Frontier Communications Corp (NASDAQ:FTR) disclosed second-quarter fiscal year 2015 (2QFY15) results before the markets opened today. Although the earnings and revenues reported for the quarter were in line with the consensus forecasts, the stock reacted significantly to the improved guidance of free cash flow (FCF) for 2015, which was already above analysts’ expectations. The stock jumped more than 9% today with an unusually high trading volume.
Frontier Communications reported 2QFY15 earnings per share (EPS) of $0.03, almost in-line with the consensus EPS estimate of $0.029. It reported revenue of $1.368 billion in 2QFY15, also almost in line with the consensus estimate of $1.364 billion. The company improved 2015 FCF guidance from $785-825 million to $825-865 million, above the consensus estimate of $668.91 million.
Notably, along with the raise in FCF guidance, the company also increased capital expenditure guidance from $650-700 million to $700-750 million. Frontier Communications now expects 2015 cash taxes to total $95-110 million, compared to the previously guided range of $175-200 million. The improved FCF and tax guidance translated into higher expectations by the investors, as FTR shares sky-rocketed.
The stock was up 9.11% trading at $5.15 at the closing bell on Monday. More than 57 million shares of the stock were traded today, compared to an average daily trading volume of 22.58 million shares. However, the stock still didn’t recover from its slump through the year, as even after the rise today it is down 22.67% year-to-date (YTD).
Twitter shares just closed at a record low.
On Monday, shares of the social media company fell 5.6% to close at $29.25, the lowest since the company’s public debut. Twitter’s IPO priced shares at $26, and the stock closed its first day of trading at around $45 per share; Twitter’s previous closing low was in May 2014, when shares closed at $30.50.
Monday’s collapse continued a move that started during the company’s earnings conference call last Tuesday night which severely disappointed investors.
During that call, interim CEO Jack Dorsey’s first since returning to the company he founded, Twitter management discussed its displeasure with the company’s product innovation and said it didn’t expect its user base to grow much for a “considerable” amount of time.
Dorsey is also the CEO of the mobile payments company Square, which is reportedly inching closer to an initial public offering.
Over the weekend, Business Insider’s Alexei Oreskovic wrote that some view $30 per share as something like a magic number that could make the company attractive to potential acquirers.
But again, in the background of any news about Twitter one must keep in mind that the company does not have a permanent CEO — and is being led by someone who serves as the CEO of another company, one that appears to be getting ready to go public.
Twitter Inc (NYSE:TWTR) stock was down as much as 6% in mid-day trading today, hitting its all-time low of $28.91. The recent slump in the stock price is primarily because of insider selling, as many investors believe the microblogging platform will continue to face problems in the next few quarters.
The microblogging platform reported financial results for its second quarter July 28, managing to report better-than-expected results. It reported adjusted earnings per share of $0.07, ahead of estimates of $0.04, and revenues of $502.30 million, ahead of estimates of $482.00 million.
Despite reporting strong results for the quarter, Twitter is facing serious issues pertaining to its monthly active user base. It reported 304 million monthly active users, excluding SMS fast followers, for the quarter – which reflects an addition of only two million compared to previous quarters.
Moreover, the sell-off witnessed today was further fueled by a blog post written by Chris Sacca, one of the largest and well informed investors in the microblogging platform. According to the blog post, Twitter has over one billion total inactive users who have signed up for the service, but have remained dormant. The main reason behind the increasing inactivity amid Twitter users lies in the total dynamics of the platform. It is often found confusing, in turn failing to capture user engagement.
Twitter's woes have become seemingly endless, especially after former CEO Dick Costolo announced his departure, making way for interim CEO Jack Dorsey. Several investors have voiced their concerns pertaining to the delay in the appointment of a new leader. Twitter shares have fallen approximately 19% year, as compared to the Dow Jones Index which has fallen 2.60%.
