hoge said in an interview on Monday.
“There are different customers negotiating different prices right now, which is why it's a little bit complicated,” Hoge said ahead of a Congressional hearing run by Democratic U.S. Senator Bernie Sanders on Moderna’s pricing plans.
Moderna previously said it was considering pricing its COVID vaccine in a range of $110 to $130 per dose in the United States, similar to the range Pfizer Inc said in October it was considering for its rival COVID shots sold in partnership with BioNTech.
Nike Inc beat analysts' estimates for third-quarter revenue on Tuesday, helped by strong demand for its sneakers such as Jordan Retro in North America and Europe.
The company reported a 27% jump in sales in its largest market, North America, while it saw a 17% rise in the Europe, Middle East and Africa region.
Nike's revenue rose to $12.39 billion in the third quarter from $10.87 billion a year earlier. Analysts had expected $11.47 billion, according to IBES data from Refinitiv.
Nike has benefited from a growth in its market share, as rival Adidas struggles with its split with Kanye West and is expected to post its first annual loss in three decades this year.
The U.S. Senate Banking Committee will hold the first of several hearings on the collapse of Silicon Valley Bank and Signature Bank on March 28, Democratic Chairman Sherrod Brown said on Tuesday.
The first hearing will hear from witnesses including Federal Deposit Insurance Corporation Chair Martin Gruenberg, Federal Reserve official Michael Barr, and Nellie Liang, an under secretary at the U.S. Treasury Department, according to a statement from Brown.
Last week, Brown told reporters that new bank industry legislation is unlikely to emerge from Congress.
"There are people who will introduce bills, but I cannot imagine with the hold that the banks have on Republicans in Congress that we could pass anything significant," Brown told reporters.
Brown added that new regulatory actions were possible.
The U.S. House of Representatives Financial Services Committee previously said it will hold a
Diebold Nixdorf is amending its asset-based credit facility (ABL) to add a new $55 million first-in-last-out term loan (FILO) tranche.
Additionally, Diebold Nixdorf's ABL lenders have agreed to certain other modifications and waivers to the ABL facility, allowing them to continue to work together collaboratively to develop an updated borrowing framework. The existing $250 million non-FILO ABL tranche commitments remain in place.
ATM and SCO shipments are expected to increase in the first half of 2023 by approximately 14% and 51%, respectively, compared to the first half of last year. At this time, expected 2023 first quarter revenue of approximately $835 million would represent about 6% growth compared with the same period last year.
UBS is set to enter talks with Michael Klein to terminate a deal that would have seen the Wall Street dealmaker take control of much of Credit Suisse's investment bank, the Financial Times reported on Tuesday.
UBS on Sunday agreed to buy rival Swiss bank Credit Suisse for 3 billion Swiss francs ($3.23 billion) in stock and agreed to assume up to 5 billion francs ($5.4 billion) in losses, in a shotgun merger engineered by Swiss authorities to avoid more market-shaking turmoil in global banking.
Klein, a veteran dealmaker, was merging his eponymous advisory boutique into Credit Suisse's investment banking operations to create CS First Boston as a standalone business which he would have led from New York.
UBS has now assigned a legal team to examine how to void the contract Credit Suisse signed with Klein in the cheapest way possible, according to the FT report, which cited people with direct knowledge of the matter.
"We assume he (Klein) is cherry picking. The deal was done when the selling bank had a gun held to its head and we are no longer in that position," a person close to UBS said, according to the report.UBS and Credit Suisse declined to comment, while Klein could not be immediately reached for comment.
All three of the major U.S. stock averages rose for a second straight session helped by recovering financial shares, as well as consumer discretionary and energy names. Utilities were the bottom performers.
The gains come ahead of the Federal Reserve’s decision on interest rates due Wednesday. In commodities, oil rose 2.5% to $69.33 per barrel.
