Jumat, 31 Januari 2020

There's a new kind of Coke on shelves. You'll be forgiven if you missed it - CNN

Four varieties, including Coke Energy, Coke Energy Zero Sugar, Coke Energy Cherry and Coke Energy Cherry Zero Sugar, recently reached US retail shelves. The Coke-energy-drink hybrid beverage became available in international markets last year.
Coke Energy, which is made with guarana extracts and B-vitamins, has 114 mg of caffeine per 12-ounce serving. A 12-ounce can of regular Coke has about 34 mg of caffeine. But the two products should taste about the same.
"It's the energy you want and the taste you love," Geoff Cottrill, senior vice president of strategic marketing at the company, told CNN Business, adding that the proposition is "very simple and very direct."
Coke Energy landed on US retail shelves earlier this month.
It may seem like an unusual drink, but it's an important part of Coke's strategy: Coca-Cola has been diversifying its portfolio of beverages while innovating its core product.
So far, the product may have flown under the radar. But Coke is planning a splashy US rollout for the drink.
"We're putting the full marketing muscle behind our Coke Energy launch in the US," CEO James Quincey said during a call discussing the fourth quarter and full year financial results Thursday.
To ensure Americans are aware of the energy drink, Coca-Cola is advertising the product during the Super Bowl. It also plans to offer samples across the country.
Americans will get a slightly different version of the drink than people in other places around the world, Quincey said, describing it as a "version 2.0." The US version will taste more like classic Coca-Cola, while the international version is more citrusy, he said.
People are increasingly seeking functional beverages, which offer an added nutritional or practical benefit, like a boost of energy.
Coke Energy and Coke Plus Coffee, which is made with real coffee and is more caffeinated than regular Coke, could help those consumers from losing interest in cola, Coca-Cola's most important product. Expanding the Coke portfolio is also a way to give diehard Coke fans more options.
The efforts are paying off so far.
Coca-Cola thinks Americans are finally ready for Coke with coffee
Last year, trademark Coke, which includes variations on the classic cola, popped 6% in terms of retail value globally, driven in part by Coca-Cola Zero Sugar. The company reported overall net revenue growth of 16% for the quarter and 9% for the year. Its stock jumped about 3% on the news during trading hours Thursday.
The energy category in particular is a good bet for Coke.
US energy drinks and shots sales amounted to about $13.5 billion in 2018, a growth of about 30% from 2013, according to the research company Mintel. The market will continue to grow, according to Mintel's projections.
"We're looking to expand the access to the energy category, and we think Coke can do that," Quincey said. Coca-Cola already has a distribution agreement with Monster Energy.
Coca-Cola is also leaning into other trends with product launches, revamps and acquisitions.
AHA, the company's new caffeinated flavored seltzer water brand, reaches shelves in March. Powerade, the sports drink made by Coca-Cola, is redesigning packages and launching new products this winter. And earlier this month, Coca-Cola announced the acquisition of Fairlife, which sells lactose-free milk, to cash in on interest in specialty dairy drinks.

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2020-01-31 14:44:00Z
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Consumer spending posts modest gain in December as inflation accelerates - MarketWatch

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Consumers are spending enough to keep the U.S. economy growing for a record 11th straight year.

The numbers: U.S. consumer spending rose modestly in December to cap off a decent holiday shopping season, but the increase in outlays in 2019 was the smallest in three years.

A key measure of inflation, meanwhile, accelerated to the highest rate of the year, though it’s still quite low.

Consumer spending increased 0.3% last month, the government said Friday, matching the MarketWatch forecast. Incomes rose a smaller 0.2%.

That’s a big turnaround from last year, when consumer spending slumped almost 1% amid a partial government and brief worries about the threat of recession.

The rate of inflation also picked up, however. The PCE inflation index rose 0.3% last month, marking the biggest increase since last April.

The yearly rate of inflation also rose to a one-year high of 1.6%, though it’s still below the Federal Reserve’s 2% target.

