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Stocks rebound from Monday's bank mayhem, Meta announces around round of job cuts, Moody's changes outlook for U.S. banks to negative, CreditSuisse hits record low. FOX Business is providing real-time updates on the markets, commodities and all the most active stocks on the move.
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Meta Platforms Inc.
$
180.90
Meta, the parent of Facebook, confirmed widely speculated reports that layoffs will increase as CEO Mark Zuckerberg wrote to employees and the investor community on Tuesday about what he coined the company's "year of efficiency."
"Our efficiency work has several parallel workstreams to improve organizational efficiency, dramatically increase developer productivity and tooling, optimize distributed work, garbage collect unnecessary processes, and more. I’ve tried to be open about all the work that’s underway, and while I know many of you are energized by this, I also recognize that the idea of upcoming org changes creates uncertainty and stress. My hope is to make these org changes as soon as possible in the year so we can get past this period of uncertainty and focus on the critical work ahead.
"Overall, we expect to reduce our team size by around 10,000 people and to close around 5,000 additional open roles that we haven’t yet hired" said Zuckerberg.
This is the social media giant's second round of layoffs.
Posted by FOX Business
Credit Suisse flags 'material weaknesses' in reporting, outflows not reversed
Credit Suisse logo seen at its headquarters in Zurich, Switzerland, Mar. 24, 2021. (Reuters/Arnd Wiegmann)
| Symbol | Price | Change | %Change |
|---|---|---|---|
| CS | $2.52 | -0.03 | -0.98 |
CreditSuissesaid in its 2022 annual report the bank has identified "material weaknesses" in internal controls over financial reporting and not yet stemmed customer outflows.
"As of December 31, 2022, the Group’s internal control over financial reporting was not effective, and for the same reasons, management has reassessed and has reached the same conclusion regarding December 31, 2021," it said in the filing published on Tuesday.
Auditor PricewaterhouseCoopers (PwC) in the report included an "adverse opinion" on the effectiveness of the bank's internal controls over its reporting but its statements "present fairly, in all material respects" the financial position of the bank in 2020 through 2022.
The reporting weaknesses comes asCreditSuisseis seeking to recover from a string of scandals that have undermined the confidence of investors and clients. Customer outflows in the fourth quarter rose to more than 110 billion Swiss francs ($120 billion).
On Tuesday the bank said "outflows (had) stabilised to much lower levels but had not yet reversed".
Posted by Reuters
Freshpet announces proposed $350M convertible senior notes offering
Freshpet display (Photo: Freshpet investor presentation)
| Symbol | Price | Change | %Change |
|---|---|---|---|
| FRPT | $55.67 | 0.43 | 0.78 |
Freshpet plans a private offering of $350 million convertible senior notes to institutional investors, with an option to buy an additional $52.5 million of notes.
The notes will mature on April 1, 2028.
Freshpet intends to use a portion of the net proceeds to fund the cost of entering into the capped call transactions and use the remainder of the net proceeds from the offering for general corporate purposes.
The notes will be redeemable, in whole or in part (subject to certain limitations), for cash at Freshpet’s option at any time, and from time to time, on or after April 3, 2026 and on or before the 40th scheduled trading day immediately before the maturity date, but only if the last reported sale price per share of Freshpet’s common stock exceeds 130% of the conversion price for a specified period of time.
Posted by FOX Business
Guess falls on earnings report
Employees wait for customers in the Guess section in the Central Universal Department Store (TsUM) in Kiev, Ukraine May 17, 2017. (Reuters/Valentyn Ogirenko)
| Symbol | Price | Change | %Change |
|---|---|---|---|
| GES | $21.27 | 0.60 | 2.90 |
Guess Inc. on Tuesday reported fiscal fourth-quarter profit of $95.8 million.
On a per-share basis, the Bioggio, Switzerland-based company said it had profit of $1.42. Earnings, adjusted for one-time gains and costs, came to $1.74 per share.T
The clothing company posted revenue of $817.8 million in the period.
For the current quarter ending in April, Guess expects its results to range from a loss of 31 cents per share to a loss of 25 cents per share.
The company expects full-year earnings in the range of $2.45 to $2.80 per share.
