What's moving markets today: March 29, 2019
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.
- When US investors are hopefully far away from their computers, China will report the CFLP manufacturing PMI at 9 p.m. ET. It's the first manufacturing data point of two that Beijing will report this week.
- Eurozone GDP is due at 5 a.m. ET.
- US economic data for tomorrow includes consumer confidence and pending home sales at 10 a.m. ET.
- Earnings continue, including Apple (AAPL) which reports after the bell.
- The Milken Global Conference continues in LA. You can follow our live updates here.
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.
- The Dow ended little changed but in positive territory, some 11 points higher.
- The S&P closed 0.1% higher, setting an all-time closing high at 2,943.03
- The Nasdaq finished up 0.2%, also setting an all-time closing high at 8,161.85
Telecoms, financials and technology shares were the strongest gainers of the day.
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:
- CEOs of US financial institutions worry whether political cooperation between countries will be strong enough to deal with the next crisis. They also noted the limited firing power of central banks thanks to really, really low interest rates.
- A panel of investment managers shared their fears, which included knock-on effects from smaller regulatory or economic events, corporate disruption, cyber security and the risks that technology brings
- The IMF's Christine Lagarde said the global economy is still delicate, but she wasn't expecting a recession any time soon.
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.
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.
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%.
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.
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:
Pets.com was perhaps the most recognized flop from the dot.com bubble because of its famous marketing campaign. Its sock puppet mascot became synonymous with the dot.com bust.
Pets.com went public in February 2000, its stock started at $11 a share and rose to a high of $14. But the rally was short-lived and Pets.com's stock quickly fell below $1 and stayed there until its demise.
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.