Post
& Courier (Charleston, SC) February 21, 2019
Stocks end listless session up modestly
NEW
YORK - Wall Street capped another day of listless trading Wednesday with a
slight gain, extending the market's winning streak to a third day.
Financial,
materials and industrial companies accounted for much of the gain, outweighing
losses in health care and real estate stocks as investors reviewed the latest
batch of company earnings reports.
Stock
indexes spent much of the day wavering between small gains and losses as
traders waited for signs of progress in the latest round of trade talks between
the U.S. and China.
"Investors
are a bit concerned that we might indeed be slipping into an earnings
recession," said Sam Stovall, chief investment strategist at CFRA.
"They're really sitting on pins and needles as it relates to the trade
talks."
Despite
the solid profit growth in the last quarter, investors are cautious about
business conditions going forward as signs of weakness in the global economy emerge.
Europe and China have both reported slower growth.
Uncertainty
over the costly trade dispute between the world's largest economies has clouded
the outlook for company profits this year.
The
Trump administration was set Thursday to resume high-level talks with Chinese
officials after two days of preliminary talks by lower-level officials.
CVS
long-term care unit a drag
NEW
YORK - CVS Health beat fourth-quarter earnings forecasts, but a struggling
long-term care business took a $2.2-billion bite out of the company's
performance and its initial 2019 forecast was weaker than expected.
CEO
Larry Merlo said in a prepared statement that 2019 would be "a year of
transition" as the company integrates the health insurer Aetna, which it
purchased in a roughly $69 billion deal last year. A federal judge is still
evaluating the acquisition.
CVS
Health expects adjusted earnings to range between $6.68 and $6.88 this year.
That's well short of the per-share earnings of $7.35 that Wall Street had been
anticipating, according to a survey of industry analysts by FactSet.
CVS
Health runs more than 9,900 retail locations and processes over a billion
prescriptions annually as a pharmacy benefit manager.
The
company also runs a business that provides services to long-term care
facilities, and CVS Health booked a $2.2 billion charge from that in the
quarter. It said that business struggled with operational problems and the
bankruptcy of a significant customer.
CVS was
forced to adjust after that segment's updated budget showed "significant
additional deterioration" in its projected results for this year compared
with an analysis done several months ago.
The
heavy charge led to a $421,000 loss for the company in the quarter.
Samsung
phone different, but pricy
SAN
FRANCISCO - Samsung unveiled a highly anticipated smartphone with a foldable
screen in an attempt to break the innovation funk that has beset the smartphone
market.
But
it's far from clear that consumers will embrace a device that retails for
almost $2,000, or that it will provide the creative catalyst the smartphone
market needs. The Galaxy Fold, announced Wednesday, will sell for $1,980 when
it is released April 26.
Consumers
willing to pay that hefty price will get a device that can unfold like a
wallet. It can work like a traditional smartphone with a 4.6-inch screen or
morph into something more like a mini-tablet with a 7.3-inch screen.
When
fully unfolded, the device will be able to simultaneously run three different
apps on the screen. The Galaxy Fold will also boast six cameras: three in the
back, two on the inside and one on the front.
"Get
ready for the dawn of a new era," declared DJ Koh, who oversees Samsung's
smartphone division. The new phone, he said, "answers skeptics who said
everything has already been done."
Google
device has undisclosed mic
SAN
FRANCISCO - Google says it forgot to mention that it included a microphone in a
security product it began selling in 2017, but blames the omission on an error.
When
the company's Nest Secure home alarm system hit the market, its product
information didn't mention a microphone.
As
recently as January, the product specs for the system's Nest Guard hub, which
controls home-alarm sensors, still didn't include any indication of a
microphone.
Then,
earlier in February, Google noted that its voice assistant feature would be
available on the Nest Guard.
Google
said in a statement that the microphone wasn't intended to be a secret and
should have been disclosed.
The
company said people have to specifically turn on the microphone for it to be
listening.
Lawyer
for Nissan ex-boss speaks out
TOKYO -
The newly appointed star defender for former Nissan chairman Carlos Ghosn says
he believes the case against his client does "not meet international
standards."
Junichiro
Hironaka also said Wednesday that he believed Ghosn's trial on charges of
falsifying financial reporting and breach of trust might not begin until after
the summer.
Hironaka
said the defense team was still working out its strategy. That could mean
months more of detention for Ghosn, a former South Carolina-based tire
executive at Michelin North America who headed Nissan for almost two decades
before his arrest on Nov. 19.
Hironaka
refused to say if Ghosn will try, for a third time, to gain release on bail. He
said he viewed the case as a chance to improve Japan's legal system and human
rights.
Walmart
UK grocery deal is in doubt
LONDON
- British regulators say the proposed supermarkets merger between Sainsbury's
and Walmart's Asda unit would push up prices and reduce quality for shoppers,
casting doubt on a deal that would create the country's biggest grocery chain.
The
Competition and Markets Authority, in a preliminary report, said Wednesday it
would be "difficult for the companies to address the concerns it has
identified" and that a significant number of stores would probably need to
be sold before it gains approval.
Stuart
McIntosh, chairman of the independent inquiry, says "shoppers could face
higher prices, reduced quality and choice, and a poorer overall shopping
experience across the UK."
Sainsbury's
said it would continue to make its case to regulators who "misunderstand
how people shop in the U.K. today."
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