Posted by Associated Press
Homebuilder Lennar's profit jumps 18% on high prices
Signage is seen at The Collection at Morristown, a housing development by Lennar Corporation, in Morristown, N.J., Nov. 13, 2021. (Reuters/Andrew Kelly)
| Symbol | Price | Change | %Change |
|---|---|---|---|
| LEN | $100.77 | 1.81 | 1.83 |
HomebuilderLennarCorp on Tuesday reported an 18% rise in first-quarter profit as high property prices offset supply snags caused by fewer homes being listed for sale amid a tough economy.
Shares of the company rose 2% to $102.5 after the bell.
Homebuilders benefited from flexible work arrangements during the pandemic driving up demand across the United States in a boost to the margins of companies such asLennarand D.R. Horton Inc.
However, the industry is now staring at a slowdown as high interest rates have made borrowing more difficult, pushing potential buyers off the market.
Net income attributable to the company rose to $596.5 million, or $2.06 per share, in the quarter ended Feb. 28, from $503.6 million, or $1.69 per share, a year earlier.
Revenue rose about 5% to $6.49 billion.
Posted by Reuters
Amgen is sued for concealing $10.7B tax bill from investors
Amgen sign is seen at the company's office in South San Francisco, Calif., Oct. 21, 2013. (Reuters/Robert Galbraith)
| Symbol | Price | Change | %Change |
|---|---|---|---|
| AMGN | $230.58 | -2.60 | -1.12 |
AmgenInc has been sued in a proposed class action accusing the drugmaker of waiting too long to tell investors it might owe the Internal Revenue Service $10.7 billion in taxes and penalties.
In a complaint filed on Monday night in Manhattan federal court, a Detroit-based pension fund saidAmgenartificially inflated its stock price by concealing the dispute over its international tax strategy between July 2020 and April 2022.
The IRS has accusedAmgenof underreporting taxes from 2010 to 2015, mainly for attributing what should have been U.S. taxable income to a Puerto Rico unit that houses its main manufacturing business and produces many of its drugs.
Though Puerto Rico is a U.S. territory, it is considered a foreign country for corporate tax purposes.Amgen's top-selling product is the arthritis drug Enbrel.
The plaintiff, Roofers Local No. 149 Pension Fund, saidAmgen's share price fell 6.5% on Aug. 4, 2021, and 4.3% on April 28, 2022, because the company waited until those dates to disclose its potential liabilities.
Amgenon Tuesday said it was reviewing the complaint.
Posted by Reuters
Breaking News
Dow jumps 334 points in broad stock rally
S P 500.
$
3920.56
| Symbol | Price | Change | %Change |
|---|---|---|---|
| XLC | $53.53 | 1.27 | 2.43 |
| XLK | $138.81 | 2.30 | 1.68 |
| XLF | $32.28 | 0.66 | 2.09 |
| I:BKX | $84.07 | 2.60 | 3.19 |
All three of the major stock averages rebounded Tuesday, helped by a broad rally in all 11 of the S&P’s largest sectors, with gains led by communication, technology and financial shares. Regional banks also recovered, as fears of an industry contagion eased, with the KBW Banking Index rising over 3%. In commodities, oil fell 4.6% to $71.33 per barrel.
Posted by FOX Business
AMC tumbles as shareholders approve plan to convert APE preferreds
AMC theatre is pictured amid the coronavirus disease (COVID-19) pandemic in the Manhattan borough of New York City, New York, Jan. 27, 2021. (Reuters/Carlo Allegri)
| Symbol | Price | Change | %Change |
|---|---|---|---|
| AMC | $4.37 | -1.09 | -19.96 |
| APE | $1.80 | 0.07 | 4.34 |
Shares ofAMCEntertainmentHoldings Inc tumbled about 17% on Tuesday after shareholders voted in favor of converting the company's preferred stock into common shares.
Shareholders also approved a reverse share split at a 10:1 ratio.
The approval of the measures at Tuesday's shareholder meeting comes asAMCfaces an April 27 hearing in a lawsuit claiming it circumvented shareholders who were against adding more shares.
The preferred shares, which trade under the symbol "APE," have lost over 70% since they were issued in August as part of a plan to pay down the company's debt.
