Nightly Business Report
NBR 07/17/2017
NETFLIX
Millions of more consumers subscribe to Netflix in the last quarter than expected. For the second quarter in a row Netflix earned $0.15 a share. This was a penny below expectations however revenue increased. Revenue increased 32% compared to a year ago. This caused the stock to take off and hit a new all-time high. They added over five million new subscribers in the second quarter. Which is 2 million more than what the company projected. New content is driving the growth for Netflix. Netflix through partnerships is making it easier for consumers to subscribe to its services as well.
P & G Boardroom Battle
Investor Nelson Peltz of Trian wants a board seat and a higher stock price. Trian will have to convince shareholders that he should have a seat on the board. Peltz says the company could use some fresh blood on the board. Peltz claims that 99% of the people on the board have only worked for P&G and only know one playbook and that is the P&G Playbook. Peltz Claims he does not want to fire the CEO, but he wants to boost the stock price.
Activist investors & Stockholders of P&G
Investors need to consider the deal and determine if the investor is trying to boost stock prices or if the investor has other motives. Stockholders need to ask themselves will the activist investors proposals better the position of the company in the long-term, if the proposal is nothing more than financial engineering and what track record the investor has.
Wall street
The Dow Industrial fell 8 points the NASDAQ Composite gained almost two points and the S&P 500 lost less than a half a point.
Russel 2000
The Russell 2000 gained almost 3 points. The Russell 2000 closed at its highest level ever. There are more stocks participating in the small caps; this is what is driving the rise in points. This drive is due to the recovery in bank and financial stocks. Small stocks also benefit from tax reform and this has been a topic in politics.
Wage Growth
47% of firms say that wages are rising. This is a good sign for workers, who have failed to see wage increase even though unemployment rate has gone down. A third of employers are reporting that they are having trouble hiring people. To fix this some employers are raising pay, training internally, and using more automation and lowering the requirements for the job.
Final Carrier removed from laptop ban
The US ended its laptop ban from Middle Eastern airline flights. If they are willing to comply with tougher regulations, this band affected people trying to carry laptops from certain Middle Eastern countries flying into the United States.
Senate Health Care Vote
The Senate Healthcare Bill has been delayed in the Senate. This delay is because Senator John McCain had to undergo emergency surgery. The consequences of delaying this bill will give proponents of the bill more time to state their case why the bill should not be passed. Republican Senator Rand Paul believes that the bill does not go far enough away from the Affordable Healthcare Act and believes that it needs to be revised.
Market Focus
BlackRock’s is lowering fees in the effort to attract more customers. BlackRock is the world's largest asset manager Black Rock shares fell a little over 3>#/p###
FedEx warned that the Cyber-attack will cut into its full year results. It's TNT Express division is still experiencing problems due to the cyber-attack. FedEx does not have a clear date when the problems will be resolved. The consequences of this cyber-attack will mean lost revenue and higher cost for consumers. Shares of FedEx are down by a little over one and half percent.
Ross opened 28 new stores and see plenty of opportunity for the future and plans to operate more than 2000 stores in the future. Sears received a credit line from its CEO.
China
China's economy has grown and expanded faster than expected. China is the second largest economy in the world.
Amazon
Amazon files trademark for meal-kit delivery. This service is referred to as “we do the prep, you be the chef.” Amazon services such as milk-kit deliveries are affecting other smaller companies and causing some of their stocks to go down.
Recent Comments
2
Great post, there's a lot of research gone on for this post.
A very interesting read, thanks for sharing
Your Welcome dalwhu, Amazon is making some major moves lately. They have their sights on more more then just the eCommerce market. Thank You for leaving a comment.