Fears are growing that Right Sector — the only major volunteer battalion Kiev has not yet managed to bring under regular army control — could turn its fire on the new government itself.Mike “Mish” Shedlock
Dmytro Yarosh, Right Sector’s leader, called late last month for a nationwide no-confidence referendum in President Petro Poroshenko. He was addressing a rally in Kiev of up to 5,000 Right Sector activists, angry over what they say is the government’s slow progress in fighting corruption and excessive concessions to Moscow as it attempts to reach a settlement over eastern Ukraine.
“We are an organised revolutionary force that is opening the new phase of the Ukrainian revolution,” Mr Yarosh told the rally.
Right Sector fighters regularly drive outside the base in camouflaged jeeps, passing freely through security checkpoints despite having their own — illegal — licence plates identifying them as Right Sector.
“We could send up to 10,000 fighters to the frontline,” said Artem Skoropadsky, a spokesperson for Right Sector.
Though the group’s fighters admit they constitute an illegal armed force, they blame Ukraine’s parliament for dragging its feet in legislating to legalise them as a single elite unit under Ukrainian army command.
“It may come to a military coup,” said one Right Sector fighter — although many in the group say they would not go that far. He admitted, however, that public support for such a scenario was low. “That’s why we haven’t done it yet.”
President Obama announced a major plan to tackle climate change on Monday. It involves carbon emission reductions and incentive programs for states to invest in renewable energy sources, like solar energy.
The catch is that for the renewable sector to grow, it needs Wall Street cash.
And from Wall Street’s perspective, Obama’s proposals couldn’t be coming at a stranger time for the energy industry and commodity markets.
“I think it’s interesting if you think about what’s going on in commodities today. The irony is that as commodity pries are going down people are going to care less about renewables,” says Tim Seymour, a managing Partner at Triogem Asset Management.
Dan Nathan, a veteran trader and editor of RiskReversal, said: “Wind and solar will and should be huge, but I suspect there will be some sort of financial fallout in the coming months and years that will make investing in these companies a difficult proposition as the world grapples with low oil costs.”
Oil and other commodities are getting pummeled by a wide range of macro economic factors, including falling Chinese demand. That makes traditional forms of energy cheap, and has dampened the urgency to invest in alternate energy sources for now.
As a result, solar stocks have been getting hammered right along with energy stocks suffering from a commodities price slump.
Here’s how some of the larger names have done over the last month:
“I think we’re getting near a capitulation moment but its not going to happen in the next week or the next months,” Seymour continued.
In other words, Wall Street is seeing a lot of uncertainty here. That usually means sitting on the sidelines to wait and see what happens. Investors are watching Washington — where lawmakers from energy dependent states already suffering from a fall in commodities prices are working on their counter-attack to Obama’s proposals.
“This is going to put companies on the brink out of business if you think this is going to pass,” said Seymour. “Clearly there’s a number of states where the governments just aren’t going to let this happen and they’ve already talked about lawsuits against the EPA.”
There’s also the Fed factor at work here. Analysts fear that if the Federal Reserve raises interest rates, already-debt laden solar companies could collapse under the weight of all the capital they’ve raised.
In addition to watching Washington, investors are also watching Beijing, where it’s likely Chinese lawmakers will implement some policies to stimulate the economy in the second half of the year. That would pump up demand for commodities, making oil and coal more expensive and perhaps again sparking demand for alternative energy source.
Despite all these factors hurting the industry, a lot of people on The Street think that the world is headed toward renewables in the long run, so investing in this stuff is hotly debated. It’s all in the timing. While some people believe solar companies can’t survive without government subsidies and financial engineering, others think they’re an investment worth sticking to.
Deutsche Bank analysts said in a note that the proposals would favor clean energy companies in the wind and solar sector if they survive potential legal challenges.
The note said: “We view this as a potential significant longer term tailwind for all solar companies, particularly US solar developers.”
So while some of Wall Street will hold on for what promises to be a wild ride, it’s certain that even more investors will wait on the solar sidelines to ensure that they don’t get burned.
Macy’s Inc said on Monday the department store chain will expand same day delivery services to nine cities and metropolitan areas this month, pushing into an aggressive field dominated by e-commerce giant Amazon.com Inc .
