Yahoo Finance Morning Brief: Facebook stumbles
Tuesday, March 20, 2018
What to watch today
On Tuesday, investors will have a light schedule to contend with as no major economic data is set for release while the Federal Reserve will begin its two-day policy meeting that will culminate in Wednesday’s latest monetary policy statement at 2:00 p.m. ET.
On the earnings side, the schedule is also light as FedEx (FDX) will be the only major company reporting results.
And in markets, investors will look for stocks to rebound as Monday’s action makes the market’s position look increasingly fragile. In a note to clients on Monday, Morgan Stanley strategist Michael Wilson said that January’s market action looks increasingly like a “melt-up” phase for markets in which the highs for price and sentiment may have been reached.
Top news
Why Facebook is suddenly reeling: Facebook (FB) has been embroiled in political controversy for more than a year, amid mounting evidence of abuse on the social-media platform relating to the 2016 U.S. elections. Yet earnings have continued to soar, along with the stock price. Until now. Facebook’s shares dropped by nearly 7% on March 19, the biggest one-day decline since the aftermath of the tech giant’s rocky IPO back in 2012. The sharp drop following the Cambridge Analytica scandal indicates that investors now worry Facebook could suffer lost revenue or increased costs. [Yahoo Finance]
Weinstein Co. files for bankruptcy: U.S. film and TV studio The Weinstein Company, whose ex-Chairman Harvey Weinstein has been accused of sexual harassment and assault, said on Monday it filed for bankruptcy and was ending all non-disclosure agreements that may have silenced some women. The Weinstein Company filed for bankruptcy in the Delaware court, listing $500 million to $1 billion in liabilities and $500 million to $1 billion in assets, and said it struck a deal with an affiliate of private equity firm Lantern Capital Partners to acquire its assets. [Reuters]
Whistleblowers helped SEC bring $415 million settlement against Bank of America: The Securities and Exchange Commission announced its biggest-ever whistleblower awards, with roughly $83 million combined going to three whistleblowers who helped the regulator reach a $415 million settlement with Bank of America Corp. (BAC), according to an SEC statement and a lawyer representing the whistleblowers. [The Wall Street Journal]
Saudi Aramco expected to list first on Saudi stock exchange: Saudi Arabia’s state-owned oil giant Aramco, the world’s largest oil company, is walking back plans for a massive public share offering on an international exchange. Aramco is now expected to list public shares on the Saudi domestic stock market, perhaps as soon as the second half of this year, according to sources familiar with the situation. But a potential international listing is now expected to come later, if at all, the sources said. [CNBC]
Oracle revenue misses: Business software maker Oracle Corp. (ORCL) reported quarterly revenue on Monday that missed analysts’ estimates as sales from its cloud business fell short of Wall Street expectations, sending its shares down nearly 6.3% after market. Cloud business revenue rose 31.7% to $1.57 billion, but fell short of the average analysts’ estimate of $1.59 billion. [Reuters]
For more of the latest news, go to Yahoo Finance
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