It’s a risk-off day on Wall Street as concerns over the health of the global economy resurface. Stocks(^DJI, ^GSPC, ^IXIC) are sharply lower across the board following losses in overseas markets as the yen continues to strengthen against the dollar, weaker-than-expected Chinese manufacturing data, and a surprise interest-rate cut in Australia.
Tim Cook reassures investors
Apple (AAPL) CEO Tim Cook met with Jim Cramer on CNBC. Cook wanted to ensure investors that not only is Apple not dead, but also that it has plenty of innovative ideas in the pipeline. He also feels that Wall Street overreacted to the latest earnings report. Apple earned more last year than any other company.
Pfizer (PFE) shares were up sharply in early trading. The drug giant raised its outlook for the year after delivering a big beat on both its top and bottom lines for the first quarter. Revenue jumped nearly 20% from a year ago driven largely by strong sales of its new treatments for cancer and its acquisition of Hospira. Pfizer walked away from its $160 billion deal to buy Allergan last month after the Treasury Department issued new rules aimed at blocking the deal’s tax benefits.
CVS (CVS) reported better-than-expected earnings and revenue for the first quarter. Sales rose 19% from a year ago thanks to strong demand for its specialty pharmacy benefits. The company also provided an upbeat profit outlook for the current quarter.
Yelp (YELP) shares soared following news late Monday that David Einhorn’s hedge fund, Greenlight Capital, took a further long position in the business review site. In a letter to investors, Greenlight predicts at least a 30% upside for the stock. Yelp is scheduled to report quarterly results after the close of trading on Thursday.
Uber teams up with Alibaba
Uber is making it easier for Chinese tourists to reach their destinations. The company is teaming up with Alibaba (BABA) to let customers pay with Alipay for their rides. Alipay is similar to Apple Pay in that you can pay for something via your smartphone.
Johnson & Johnson lawsuit
Johnson & Johnson (JNJ) lost another talc powder cancer lawsuit. A jury is awarding $55 million to a St. Louis woman who used the powder for over 35 years and was diagnosed with ovarian cancer in 2011. The company plans to appeal the verdict.
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