Read: Economy grows 2.1% in fourth quarter. GDP gets boost from falling trade deficit

What happened: Americans spent more on prescription drugs and health care in December. They spent less on new cars and trucks and utilities during a warmer than usual month.

Income growth, for its part, was depressed by a big decline in the earnings of farmers, part of which reflected lower government subsidies.

A separate measure of inflation that strips away food and energy, known as core PCE, rose 0.2% in December. They yearly rate edged up to 1.6% from 1.5%.

The savings rate dipped to 7.6% from 7.8%, but Americans saved the most in 2019 in seven years.

Read: Economic hit from coronavirus likely to be short lived, but it’s still ‘a little scary, frankly

Also: The Fed is keeping a close eye on the ‘serious’ coronavirus

Big picture: The longest running economic expansion in U.S. history has been fueled by steady consumer spending, but there’s a limit to how much Americans can spend. Consumer incomes and spending rose in 2019 at the slowest pace in three years.

Many economists predict spending will slow a bit more this year because wage growth has flattened out.

Inflation, meanwhile, is still quite low despite a recent uptick. Most economists estimate inflation will rise to around 2% in 2020 but probably not go much higher.

If they’re right, the Fed is unlikely to raise interest rates this year. Low rates should give a further boost to consumer spending and the broader economy.

Read: These states had the lowest unemployment rates in 2019. What about swing states?

Market reaction:The Dow Jones Industrial Average DJIA, +0.43% and S&P 500 SPX, +0.31% were set to open lower again in Friday trades. Stocks had been trading at records earlier in the month until the outbreak of the coronavirus in China.

The 10-year Treasury yield TMUBMUSD10Y, -2.27% slipped to 1.56%. Investors have sought the perceived safety of government bonds.

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2020-01-31 13:32:00Z
CAIiEJBwKw5bWZKUxAjXXLJ1tJYqGAgEKg8IACoHCAowjujJATDXzBUw2JS0AQ

Here’s the daring way Europe’s largest fund manager is reacting to the coronavirus outbreak - MarketWatch

There is considerable debate whether to “buy the dip” or not as financial markets react to the coronavirus outbreak.

Amundi Asset Management, Europe’s largest fund manager with €1.45 trillion ($1.6 trillion) in assets under management, is taking it one step further, and saying it sees opportunities in emerging market equities.

“Unless the ‘elevated uncertainty’ is able to derail the global economy into a shock—which is not our scenario now—excessive downward setbacks in prices could provide entry points for asset classes with attractive valuations and good fundamentals. In particular, we see selective opportunities in EM [emerging market] equity given the reacceleration of earnings growth, attractive valuations and the prospect of a weaker U.S. dollar DXY, -0.10%. The short-term issue due to the Chinese situation is an opportunity to add to this asset class, barring any disruption to the global outlook,” said Pascal Blanqué, Amundi’s chief investment officer.

In particular, the firm is recommending emerging markets that are relatively insulated from the virus and can benefit from either strong domestic demand or the continuing shift in the value chain.

“For example, we expect strong growth to remain in Vietnam, activity to slightly rebound in Indonesia and, the Singapore economy to benefit from stabilization and the eventual pickup of industrial production and global trade,” he wrote. On China, Amundi recommended being more cautious on vulnerable sectors such as hospitality and aviation, as well as tourism-related companies sensitive to Chinese demand.

Also see: Mark Mobius says he’s boosting emerging-market bets

The buzz

The State Department warned Americans not to travel to China in the wake of the coronavirus, even as the World Health Organization said there was no need to cut off travel. The U.K. reported its first two cases.

The technology sector was in focus on two major stories. Amazon AMZN, +0.68%  was on track toward a $1 trillion valuation after reporting a $3.3 billion quarterly profit on stronger-than-forecast holiday sales. IBM IBM, -0.67%  announced Ginni Rometty’s eight-year run as chief executive will end and that she’ll be replaced by Arvind Krishna, who currently runs the cloud division.

