European stocks lower ahead of Powell speech, banks weigh By Reuters


© Reuters. The German share price index DAX graph is pictured at the stock exchange in Frankfurt

(Reuters) – A cautious mood prevailed in European equity markets on Thursday as investors looked ahead to the U.S. Federal Reserve Chairman Jerome Powell’s outlook on monetary policy.

The pan-European STOXX 600 index () slipped 0.2% by 0716 GMT, with banks () and miners () leading the losses.

Tech stocks () extended gains after another record-setting session on Wall Street. ()

Investors will be looking for clues on the U.S. central bank’s new strategy for meeting its price stability and maximum employment goals amid a deep economic crisis caused by the coronavirus pandemic. Powell is set to speak at 1310 GMT.

French advertising group Publicis (PA:) rose 0.9% after bigger rival WPP (L:) said it had resumed its dividend after cost cuts and a switch to faster ad production helped it to beat dire forecasts for second-quarter trading. WPP shares jumped 4.8%.

German online takeaway food group Delivery Hero (DE:) slipped 1.7% on announcing the acquisition of online grocery service InstaShop after almost doubling its revenues in the first half of 2020.

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Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Wall Street futures flat as investors weigh grim data, await Fed’s next steps By Reuters


© Reuters. A man walks a dog in the shade past the New York Stock Exchange (NYSE) during hot weather in New York

By Medha Singh

(Reuters) – Futures tied to the S&P 500 were little changed on Wednesday after bleak consumer confidence data provided a sobering view on the health of the economy, while investors held back ahead of Federal Reserve Chair Jerome Powell’s speech this week.

With the COVID-19 pandemic far from over and little signs of progress between U.S. lawmakers over the next rescue package, all eyes will be on Powell’s address at the virtual Jackson Hole symposium on Thursday for an update on the Fed’s stance.

The S&P 500 and the Nasdaq hit a series of record closing highs recently, driven by stimulus and demand for tech-focused stocks, even as economic data reflected an uneven recovery from a recession. A survey on Tuesday showed U.S. consumer confidence was at a six-year low in August.

Salesforce.com Inc (N:), which is set to enter the blue-chip Dow index () next week, provided some succor with a 13.2% jump premarket after the cloud software maker raised its annual revenue forecast on surging demand for its online business software.

At 6:15 a.m. ET, were down 45 points, or 0.16%, S&P 500 e-minis were up 0.5 points, or 0.01% and were up 38 points, or 0.32%.

Nordstrom Inc (N:) tumbled 5.9% after reporting a bigger-than-expected loss, as its stores were shuttered for about half of the reported quarter and consumers stayed home with little need for designer clothes.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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U.S. tariffs weigh on Europe stocks; Airbus dips By Reuters


© Reuters. The German share price index DAX graph is pictured at the stock exchange in Frankfurt

(Reuters) – European stocks snapped a four-day winning run on Thursday as the U.S. government left tariffs on Airbus and a host of other European goods unchanged, while a clutch of blue-chip companies trading ex-dividend knocked the UK’s FTSE 100 lower.

The pan-European STOXX 600 () was down 0.4%, with Airbus (PA:) sliding 0.7% after Washington said it would maintain 15% tariffs on the planes and 25% tariffs on other European goods, despite moves by the European Union to resolve a long-standing dispute over aircraft subsidies.

London’s FTSE 100 () led declines among the major European bourses, led by AstraZeneca (L:), BP (L:), Diageo (L:), Glaxosmithkline (L:) and Legal&General (L:), which traded without entitlement to a dividend payout.

TUI (L:), the world’s largest tourism company, tumbled 4.1% as it sunk to a 1.1 billion euro ($1.30 billion) loss in the third quarter due to the COVID-19 pandemic.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Fastly stock drops 20% as analysts weigh in on how TikTok may affect the edge-computing platform’s growth


Fastly Inc. shares pulled back from their recent lofty heights Thursday, as analysts weighed in on how the popular video-sharing platform TikTok will affect the edge-computing platform’s growth as more businesses migrate functions to the cloud.

Fastly
FSLY,
-16.24%

shares fell as much as 21% Thursday, and were last down 17% at $90.40, on volume of more than 23 million shares, compared with a 52-week average daily volume of 3.4 million shares.

Late Wednesday, Fastly reported quarterly results and an outlook that topped Wall Street estimates, but revealed that TikTok was the company’s single largest customer, accounting for 12% of revenue. Fastly is a so-called “edge-based” cloud-computing platform that allows developers to get the best possible performance from their applications.

TikTok has come under fire from President Donald Trump, who has suggested banning the service as a national-security risk because of ownership by the Chinese company ByteDance. Trump has also suggested that the U.S. Treasury should get a cut of the purchase price if TikTok is acquired by Microsoft Corp.
MSFT,
+0.90%
.
Also of note, organized TikTok users were credited with helping to wildly inflate attendance expectations of Trump’s ill-attended Tulsa, Oklahoma rally back in June.

Even with Thursday’s drop, Fastly shares have soared 324% from their opening on the New York Stock Exchange in May 2019, with shares skyrocketing 294% in the past three months. In comparison, the tech-heavy Nasdaq Composite Index
COMP,
+0.64%

has gained 25% in the past three months, and the S&P 500 index
SPX,
+0.36%

has risen 17%.

Oppenheimer analyst Timothy Horan downgraded Fastly to perform from outperform and said TikTok was a “major risk” to the elevated stock price.

