Wednesday, April 25, 2018
What to watch today
Before the market opens, Twitter (TWTR), Boeing (BA), General Dynamics (GD), and Comcast (CMCSA) will be among the companies reporting earnings. And after the close, Facebook (FB), AMD (AMD), Visa (V), Chipotle (CMG), and eBay (EBAY) will report earnings.
Facebook will be the main event, as investors will be closely tracking the social network for any signs that its recent problems with handling user data are impacting behavior on the website. Additionally, the company’s outlook for expenses in 2018 — which CEO Mark Zuckerberg has said are likely to rise in the quarters and years ahead — will be a key metric for investors.
Treasuries’ 3% milestone moment Interrupted by slumping stocks: The 10-year Treasury yield finally reached 3%, a milestone that bond traders were eyeing for months to guide their next moves. Then that pesky stock market got in the way. After all the hoopla surrounding 10-year yields touching the highest in four years, they aren’t much changed on the day. That’s in part because of the dive in equities, driven both by losses in technology shares and by Caterpillar Inc. (CAT), the biggest maker of construction and mining equipment, effectively saying its first-quarter profit will be as good as it gets in 2018. [Bloomberg]
Pimco’s new bond king could be a robot in Austin: Pacific Investment Management Co. used to rely heavily on one man to make many of its key investment decisions. Now it’s betting a big part of its future on millions of lines of software code. Pimco will open a new office in Austin, Texas, later this year to help recruit more tech-savvy workers who might otherwise spurn the bond manager for traditional software companies, people familiar with the matter said. [The Wall Street Journal]
Shire willing to back $64B Takeda bid, market signals doubts: Rare disease specialist Shire said on Wednesday it was willing to recommend a sweetened $64 billion (45.8 billion pounds) offer from Japan’s Takeda Pharmaceutical Co. to shareholders, in what would be the biggest acquisition of a drug company this year. But shares in Takeda extended recent losses, tumbling 7% as investors fretted over its ability to buy a company twice its size, raising doubts about whether Shire shareholders will accept a bid that is 56% in new Takeda shares. [Reuters]
Buffett: How you could have turned $114 into $400K: Many of us know the magic of investing money in the stock market — just letting it sit and watching it grow — but few of us really grasp just how powerfully enriching this can be. Not surprisingly, Warren Buffett, the world’s greatest investor, has a vivid example of this which he shared with Yahoo Finance Editor in Chief Andy Serwer during a visit earlier this year at Berkshire Hathaway (BRKA, BRKB) headquarters in Omaha. [Yahoo Finance]
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