Posted by Reuters
Amazon targets 2024 launch of first Kuiper internet satellites
Amazon logo seen at the company logistics center in Boves, France, Nov. 5, 2019. (Reuters/Pascal Rossignol)
| Symbol | Price | Change | %Change |
|---|---|---|---|
| AMZN | $93.91 | 1.48 | 1.60 |
Amazon.complans to launch its first internet satellites to space in the first half of 2024 and offer initial commercial tests shortly after, the company said Tuesday, as it prepares to vie with Elon Musk's SpaceX and others to provide broadband internet globally.
Amazon's satellite internet unit, Project Kuiper, will begin mass-producing the satellites later this year, the company said. Those will be the first of over 3,000 satellites the technology giant plans to launch in low-Earth orbit in the next few years.
The 2024 deployment target would keepAmazonon track to fulfill a regulatory mandate to launch half its entire Kuiper network of 3,236 satellites by 2026. Limp, who overseesAmazon's consumer devices powerhouse, said the company plans to make "three to five" satellites a day to reach that goal.
With plans to pump more than $10 billion into the Kuiper network,Amazonis pulling from its consumer electronics playbook to also manufacture millions of terminals needed to connect customers to its Kuiper satellites.
Posted by Reuters
Moody's changes outlook on U.S. banking system to 'negative' after SVB collapse
| Symbol | Price | Change | %Change |
|---|---|---|---|
| SIVB | $106.04 | -,161.79 | -60.41 |
| SI | $2.35 | -0.03 | -1.26 |
| SBNY | $70.00 | -20.76 | -22.87 |
Moody'sInvestors Service on Tuesdayrevised itsoutlook on the U.S. banking system to "negative" from "stable,"citing heightened risks for the sector after the rapid unraveling of SVB Financial Groupfueled fears of contagion.
Bank runs at Silicon Valley Bank, Silvergate Capital Corpand Signature Bankhave deteriorated the operating environment for the sector that is now battling a crisis of confidence, both from investors and depositors, the ratings agency said.
Lenders that had "substantial" unrealized securities losses and uninsured deposits may be hurt more as customers look for safer alternatives to park their funds.
Posted by Reuters
Novo Nordisk to slash US insulin prices, following move by Eli Lilly
| Symbol | Price | Change | %Change |
|---|---|---|---|
| NVO | $142.44 | 1.91 | 1.36 |
Novo Nordisk logo is seen in Bagsvaerd outside of Copenhagen, Denmark Feb. 1, 2017. Scanpix Denmark/Liselotte Sabroe via Reuters
Novo Nordisk said on Tuesday it would cut U.S. list prices for several insulin products by up to 75% next year, joining rival Eli Lilly and Co as political pressure mounts to make these life-sustaining diabetes treatments more affordable.
The moves follow the passing of President Joe Biden's Inflation Reduction Act last year that capped insulin prices for Medicare recipients at $35 per month, but does not include patients without insurance.
Around 8.4 million of the 37 million people in the United States with diabetes use insulin, according to the American Diabetes Association.
Although insulin list prices are high in the U.S., drugmakers typically pay substantial rebates to private insurers and government programs, resulting in lower prices for most Americans with insurance.
Posted by Reuters
Justice Department, SEC investigating Silicon Valley Bank collapse: report
| Symbol | Price | Change | %Change |
|---|---|---|---|
| SIVB | $106.04 | -,161.79 | -60.41 |
The U.S. Department of Justice and the Securities and Exchange Commission are investigating the collapse of Silicon Valley Bank, a subsidiary of the defunct SVB Financial Group, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.
The investigations are also examining stock sales that SVB Financial's executives made days before the bank failed, the report said, adding that the Justice Department's probe involves the department's fraud prosecutors in Washington and San Francisco.
The SEC and a spokesperson for the Justice Department in Washington declined to comment. SVB did not immediately respond to a Reuters request for comment.
The Journal report comes a day after SVB Financial Group and two top executives were sued by shareholders, who accused them of concealing how rising interest rates would leave its Silicon Valley Bank unit susceptible to a bank run.