Reynolds Consumer Products REYN, +0.00%  said late on Thursday it priced its initial public offering at $26 a share, raising $1.2 billion. World Wrestling Entertainment WWE, +2.23%  may stumble after the resignation of its two co-presidents.

Oil giants Exxon Mobil XOM, +1.06%  and Chevron CVX, +0.93%  report results.

The economics calendar features the employment cost index, personal income and Chicago purchasing managers index data. Chinese PMI data didn’t disappoint, though the survey period was largely before the spread of the coronavirus. South Korean and Japanese industrial production improved, while the eurozone economy barely grew in the final three months of the year.

On the political front, the U.K. officially exits the European Union on Friday night, though the relationship will be largely unchanged until the end of the year. The remaining drama from the impeachment trial ended on Thursday night as Sen. Lamar Alexander said he opposes calling witnesses, likely sealing a quick end.

The markets

U.S. stock futures ES00, -0.48%  declined on Friday, after three consecutive gains for the Dow Jones Industrial Average DJIA, +0.43%.

Gold GC00, -0.25%  edged lower while crude oil CL.1, +0.40%  inched up.

Asian stocks ADOW, -0.28%  rose and European stocks SXXP, -0.40%  fell.

Random reads

The 2011 thriller Contagion has surged into the iTunes Top 10 U.K. movie rental chart because of the coronavirus.

Sweet home, Alabama—suddenly, the Yellowhammer state is near the top of the rankings for incoming U-Haul trucks.

Neil Young compared the MacBook Pro’s audio capabilities to Fisher-Price’s.

Need to Know starts early and is updated until the opening bell, but sign up here to get it delivered once to your email box. Be sure to check the Need to Know item. The emailed version will be sent out at about 7:30 a.m. Eastern.

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2020-01-31 12:18:00Z
52780581188149

Here’s the daring way Europe’s largest fund manager is reacting to the coronavirus outbreak - MarketWatch

There is considerable debate whether to “buy the dip” or not as financial markets react to the coronavirus outbreak.

Amundi Asset Management, Europe’s largest fund manager with €1.45 trillion ($1.6 trillion) in assets under management, is taking it one step further, and saying it sees opportunities in emerging market equities.

“Unless the ‘elevated uncertainty’ is able to derail the global economy into a shock—which is not our scenario now—excessive downward setbacks in prices could provide entry points for asset classes with attractive valuations and good fundamentals. In particular, we see selective opportunities in EM [emerging market] equity given the reacceleration of earnings growth, attractive valuations and the prospect of a weaker U.S. dollar DXY, -0.10%. The short-term issue due to the Chinese situation is an opportunity to add to this asset class, barring any disruption to the global outlook,” said Pascal Blanqué, Amundi’s chief investment officer.

In particular, the firm is recommending emerging markets that are relatively insulated from the virus and can benefit from either strong domestic demand or the continuing shift in the value chain.

“For example, we expect strong growth to remain in Vietnam, activity to slightly rebound in Indonesia and, the Singapore economy to benefit from stabilization and the eventual pickup of industrial production and global trade,” he wrote. On China, Amundi recommended being more cautious on vulnerable sectors such as hospitality and aviation, as well as tourism-related companies sensitive to Chinese demand.

Also see: Mark Mobius says he’s boosting emerging-market bets

The buzz

The State Department warned Americans not to travel to China in the wake of the coronavirus, even as the World Health Organization said there was no need to cut off travel. The U.K. reported its first two cases.

The technology sector was in focus on two major stories. Amazon AMZN, +0.68%  was on track toward a $1 trillion valuation after reporting a $3.3 billion quarterly profit on stronger-than-forecast holiday sales. IBM IBM, -0.67%  announced Ginni Rometty’s eight-year run as chief executive will end and that she’ll be replaced by Arvind Krishna, who currently runs the cloud division.

Reynolds Consumer Products REYN, +0.00%  said late on Thursday it priced its initial public offering at $26 a share, raising $1.2 billion. World Wrestling Entertainment WWE, +2.23%  may stumble after the resignation of its two co-presidents.

