Alphabet (GOOGL), Google’s parent company, reported lighter revenue for the first three months of the year than investors had expected, driving the stock down as much as 5% in after hours trading on Monday.
Alphabet said Monday that it posted $36.3 billion in revenue for the quarter, a 17% increase from the year prior and below Wall Street estimates.
The company reported a profit of $6.7 billion for the quarter, which was weighed down by a recent European Union antitrust fine of $1.7 billion — the third in a series of billion-dollar penalties it has been hit with for hindering competition.
Monday trading is over, and we got more records in the books. Now onto the next day.
Stocks closed higher across the board on Monday, as the S&P 500 and the Nasdaq Composite yet again closed at a record high. This marks their third record since last Tuesday. Upbeat consumer spending data from earlier in the day helped push stocks higher.
Telecoms, financials and technology shares were the strongest gainers of the day.
Dow components Goldman Sachs (GS) and JPMorgan (JPM) gained the most in that index. In the S&P, manufacturer Ingersoll-Rand (IR) climbed the furthest, rising 6.5%.
While the New York trading day is slowly drawing to a close, CNN Business’ own Lydia DePillis and Danielle Wiener-Bronner are in sunny California at the annual Milken Institute Global Conference.
Some highlights, so far:
Target CEO Brian Cornell’s total pay more than doubled in 2018 from the year prior to $17.2 million, the company said in regulatory filings Monday.
In 2017, Cornell took home around $8.4 million. But last year, Cornell’s salary was $1.38 million and he was was eligible for stock awards that reached nearly $10 million. Cornell was also eligible for close to $6 million in incentives and other forms of compensation.
Target’s (TGT) stock gained 2% in 2018.
Cornell’s salary was 767 times more than Target’s median worker salary. The median worker at Target made $22,439 last year. Target had 360,000 employees last year.
Last week, Walmart (WMT) disclosed that CEO Doug McMillon’s total compensation reached nearly $24 million in 2018. That was about 3.5% more than his total compensation in the prior fiscal year.
McMillon’s total pay was also 1,076 times more than that of Walmart’s median worker made.
In the second half of the trading day, stock continue to trend higher.
The S&P 500 and the Nasdaq Composite are still on track for another record high close.
Industrial equipment maker Ingersoll-Rand (IR) is the biggest gainer in the S&P. Its KKR-owned peer Gardener Denver (GDI) is working to merge with one of Ingersoll’s divisions, according to The Wall Street Journal. The deal could be announced this week.
Ingersoll’s shares are up 5.8%.
JPMorgan (JPM) and Goldman Sachs (GS) are still the top gainers in the Dow.
The US dollar is still near its highest level of the year, but analysts worry that it could break lower.
Last week, the ICE US Dollar Index touched its highest point since May 2017, according to Refinitiv. Today it’s in the red.
The dollar “has been driven by the US economic and monetary divergence,” said Marc Chandler, chief market strategist at Bannockburn Global Forex.
“However, the greenback’s inability to make much headway on the back of the GDP surprise warns that the divergence meme has gone as far as it can in the near-term, and this means that dollar is likely entering a consolidative phase.”
On Friday, the US reported 3.2% in economic growth between January and March – far more than expected.
The next big event for the greenback is this week’s Federal Reserve meeting, which kicks off tomorrow and culminates in the monetary policy update on Wednesday. Depending on how dovish Fed Chairman Jerome Powell sounds, it could spark a sell-off for the dollar.
Chewy, the online pet supply company, has filed to go public.
It gave investors a glimpse of its finances and it’s pretty paw-sitive: Sales have grown each year since it was established in 2011, pulling in $3.5 billion last year.
Chewy plans to trade under the ticker “CHWY.” It hasn’t revealed where it will trade and how much it’s raising. JPMorgan (JPM) and Morgan Stanley (MS) are the underwriters.
PetSmart bought Chewy in 2017 for $3 billion, but sold a 20% stake in the company last year. PetSmart will remain a majority owner of Chewy once it goes public.
Investors are probably hoping Chewy avoids the fate of Pets.com, which went bust in 2001 after spending millions of dollars in ads.
From the CNN archives:
Advisory services for mergers & acquisitions are the only bright spot on the first quarter earnings scorecard for banks, according to ratings agency Fitch.
“With an increase of 18%, M&A advisory was the only business to report a year-over-year gain in 1Q19,” Fitch said of Bank of America (BAC), Citi (C), Goldman Sachs (GS), JPMorgan (JPM) and Morgan Stanley (MS).
The banks are all up on the the day, with JPMorgan and Goldman leading top gainers in the Dow.
The uptick in advisory was driven by strong activity in the tech and healthcare sectors, Fitch said.
Canadian coffee chain Tim Hortons had a bad quarter and it’s dragging down shares of its owner Restaurant Brands International (QSR), which also owns Burger King.
The stock is 3% lower in early trading.
Same-stores sales at Tim Hortons fell 0.6%, while analysts were expecting of growth of 2%. The company blamed severe weather across Canada for the decline.