Posted by Reuters
Tyson Foods to shut two US chicken plants with nearly 1,700 workers
Tyson Foods logo seen in Davos, Switzerland, May 22, 2022. (Reuters/Arnd Wiegmann)
| Symbol | Price | Change | %Change |
|---|---|---|---|
| TSN | $57.77 | 0.56 | 0.98 |
TysonFoods Inc will close two U.S. chicken plants with almost 1,700 employees on May 12, the company said on Tuesday.
The closures show that the biggest U.S. meat company by sales is still trying to figure out how to improve its chicken segment that has struggled for years.
TysonFoods will shut a plant in Glen Allen, Virginia, with 692 employees and a plant in Van Buren, Arkansas, with 969 employees, according to a statement.
Arkansas-basedTysonwrongly predicted last year that it would see strong demand for chicken at supermarkets in November and December, Chief Executive Donnie King said on a quarterly earnings call last month.
The company said in its statement that it will shift chicken demand to other facilities from the plants that it is closing as part of a strategy to utilize the full available capacity at each facility.
Posted by Reuters
Bitcoin's bounce
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Bitcoin and other crypto prices continue to rebound, rising above the $25K level, as investors get back into crypto. Last week prices fell below the $20K level. The all-time high for Bitcoin, $68K, was reached in 2021.
"Bitcoin is swimming in the troubles of the US banking industry, gaining 9% in the last 24 hours and over 25% from Friday's lows. Remember that bitcoin was created in 2008 to respond to distrust in the global financial system. This function of bitcoin as capital preservation was recalled over the weekend and worked out on Monday," said Alex Kuptsikevich, FxPro senior market analyst.
Posted by FOX Business
J.Jill flat after earnings report
J Jill Inc.
$
25.81
| Symbol | Price | Change | %Change |
|---|---|---|---|
| JILL | $25.81 | 0.15 | 0.58 |
J.Jill Inc. on Tuesday reported fiscal fourth-quarter earnings of $1 million.
The Quincy, Massachusetts-based company said it had net income of 7 cents per share. Earnings, adjusted for non-recurring costs, were 11 cents per share.
The retailer of women's clothes, shoes and accessories posted revenue of $147.7 million in the period.
For the year, the company reported net income of $42.2 million, or $2.95 per share, swinging to a profit in the period. Revenue was reported as $615.3 million.
Posted by Associated Press
Events software provider Cvent accepts Blackstone's $4.6B deal
Signage is seen outside the Blackstone Group headquarters in New York City, U.S., Jan. 18, 2023. (Reuters/Jeenah Moon)
| Symbol | Price | Change | %Change |
|---|---|---|---|
| CVT | $8.33 | 0.93 | 12.57 |
| BX | $87.08 | 3.60 | 4.31 |
Buyout firm Blackstone Inc agreed to purchase U.S. cloud-based event-software providerCventHolding Corp in a deal valued at $4.6 billion, at a time when private equity firms are looking to scoop up tech companies for a bargain price.
A rout in tech stocks last year shrank company valuations, making them enticing targets for private equity suitors.
Cventwas valued at $5.3 billion in 2021 when Vista, which had acquired it for $1.65 billion a few years ago, took it public in a merger with a blank-check acquisition company.
Blackstone's offer price of $8.50 per share, givesCventan equity value of $4.15 billion and represents a premium of about 29% from Jan. 30, a day before media reports of a potential deal surfaced.
Posted by Reuters
Southwest to upgrade crew-scheduling software, hire more staff during winter
Southwest Airlines jetliner lands at Chicago Midway International Airport in Chicago, Ill., Dec. 27, 2022. (Reuters/Kamil Krzaczynski)
| Symbol | Price | Change | %Change |
|---|---|---|---|
| LUV | $31.64 | 0.58 | 1.87 |
SouthwestAirlinesCo said on Tuesday it would upgrade its crew scheduling software and hire more staff in the winter, as the carrier attempts to address problems that had led to large-scale cancellations during the holiday season.
The plan looks at bolstering operations during the winter season, when chances of weather-related disruptions to travel-related services are high.
"Work is well underway in implementing action items to prepare for next winter — with some items already completed," Chief Executive Officer Bob Jordan said ahead of a presentation at a J.P. Morgan Chase Conference.