Macy’s, the nation’s largest department store chain, said it will now offer same day delivery to customers in 17 markets including Atlanta, Boston and Las Vegas using Deliv, an Uber-like startup that uses a fleet of contract drivers to pick up online orders from stores and malls.
The company also said its high-end Bloomingdale’s chain will expand fast delivery.
“When we piloted same-day delivery in eight markets initially last fall, we learned that our customers appreciate the additional option of having their purchase brought to their home or office in a matter of hours,” said R. B. Harrison, the chief omnichannel officer at Macy’s in an emailed statement.
The retailer did not disclose how many items it will make available for fast delivery.
Macy’s expansion comes as the “last mile” – the final portion of a package’s journey that takes it from a retailer’s warehouse or store to the customer’s front door – quickly turns into a new battleground for companies trying to increase online orders.
But analysts and logistic experts warn that offering faster delivery comes at a significant cost to retailers.
Amazon, which revolutionized retail by offering faster and increasingly free deliveries for millions of online orders, provides same day delivery in 14 metro areas across the country.
The online retailer is also pushing to expand one-hour and two-hour deliveries for Amazon Prime members.
Brick and mortar retailers like Macy’s have one possible advantage over Amazon in that it has nearly 900 stores in the U.S. to source products for delivery – meaning the packages often have less distance to travel – against 50 fulfillment centers and smaller distribution facilities run by Amazon.
LaserShip, an Amazon contractor based in Virginia, announced it would expand e-commerce delivery to five new areas including Michigan and Kentucky last week, citing increasing demand for same day shipping options for online shoppers.
“Speed is continuing to be the driving force and what everyone wants is fast and free shipping,” said Josh Dinneen, a senior vice president for LaserShip, which specializes in last mile deliveries on the East Coast.
(Reporting by Mari Saito; Editing by Bernard Orr)
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View Trade at Settlement (TAS) Outright and Calendar Spread availability for CME Group’s Grain and Oilseed, and Livestock Products.
The column headings represent the first day of the month. The cells show the contract months and spreads authorized for Trade at Settlement (TAS) as of the first day of the month. The bold and underlined contract months indicate futures and spreads that have been added to the list of contracts during the previous month.
Note: The last day that TAS is available is two business days prior to the spot delivery month. TAS is added to new months on the business day prior to the spot delivery month.
Sanctions linked to the Ukraine crisis could end up costing Russia 9% of its gross domestic product, the International Monetary Fund has said.
Russia’s economy is showing signs of stabilisation after slumping under pressure from Western financial sanctions and Russian counter-measures. Low international prices for its oil exports have added to pressure on the rouble and government finances.
“The effects of sanctions in terms of external access to financial markets and new investment technology will linger,” the fund said, summing up the findings of a mission in May.
Last year Western countries imposed restrictions that limit international financing for major Russian banks and energy companies, and also hi-tech exports to the energy sector. Russia retaliated by banning imports of most Western food products.
The fund estimated the immediate effect of sanctions and counter-sanctions had been to wipe between 1% and 1.5% off GDP, rising to 9% over the next few years. These model-driven results were subject to significant uncertainty, it cautioned.
The IMF also forecast “weak” economic growth of around 1.5% annually in the medium term. Russia’s economy was growing around 7% a year before the 2008 global financial crisis.
“Slow-moving structural reforms, sluggish investment and adverse population dynamics are all part of the picture,” it said, reiterating its long-standing advice for Russia to reduce the role of the state in the economy, protect property rights and boost competition.
Russia would nevertheless return to economic growth next year as a weaker rouble boosted competitiveness, external demand increased and domestic financial conditions normalised, the IMF said.
It predicted 0.2% growth next year following a 3.4% contraction this year, in line with its previous forecasts.
Inflation was seen slowing to around 12% by the end of this year and 8% by the end of next year – more pessimistic than the central bank‘s forecast of 7% by mid-2016.
The IMF said the central bank’s policy of gradually reducing its main interest rate in line with underlying inflation was appropriate, but the pace of reductions needed to be “prudent”.
