S&P 500 soars to record as Apple becomes $1T company - Fox Business

The S&P 500 hit an all-time high Wednesday as surging Apple shares turned the iPhone maker into a $1 trillion corporation.

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Apple reached that milestone when, in intraday trading, shares reached $212.07.

Ticker	Security	Last	Change	%Chg
AAPL	APPLE INC.	214.08	+13.41	+6.68%

Stocks also got a boost from a surprisingly strong ADP report on April job creation. ADP said U.S. employers created 275,000 jobs, far higher than the 180,000 analysts had expected.

Wall Street's gains came ahead of an interest rate announcement by the Federal Reserve, which is expected to hold the cost of money steady.

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Without Apple, which had added about 100 points to the Dow Jones Industrial Average in midday trading, the index would be slightly negative.

Energy companies and Google were weighing on indexes.

Ticker	Security	Last	Change	%Chg
GOOGL	ALPHABET INC.	1,174.18	-24.78	-2.07%
XOM	EXXON MOBIL CORPORATION	79.41	-0.87	-1.09%
CVX	CHEVRON CORP.	118.73	-1.33	-1.11%
OXY	OCCIDENTAL PETROLEUM CORPORATION	58.26	-0.62	-1.05%

Crude oil fell to $62.94 per barrel as U.S. inventories rise sharply. The Energy Information Administration said the nation's crude oil inventory jumped by 9.9 million barrels last week to 470.6 million barrels.

Treasury yields were fractionally lower ahead of the Fed's announcement on interest rates, which was set for 2 p.m. ET.

Ticker	Security	Last	Change	%Chg
I:DJI	DOW JONES AVERAGES	26606.72	+13.81	+0.05%
SP500	S&P 500	2945.23	-0.60	-0.02%
I:COMP	NASDAQ COMPOSITE INDEX	8123.050188	+27.66	+0.34%

Investors are coming off a big trading day: The S&P 500 on Tuesday notched a record high for the third straight session on unexpectedly strong quarterly results from General Electric and biopharmaceutical company Pfizer.

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Many bourses outside the U.S., including those in China, Korea and Japan, as well as continental Europe, were closed Wednesday for May Day observances.

One exception is Britain’s FTSE 100, which slipped 0.03 percent.

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https://www.foxbusiness.com/markets/us-stocks-wall-street-may-1-2019

2019-05-01 15:44:32Z
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CVS Health raises full-year profit forecast on Aetna strength - Yahoo Finance

FILE PHOTO: Logos of CVS and Aetna are displayed on a monitor above the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S., December 5, 2017. REUTERS/Lucas Jackson/File Photo

By Manas Mishra and Caroline Humer

(Reuters) - CVS Health Corp on Wednesday raised its full-year profit forecast and reported first-quarter earnings that topped Wall Street estimates due to growth in its Aetna health insurance business, and as drug prices fell within its expectations.

Shares rose more than 5 percent to $57.35. They had fallen 17 percent this year, hurt by a weak forecast in February and a cut to rival Walgreen Boots Alliance's full-year outlook last month due to lower generic drug prices.

Aetna, CVS's health insurance unit, beat analysts' consensus by more than a billion dollars in the quarter, helped by its accounting for lower medical costs than anticipated during the fourth quarter.

The company, which bought Aetna for $69 billion in November, said 2019 cost savings from the deal were tracking near the high end of its $300 million to $350 million range, and that 2020 savings would likely exceed its $750 million target.

The company said a handful of new "HealthHub" pharmacies launched in Houston this year that provide healthcare services, such as chronic care management for diabetes, have drawn more customers than expected. It plans to launch more such stores in Houston and plans to provide details of a national roll-out next month.

"Consumerism in healthcare is here to stay," CVS Chief Executive Larry Menlo said. "We are beginning to see this evolution through the HealthHubs. We are not just selling hundreds of products, it's a combination of products and services."

Menlo also said the company would take part in a pilot project announced by the U.S. Center for Medicare and Medicaid Services to expand point-of-sale rebates to patients in Medicare plans. The government has also proposed a rule that would require health plans to pass on all rebates, but it is not clear if it will be finalized for 2020.