Oil giants Exxon Mobil XOM, +1.06%  and Chevron CVX, +0.93%  report results.

The economics calendar features the employment cost index, personal income and Chicago purchasing managers index data. Chinese PMI data didn’t disappoint, though the survey period was largely before the spread of the coronavirus. South Korean and Japanese industrial production improved, while the eurozone economy barely grew in the final three months of the year.

On the political front, the U.K. officially exits the European Union on Friday night, though the relationship will be largely unchanged until the end of the year. The remaining drama from the impeachment trial ended on Thursday night as Sen. Lamar Alexander said he opposes calling witnesses, likely sealing a quick end.

The markets

U.S. stock futures ES00, -0.32%  declined on Friday, after three consecutive gains for the Dow Jones Industrial Average DJIA, +0.43%.

Gold GC00, -0.32%  edged lower while crude oil CL.1, +0.79%  inched up.

Asian stocks ADOW, -0.31%  rose and European stocks SXXP, -0.31%  fell.

Random reads

The 2011 thriller Contagion has surged into the iTunes Top 10 U.K. movie rental chart because of the coronavirus.

Sweet home, Alabama—suddenly, the Yellowhammer state is near the top of the rankings for incoming U-Haul trucks.

Neil Young compared the MacBook Pro’s audio capabilities to Fisher-Price’s.

Need to Know starts early and is updated until the opening bell, but sign up here to get it delivered once to your email box. Be sure to check the Need to Know item. The emailed version will be sent out at about 7:30 a.m. Eastern.

Follow MarketWatch on Twitter, Instagram, Facebook.

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2020-01-31 11:20:00Z
52780581188149

As the coronavirus spreads, fear is fueling racism and xenophobia - CNN

The headlines drew immediate outrage. Readers accused the paper of using ignorant and offensive language.
"Yellow Peril" was an old racist ideology that targeted East Asians in Western countries. The phrase embodies the worst of anti-Asian fears and stereotypes, which have plagued immigrant communities since the first waves of Chinese immigration to the United States began in the 19th century.
In the US, government propaganda and pop culture at the time spread wildly racist and inaccurate images of Chinese people as unclean, uncivilized, immoral, and a threat to society.
To invoke the term now, in a story about death and illness in Asia, seems thoughtless at best and blatantly racist at worst.
The newspaper apologized quickly and said they had no intention of perpetuating "racist stereotypes of Asians." But the damage is not so easily undone, and the paper is not the sole culprit -- merely the latest in a wave of anti-Chinese sentiment as the coronavirus spreads worldwide.
The escalating global health crisis has claimed more than 200 lives -- all in China -- and infected close to 10,000 people worldwide. As they seek to contain the virus, authorities in multiple countries are balancing the need for warnings against the risk of creating global panic.
However, there are signs that's already happening, with face masks selling out in stores and people locking themselves at home. Some people in central China -- the epicenter of the outbreak -- are desperately taking any flight out, regardless of destination, as governments worldwide suspend flights from China and impose restrictions on travelers from the mainland.
But the panic has also taken another, more familiar form -- the re-emergence of old racist tropes that portray Asians, their food, and their customs as unsafe and unwelcome.

As panic spreads, so does racism

As news of the virus has spread, many people of Asian descent living abroad say they have been treated like walking pathogens.
Writing for the UK's Guardian newspaper, one British-Chinese journalist in London said a man quickly moved seats when he sat down on a bus.
A Malaysian-Chinese social worker experienced the same thing on a London bus this week. "A couple people at an East London school I work in have asked me why Chinese people eat weird food when they know it causes viruses," she told CNN.
In Canada, there have been reports of Chinese children being bullied or singled out at school. In New Zealand -- where there are no confirmed coronavirus cases -- a Singaporean woman says she was confronted and faced racist harassment in a mall.
These instances echo a long history of racism in the West. During the Yellow Peril era, anti-Chinese fears led to lynchings of Chinese immigrants, racial violence, systemic discrimination -- even an outright ban on Chinese immigrants for 61 years in the US under the country's Exclusion Act.
That's why the term "Yellow Peril," which contains centuries of trauma, is so charged -- and why the use of it in a contemporary headline was so stunning.
However, this time around anti-Chinese racism is spreading beyond the West. In Vietnam, signs have been seen outside restaurants declaring "No Chinese." The tourist who took the photo told CNN the sign appeared in the past week. Similar signs were also posted outside a Japanese shop, turning away Chinese customers.
And people online from various different places are making racially driven jokes; when TV host James Corden posted a photo with Korean-pop band BTS, one person tweeted, "BREAKING: James Corden dies of the coronavirus." The joke racked up nearly 25,000 likes on Twitter.
Signs outside restaurants in Hoi An, Vietnam, taken in January 2020.

