Huawei CEO Ren Zhengfei said in an interview with CNBC the company's business is still strong in China.Technologyread more
The Fed is not likely to make a move on interest rates when it meets this week, but it should clear the way for a rate cut later in the summer.Market Insiderread more
U.S. President Donald Trump officially kicked off his reelection campaign Tuesday at a Florida rally where he exhorted thousands of rollicking supporters to keep advancing his...Politicsread more
BlackRock's global fixed income chief says the European Central Bank just turned up the pressure on the Federal Reserve to more toward easier policy.Market Insiderread more
Global watchdogs and top U.S. Congress members are calling for oversight of a digital asset being launched by Facebook and roughly two dozen other stakeholders.Marketsread more
Facebook's new cryptocurrency project, titled Libra and backed by the likes of Visa and Booking Holdings, is being widely embraced by market watchers.Trading Nationread more
Mortgage applications were down 3.4% from the previous week, but still up 31.6% from a year earlier, according to the Mortgage Bankers Association.Real Estateread more
Trump's remarks came a day before the Fed was set to announce its next decision on interest rates.Politicsread more
Sen. Josh Hawley, a well-known tech critic, introduced legislation on Wednesday that would remove the immunity big technology companies receive for user-posted content under...Technologyread more
Zuckerberg fell out of Glassdoor's top 20 CEO ranking for the first time, although his employee approval rate remains high.Technologyread more
Ford announced that the 2020 Mustang Shelby GT500 has 760 horsepower and 625 lb.-ft of torque, which it says makes this the most powerful street-legal Ford. The car is not yet...Autosread more
CVS Health tried to allay investor concerns Tuesday over its $70 billion acquisition of health insurer Aetna last year, projecting double-digit growth after the two companies are fully integrated in a few years.
The company reiterated its 2019 forecast of earnings between $6.75 and $6.90 per share, compared with the $6.85 analysts polled by Refinitiv are expecting. For 2020, CVS expects adjusted earnings of "at least" $7, it told investors at its annual investor day in New York. Analysts anticipate $7.22 a share.
For 2021, CVS "mid-single digit percent" adjusted earnings. In 2022 and the following years, CVS expects "low-double digit percent" growth. Shares of the company rose 3.6% in morning trading.
Investors have pressed for more clarity around the company's long-term financial prospects, especially after executives warned of headwinds earlier this year. J.P. Morgan analysts surveyed investors ahead of analyst day and found long-term financial guidance was the the most important thing respondents said they wanted to learn Tuesday.
"Keep in mind we're in the early innings of our transformational journey," CVS CEO Larry Merlo told investors. "This will be a multi-year journey with benefits building over time as we continue to build and refine new programs to better serve the needs of our stakeholders."
CVS acquired health insurer Aetna, an expensive bet that combining insurance, prescription drug benefits and CVS' 10,000 drugstores would help the combined company compete in the changing health-care industry. Investors appear skeptical so far, with the company's stock price sliding 20% this year.
The company on Tuesday said it expects the deal to result in $300 million to $350 million in synergies this year, and $800 million next year, up from the previously forecast $750 million.
Evercore analysts Ross Muken and Michael Newshel in a note to clients said "the 2020 color is a net positive as it sets a floor (which is key!) for allowing investors to gain confidence in the earnings stream."
"In addition, investors are likely to scrutinize the components of the outlook, but it matches our view (though consensus may come down a touch)," they said.
CVS also announced it will open 1,500 HealthHUB stores by the end of 2021. These remodeled drugstores focus more on health services and products and less on candy and greeting cards.