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Stock Market News: ADP payrolls jump, Fed Day, Eli Lilly’s Alzheimer drug

ADP payrolls stronger-than-expected, the Federal Reserve decision on tap, CVS, Starbucks, AMD earnings in focus and Eli Lilly’s Alzheimer drug sends shares higher. FOX Business is providing real-time updates on the markets, commodities and all the most active stocks on the move.


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Breaking News

Fed hikes interest rates

The Federal Reserve, as expected, hiked interest rates by 0.25% basis points lifting the federal funds rate to the 5% range.

Policymakers also gave a major shift about whether they will keep hiking rates.

Posted by FOX Business

Wall Street ends down after Fed chair comments on rate hikes

Dow Jones Averages.


U.S. stocks ended lower on Wednesday, reversing gains after comments by Federal Reserve Chair Jerome Powell left investors wondering what the U.S. central bank's next move would be with interest rate hikes.

Indexes initially held onto gains following the Fed's statement. It increased interest rates by a quarter of a percentage point, as expected, and signaled it could pause further hikes.

At the press conference following the statement, Powell said the Fed still views inflation as too high, and said it was too soon to say the rate hike cycle is over.

Heading into the session, investors had been anxious for any signals from the U.S. central bank on whether Wednesday's increase would be the last hike for now.

Posted by Reuters

CVS Health to pause M&A and focus on integration


CVS Health Corp said on Wednesday it would pause its recent acquisition spree as it focuses on integrating purchases of healthcare service provider Signify Health and primary care provider Oak Street Health.

CVS, which has a large retail pharmacy chain, and major health insurance and pharmacy benefit manager (PBM) units, like other healthcare rivals has been looking to broaden the services it offers.

CEO Karen Lynch said CVS will focus on integrating Signify and Oak Street with its other businesses in the near term.

Longer term, Lynch said, the company might look at additional opportunities in technology for home or health services.

Posted by Reuters

Airbus says Pratt & Whitney failing to provide enough engines, support for jets


The head of planemaker Airbus said on Wednesday U.S. engine maker Pratt & Whitney has been struggling to support its fleet of passenger jets with enough spare parts and engines.

CEO Guillaume Faury declined comment on a decision by India's third-largest airline, Go First, to file for bankruptcy, which it blamed on problems with the durability of Pratt & Whitney's GTF engines on its Airbus 320neo jets.

Raytheon Technologies unit Pratt & Whitney did not immediately respond to a request for comment.

The world's largest aerospace contractor told investors last week that time on wing - the period between maintenance visits - had improved but was "not yet at the level we and our customers expect". The company said it was continuing to develop upgrades.

Posted by Reuters

Tesla resumes US orders for a Model 3 version at lower price, range


Tesla Inc has resumed taking orders for its Model 3 long-range vehicle in the United States, the company's website showed late on Tuesday, after a temporary halt last year due to delivery backlogs.

The long-range version of the entry-level Model 3 is priced at $47,240 currently, about 18.5% less than the $57,990 it was priced at last August when Tesla halted taking orders in the United States and Canada.

Model 3 Long Range has a range of “325+” miles per charge, down from 358 miles. It is eligible for a $3,750 government subsidy, compared with a full $7,500 subsidy for a Model 3 Performance version.

Tesla expects to resume delivery of the long-range Model 3 electric sedan in June, according to the website. However, it is still not accepting orders in Canada, the website showed.

Posted by Reuters

Ford CEO says price cuts in EV market 'a worrying trend'


Ford CEO Jim Farley said Wednesday price cuts in the electric vehicle market "is a worrying trend" after the U.S. automaker cut prices following a series of reductions by rival Tesla.

Ford on Tuesday announced a price cut of up to 8% of its Mustang Mach-E electric vehicle, the second cut the automaker announced this year.

"You do not want to commoditize the product," Farley said at a Wall Street Journal forum. "The resale value for people who bought at higher prices is awful. They never forget."

Ford will follow Tesla price cuts but Farley said "there’s a limit to how far we’ll go."

Posted by Reuters

Darden buys Ruth's Chris Steak House for about $715 million


The Ruth’s Chris Steak House chain is being acquired by Darden Restaurants for about $715 million. The original Chris Steak House was opened on New Orlean’s Broad Street in 1927, and it was acquired by Ruth Fertel in 1965.

The company has 154 locations worldwide, including 80 company-owned or -operated restaurants and 74 franchised restaurants.

The company suffered as most restaurants did during the pandemic, closing 23 restaurants in early 2020, furloughing workers and announcing that executives were taking less pay.

Shares of Ruth’s Hospitality Group Inc., which owns the restaurants, recovered within a year of the outbreak. Shares were halted before the market opened and jumped more than 30% at the bell.

Posted by Associated Press

Short investor Hindenburg erases fifth of Icahn empire's value

Icahn Enterprises Lp.


Hindenburg Research, the short investor whose reports on companies have erased a big chunk of their value, criticized Icahn Enterprises LP on Tuesday over the reporting of its finances, leading to a 20% drop in the shares of activist investor Carl Icahn's firm.

The development represents a rare challenge for Icahn who is accustomed, as one of the pioneers of shareholder activism, to dressing down companies over their governance and transparency, but has not had to field such criticism himself.

In a report published on Tuesday, Hindenburg accused IEP of overvaluing its holdings and relying on a "Ponzi-like" structure to pay dividends. The subsequent plunge in IEP shares wiped $2.9 billion off Icahn's net worth, leaving him with an estimated $14.7 billion, according to Forbes.

Icahn said in an IEP statement that Hindenburg's "self-serving" report was aimed at generating profits at the expense of IEP's long-term shareholders.

Posted by Reuters

Ford's profit rises on truck demand but EV outlook sends shares lower

F$11.80 -0.26-2.16

Ford Motor made $1.76 billion last quarter, swinging into the black from a $3.1 billion net loss from a year ago.

Most of the profit came from Ford Blue, the company's internal-combustion engine vehicle unit, which made $2.62 billion before taxes during the quarter.

However, Model e, which is the automaker's electric vehicle unit lost $722 million before taxes.

Excluding one-time items, Ford made 44 cents per share – beating Wall Street estimates of 42 cents, according to FactSet. Revenue rose 20% to $41.74 billion, soundly beating the $39.25 billion that analysts expected.

Posted by FOX Business
Breaking News

Eli Lilly's Alzheimer drug

Posted by FOX Business

Bank stocks take beating


Regional bank stocks continue to take a beating as investors bet there may be more tumult and in Washington, D.C., lawmakers plan a new grilling for more answers with a hearing set for Thursday.

Posted by FOX Business

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