Targeting Chinese food

Perhaps the most widespread form of xenophobia comes in fearmongering, sensationalist stereotypes about Chinese food.
The novel coronavirus is believed to have started in a Wuhan seafood and wildlife market, and scientists have pointed to bats and snakes as possible virus carriers. And while the wildlife trade poses legitimate problems, the outbreak has prompted a racially tinged wave of disgust toward Chinese food, and anger from many who accuse Chinese people of recklessly causing a potential global pandemic.
"Because of some folks in China who eat weird (foods) like bats, rats, and snakes, the entire world is about to suffer a plague," said one popular tweet.
This idea has been reinforced by recent media coverage of the coronavirus, some of which has featured misleading videos or photos. One widely shared video, of a Chinese travel blogger eating bat soup, was filmed three years ago in the Pacific island nation of Palau, and the dish has been sampled by Western TV hosts in the past.
The video and the blogger have no connection to Wuhan or the current outbreak -- but the video has gone viral nonetheless, with many Western viewers expressing horror on social media. There was such an uproar that the blogger came forward to apologize last week.
What viral misinformation and breathless media coverage often miss is that only a small minority of people in China actually eat wild animals. Most people eat much of the same things you would see in other cuisines, like pork or chicken. Ultimately, what people like to eat is culturally relative -- a lot of the Western disgust toward "weird" Chinese food is itself Eurocentric.
That's not to say all criticism of Chinese food is invalid; the country does have a problem with badly-regulated trade of wild animals, which has led to previous outbreaks.
Chinese officials crack down on wildlife markets as coronavirus outbreak nears 3,000 cases
The deadly 2003 outbreak of severe acute respiratory syndrome (SARS) was traced to the civet cat, considered a delicacy in southern China. And though the government has introduced some measures limiting wildlife trade, it has been reluctant to take more aggressive action, and illegal trade continues.
It's also difficult to end these practices because of the cultural significance and prevalence of traditional Chinese medicine. Many of these wild animals are thought to hold important medicinal properties -- for instance, people drink snake soup for arthritis and snake bile for a sore throat.
There is undoubtedly a larger issue that needs to be addressed -- how the government can balance tradition with safer regulations.
But the beliefs and customs that drive consumption of these foods are centuries old and interwoven in peoples' lives -- they are not so easy to undo, even less so when they are dismissed as primitive and unclean by foreign countries.

'Standing with our Chinese community'

