JPMorgan Chase went big on crypto in February with a digital currency of its own, the JPM Coin, and now it’s strengthening its blockchain offerings through a partnership with Microsoft.
The partnership will allow JPMorgan to further develop its Quorum blockchain platform, which will be powered by the Microsoft Azure cloud platform.
A blockchain is essentially an immutable public digital ledger. It’s most commonly known for being the technology that underpins cryptocurrencies like bitcoin.
Not long ago, JPMorgan CEO Jamie Dimon was an outspoken critic of crypto but eventually came around and put the rest of the industry on alert with the launch of the JPM Coin.
While many traditional financial institutions like JPMorgan have been skeptical about the staying power of cryptocurrencies, they’ve been more intrigued by the potential of blockchain technology to speed up transactions, like money transfers and payments, and make them more secure.
Beyond finance, Microsoft and other companies such as IBM are exploring the use of blockchain in a wide range of industries, from farming to shipping.
Activision Blizzard has sold the first five teams in its professional “Call of Duty” league. The pro teams sold in Atlanta, Dallas, New York, Paris and Toronto — part of Activision’s plan for a global league.
Revenue for the lucrative eSports market is expected to exceed $1 billion this year, and Activision is hoping to grab a bigger piece of that. The company has already had success with its “Overwatch” eSports league, which is in its second season and has seen a more than 30% increase in viewership hours. That league is now broadcast on ESPN channels and Disney XD.
Activision, which also owns “World of Warcraft,” made that announcement Wednesday when it reported earnings. The company beat Wall Street’s expectations last quarter, but its revenue projections for 2019 remain lower than the previous year.
Activision Blizzard (ATVI) was down more than 4% in after-hours trading.
Last quarter, the company said it would be laying off 8% of its workforce — about 750 jobs — and refocusing its attention on its top games. Activision also said that 2019 would be a year of transition, a point that the latest revenue projections seem to reiterate.
WW (WW), formerly known as Weight Watchers, boosted its earnings guidance for 2019 in its first quarter earnings.
Instead of $1.35 per share, the company expects to earn $1.55 per share this year.
The company cited an increase in subscribers, and said it would focus on member recruitment and retention, as well as cost cutting, for the rest of the year.
WW stock closed 2.1% higher on Thursday, ahead of the results. In after hours trading, shares were up 4.8%
Planet Fitness is on a major growth streak, but its latest round of earnings fell short of Wall Street’s high expectations for the gym.
Although Planet Fitness’ total sales increased 22% during its most recent quarter compared with a year earlier, investors predicted more.
Planet Fitness’ (PLNT) stock dropped nearly 7% in after hours trading.
The “judgment free zone” gym entered earnings season as one of the hottest companies in retail. Its stock has soared 86% over the past year.
Planet Fitness has been winning Americans who have never signed up for a gym before and bargain hunters from rival gyms with $10 monthly fees.
Planet Fitness has been expanding rapidly across the country, including by moving into malls and former Toys “R” Us locations.
In March, Planet Fitness struck a partnership with Kohl’s to open up gyms next to 10 Kohl’s stores.
Thursday’s trading day is over and stocks registered another day of losses. Both the S&P 500 and the Dow closed down for the second day in a row.
Here’s what investors will be focusing on next.
US stocks ended Thursday lower.
Fluor Corp (FLR), the engineering and construction company that announced a corporate reshuffle alongside its earnings, led losers in the S&P and finished 24% down.
In the Dow, Dow Inc (DOW) and Caterpillar (CAT) fared the worst, closing 6.1% and 2.2% lower, respectively.
It wasn’t a great day for US oil prices, which dropped nearly 3%.
Investors remained focused on yesterday’s higher-than-expected inventories, which weighed on prices.
US oil futures for June settled at $61.81 a barrel, compared with $63.60 yesterday, marking a 2.8% drop. It is the worst settlement price since April 4, according to Refinitiv.
We’re into the second half of the trading day. Stocks are in the red.
The Dow is down 0.5%, or 143 points, while the S&P 500 and the Nasdaq Composite have both dropped 0.3%.
Dow Inc (DOW) is the weakest Dow index component today, down 5.2% after reporting earnings.
The only bright spot is technology, where Verizon (VZ) is the best gainer, up 0.9%.
In the S&P, the underperformers are lead by Fluor Corp (FLR), which is down nearly 23% after the company announced a reshuffle among its executives and reported earnings.
Economic commentator Stephen Moore has withdrawn his name from consideration to sit on the Federal Reserve Board of Governors, President Donald Trump tweeted on Thursday:
Beyond Meat (BYND), the company that makes meatless alternatives to beef, pork and poultry, began trading at $46 a share on Thursday, an 84% increase over its IPO price of $25.
That’s a good deal higher than the $19 to $21 price it said it was targeting last week.
Earlier this week, Impossible Foods — Beyond’s main competitor — shared that demand for its plant-based protein is growing so much, the company is struggling to keep up, leading to shortages.
Unlike Beyond, which sells its product on retail shelves, Impossible just sells to restaurants. Its acknowledgment came just after Impossible expanded its partnership with Burger King.
US oil prices took a hit today, falling 3.6%, continuing yesterday’s weakness after a report showed a larger-than-expected jump in US inventories.
Inventories increased by 9.9 million barrels in the week ending April 27, more than expected.
US oil prices were hovering around $61.26 a barrel this morning, their lowest since the end of March, according to Refinitiv.
Kellogg’s (K) shares slipped nearly 4% after sales missed forecasts, mainly due to a decline in cereal sales.