“A TikTok ban in the U.S. could prevent FSLY from hitting 3Q/FY20 guidance,” Horan said. “TikTok is FSLY’s largest customer and is likely ~15% of revenues in 1H20, with about half that generated in the U.S. We do think a TikTok/ MSFT deal is far from certain, and long-term MSFT could move TikTok delivery on its own edge infrastructure.”

For the third quarter, Fastly forecast an adjusted loss of a penny a share to net income of a penny a share on revenue of $73.5 million to $75.5 million. Analysts, who had previously forecast a loss of 4 cents a share on revenue of $72 million on average, now expect earnings of a penny a share on revenue of $74.8 million.

Read:Facebook’s TikTok rival comes as Chinese company’s future is in limbo

William Blair analyst Jonathan Ho, who has an outperform rating on the stock, said weakness could make a good entry point given its recent performance, even with a possible U.S. ban of TikTok.

“Third-quarter guidance calls for sequentially flat revenue growth, which appears conservative but also reflects some unknowns around TikTok and continued COVID-19-driven demand as global economies reopen,” Ho said. “Fastly remains a stock we would want to own given broader themes around digital transformation and edge compute, and we would take advantage of weakness in the shares.”

Raymond James analyst Robert Majek, who rates the stock as market perform, said TikTok “remains a double-edged sword” for Fastly.

Majek said one “area of perceived softness” in Fastly’s results was slowing growth in its large enterprise customers, which could reflect a COVID-19 related pullback in spending, but noted the addition of a very significant customer.

“We note that the gross adds included one very meaningful customer, Amazon
AMZN,
+0.55%
,
which we believe is using Fastly to deliver ~90% of its image content across the 20 global cities we tested,” Majek said.

Stifel analyst Brad Reback, who has a buy rating and hiked his price target to $98 from $30, noted that while 12% of Fastly’s revenue came from TikTok, half of that came from outside of the U.S., and that digital transformation trends, prompted by COVID-19 adaptation, would drive more organizations to “re-platform their applications” using Fastly.

“The banning of the app in the US would create short-term uncertainty around Fastly’s revenue contribution from ByteDance; however, management believes it has the ability to backfill the majority of this potentially lost traffic,” Reback said.

Of the 11 analysts who cover Fastly, five have buy or overweight ratings, four have hold ratings, and two have sell ratings, and an average target price of $93.25, according to FactSet data.



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Wall Street closes lower as Intel dives, earnings and pandemic weigh By Reuters


© Reuters. New York Stock Exchange opens during COVID-19

By Stephen Culp

NEW YORK (Reuters) – Wall Street retreated on Friday, heading into the weekend with a broad sell-off due to weak earnings, surging coronavirus cases and geopolitical uncertainties.

For the second day in a row, the tech sector weighed heaviest on all three major U.S. stock averages. Intel Corp (O:) led the decline, its shares plunging after the chipmaker reported a delay in production of a smaller, faster 7-nonometer chip.

“There’s a skittishness ahead of the weekend after yesterday’s tech and growth sell-off,” said Ryan Detrick, senior market strategist at LPL Financial (NASDAQ:) in Charlotte, North Carolina.

“It’s been an unbelievable ride for the Nasdaq and tech over the last two moths,” Detrick added. “A well-deserved correction makes a lot of sense in our view.”

Each index posted a weekly loss, with the S&P 500 and the Dow snapping three-week winning streaks. Nasdaq had its weakest week of the last four.

The retreat followed a rally that brought the S&P 500 to nearly 5% below its record high reached in February. The bellwether index is now near break-even for the year, while the Nasdaq has gained more than 15% year-to-date.

“With the rally we’ve seen so far in July, it makes sense to see anxiety ahead of a huge earnings week, the Fed decision and what’s likely to be the worst GDP in our lifetimes,” Detrick added.

Momentum stocks Apple (NASDAQ:), Alphabet Inc (O:) and Amazon.com (O:) are scheduled to post results on July 30, the day the U.S. Commerce Department is due to give its first take on second-quarter GDP. Analysts projected the economy dropped by a bruising 35% during the three-month period.

More than 1,000 Americans died from COVID-19 on Thursday, the third straight day for that grim milestone as total cases surged past 4 million.

Beijing fired back at Washington shuttering China’s Houston consulate by closing the U.S. consulate in the city of Chengdu.

Unofficially, the Dow Jones Industrial Average () fell 182.99 points, or 0.69%, to 26,469.34, the S&P 500 () lost 20.04 points, or 0.62%, to 3,215.62 and the Nasdaq Composite () dropped 98.24 points, or 0.94%, to 10,363.18.

Of the 11 major sectors in the S&P 500, all but consumer discretionary () were in the red.

Healthcare () lost ground ahead of executive orders by President Donald Trump aimed at lowering drug prices.

Second-quarter earnings season charges ahead, with 128 constituents of the S&P 500 having reported. Of those, 80.5% have cleared a very low bar of analyst expectations.

American Express Co (N:) fell after reporting an 85% slump in quarterly profit after setting aside nearly $628 million to cover potential defaults.

Verizon Communications Inc (N:) beat analyst profit and revenue estimates as the telecom saw strong demand due to stay-at-home mandates, sending its shares higher.

Honeywell International Inc’s (N:) cost-cutting efforts resulted in better-than-expected second-quarter profit despite a sharp decline in its aerospace segment.

Intel rival Advanced Micro Devices Inc (O:) shares jumped, while Tesla Inc (O:) extended Thursday’s losses.





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