50 Cent Teams With Intel in a Move To Take on Beats Electronics
50 Cent Teams With Intel in a Move To Take on Beats Electronics
What to Watch Wednesday: Netflix Takes Earnings Spotlight
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Music mogul 50 Cent has taken his passion for quality sound into the high-end headphone market with his company, SMS Audio. Now, he's partnering with Intel on biometric headphones that incorporate wearable technology and fitness tracking, something he believes sets it apart from the competition. His main competitor is Beats, which already owns 62% of revenues in the high-end headphone market, according to NPD Group. After Apple's $3 billion purchase of Beats, 50 tells TheStreet's Brittany Umar whether an acquisition of SMS Audio could be next. He also sheds light on how he's building his brand outside of the music industry through a variety of ventures.
For Wednesday October 14, get ready for a busy day as we see a wave of companies showing us their profits for the latest quarter. In the morning, we have bank and financial companies reporting including Wells Fargo (WFC), Bank of America (BAC), and PNC Financial Services Group (PNC). Then, we also get numbers from BlackRock (BLK) and Delta Air Lines (DAL) before the market opens, followed by Netflix (NFLX) after the closing bell. When the video streaming giant releases its third quarter earnings, analysts are calling for $0.08 a share on revenue of $1.75 billion. Additionally, we expect to see lots of economic reports on Tuesday. The morning is hectic with MBA Mortgage Applications due out at 7 a.m. Eastern. Then at 8:30 a.m., we get both retail sales and producer price index. An important one is business inventories, which comes out later that morning. This reflects production activity, and economists are expecting the numbers to be flat in August. Finally, we end the day with the beige book due out at 2 p.m. This is another key report since it shows the summary of current economic conditions. TheStreet’s U-Jin Lee reports in New York.
It was an unpredictable end to the session Tuesday as benchmark indexes slumped in the final hour of trading as crude oil sold off. Molson Coors (TAP) rallied in celebration of a deal between rivals Anheuser-Busch (BUD) and SABMiller (SBMRY). Investors hope Molson might snap up the assets AB InBev could unload to gain regulatory approval, like Constellation Brands (STZ) did during AB InBev's last big deal in 2013. Fortress Investment Group (FIG) spiked after announcing it will close its Fortress Macro Funds and managed separate accounts. The investment firm said all capital will be returned to investors by year's end. The International Energy Agency said Tuesday the international oil market will likely remain oversupplied well into 2016.
Stocks saw choppy trading on Tuesday as gains in tech giants Apple (AAPL) and Alphabet (GOOGL) helped to offset pessimism stemming from the latest signs of a slowdown in China. Twitter (TWTR) boosted the Nasdaq after announcing it will cut around 8% of its workforce as part of a restructuring plan. The social network expects to incur as much as $20 million in costs tied to severances. FMC Corp (FMC) has joined rivals Monsanto (MON) and DuPont (DD) in forecasting lower full-year earnings in the wake of weakened agricultural demand. The chemicals company also announced it will cut as many as 850 jobs, or around 12% of its total number of employees. Hewlett-Packard Enterprise's (HPQ) board has approved a $3 billion share buyback program.
In Tuesday's Analysts' Actions, some airline stocks are pushed lower by analysts and another Wall Street firm slaps VMware (VMW) with a downgrade. JPMorgan Chase lowered JetBlue (JBLU)'s rating to NEUTRAL from OVERWEIGHT citing weak industry pricing. The firm also revised its 2016 forecasts due to revenue per available seat mile falling for the second time in a row. But, one upside is that margins appear stable, analysts said. It's a similar story for American Airlines (AAL). Evercore ISI downgraded the carrier to HOLD from BUY and said that profit margins could be pressured by higher 2016 fuel costs. The firm added that there's also fare competition with low cost carriers. In a separate note, one Wall Street firm is looking down on VMware. The company's rating dropped to MARKET PERFORM from MARKET OUTPERFORM at JMP Securities. This follows Monday's announcement that Dell will buy data storage company EMC (EMC) for about $67 billion. Meanwhile, EMC-owned VMWare, will remain a publicly-traded company. Analysts responded to this by saying 'the focus of that merger does not seem to be on maximizing the value of VMware shares.' Adding to that, the company is also seeing some competition from Amazon Web Services. TheStreet's U-Jin Lee reports in New York.
U.S. stocks opened lower Tuesday as investors brace for a slew of earnings in the coming days. Financials, especially, will be closely watched and JPMorgan Chase (JPM) reports after the closing bell. Already reporting earnings today was Johnson & Johnson (JNJ). It is still facing headwinds from the strong U.S. dollar. While its results were stronger than expected it did see revenue in prescription drugs fall. Meanwhile, PepsiCo (PEP) and Coca-Cola (KO) are in talks to invest in the Greek yogurt company Chobani. Chobani hopes the investment will value it at as much as $3 billion. The negotiations and potential investment come as the soft drink giants are making a push to diversify beyond carbonated beverages into healthier foods.
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