Sales in its health care benefits unit rose by $16.55 billion to $17.78 billion with the addition of Aetna to its operations.

Sales of prescription drugs at its pharmacies were hurt as the company gets paid less for filling prescriptions. That was offset by higher volumes and higher prices of brand name drugs.

CVS in February had cautioned that rebate payments it guaranteed to customers were larger than what it has received from drugmakers due to lower-than-expected increases in drug prices.

"Considering that expectations have been low, we see this as the first positive catalyst that restores investor confidence in this management team," SVB Leerink analyst Ana Gupte said of the first-quarter profit and raised 2019 forecast.

CVS said it now expects full-year adjusted profit of $6.75 to $6.90 per share, compared with its prior forecast of $6.68 to $6.88.

Overall sales at its retail unit, which also sells over-the-counter-drugs and consumer health products, rose 3.3 percent to $21.12 billion.

The drugstore chain operator and pharmacy benefits manager said it earned $1.62 per share excluding items, beating analysts' average estimate by 12 cents per share, according to IBES data from Refinitiv.

Net income rose 42.4 percent to $1.42 billion in the first quarter. Revenue rose 34.8 percent to $61.65 billion.

(Reporting by Manas Mishra in Bengaluru and Caroline Humer in New York; Editing by Saumyadeb Chakrabarty and Bill Berkrot)

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https://finance.yahoo.com/news/cvs-health-beats-profit-estimates-113232865.html

2019-05-01 15:24:00Z
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Apple's iPad is the hidden gem in the company's earnings - Business Insider

Reuters/John Gress

• Coverage of Apple's second-quarter earnings has focused on lower iPhone sales, strong growth in services and accessories, and the company's bullish revenue forecast. 
• The tech giant's hidden gem was the iPad with sales growth of 22% in the period, the biggest increase in six years.
• iPad revenues returned to growth in Greater China and rose by at least 10% in all other regions.
• Sales of iPhones and Macs fell last quarter, while services revenue grew at a slower rate.
• The iPad appeals to first-time buyers, giving Apple more users to target with its services and accessories.
• Watch Apple trade live.

Coverage of Apple's second-quarter earnings has focused on the record slump in iPhone sales, rising sales of services and accessories, and a bullish revenue forecast for the current quarter.

But stock-watchers may have missed a hidden gem in the tech giant's results: the iPad.

Sales in Apple's tablet division soared 22%to about $4.9 billion in the first three months of 2019, the fastest pace of growth in six years, CEO Tim Cook said on the company's earnings call. More than half of its customers were first-time iPad buyers, he added, which boosted the base of active iPad users to an all-time high.

The iPad's "blockbuster quarter" saw it return to top-line growth in Greater China, Cook said on the call, and post "strong double-digit growth" in revenues across the Americas, Europe, Japan, and the rest of Asia Pacific. Moreover, its sales surged to a second-quarter record in Japan, and more than doubled in South Korea, Thailand, and Mexico. 

The product line's performance is striking relative to Apple's other offerings. Sales of iPhones fell by 17% to about $31 billion in the second quarter, shrinking from 61% to 54% of turnover, according to Apple's earnings report. Mac revenues slid 5% to $5.5 billion too.

Sales in the services business rose 16%, slower than iPad revenues. Only the wearables, home, and accessories segment — which houses numerous products including Apple Watch, Apple TV, Air Pods, Beats, and HomePod — expanded faster, with sales growth of 30%. 

Strong tablet sales were "fueled primarily by the great customer response to our new iPad Pros," said CFO Luca Maestri on the earnings call. The latest model's resolution, processing power, and support of Apple Pencil and Smart Keyboard make it a popular replacement for laptops with both consumers and professionals, he added.

The iPad is also helping Apple to capture the enterprise market.

"Across 450 airlines, iPad is overwhelmingly the preferred solution for the pilot's electronic flight bag," Maestri said on the call, adding that it's also used for ground operations and flight maintenance.

"One of the largest airlines in the world tells us that the adoption of iPad has cut maintenance delays in half."

Still, the iPad's appeal to first-time buyers could generate the most value for Apple. Adding more users to its ecosystem allows the company to flog more cables and covers, as well as hawk subscriptions to Apple Music, Apple News+, and the upcoming Apple Arcade, boosting accessories and services revenue.

