Dell Announces VMware Spinoff

Dell Technologies (NYSE: DELL) announced on Wednesday that it will spin off its 81% stake in VMware (NYSE: VMW), creating two standalone companies. The transaction is expected to close in the fourth quarter of calendar 2021. "By spinning off VMware, we expect to drive additional growth opportunities for Dell Technologies as well as VMware, and unlock significant value for stakeholders," CEO Michael Dell stated in a press release. "Both companies will remain important partners, providing Dell Technologies with a differentiated advantage in how we bring solutions to customers. At the same time, Dell Technologies will continue to modernize its core infrastructure and PC businesses and embrace new opportunities through an open ecosystem to grow in hybrid and private cloud, edge and telecom."

Walmart to Transition Most Hourly Workers to Full-Time in U.S.

Walmart (NYSE: WMT) announced on Wednesday that the big-box retailer expects two-thirds of its hourly store roles in the United States will be full-time with consistent schedules from week to week by the end of the year. "We believe full-time schedules complement the other ways we are preparing for the future of retail," Walmart said in a blog post. "Having full-time associates has never been more important than it is right now. Our growing pickup and delivery business calls for us to create more full-time job opportunities as our stores increasingly operate as both fulfillment centers and retail spaces." More than 80% of Walmart's current associated are full-time in distribution and fulfilment centers.

American Eagle Expects First Quarter Revenue to Exceed $1 Billion on Strong Demand

American Eagle Outfitters (NYSE: AEO) announced on Wednesday that it is forecasting first quarter revenue of more than $1 billion as strong demand help the apparel retailer sell more products from both its American Eagle and Aerie labels at full price. Like other retail rivals, American Eagle has benefitted from the U.S. government's latest round of direct stimulus checks to individuals as consumers spent their stimulus on apparel. "In light of current environment, it's truly gratifying to see consumer optimism, strong demand across channels," CEO Jay Schottenstein said in a statement.

Coinbase Jumps More Than 50% From Reference Price in Direct Listing Debut

Coinbase Global (NASDAQ: COIN) opened traded at $381 on Wednesday, up 52.4% from a $250-a-share reference price that the Nasdaq and Goldman Sachs (NYSE: GS) had set for the stock Tuesday afternoon. The stock had jump as high as $429.54 before easing back down to $353 in later trading. Coinbase operates a popular cryptocurrency trading platfrom for digital coins like Bitcoin and Ethereum. The company also offers services like hosting digital wallets to store investors' crypto holdings. Coinbase's direct listing was highly anticipated on Wall Street, with the stock to be the first major cryptocurrency company to list in the U.S. and the first major direct listing on the Nasdaq.

Dish Network, Sling Sue Peloton, Icon Health & Fitness, and Lululemon for Patent Infringement

Dish Network (NASDAQ: DISH) and its Sling TV unit have filed lawsuits accusing Peloton Interactive (NASDAQ: PTON), NordicTrack maker Icon Health & Fitness, and Mirror owner Lululemon Athletica (NASDAQ: LULU) of using Dish's patented technology. The suit, filed Tuesday in federal courts in Texas and Delaware, alleges that these companies are using Dish's technology that "allows Internet users to stream content from across the world in real time at the highest possible quality," Bloomberg News reports. Separately, Dish and Sling filed a complaint with the U.S. International Trade Commission, seeking to block all imports of Peloton, NordicTrack and Mirror products into the United States.

American Airlines Expands Summer Schedule on Increased Travel Demand Bet

American Airlines (NASDAQ: AAL) announced on Wednesday that it is expandings its summer schedule as the commercial airline bets on a coming resurgence in travel demand. American plans to fly more than 90% of the domestic schedule and 80% of the international schedule it operated during the season in 2019, adding 150 new routes for the peak vacation season. "Throughout the pandemic, our trademark had been to build a schedule based on what customers tell us they want and need," said Brian Znotins, American's vice president of network planning, in a press release. "And today, they are telling us they're eager to get back to travel."

Nikola Signs Hydrogen Infrastructure Deal for Germany

Nikola (NASDAQ: NKLA) singed a letter of intent on Wednesday with IVECO and OGE to establish a business structure for transporting hydrogen via a pipeline network from production sources to hydrogen fueling stations in support of fuel-cell electric vehicles. IVECO is a brand of CNH Industrial N.V. and is called a pioneer in the commercialization and manufacturing of vehicles powered by alternative fuels, while OGE is an owner and operator of a 12,000 km natural gas pipeline infrastructure network in Germany. "We believe this collaboration, in particular, presents a very compelling long-term fueling distribution solution that we expect to advance industry and overall market adoption of FCEV technologies," says Nikola President of Energy and Commercial Pablo Koziner in a press release.

EU Medicines Regulator Investigates J&J Vaccine & Blood Clots

The European Medicines Agency (EMA) said Wednesday said it still believes the benefits of Johnson & Johnson's (NYSE: JNJ) COVID-19 vaccine outweigh the risks of side effects like extremely rare blood clotting, as the EU's medicines regulator investigates the reported cases. The move comes shortly after the US Food and Drug Administration asked states to temporarily pause using the J&J shot "out of an abundance of caution" after 6 cases of rare blood clotting were detected. The EMA said: "The EMA is currently expediting this evaluation and currently expects to issue a recommendation next week." South Africa has also halted its rollout of the shot, and J&J said it would "proactively delay" deliveries of its vaccine to Europe. Meanwhile in the US, today the CDC is convening an advisory panel emergency meeting to discuss how the J&J vaccine should be used.