The Corn Flakes maker raked in revenue of $3.52 billion for the first quarter, slightly below analysts’ expectations.
Cereal, which has been experiencing declining sales for years, posted a 4% dip in revenue.
Kellogg’s snacks business, which includes products like Pringles and Cheez-Its, had flat sales for the quarter.
Citi (C) CEO Michael Corbat had nothing but praise for the US economy in an interview on CNBC.
Corbat said he was glad to see that confidence in the economy had returned when asked about last week’s 3.2% first quarter GDP growth. Based on the strong growth and last month’s jobs report, he said he hopes for a good jobs report tomorrow.
Asked about the Federal Reserve, which yesterday left interest rates unchanged and reiterated its patient stance on monetary policy action, Corbat said he didn’t think the Fed should have cut rates.
President Donald Trump on Tuesday called the central bank to slash interest rates by 1% to stimulate the economy. The Fed’s key rate is set in the range of 2.25%-2.5% at the moment.
Corbat was also pressed on executive pay – something Wall Street executives have had to adress frequently throughout April.
The average US Citi employee makes around $100,000, Corbat said.
US stocks edged lower at the opening bell.
Prior to the opening bell, jobless claims for the week ended April 27 came in slightly above the consensus at 230,000. The next key data point for investors is tomorrow’s jobs report.
Tesla (TSLA) stock was in focus after the company announced it would raise $2 billion from stock and convertible bond offerings. Telsa shares climbed 4.4%.
Under Armour (UA) is a big gainer this morning, rallying 7.4%, after reporting buoyant international sales.
Elsewhere on the earnings front, Dunkin’ (DNKN) reported rising sales and its stock 4% in response.
Tesla (TSLA) announced plans to raise $2 billion through the sale of additional shares of stock and debt because its cash reserves are dwindling.
CEO Elon Musk had insisted through much of the last year that the company was doing fine and would not need to raise additional cash. But a depressed stock price forced it to pay off a $920 million bond in March with cash rather than stock.
That payment was a big part of why the company’s cash reserves fell by $1.5 billion during the quarter, leaving it with a little bit more than $2 billion in cash on its balance sheet. It also reported a $702 million loss in the quarter.
The stock is up more than 4% in premarket trading.
The Bank of England left interest rates unchanged at today’s policy update but projected that global growth would stabilize and Brexit uncertainties would gradually subside.
The central bank also said the pace of GDP growth was slightly stronger than anticipated, raising its GDP forecast for 2019 to 1.5% from 1.2%. It also expected consumer price inflation to pick up to above the central bank’s 2% target in two years’ time – and will still rise at the end of the three-year forecast period. And to keep inflation in check, gradual rate hikes will be needed.
Still, the BOE cautioned that amid all this good news, the outcome of Brexit and the future relationship between the UK and the European Union remains a key development to watch.
The FTSE 100 was last 0.1% lower. The British pound slipped lower after the policy update but pounced back. It was last little changed at $1.3046.
Qualcomm’s settlement with Apple will give it a windfall of between $4.5 billion and $4.7 billion, the company revealed in its earnings report last night.
“We believe this settlement is a win for both companies and we are pleased with the result and pleased to have it behind us,” Qualcomm CEO Steve Mollenkopf said on the earnings call.
The range is “based on how the accounting ultimately works out,” Mollenkopf told the Wall Street Journal.
Apple (AAPL) and Qualcomm (QCOM) ended a two-year legal battle last month that alleged Qualcomm charged an unfair amount to license its patents. Qualcomm makes chips for iPhones.
The companies announced in April a new six-year license contract, with the option to add two more years.
Under Armour (UA) is struggling at home in North America, but the athletic brand is hot in Asia, Europe and Latin America.
Under Armour said Thursday that sales in North America fell 2.8% during its most recent quarter compared with a year earlier, while sales increased 12% in international regions.
In Asia, Under Armour’s sales surged 24% during the quarter. They increased almost 6% in Latin America and 3.5% in Europe, the Middle East and Africa.
Under Armour has been expanding overseas to combat a saturated market for athletic clothes in the United States. Big brands like Nike (NKE) are gaining strength and retailers like Target (TGT) and Gap (GPS) are making their own athletic brands.
Under Armour makes 60% of its sales to outside retailers, while 35% come from its own stores and website. Last quarter, Under Armour’s wholesale revenue increased 5%, but its direct sales fell 6%.
Under Armour’s profit for the quarter beat investors’ expectations and the company raised its outlook. That lifted Under Armour’s stock around 4% during pre-market trading.
Under Armour’s stock has gained 21% over the past year.
It’s déjà vu for ticketing website Eventbrite (EB), which had another dismal earnings report.
Dunkin’ has upped its coffee game and rolled out new breakfast deals, and it’s paying off.
The company announced on Thursday that sales in US stores open at least a year jumped 2.4% in the first quarter, beating analysts’ expectations, thanks in part to higher-priced espresso and frozen drinks and its breakfast sandwich value deals.
Breakfast is a growing category, and Dunkin’ (DNKN) is doing more than just offering deals to try to cash in. On Monday, the chain shared that it has has added two new breakfast bowls to its menu: The Egg White Bowl and the Sausage Scramble Bowl. Its competitors are also introducing new breakfast items to their menus.
Revenues for the first quarter grew about 5.9% to $17.7 million, or 5.9%, largely because of higher royalty and rental income, the company said.
Investors rewarded the good results: Dunkin’ popped about 2% before the market opened.
They don’t seem to care about Dunkin’s struggling ice cream business. In the first quarter, sales at Baskin-Robbins US stores open at least a year fell sales dropped 2.8%.