The company’s other brands, like Burger King and Popeye’s, fared better. Same-store sales at both of those chains were above analysts’ expectations.
Burger King announced earlier today that it will sell the the vegetarian Impossible Burger at its US restaurants by the end of the year.
About an hour and a half into the trading day, stocks are bouncing higher. The Dow, S&P 500 and the Nasdaq Composite are all in the green, and the latter two are once again in record territory.
Both the S&P and the Nasdaq set new closing records on Friday, taking out an all-time high previously set on Tuesday last week. Looks like we might have another fresh high today, as both benchmarks have already surpassed their previous intraday highs.
Telecoms, financials and industrial stocks are driving the S&P higher. The biggest gainer, however, is toy maker Mattel (MAT), which is up 6.9%.
In the Dow, banks are doing well. JPMorgan (JPM) and Goldman Sachs (GS) are leading the gainers.
US stocks started the in record territory once again, although they rose tepidly.
The S&P 500 and the Nasdaq were up less than a tenth of a percent Monday. Both closed at record highs Friday.
The Dow rose a couple points. It remains about 300 points off its record. The Dow has failed to set records mostly because Boeing has been a drag on the index in the past month.
Anadarko (APC) fell a half percentage point and Occidental Petroleum (OXY) fell more than 2% after they announced they would explore a merger. Chevron (CVX), which has apparently been outbid by Occidental, was flat Monday.
Tesla (TSLA) fell about a half percentage point after the company announced it might seek alternate modes of financing.
Shares of Anadarko Petroleum (APC) and Occidental Petroleum (OXY) were both lower in premarket trading, as the companies pick up their merger talks again.
On Friday, Occidental made a bid to buy Anadarko, leading its shares to spike, even though the company already entered into a definite merger agreement with Chevron (CVX) earlier in the month. The new proposal was superior due to an improvement in indicative value and closing certainty, Anadarko’s board of directors said, according to a company press release.
The company’s shares were down 0.4% in premarket trading, while Occidental’s shares were down nearly 3%.
Spanish stocks had a bad start to the week, as investors digested the results of the weekend’s election and what it could mean for Spain’s business climate.
Spain’s center-left Socialist Workers’ Party (PSOE), led by Pedro Sanchez, secured 28% of the vote. Investors worry he could form an anti-business coalition. Meanwhile, a far-right party will be entering the Spanish Parliament for the first time since dictator Francisco Franco’s rule ended in the mid-1970s.
The IBEX 35 stock index in response dropped to its lowest level since April 10 in Monday trading. The IBEX was last down 0.7%.
It’s a busy week ahead for investors and the big question is whether the corporate and economic data and Fed news can sustain stocks at record highs.
Roughly 150 companies report quarterly results this week, the Fed meets, a top level trade delegation heads to Beijing, and Friday’s jobs report will show how hungry American companies are for workers — and whether they are willing to pay up for them.
With the S&P 500 up 17% this year, there is plenty of headline risk, but barring any surprises, expect the slow grind higher to continue.
Spotify (SPOT) now has 100 million people globally paying for its premium music service, a 32% jump year-over-year. The company revealed that it had reached milestone in its first quarter earnings.
Here’s what else you should know:
Tesla (TSLA) shares are climbing 1.5% in premarket trading following an agreement sealed late Friday over his tweets.
CEO Elon Musk and the US Securities and Exchange Commission agreed to amend a settlement deal approved last October that required oversight of Musk’s social media use.
The updated deal outlines a slew of topics Musk cannot tweet about until he obtains pre-approval from an “experienced securities lawyer.”
Today’s losses claw back some of the stock’s Friday losses, when it closed 5% lower.
Boeing (BA) is likely to face tough questions from shareholders at its annual meeting later today.
CEO Dennis Muilenburg will appear before investors in Chicago after two deadly crashes of its 737 Max in less than six months.
CNN has reported that four Boeing employees called an FAA whistleblower hotline the day after Ethiopia released a preliminary crash report on Ethiopian Airlines flight 302.
Among the information they provided is a previously unreported issue involving damage to the wiring of the angle of attack sensor by a foreign object, according to the source.
The continued grounding of the 737 Max is costing airlines hundreds of millions of dollars.
American Airlines (AAL), Southwest Airlines (LUV) and European budget carrier Norwegian all revealed last week that the inability to use the aircraft will cost them nearly $600 million combined.
Google’s parent company, Alphabet, has another chance today to show off the strength of its massive advertising business.
Analysts surveyed by Refinitiv expect Alphabet (GOOGL) to report first-quarter sales of $37.3 billion, an increase of 20% over the same period last year.
Net income is forecast to rise 6.5% to $7.5 billion. The company reports earnings after the closing bell.
Some of the biggest names in tech have surprised analysts with strong openings to 2019. Facebook (FB) and Amazon (AMZN), for example, have already topped Wall Street’s expectations.
Here’s what investors are keeping an eye on:
