Wall Street fretting over Fed; Apple's new TV service; Tea time for millenials
Wall Street is having a tough time building on yesterday’s rally. Stocks are in the red after the biggest drop in housing starts in four years and as the Federal Reserve kicks off its two-day policy meeting.
Ground breaking for new construction tumbled 17% in February to an 897,000 annualized rate as the brutal winter weather prevented builders from starting projects according to the Commerce Department.
U.S. crude prices falling to fresh six-year lows and the Euro (EURUSD=X) is higher against the dollar for a second day in a row.
Yahoo Finance’s Aaron Task says the recent drop in oil prices is a factor in the Fed’s thinking but will not drive their decision making.
Apple (APPL) is giving TV another try. The tech giant is reportedly in talks with broadcasters to offer a streaming TV service this fall. The Wall Street Journal reports the service would feature channels such as, ABC (DIS), CBS (CBS) Fox (FOX), and ESPN, and would cost around $30 per month. Currently NBC Universal content is not included in the bundle due to a fall-out between NBC parent company Comcast (CMCSA) and Apple.
Task says Apple has realized the living room is the next great frontier.
“They’ve been trying to crack the TV nut for a long time time…they’re more focusing on the interface as opposed to the hardware, which they were doing with Apple TV…which they struggled with—to be honest. So this is another approach for them …and it seems to be that this is where the market is going. Everyone got their over the top packages and different bundles from different providers. And Apple certainly wants to play in that space,” according to Task.
Just a week after Apple said it will be the exclusive digital distributor of HBO Now. Cablevision (CVC) is striking a deal with HBO to offer its new steaming-only service, HBO Now, to its broadband customers starting in mid April. Cablevision will be the first cable company to distribute the service.
Related: American Airlines gains altitude; Black Diamond sparkles; Apple TV talk
American Airlines (AAL) will be joining the S&P 500 at the end of trading on Friday replacing soon to be acquired Botox maker Allergan (AGN). American will be joining rivals Southwest and Delta Air Lines, which already trade on the index. Shares of American Airlines are higher on the news.
Black Diamond (BDE) shares are surging...The outdoor sports gear maker said it's exploring strategic alternatives for its brands after reporting earnings and revenue that missed analysts' estimates in the fourth quarter.
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Burlington Stores (BURL) shares are jumping after the discount retailer posted a beat on both its top and bottom lines thanks to strong sales during the holiday quarter as revenue jumped 12% from a year earlier. However, the company gave a cautious outlook for year. Burlington's stock has more than doubled over the past year.
In the world of start-ups…Uber CFO Brent Callinicos is stepping down. During his two year tenure, the ride service company raised billions in funding and saw its valuation swell to more than $40 billion. The move is leading some to speculate Uber may soon consider going public.
And speaking of valuations...Pinterest is seeing that soar as well. The picture sharing site is now worth $11 billion after raising $367 million in its latest round of funding. The Wall Street Journal says that makes Pinterest one of the most valuable startups in the world.
Related: European countries to join China-led development bank: Reports
On the other side of the Atlantic... France, Italy and Germany have reportedly signed on to a China-led international development bank. The three European countries are joining Britain as members of the Asian Infrastructure Investment Bank, a potential rival to the World Bank, despite U.S. pressure not to join.
Related: Saying no to jo
Now, time for tea…Tea consumption is growing in popularity among American teens and young adults. And this is bad news for coffee producers. The National Coffee Association’s latest report shows a steady decline in daily coffee drinkers.