Right now, we are only seeing early signs of a xenophobic backlash against the East Asian diaspora -- tasteless jokes online, bad headlines, people acting fearfully in public. But if the 2003 SARS epidemic is any model to go by, these strands of xenophobia could potentially escalate into more dangerous, explicit forms of racism.
At the peak of the 2003 outbreak, people of Asian descent were treated like pariahs in the West. There were reports of white people covering their faces in the presence of Asian coworkers, and real estate agents who were told not to serve Asian clients.
Asian people suffered threats of eviction, had job offers rescinded with no explanation, and some Asian Canadian organizations received outright hate messages. Chinese and Asian businesses suffered heavy losses; in Boston, an April Fool's hoax falsely warned of infected employees at a Chinese restaurant, reportedly causing a 70% drop in the restaurant's business.
An employee of an empty Chinatown restaurant in Chicago on April 24, 2003, as fears over the SARS epidemic kept customers away.
This all happened 17 years ago, when China was still slowly opening up. Now it's an emerging superpower, and its role in a range of recent conflicts -- the ongoing US-China trade war, security concerns surrounding telecommunications company Huawei, allegations of Chinese spies in America and Australia -- mean that many in the West already view China with greater suspicion and tension than they did before.
Add the threat of a global pandemic, and a wave of heightened discrimination could be even uglier this time around.
Diaspora communities and local authorities are preparing for this, with many trying to calm fear before it becomes hysteria. In France, the newspaper controversy sparked a social media campaign, with many French Chinese citizens using the hashtag #JeNeSuisPasUnVirus -- I am not a virus.
In a statement confirming the first case of coronavirus in Los Angeles this week, the local health department stressed that "people should not be excluded from activities based on their race, country of origin, or recent travel if they do not have symptoms of respiratory illness."
The head of Toronto Public Health also warned that misinformation about the virus had created "unnecessary stigma against members of our community."
"I am deeply concerned and find it disappointing that this is happening," said the head, Eileen de Villa, in a statement Wednesday. "Discrimination is not acceptable. It is not helpful and spreading misinformation does not offer anyone protection."
Toronto Mayor John Tory also spoke out this week about the coronavirus panic. "Standing with our Chinese community against stigmatization and discrimination," he said. "We must not allow fear to triumph over our values as a city."

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2020-01-31 06:59:00Z
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Kamis, 30 Januari 2020

Dow Jones Today, Stocks Pare Opening Losses; Microsoft, ServiceNow Rally; Facebook Dives - Investor's Business Daily

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  1. Dow Jones Today, Stocks Pare Opening Losses; Microsoft, ServiceNow Rally; Facebook Dives  Investor's Business Daily
  2. Stocks fall as coronavirus death toll rises, Facebook shares tumble  CNBC
  3. Asian markets tumble as fears over virus outbreak spread  The Associated Press
  4. Recovery From Monday's Gaps; NASDAQ And Dow At Channel Support  Investing.com
  5. Stock market live updates: Dow falls 150, Facebook is biggest loser, GDP not great  CNBC
  6. View full coverage on Google News

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2020-01-30 14:47:00Z
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Altria Takes a $4.1 Billion Hit on Juul Stake - The New York Times

Altria reported a $4.1 billion write-down on its Juul Labs investment on Thursday, another sizable charge as the vaping crisis continues to roil the e-cigarette industry.

The company now values its 35 percent stake in the e-cigarette company at $4.2 billion, a significant drop from the $12.8 billion it paid in December 2018. Three months ago, Altria, one of the world’s largest tobacco sellers, devalued its investment in Juul by $4.5 billion.

Altria, the maker of Marlboro cigarettes, said its fourth-quarter charge was largely because of the growing number of legal cases pending against Juul, which increased by more than 80 percent since the end of October.

Howard Willard, chief executive of Altria, said that despite “the unexpected challenges” Juul faces, the company had made progress in its noncombustible platform with the IQOS e-cigarette and on nicotine pouches.

“We enter 2020 with continued focus on harm reduction,” he said in a statement.

Thousands of Americans have been sickened by lung illnesses tied to vaping and at least 59 people have died, prompting the American Medical Association to call for a ban on the products. Juul has been hit with lawsuits by federal agencies and state attorneys general, who contend that the company targeted young people with deceptive marketing, including nicotine pods with flavors like mango.

The Food and Drug Administration announced a partial ban on flavored pods this month, forbidding the sale of most flavors but exempting menthol and tobacco flavors.

Altria bought its stake in Juul as it was looking to shift away from cigarettes. The start-up, at the time experiencing explosive growth, was valued at $38 billion.

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2020-01-30 13:36:00Z
52780583014504

Stock market news live: Stock futures drop as coronavirus fatalities rise - Yahoo Finance

Global markets were under pressure Thursday as a fears over a coronavirus gripping the world’s second largest economy escalated further.