Intel Corp's Raja M. Koduri, an executive vice president who oversaw the company's efforts to break into the graphics chip market, is leaving the company at the end of March.
Chief Executive Pat Gelsinger said Koduri is leaving to start a new company focused on generative artificial intelligence for gaming, media and entertainment. Koduri said he would share more about the startup company "in coming weeks."
Koduri, a veteran of Advanced Micro Devices and Apple Inc, joined Intel five years ago where he oversaw Intel's efforts to develop chips that would compete with rivals like AMD and Nvidia Corp.
First Republic Bank, the U.S. regional bank struggling to remain viable following a flight of deposits, is looking at ways it can downsize if its attempts to raise new capital fail, according to three people familiar with the matter.
First Republic has been working with JPMorgan Chase & Co to find new sources of capital after a consortium of major banks provided it with a total of $30 billion in deposits last week in a move of solidarity. Unrealized mark-to-market losses in First Republic's loan book and investment portfolio have been an obstacle to clinching an investment.
First Republic is examining how it can sell parts of its business, including some of its loan book, in a bid to raise cash and cut costs, one of the sources said. A sale of loans to other parties, including private equity firms, is one option under consideration, two of the sources said.
While a sale of the entire bank remains possible, First Republic is still currently focused on a capital raise, the third source said.
SVB Financial Group said on Tuesday the U.S. Federal Deposit Insurance Corporation had taken "improper actions" to cut it off from cash held at its former subsidiary Silicon Valley Bank, which was seized by regulators to stem a national bank run.
The company, which has about $2 billion in cash at its former subsidiary, said in court filings that the FDIC receiver had blocked a $250 million wire transfer, removed $19 million from an SVB Financial bank account, and attempted to claw back payments to SVB Financial's bankruptcy attorneys and financial advisers, among other "improper actions."
The company has asked U.S. Bankruptcy Judge Martin Glenn, who is overseeing its Chapter 11 process, to allow it to move funds held at Silicon Valley Bank to a different bank.
But the FDIC said in Tuesday court filings that it had placed a hold on all of SVB Financial's bank accounts, as part of its investigation of potential claims against the bank's former parent. That action was a legal and necessary part of stabilizing banking operations during the transfer to new management, according to the court filings.
Norfolk Southern CEO Alan Shaw will tell lawmakers Wednesday the railroad is "committed" to addressing potential long-term health issues and home value impacts from a Feb. 3 Ohio derailment.
"We are committed to a solution that addresses long-term health risks through the creation of a long-term medical compensation fund," Shaw will tell the U.S. Senate Commerce Committee in written testimony seen by Reuters. He added the railroad is committed "to provide tailored protection for home sellers if their property loses value due to the impact of the derailment."
Ohio sued Norfolk Southern last week over the derailment that released over a million gallons of hazardous materials and pollutants into the environment around the town of East Palestine.
"This derailment was entirely avoidable," Ohio Attorney General Dave Yost said.
Shaw will say the railroad has made an initial investment of more than $24 million including $9.5 million to more than 5,800 families.
Bill Hwang, the founder of Archegos Captial Management, is asking a federal judge to throw out charges accusing him of illegal market manipulation, which he says was legal trading.
Archegos' collapse in March of 2021 led to billions in losses for it's investors and banks. One such bank Credit Suisse lost more than $5 billion has been teetering ever since.
Federal prosecutors from the SEC have said Hwang built up large positions in companies using swaps which they allege he used to raise the stock price while hiding how invested Archegos’s truly was in a particular asset.
On Monday, GM’s autonomous vehicle unit asked California for permission to test its self-driving, ride-hailing company Cruise across the entire state.
Already, the automaker' subsidiary operates an autonomous ride-hailing service in San Francisco after testing for more than two years.
By expanding Cruise, GM believes it can generate $80 billion in annual sales by 2030 from software and self-driving applications and is expected to generate almost $160 billion in sales in 2023.
