Home / Business / Stocks mixed before the trade talks between the United States and China; The health sector weighs in Dow

Stocks mixed before the trade talks between the United States and China; The health sector weighs in Dow



Here are 3 interesting things you should know about actions at this time

  • The Dow Jones Industrial Average fell on Monday as trade negotiations with China resumed. The index rose 0.2% last week and has increased for seven consecutive weeks.
  • Restaurant Brands International Inc. (QSR) posted stronger than expected earnings in the fourth quarter and increased its dividend target for 2019 to $ 2 per share. The share rose 1.6%.
  • Tesla Inc. (TSLA) rose 2.3% after Canaccord Genuity raised its recommendation on the shares to buy and maintained its target price at $ 450 from $ 330.

Wall Street Overview

Stocks mixed on Monday, February 11, as investors watched progress in renewed US-China trade talks this week.

The Secretary of the Treasury of EE. US, Steven Mnuchin, and trade representative, Robert Lighthizer, arrived in Beijing on Sunday for trade talks that will focus on structural reforms and the protection of intellectual property in the world's second largest economy. Negotiators are competing to meet the deadline of March 2, when tariffs for products made in China worth $ 200 billion could increase to 25% from 10%.

With that in mind, investors will also be alert to any mention of the risks of China's tariffs of a large number of profits focused on retail this week, the last big round of reports for the December quarter. Walmart Inc. (WMT), Home Depot Inc. (HD), Lowe & # 39; s Cos. (L), Coca-Cola Co. (KO), PepsiCo Inc. (PEP) and Macy's Inc. (M) will issue this earnings report. week.

US investors will also focus on talks between Republican and Democratic lawmakers this week, as both sides will try to negotiate an agreement that will prevent another government from closing on Friday.

Mick Mulvaney, acting head of White House staff, said on Fox News on Sunday that "the government's closure is still technically on the table, we do not want that to happen, but that option is still open to the president and will remain" . "

The Dow Jones Industrial Average was down 53 points, or 0.21%, at 25,053, the S & P 500 was up 0.07% and the Nasdaq was up 0.13%.

Three of the Dow's biggest losers were in the health sector on Monday, led by UnitedHealth Group (UNH), which fell 1.8%, while Pfizer Inc (PFE) fell 1.3% and Merck & Co . (MRK) decreased by 1%.

Restaurant Brands International Inc. (QSR) posted stronger than expected earnings in the fourth quarter and increased its dividend target from 2019 to $ 2 per share as sales at the same store for its Tim Hortons division led by the company. The share rose 1.6%.

Restaurant Brands said adjusted earnings for the quarter were 68 cents per share, 1 cent higher than Wall Street forecasts. Revenue rose 14.55% to $ 1.39 billion, a figure that fell largely in line with analysts' forecasts.

Burger King's comparable sales increased 1.7%, Tim Hortons recorded an increase in same-store sales of 1.9%, while Popeyes Louisiana Kitchen posted an increase in sales of comparable stores of 0.1 % in the quarter, without meeting expectations.

Tesla Inc. (TSLA) rose 2.3% to $ 312.84 after Canaccord Genuity raised its recommendation on shares to buy and kept its target price at $ 450 from $ 330.

The firm argued that the penetration of electric vehicles in markets around the world is not fully appreciated by Wall Street investors. Canaccord also said it was not worried about the upcoming conversion of a bond issue, given Tesla's solid operating cash flow levels and its current cash balance of around $ 3.7 billion.

"We believe that the last two quarters and the recent guidance for the first quarter have eliminated significant concerns for both the production capacity and the profitability of the critical Model 3. As such, we see a more stable 2019 with far fewer concerns for investors. in the company, "said Canaccord. Analyst Jed Dorsheimer. "We believe that the recent series of price reductions is further proof that the cost reduction and the correct size that the company has undertaken is generating a concrete movement towards the ultimate goal of an affordable Model 3 of $ 35,000."

Shares of Boeing Co. (BA) fell 0.22% on Monday to $ 404 after JPMorgan analysts raised the share's target price to $ 450.

The firm also reiterated its "overweight" rating, which it has held in the company for almost two years.

"Boeing is among the companies best positioned to benefit from the positive aerodynamic fundamentals, and the company is consciously trying to mold the industry to capture more value for itself, which could mean strong relative performance and bullish potential for the companies. estimates, "said analyst Seth Seifman. "Finally, although the feeling has improved, we do not believe that BA is a property owner."

NuVasive Inc. (NUVA) rose 13.26% on Monday to $ 56.93 after a report that said Smith & Nephew PLC (SNNUF) held talks to buy the manufacturer of medical instruments used in spinal surgery in an agreement that would be worth more than $ 3 billion.

The agreement would mark the biggest acquisition by Smith & Nephew, the British medical device company, the Financial Times reported, citing people with direct knowledge of the talks.

NuVasive, headquartered in California, has a market value of approximately $ 2.5 billion, excluding the approximately $ 500 million debt. NuVasive told the Financial Times that the company "does not comment on speculation or market rumors."

See Jim Cramer's NYSE daily program and the replays below.


Source link