9:04 a.m. ET: U.S. GDP beats expectations in the fourth quarter, but personal consumption slows more than anticipated

U.S. economic activity rose at a pace of 2.1% in the last three months of 2019, coming in ahead of consensus expectations. Personal consumption, however, slowed more than anticipated.

Here were the main metrics from the Bureau of Economic Analysis’s advanced fourth-quarter gross domestic product report, compared to consensus expectations compiled by Bloomberg:

  • 4Q GDP annualized quarter over quarter: +2.1% vs. +2.0% expected and +2.1% in 3Q

  • Personal consumption: +1.8% vs. +2.0% expected and +3.2% in 3Q

  • Core personal consumption expenditures, quarter over quarter: +1.3% vs. +1.6% expected and +2.1% in 3Q

For the 12 months through the fourth quarter of 2019, U.S. GDP grew at a pace of 2.3%. This marked a deceleration from the 2.5% pace of gains seen in the 12 months through the end of 2018.

READ MORE

7:38 a.m. ET: Altria records $4.1 billion charge on Juul investment

Altria (MO) said in its quarterly earnings report Thursday that it recorded a fourth-quarter charge of $4.1 billion relating to its investment in Juul. The cigarette-maker had taken a 35% stake in Juul by investing some $12.8 billion in December 2018.

According to a statement from Altria:

“This impairment is primarily due to the increased number of legal cases pending against JUUL and the expectation that the number of legal cases against JUUL will continue to increase.

“Since October 31, 2019, the number of legal cases pending against JUUL has increased by more than 80%. Altria has not made any assumptions, or drawn any conclusions, regarding the merits or likelihood of success of any of these cases, litigation is subject to uncertainty and it is possible that there could be adverse developments in pending or future cases.”

Shares of Altria were little changed to slightly lower in early trading, after the company delivered fourth-quarter adjusted EPS and full-year guidance that was mostly in-line with expectations.

7:25 a.m. ET: Coca-Cola shares rise in early trading after fourth-quarter organic sales growth tops expectations

KIEV, UKRAINE - 2020/01/07: Coca Cola zero seen in a store shelf. (Photo by Igor Golovniov/SOPA Images/LightRocket via Getty Images)

Food and beverage giant Coca-Cola (KO) delivered organic revenue growth that topped expectations, driven by better than anticipated increases in volumes sold across its beverage segments.

Coca-Cola delivered fourth-quarter comparable EPS of 44 cents, matching expectations. Overall organic sales growth, which strips out the impact of acquisitions and other items, rose 7%, better than the 4.9% increase expected, according to Bloomberg consensus data.

Unit case volume rose 3% in the quarter, better than the unchanged growth in the same period last year. Sparkling beverage unit case volumes rose 3%, reversing last year’s 1% decline, while water and sports drink volumes accelerated by 1 percentage point to a 2% gain. Juice and plant-based beverages were flat, but were better than last year’s 2% decline.

The stock was up nearly 1% pre-market, and is trading near new 52-week highs.


7:22 a.m. ET: Stock futures drop as coronavirus fatalities rise

U.S. stock futures were off in early trading, following equities in Asia and Europe lower as the death toll for the coronavirus in China rose further. The Shanghai Composite fell 2.75% on Thursday.

Crude oil prices sank further as fears that the virus and business closures it has spurred in China would impact demand for energy in the country. Gold prices rose and U.S. Treasuries were bid higher, sending yields sinking.

The coronavirus death toll rose by 38 to a total of 170 in China as of Thursday, according to the country’s National Health Commission, which also added that 170 people had been cured of the disease and discharged from medical facilities. The overall number of cases of the virus climbed above 7,700 in China, and India and the Philippines each reported their first cases of the coronavirus Thursday.