In December, the National Highway Traffic Safety Administration opened an investigation into Cruise, looking at vehicles that might brake hard unexpectedly or become immobilized.
After a series of high level meetings last week, a second round of bids to buy Manchester United are due Wednesday.
Representatives of Sheikh Jassim bin Hamad Al Thani toured Old Trafford and the club's training ground last Thursday, meeting with United executives. Jim Ratcliffe held talks with the Premier League club on Friday and was pictured being greeted by chief executive Richard Arnold. American investment firm Elliott Management has also held meetings with a view to providing capital for takeover bids or other finance options.
Indicative offers were submitted to American merchant bank Raine last month, with Sheikh Jassim and Ratcliffe confirming their intention to buy out the Glazer family, the current owners of United.
The next stage of the process included a closer look at United's business and meetings with key executives before making renewed bids.
Alphabet Inc's Google on Tuesday began the public release of its chatbot Bard, seeking users and feedback to gain ground on Microsoft Corp in a fast-moving race on artificial intelligence technology.
Starting in the U.S. and the U.K., consumers can join a waitlist for English-language access to Bard, a program previously open to approved testers only. Google describes Bard as an experiment allowing collaboration with generative AI, technology that relies on past data to create rather than identify content.
The release last year of ChatGPT, a chatbot from the Microsoft-backed startup OpenAI, has caused a sprint in the technology sector to put AI into more users' hands. The hope is to reshape how people work and win business in the process.
Just last week, Google and Microsoft made a flurry of announcements on AI, two days apart. The companies are putting draft-writing technology into their word processors and other collaboration software, as well as marketing related tools for web developers to build their own AI-based applications.
U.S. existing home sales increased for the first time in a year in February as a decline in prices on an annual basis pulled buyers back into the market, further evidence that the housing market was stabilizing at low levels.
Existing home sales surged 14.5% to a seasonally adjusted annual rate of 4.58 million units last month, the National Association of Realtors said on Tuesday. The biggest increase since July 2020 ended 12 straight monthly declines in sales, which was the longest such stretch since 1999.
Sales increased in all four regions, with outsized gains in the Midwest, West and the densely populated South. Economists polled by Reuters had forecast home sales would rebound 5.0% to a rate of 4.20 million units.
Treasury Secretary Janet Yellen is trying to project calm after regional bank failures, saying the U.S. banking system is “sound” but additional rescue arrangements “could be warranted” if any new failures at smaller institutions pose a risk to financial stability.
Yellen, in an excerpt of remarks prepared for delivery to the American Bankers Association on Tuesday, says that overall “the situation is stabilizing."
"And the U.S. banking system remains sound,” Yellen says.
Yellen's remarks come after a series of troubling bank developments this month.
The last gas-powered muscle car from Dodge isn't leaving the road without some squeals, thunder and crazy-fast speed.
The 2023 Challenger SRT Demon 170 will deliver 1,025 horsepower from its 6.2-liter supercharged V-8, and the automaker says it will be the quickest production car made.
Stellantis, formed in 2021 by combining Fiat Chrysler and France’s PSA Peugeot, says it can go from zero to 60 miles per hour (97 kilometers per hour) in a scary 1.66 seconds, making it faster than even electric supercars from Tesla and Lucid.
Stellantis will stop making gas versions of the Dodge Challenger and Charger and the Chrylser 300 big sedan by the end of this year, squeezed out by stricter government fuel-economy regulations and an accelerating shift to electric vehicles.
Magic Johnson has joined Josh Harris’ bid to buy the NFL’s Washington Commanders, according to a person with knowledge of the situation.
The person spoke to The Associated Press on condition of anonymity Monday because details of the bid are not being publicized.
Johnson, a basketball Hall of Famer who has become a prominent executive, is already involved in sports ownership with stakes in Major League Baseball’s Los Angeles Dodgers, Major League Soccer’s Los Angeles F.C. and the WNBA’s Los Angeles Sparks. He was also part of Harris' unsuccessful bid to buy the Denver Broncos, who were instead sold to a group led by Walmart heir Rob Walton for a record $4.65 billion.