The iPad's resurgence could prove temporary, but as Apple races to offset plunging iPhone sales, it shouldn't be ignored.

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https://www.businessinsider.com/apple-ipad-hidden-gem-earnings-services-2019-5

2019-05-01 13:55:36Z
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Private payrolls surge by 275,000 in April, blowing past estimates and biggest gain since July - CNBC

The U.S. economy added far more jobs than expected in April as payrolls in the services sector grew by the most in more than two years, according to data released by ADP and Moody's Analytics on Wednesday.

Private payrolls grew by 275,000 last month, the biggest increase since July, when they expanded by 284,000. Economists polled by Dow Jones expected private payrolls growth of 177,000.

Services-providing jobs increased by 223,000 in April, led by a gain of 59,000 jobs in professional and business services. Education and health services companies also added 54,000 jobs while employment within the leisure and hospitality industry expanded by 53,000.

Goods-producing jobs — which include construction, manufacturing and mining — rose by 52,000, led by a 49,000 payrolls increase in construction. The economy added just 5,000 manufacturing jobs while mining employment declined by 2,000.

Overall, medium-sized businesses, those that employ between 50 and 499 people, led the way in jobs creation last month by adding 145,000 jobs. Jobs within small businesses, meanwhile, increased by 77,000 while large companies hired 53,000.

"The job market is holding firm, as businesses work hard to fill open positions," Mark Zandi, chief economist at Moody's Analytics, said in a statement. "The economic soft patch at the start of the year has not materially impacted hi ring. April's job gains overstate the economy's strength, but they make the case that expansion continues on."

Wednesday's report came after the Commerce Department said last week the economy grew by 3.2% in the first quarter on an annualized basis. That was the best start to a year since 2015. The official jobs report for April from the government will be released this Friday.

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https://www.cnbc.com/2019/05/01/private-payrolls-surge-by-275000-in-april-blowing-past-estimates-and-the-biggest-gain-since-july.html

2019-05-01 12:16:05Z
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CVS Health beats first-quarter expectations, raises full-year forecast - CNBC

Pedestrians pass in front of a CVS location in New York.

Scott Mlyn | CNBC

CVS Health on Wednesday reported first-quarter earnings and revenue that beat analysts' expectations and raised its full-year earnings forecast.

Here's what the company reported compared with what Wall Street was expecting, based on average analysts' estimates compiled by Refinitiv:

• Adjusted earnings per share: $1.62 vs. $1.50 expected
• Revenue: $61.65 billion vs. $60.39 billion expected

This quarter was the first full one since CVS closed its $70 billion acquisition of health insurer Aetna in November.

On an unadjusted basis, CVS' fiscal first-quarter net income rose to $1.42 billion, or $1.09 per share, up from $998 million, or 98 cents per share a year earlier. When excluding the costs of integrating Aetna, store closures and some other items, CVS earned $1.62 per share, above the $1.50 per share expected by analysts surveyed by Refinitiv.

Revenue rose 35% to $61.65 billion — largely driven by the new Aetna business — beating expectations of $60.39 billion.

"Following the close of our Aetna acquisition in late November, our first full quarter of combined operations was a success in many ways," CVS CEO Larry Merlo said in a statement.

CVS raised its 2019 earnings forecast to between $6.75 and $6.90 per share, up from the previously guided range of $6.68 to $6.88 per share.

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https://www.cnbc.com/2019/05/01/cvs-health-q1-2019-earnings.html

2019-05-01 11:02:12Z
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CVS Health beats first-quarter expectations, raises full-year forecast - CNBC

Pedestrians pass in front of a CVS location in New York.

Scott Mlyn | CNBC

CVS Health on Wednesday reported first-quarter earnings and revenue that beat analysts' expectations and raised its full-year earnings forecast.

Here's what the company reported compared with what Wall Street was expecting, based on average analysts' estimates compiled by Refinitiv:

• Adjusted earnings per share: $1.62 vs. $1.50 expected
• Revenue: $61.65 billion vs. $60.39 billion expected

This quarter was the first full one since CVS closed its $70 billion acquisition of health insurer Aetna in November.