The airline will also beef up its infrastructure to better handle call volumes from customers, Jordan added.
However, the investments in technology, which will total more than $1.3 billion this year, and expenses related to mass cancellations are set to pressure costs in the near term.
Posted by Reuters
BuzzFeed is lower in Tuesday trading on its first quarter outlook.
A screen announces the debut of BuzzFeed Inc. at the Nasdaq Market in Times Square in New York City, Dec. 6, 2021. (Reuters/Brendan McDermid)
| Symbol | Price | Change | %Change |
|---|---|---|---|
| BZFD | $1.14 | -0.14 | -10.93 |
BuzzFeed expects overall revenues first quarter 2023 revenue in the range of $61 to $67 million and adjusted EBITDA losses in the range of $18 to $25 million.
The company reported total revenue of $91.6 million in the first quarter of 2022 and an adjusted EBITDA loss of $16.76 million.
Posted by FOX Business
Honeywell company veteran Kapur to replace Adamczyk as CEO
Vimal Kapur, President and CEO of Honeywell Performance Materials and Technologies speaks at the Global Energy Transition 2022 conference in New York City, New York, U.S., June 14, 2022. REUTERS/David Dee Delgado
| Symbol | Price | Change | %Change |
|---|---|---|---|
| HON | $191.90 | -1.20 | -0.62 |
HoneywellInternational Inc said on Tuesday that Vimal Kapur, who has more than three decades of experience leading the diversified manufacturer's various businesses, will succeed Darius Adamczyk as chief executive.
The 57-year-old Kapur will take over the top role on June 1, roughly 10 months after he was appointedHoneywell's president and chief operating officer.
He has held several key positions in the company, including CEO of its building technologies as well as performance materials and technologies units.
Kapur also oversees the company's operating model,HoneywellAccelerator, which uses various tools, processes and best practices to improve efficiency.
Adamczyk, who has beenHoneywell's CEO since 2017, will continue to serve as executive chairman and draw a base salary of $1.3 million, the company said in a regulatory filing.
Posted by Reuters
Delta reaffirms outlook
AP Photo/Rick Bowmer
Delta Air Lines Inc.
$
35.68
Delta Airlines reaffirmed its outlook noting it expects to earn as much as $12.01 billion in revenue ahead of the $10.38 billion earned during the same period a year-ago.
CEO Ed Bastian, speaking at a JPMorgan investor conference, said "demand is strong and getting stronger" as reported by Reuters.
Posted by FOX Business
Rite Aid sued by DOJ
| Symbol | Price | Change | %Change |
|---|---|---|---|
| RAD | $3.31 | 0.03 | 0.76 |
| CVS | $76.66 | 0.38 | 0.50 |
| WBA | $33.55 | -0.01 | -0.04 |
The Department of Justice is taking on drugstore chain Rite Aid in a fresh lawsuit over distribution of opioids.
Posted by FOX Business
Breaking News
Stocks rebound as investors buy back banks
Financial Select Sector Spdr Etf.
$
31.63
All three of the major market averages rebounded on Tuesday led by banking shares as investor fears eased over the stability of some of the nation’s regional banks following the collapse of Silicon Valley Bank. Additionally, Facebook parent Meta, announced it will cut 10,000 workers in its second round of layoffs.
Posted by FOX Business
United Airlines shares sink
United Airlines Holdings Inc.
$
48.83
United Airlines expects to first quarter loss on account of higher costs and weaker-than-expected pricing power.
"While all months of 2023 are expected to produce unit revenue significantly above the corresponding months in 2019, the Company is observing new seasonal demand patterns, with lower-demand months such as January and February 2023 growing less than higher-demand months.
It now expects an adjusted loss of as much as $1.00 per share. The company in January forecast adjusted profit between $0.50 and $1.00 per share for the quarter.
Posted by FOX Business
Breaking News
Consumer inflation CPI
Prices at the consumer level via the CPI remain persistently high year-over-year but eased slightly from the prior month. The CPI comes ahead of Wednesday's producer price index which measures inflation at the wholesale level.
Posted by FOX Business
Silicon Valley Bank deep dive
The FDIC seized Silicon Valley Bank had a long track record of political donations before its collapse.
Posted by FOX Business
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