It supported limited fiscal stimulus this year, but added: “An ambitious and credible medium-term fiscal consolidation program is necessary to adjust to lower oil prices.”
The IMF recommended revising Russia’s fiscal rule, which links government spending to the historical oil price, so that the recent oil price fall could be more quickly reflected.
The fund also said such fiscal adjustment would be hard to achieve if Russia indexes pensions next year at a cost of 1.1% of GDP. Russia typically indexes pensions but has yet to decide whether to do so next year.
“Detailed fiscal measures will also be critical for the credibility of the consolidation programme,” the IMF said.
Lockheed Martin Corporation (NYSE:LMT), in partnership with PowerAmerica, is looking forward to develop microelectronic devices using new generation of power-efficient technology that will allow reduced power loss at power grids. The news was divulged earlier today in a press release, which also disclosed that the new devices would also increase the performance of new aerospace systems in the future.
Through the partnership, PowerAmerica will develop next-generation technology and will also employ a workforce development program through which it would provide data, design new tools, and improve processes related to the aerospace industry. The vice president of engineering at Lockheed Martin, Jeff Wilcox remains confident and eyes using this technology in high-power radio frequency applications and embedded power systems.
As Lockheed Martin manufactures military aircraft, it would also be able to improve aircraft’s performance through this technology. On the other hand, executive director at PowerAmerica, Gen. Nick Justice appreciates Lockheed Martin’s support through the new partnership, and ensures that they will also be able to reduce the costs of the components.
Specifically, Lockheed Martin will assist PowerAmerica to accelerate commercialization of wide bandgap power electronics technology. PowerAmerica was established under National Network for Manufacturing Innovation (NNMI), which was unable to start the production by itself due to high cost of development.
The FTSE had a disappointing day.
The UK’s main stockmarket closed down 0.11%, or 8 points to 6,688.62.
The index was led lower by mining and oil companies, which were hit with weaker than expected manufacturing data out of Asia.
China, the largest manufacturing nation globally, saw activity contract at the fastest pace seen in two years.
Here’s how it looked:
The big losers were Anglo American and BHP Billiton, both down around 4%, while Rio Tinto fell 2.29%.
Meanwhile Rolls-Royce got a huge boost, up as much as 5.67%, on news that U.S. activist investor ValueAct had taken a 5.4 percent stake.
“Were it not for EOM , end of month, fun and games I would feel more strongly about the bull case due to today’s lean….. he BEARS need some anomalies today and a break and converting 2095.5 SPOT “
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For many commodity investors, the last four years have felt like one long, bad dream. The kind where you’re tied to a railroad track as a train heads straight for you — in slow motion. You can’t move, can’t scream, can’t do anything but lay there and wait for the point of impact. On July 29, that point seemed closer than ever when the S&P GSCI index, a measure of a basket of 24 commodities, plunged to its lowest level in 13 years.
Meanwhile, the bellwether Thomson Reuters Core Commodity CRB Index dove to a 7-year low, having dropped 34%-plus since June 2014.
But, according to the mainstream experts, there’s one surefire way to stop the commodity bear market train in its tracks; namely, the Federal Reserve jumps into the conductor’s seat and slams on the brakes via easy money and low rates. Here, a July 29 news source cuts to the chase:
“Driving the selloff in commodities are expectations that the Fed will raise borrowing costs in coming months, a move that investors expect to further boost the dollar and pressure the prices of commodities.
“It’s hard to see how the Fed would even consider hiking rates against such a weak backdrop.”
From our standpoint, it’s hard to see how belief in the Fed’s ability to re-route the commodity rout persists — even as the facts say otherwise. Case in point: If maintaining a loose monetary policy is good for commodities, then why did the market crash 60% in 2008 — the same year the Fed slashed rates seven times to record low of 0-.25% while launching the first round of quantitative easing?
Chalk it up to a glitch, perhaps?
Not likely. Because in 2011, as commodity prices came barreling back to multi-year highs, the same Fed-led explanations reemerged. After all, the world’s largest central bank was smack dab in the middle of injecting a few trillion more dollars into the U.S. economy via QE 2 and QE 3. The mainstream saw no reason for the commodity bull run to end, to wit:
In April 2011, the Daily Sentiment Index (prepared by Trade-Futures.com) showed the percentage of commodity bulls at a record 93%.