JPMorgan Chase Beats on Earnings

JPMorgan Chase (NYSE: JPM) reported first quarter earnings today before the bell, and in the afternoon its stock has slipped 1.25% to $152.15 on the earnings beat. The financial giant posted net income of $14.3 billion, up 399% from $2.9 billion in the prior year period, or GAAP earnings per share of $4.50, up from 78 cents and easily beating consensus estimates of $3.12. The firm posted revenue of $32.3 billion, up 14.3% and beating consensus estimates by $1.99 billion. Credit costs net benefit was $4.2 billion. Average loans rose 1%, average deposits surged 36%, and assets under management soared 28% to $2.8 trillion. Chief executive Jamie Dimon said the firm's net income reflects strong underlying performance across units, partly driven by a rapidly improving economy.

Wells Fargo Jumps on Earnings Beat

Wells Fargo (NYSE: WFC) reported first quarter earnings today before the bell, and in the afternoon its stock has jumped 5.25% to $41.90 on the earnings beat. The financial giant posted net income of $4.742 billion, up massively from $653 million in the prior year period, or GAAP earnings per share of $1.05, up from 1 penny and easily beating consensus estimates of 72 cents. The firm posted revenue of $18.06 billion, up 1.9% and beating estimates by $510 million. Allowance for credit losses declined to $1.6 billion. Total client wealth management assets soared 28% to $2.1 trillion. Chief executive Charlie Scharf said the results reflected an improving US economy and focus on strategic priorities. Looking ahead to the full year, Wells Fargo did not give earnings guidance.

Goldman Sachs Beats on Earnings

Goldman Sachs (NYSE: GS) reported first quarter earnings today before the bell, and in the afternoon its stock has risen 3% to above $337 on the earnings beat. The investment bank posted net income of $ 6.711 billion, up from $1.123 billion in the prior year period, or GAAP earnings per share of $18.60, up from $12.08 and easily beating consensus estimates of $9.97. The firm posted revenue of $17.7 billion, up a whopping 102.5% and handily beating consensus estimates by $5.04 billion. Investment banking saw record revenue of $3.77 billion. Chief executive David Solomon said the firm remains "very well positioned" for the economic recovery. Looking ahead to the full year, Goldman Sachs did not give earnings guidance.

Infosys Falls Despite Earnings Beat

Infosys (NYSE: INFY) reported fourth quarter and full year earnings today before the bell, and in the afternoon its stock has 5.4% to $17.42 despite the earnings beat. The Indian information technology firm posted net profit of $697 million, up 18.1% from $590 million in the prior year period. Infosys posted GAAP earnings per share of 16 cents, up from 14 cents and in line with consensus estimates. The firm posted revenue of $3.61 billion up 12.8% and beating consensus estimates by $90 million. Operating margin rose 3.4% to 24.5%, and free cash flow grew 34.7% to $799 million. For the full year, the firm reported net income of $2.613 billion, a 12.1% increase. Looking ahead to fiscal 2022, Infosys sees 12% to 14% revenue growth.

First Republic Beats on Earnings

First Republic Bank (NYSE: FRC) reported first quarter earnings today before the bell, and at midday its stock has risen 2.15% to $173.60 on the earnings beat. The bank and wealth management firm posted net income of $334.8 million, up 53.1% from $218.7 million in the prior year period. First Republic posted GAAP earnings per share of $1.79, up from $1.20 and easily beating consensus estimates of $1.55. The firm posted revenue of $1.17 billion, up 23.6% and beating consensus estimates by $80 million. Chief executive Jim Herbert said the bank is off to a "very strong start" in 2021, thanks to strong growth in loans, deposits, and wealth management assets. Looking ahead to the full year, First Republic did not give earnings guidance.

Bed Bath & Beyond Plunges on Mixed Earnings

Bed Bath & Beyond (NASDAQ: BBBY) reported fourth quarter and full year earnings today before the bell, and at midday its stock has plunged 9.9% to $25.15 on the mixed earnings. The retail firm posted net income of $9 million, up from a net loss of $65 million in the prior year period, or GAAP earnings per share of 8 cents, missing consensus estimates of 34 cents. Bed Bath & Beyond posted adjusted net income of $47 million or earnings per share of 40 cents, up from 38 cents and easily beating consensus estimates of 31 cents. The firm posted revenue of $2.62 billion, down 15.5% and missing estimates by $30 million. Comparable sales growth was 4%, beating estimates of 0.3%. For the full year, the firm reported a net loss of $150.7 million. Looking ahead to fiscal 2021, Bed Bath & Beyond sees revenue of $8.0 to $8.2 billion.

SpaceX Raises $314 Million

Space exploration firm SpaceX added even more capital to its most recent equity raise, according to a securities filing on Wednesday. SpaceX held a second close of about $314 million, in addition to the $850 million that it already raised in February. The amendment brings the funding round's new total equity raised to $1.16 billion, which the firm raised at a high valuation of about $74 billion, thanks to strong investor demand for the company's shares as it makes progress on its ambitious Starship and Starlink projects. Starship is the next-generation powerful rocket that Elon Musk's firm is developing, and Starlink is a global satellite network that aims to bring high-speed Internet service to customers. SpaceX has become one of the hottest privately held companies recently.

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