On an unadjusted basis, CVS' fiscal first-quarter net income rose to $1.42 billion, or $1.09 per share, up from $998 million, or 98 cents per share a year earlier. When excluding the costs of integrating Aetna, store closures and some other items, CVS earned $1.62 per share, above the $1.50 per share expected by analysts surveyed by Refinitiv.

Revenue rose 35% to $61.65 billion — largely driven by the new Aetna business — beating expectations of $60.39 billion.

"Following the close of our Aetna acquisition in late November, our first full quarter of combined operations was a success in many ways," CVS CEO Larry Merlo said in a statement.

CVS raised its 2019 earnings forecast to between $6.75 and $6.90 per share, up from the previously guided range of $6.68 to $6.88 per share.

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https://www.cnbc.com/2019/05/01/cvs-health-q1-2019-earnings.html

2019-05-01 11:01:50Z
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A huge Facebook redesign is coming - but it's far more than a new website - TechRadar

After a brutal 2018 that forced the brand to admit it hasn't got the best reputation when it comes to privacy, Mark Zuckerberg has big plans for the Facebook platform in 2019: Facebook is being redesigned.

Zuckerberg made the announcements during Facebook's F8 event near the company's home turf in San Jose, California, where he addressed the past year of issues with privacy, security and decreasing trust in the platform.

The new version of Facebook, codenamed 'FB5', will be the biggest change the social network has experienced in years: nearly every single aspect is changing in some way. There was a lot of information, but we've gathered everything you need to know right here.

New web and mobile designs

The fifth major redesign of the Facebook app is incoming, codenamed 'FB5', and it will make communities – known as Groups – the focus, featuring a sleek redesign that should make it faster and more reliable, not to mention more visually appealing.

The new Facebook mobile app should now be live too, as a much faster and more immersive experience. 

Facebook has made finding what you're looking for more convenient, and more importantly claims to have made it safer and more secure. This is the biggest change to the Facebook app in five years: even the Facebook logo is being updated for 2019.

There's a new Facebook desktop website, too, and it should be much lighter on system resources, with the same design language as the mobile app. It will be coming in the next few months, with some updates showing up right away. 

All about building community

Mark Zuckerberg made it clear that Facebook's focus is shifting to communities both public and private. This means that Groups are going to be the core focus: there are already tens of millions of active Groups on Facebook.

Groups will be easier to find, and easier to participate in, thanks to a new, redesigned Groups tab. This will show you a personalized feed of all of your groups, so you can focus on your communities in a single place, rather than parsing them out from the rest of your News Feed. 

Users will also notice that Group recommendations will crop up in more places, but they'll be more relevant to what you're doing in the app. For instance, you may see more "buy and sell" groups show up in the Marketplace, and Today in Gaming may suggest a new gaming group for you to join. 

The News Feed will also be redesigned so that you can more easily share content directly to your Groups. But, this new community approach goes beyond Groups.

Facebook is launching Facebook Dating in more countries, along with a new feature called "Secret Crush." The idea here is that you can opt-in to this program, and name up to nine of your friends that you have interest in. 

If they opt-in to the program and name you as one of their secret crushes, then you will be matched. However, if the secret crush isn't mutual, no one will know the names you entered.

Facebook Dating is already live in five countries, and will expand to 14 more today. The service will launch in the US at the end of the year. 

There will also be some new ways to meet friends, through the new "Meet New Friends" feature. This is also an opt-in feature, so that you will only be exposed to people who are open to meeting new people. This feature will also work with your Groups, so you can easily add new friends from your favorite community. 

Everything else

Facebook's Marketplace is also getting some improvements. Namely, you'll be able to both ship products across the continental US, and you'll have the ability to pay for stuff safely and securely through the Facebook app. This should make shopping on the Facebook platform more secure for both sellers and buyers.

The Events tab is also getting a makeover, and it will be easier to explore your city. You can coordinate with your friends, find local businesses and find a new favorite restaurant based on your own personal preferences. 

There are so many Facebook changes coming in the next few months, and it could change the way people use the platform day-in and day-out. At the very least, the hope is for these changes to make the social network grow more secure and less divisive.

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https://www.techradar.com/news/facebook-redesign-2019

2019-05-01 08:58:00Z
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