Yet — that same month, the Thomson Reuters CRB Index peaked and turned down in the four-year long, 30%-plus bear market we see today.
Despite the Fed’s supposed pro-inflation, rate-slashing, money printing campaign, our May 2011 Elliott Wave Theorist identified a perfect bearish trifecta on the CRB Index’s price chart: A three-step, countertrend rally … inside of a parallel trend channel … at a [Fibonacci] 62% retracement:
With all these changes occurring, the commodity rebound — it has not been a bull market — is probably over.
I think the dollar is starting a 5-year bull market, which will coincide with a bear market in everything else.”
Two years into the commodity selloff, our November 2013 Elliott Wave Theorist put the fallacy of a Fed-led market to bed:
Charts tell the truth. Notice the four short arrows on the chart. Based on their positions, you might think they would mark the timing of accurate sell signals generated by a secret indicator. But there’s no secret indicator. These happen to be the times at which the Fed launched its inflationary QE programs!
Investors believed the Fed’s QE actions would be bullish for commodities. But — ironically yet naturally — every launch of a new QE program provided an opportunity to sell commodities near a high.
None of the believers in omnipotent monetary authorities and their pledges to inflate saw any of those changes coming. Meanwhile, we couldn’t see how it could turn out any other way.
This eye-opening complimentary report, which represents more than 10 years of research, goes beyond the Fed’s history and government mandate; it digs into the Fed’s real motivations for being the United States’ “lender of last resort.”
-Midwest is drier in southern areas in the 6-10 day period. Showers in northwestern areas should further improve moisture as well as crop conditions for corn and soybeans, while rains in southern and eastern areas should maintain favorable moisture there. The 6-10 day outlook is drier in southern areas. Temperatures are warmer in western areas. The 11-15 day outlook is unchanged.
-Plains are drier in central areas in the 6-10 day period. Active rains in central areas will slow remaining harvesting ab it, while remaining harvesting in southern areas should finish up. The 6-10 day outlook is drier in central areas. Temperatures are warmer in northern areas. The 11-15 day outlook is slightly warmer.
-N. Plains/Prairies are wetter in the western Prairies in the 6-10 day period. Rains should further improve moisture in the Prairies and northern Plains this week, and will be most beneficial in northwestern Alberta. The 6-10 day outlook is wetter in the western Prairies. Temperatures are warmer. The 11-15 day outlook is wetter. Temperatures are cooler in the central Prairies.
-Delta is drier in northern areas in the 6-10 day period. Rains this week in northeastern areas should improve moisture a bit, but dryness will continue to build in southern areas. The 6-10 day outlook is drier in northern areas. Temperature are slightly warmer. The 11-15 day outlook is slightly warmer.
-No changes for Argentina. Additional rains in Buenos Aires, eastern Cordoba, southern Santa Fe, and Entre Rios this week will further improve moisture for wheat growth.
-No changes for Brazil. Dry weather in central and northern areas this week will allow wetness to continue to ease.
-No changes for Europe. Rains have improved moisture a bit in northeastern Spain and northeastern Italy, but dryness will continue in central and western France, western Spain, southern Poland, Czech-Slovak Republics, and Romania.
-No changes for FSU. Dryness continues to build across western Ukraine and Belarus, and moisture will be declining across central and eastern Ukraine, Central Region, and North Caucasus this week. This will stress corn and sunflower growth but will favor winter wheat harvesting.
-No changes for China. Rains have improved moisture in far northern North China Plain, and additional improvements are expected there and in central North China Plain this week. However, some dryness will continue in northern Northeast China.
-No changes for India. Rains in northern areas will maintain moisture for soybeans, while significant dryness will continue in south central groundnut areas.
-No changes for Australia. Heavy rains in Western Australia have eased dryness and stress on wheat. However, some dryness continues in South Australia. Also, moisture will continue to decline in New South Wales and southern Queensland.
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