| 2018-01-18 16:25:45|
MS, AMZN… 16:25 01/18 01/18/18
On The Fly: Top stock stories for Thursday
Stocks opened little changed but moved lower in the second hour of trading as concern over the lack of agreement between lawmakers on how to fund the government and keep it open past its looming shutdown gave investors reason to take pause. By the end of the session, stocks were a bit lower as investors remain optimistic about the current earnings season but may begin to grow more worried about political hurdles. ECONOMIC EVENTS: In the U.S., housing starts dropped 8.2% to a 1.192M rate in December, undershooting estimates. Initial jobless claims plunged 41,000 to 220,000 in the week ended January 13, which represents a 45-year low. The Philly Fed's manufacturing index fell 5.7 points to 22.2 in January, which was a little weaker than expected though still at a healthy level. In Asia, China's Q4 GDP growth came in a bit better than expected, rising 6.8% year-over-year. For December, retail sales fell short of expectations with a rise of 9.4%, while industrial production growth was about in-line with the consensus forecast. COMPANY NEWS: Shares of Morgan Stanley (MS) rose about 1% after the bank continued the trend of the largest financial institutions in the country topping earnings expectations for the fourth quarter... Amazon (AMZN) announced that the company has shortlisted 20 metropolitan areas as finalists for its new headquarters, whittled down from 283 places that applied in October... Shares of Lionsgate (LGF.A) added nearly 7% after Deadline Hollywood said the company has attracted takeover interest from several suitors. This follows recent reports that Shari Redstone, president of National Amusements, which controls both CBS (CBS) and Viacom (VIAB), is pushing to re-merge those two as a wave of consolidation sweeps through media companies... Meanwhile, Boeing (BA) shares were 3% lower after Reuters reported that the plane maker, in an effort to gain approval for its proposed tie-up with Embraer (ERJ), is willing to let the Brazilian government maintain its "golden share," which gives Brazil veto power over strategic decisions involving military programs and any change in its controlling interest. MAJOR MOVERS: Among the noteworthy gainers was GNC Holdings (GNC), which surged 52% after it reported an increase in Q4 same store sales for domestic company-owned stores and guided for Q4 adjusted EPS above consensus estimates. Also higher was PTC (PTC), which gained 5% after reporting quarterly results. Among the notable losers was Alcoa (AA), which slid 7% after reporting quarterly results. Also lower was Endo (ENDP), which fell 4.4% after the New York Times reported that some of the country's largest hospital systems intend to go into the generic drug business themselves in an effort to combat high prices and drug shortages. INDEXES: The Dow fell 97.84, or 0.37%, to 26,017.81, the Nasdaq lost 2.23, or 0.03%, to 7,296.05, and the S&P 500 declined 4.53, or 0.16%, to 2,798.03.
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