The Commanders are expected to sell for more, which would be the highest price paid for a North American professional sports franchise. Forbes estimates the team is worth $5.6 billion.
Harris along with partner David Blitzer owns the NBA’s Philadelphia 76ers and NHL’s New Jersey Devils. Washington-area billionaire Mitchell Rales is also reportedly part of Harris’ group.
Google has suspended the Chinese shopping app Pinduoduo on its app store after malware was discovered in versions of the app from other sources.
Google said in a statement Tuesday that it suspended the Pinduoduo app on the Google Play app store out of “security concerns” and that it was investigating the matter.
The suspension of the Pinduoduo app — mainly used in China — comes amid heightened U.S.-China tensions over Chinese-owned apps such as TikTok, which some U.S. lawmakers say could be a national security threat. They allege that such apps could be used to spy on American users.
Pinduoduo is a popular e-commerce app in China which often offers discounts if users team up to buy multiples of an item. Many Chinese online shopping platforms offer downloads of the app. Google warned users Tuesday to uninstall any Pinduoduo app not downloaded from its own Play store.
The major U.S. benchmarks are up on Tuesday as commodities like oil and gold mix.
The Dow Jones Industrial, S&P 500 and Nasdaq are in the green as blue-chip shares like Nike, Boeing and American Express lift the Dow higher.
In commodities, oil is up approximately 1.27% to $68.50 a barrel as gold moves down roughly 0.72% to $1,968.60 an ounce.
Meanwhile, the price of silver is up around 0.02% to $22.65 an ounce.
Tesla sales in China are coming in strong, according to Reuters , which cited the China Passenger Car Association estimate that February sales jumped 32% [sales + exports] vs. the same period a year-ago.
This month's U.S. banking system turmoil and renewed recession worries have left global investor confidence at one of the lowest levels in the last 20 years, and that does not even account for this week's demise of Credit Suisse.
A monthly survey carried out by investment bank BofA following the collapses of Silicon Valley Bank and Signature Bank, but before Sunday's Credit Suisse takeover, showed the perception of risk levels worsening dramatically.
BofA's self-compiled "Financial Market Risk Indicator" of investor worry levels jumped to 7.7, leaving it just off the extreme highs of last year amid the Ukraine war and above both its global financial crisis and COVID outbreak peaks.
With the Silicon Valley Bank turmoil fresh in minds, the U.S. "shadow banking" sector was cited as the most likely source of danger.
Bitcoin prices held steady, hovering around the $28,000 level, as the Federal Reserve begins its two day meeting. The recent gains in the crypto are closely tied to what policymakers may do on Wednesday.
Foot Locker is closing more than 400 low-performing stores in shopping malls by 2026 as it shifts its focus to new concept stores.
The company plans to transform its real estate footprint by opening new formats, shifting off-mall, and closing underperforming stores.
Foot Locker is also adjusting its business model in Asia by closing its stores and e-commerce in Hong Kong and Macau and converting its current owned and operated stores and e-commerce in Singapore and Malaysia to a license model.
JPMorgan Chase CEO, Jamie Dimon, is trying to raise more capital for First Republic Bank, The Wall Street Journal reported on Monday.
Trading of First Republic stock was paused after losing 37% of its value on Monday, but trading resumed in the early afternoon Eastern time, with the stock down about 47% by the bell.
Currently, First Republic is trying to convert $30 billion in deposits from 11 different banks last week into a capital raise, said the WSJ report, which cited people familiar with the situation.
The WSJ also reported the banks may make an investment in First Republic as part of a capital injection.
Midsize banks have a message for regulators: back us up. The push comes as U.S. Treasury Secretary Janet Yellen promises to support the industry reeling from uncertainty.
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