Here were the main moves during the pre-market session, as of 7:22 a.m. ET:

  • S&P futures (ES=F): 3,247.25, down 25.25 points or 0.77%

  • Dow futures (YM=F): 28,498.00, down 212 points or 0.74%

  • Nasdaq futures (NQ=F): 9,035.00, down 63.5 points or 0.7%

  • Crude oil (CL=F): $51.15 per barrel, down $1.18 or 2.21%

  • Gold (GC=F): $1,586.30 per ounce, up $10.30 or 0.65%

Traders work after the opening bell at the New York Stock Exchange (NYSE). (Photo by JOHANNES EISELE/AFP via Getty Images)

7:00 a.m. ET: Verizon Q4 boosted by Disney+ deal

Verizon (VZ) reported a strong Q4, with mobile phone subscribers getting boost from an offer of free, one-year subscription to Disney+ with some of its plans.

The company reported earnings per share of $1.13, but added 790,000 postpaid phone customers — well above Wall Street’s estimates.

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2020-01-30 12:57:00Z
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Fourth-quarter GDP rose only 2.1% and full-year 2019 posts slowest growth in three years at 2.3% - CNBC

A worker attaches a wiring harness to the chassis of an X model SUV at the BMW manufacturing facility in Greer, South Carolina, November 4, 2019.

Charles Mostoller | Reuters

WASHINGTON — The U.S. economy grew 2.1% in the fourth quarter, closing out a year in which gross domestic product decelerated to its slowest pace in three years amid a continuing drag in business investment.

The GDP increase matched the third quarter and met expectations of economists surveyed by Dow Jones. For the full year, the economy grew 2.3%, below the 2.9% increase from 2018 and the 2.4% gain in 2017, the first year of Donald Trump's presidency, according to the initial estimate released Thursday by the Commerce Department.

The move in 2019 was well below the White House's projections following the 2017 tax bill that cut corporate and individual rates. The administration has said the stimulus would lead to GDP increases of at least 3%, but that hasn't happened yet.

Continued gains in consumer spending helped propel the economy in the year's final three months, though the rate of increase came in at 1.8%, well below the 3.2% pace in the third quarter. Still, personal consumption expenditures added 1.2 percentage points to the quarterly rise. The consumer accounts for 68% of what is now a $21.7 trillion U.S. economy.

For the full year, PCE rose 2.6%, off the 3% pace in 2018. Real disposable income was up 1.5% in the fourth quarter, a decline from the 2.9% rise in the previous period. The full-year gain came in a 3%, below the 4% increase in 2018. The savings rate was 7.7%, little changed from the third quarter.

What helped and hurt growth?

Durable goods spending rose 1.2% while nondurables saw growth of 0.8%, the slowest pace since the first quarter of 2018. Net exports also helped, rising 1.4% amid the tariff war between the U.S. and China. Imports fell 8.7%, owing to a drop in consumer goods and motor vehicles, as the U.S. has made some inroads in cutting its global trade imbalance. The two sides recently came to a first-phase agreement on tariffs, though much of the levies remain in place. The trade war, though, continued to take a toll on business investment.

Gross private domestic investment fell 6.1% in the quarter, the third straight decline and significantly worse than the 1% dip in the previous period. Investment in structures slumped 10.1% and equipment, particularly on the industrial side, declined 2.9%. Those decreases were offset somewhat by a 5.9% increase in intellectual property products, the best gain since the first quarter and boosted by software investment. IP theft is a key sticking point in the U.S.-China dispute.

The decline in structures investment came primarily due to mining exploration, shafts and wells. Government spending also contributed to growth during a year in which the U.S. budget saw its first $1 trillion deficit since the early days of the economic recovery from the Great Recession.

Government consumption expenditures and gross investment increased 2.7%, pushed by a 4.9% rise in defense spending. State and local government spending also rose 2.2%. The Congressional Budget Office this week released revised projections that see trillion-dollar fiscal deficits well into the future. The budgetary red ink has fueled a national debt that has now swelled past $23 trillion.

Trump has pressured the Federal Reserve to continue to cut interest rates to help lower debt costs, but the central bank on Wednesday kept its benchmark rate in a range between 1.5%-1.75% and indicated it likely is on hold unless economic conditions change significantly.

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2020-01-30 13:30:00Z
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