GoPro Hires JPMorgan to Facilitate Sale, CNBC Reports: LIVE MARKETS BLOG

 | Jan 08, 2018 | 4:28 PM EST
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Markets had a mixed start to the week Monday after closing Friday's session on a strong note.

The Dow Jones Industrial Average was the lone major index to close the day in the red, falling 0.05%, or 12.94 points, to 25,282.93 points. The tech-heavy Nasdaq led the way, climbing 0.29%, or 20.83 points, to 7,157.39 while the S&P 500 rose 0.17%, or 4.55 points, to 2,747.70.

Toyota Debuts Self-Driving Concept at CES

Toyota Motor (TM) debuted its new self-driving electric vehicle concept at the Consumer Electronics Show in Las Vegas Monday. 

The vehicle will be tailored for companies to use for tasks like ride-hailing and package delivery, according to the Nikkei Asian Review.

"This announcement marks a major step forward in our evolution towards sustainable mobility, demonstrating our continued expansion beyond traditional cars and trucks to the creation of new values including services for customers," said Toyota President Akio Toyoda in a statement.

Toyota said that it will work with companies like (AMZN) , Pizza Hut (YUM) and Uber Technologies. 

GoPro Hires JPMorgan to Facilitate Sale, CNBC Reports

Struggling camera maker GoPro (GPRO) has retained the services of JPMorgan Chase to help sell itself, sources told CNBC, sending the stock jumping off of its session lows for the day.

GoPro had been down more than 11% after it announced that it was exiting the drone business and laying off more than 250 workers. 

The stock was still down more than 7% during the session. 

"If there are opportunities for us to unite with a bigger parent company to scale GoPro even bigger, that is something that we would look at," CEO Josh Lipton told CNBC Monday. 

Monday the company also lowered its fourth quarter revenue guidance to $340 million from its previous view of $470 million. 

Bitcoin Comes Up From Session Low

The price of bitcoin is still down 8.4%, but the digital currency was able to come up off of its session low. Bitcoin was trading at $14,819 per unit Monday afternoon after briefly dipping below the $14,000 mark in trading. 

News that Chinese regulators are directing local governments to push bitcoin-mining operations to an "orderly exit," according to leaked government documents, sent the mercurial digital currency lower. 

Bloomberg and Reuters reported that the country is also planning to limit the supply of electricity to bitcoin miners.

"Currently, there are some so-called 'mining' enterprises that produce 'virtual currencies.' They have consumed huge amounts of resources and stoked speculation of 'virtual currencies,'" the document, dated January 2, reads.

Snap Revamp May Be Dead in the Water

Shares of Snap Inc. (SNAP) were down more than 5% Monday after analysts at Jefferies downgraded the social media company to "hold" from "buy," citing issues with the planned revamp of its platform.

The firm reiterated the company's $15 price target. Snap shares were trading at about $13.75 late Monday morning.

"We continue to have optimism around Snap's platform, but fundamental execution needs to be shown before we can be more positive on the name," analyst Brent Thill wrote in a note to clients. "We've also spent some time with the updated Snapchat app and see the positives, but also some negatives behind the redesign which could lead to some turbulence in usage and adoption when rolled out."

Dunkin' Brands to Go With a Smaller Menu

Dunkin' Brands (DNKN) announced plans to take "slow moving" items off of its menu at stores in the New York and New England regions Monday. 

Franchises throughout the rest of the country will see the changes by March.

Some breakfast items, afternoon sandwiches and smoothies were cut from the menu. The move is part of Dunkin's efforts to rebrand itself.

Last week the company announced that it was getting rid of all artificial dyes in its donuts. 

GoPro to Reduce Its Workforce 

GoPro (GPRO) shares were down more than 23% in morning trading after the company announced a restructuring plan that will see it cut its global workforce by 250 positions. GoPro said that its global headcount will be reduced from 1,254 employees to fewer than 1,000. 

Additionally, the company said that it will exit the drone market and reduce its CEO's 2018 compensation to $1. The company said that it expects fourth-quarter revenue to decline 37% year-over-year to $340 million.

"As we noted in our November earnings call, at the start of the holiday quarter we saw soft demand for our HERO5 Black camera," said GoPro founder and CEO Nicholas Woodman in a released statement. "Despite significant marketing support, we found consumers were reluctant to purchase HERO5 Black at the same price it launched at one year earlier. Our December 10 holiday price reduction provided a sharp increase in sell-through."

Opening Bell

The Dow Jones Industrial Average and S&P 500 retreated from the record highs that were set in the previous session, falling 0.08% and 0.05%, respectively, shortly after the opening bell Monday. 

The tech-heavy Nasdaq was the lone major index to gain ground in the early morning session, rising 0.08%, or 5.55 points to 7,141.60.

Kohl's Stock Climbs on Increased Profit Forecast

Shares of retailer Kohl's (KSS) were up nearly 8% premarket after the company reported strong holiday season comps and increased its profit forecast for the fiscal year.

Kohl's said that same-store sales during the holiday season rose 7% year over year. The company also said that stronger-than-expected results from the November through December holiday shopping season. 

As a result, Kohl's upped its full-year bottom line outlook to between $4.10 and $.20 per share from its previous view between $3.72 and $3.92 per share. 

Bitcoin May Be on Life Support in China

Chinese regulators are directing local governments to push bitcoin-mining operations to an "orderly exit," according to leaked government documents. Bloomberg and Reuters reported that the country is also planning to limit the supply of electricity to bitcoin miners. 

"Currently, there are some so-called 'mining' enterprises that produce 'virtual currencies.' They have consumed huge amounts of resources and stoked speculation of 'virtual currencies,'" the document, dated January 2, reads. 

The document, which has not been independently verified, also stipulates that exit progress reports be filed by local governments on the tenth day of every month. 

Bitcoin prices were down nearly 5% ahead of the start of market trading Monday. The digital currency is down about $1,000 over the last 24 hours. 

Jaguar Land Rover Continues Impressive Growth With Record-Setting 2017

Jaguar Land Rover (JLR), the U.K.'s largest carmaker, reported a record-setting 2017, selling more than 600,000 vehicles in the year. JLR sales have more than tripled since 2009, according to the company. 

Jaguar saw a 20% jump in sales to 178,601 vehicles while Land Rover sales rose 2% to 442,508. The company reports that this is the seventh consecutive year of sales growth. 

The company was able to offset weakness in the U.K. and Europe with strong sales in China and the U.S. JLR sales in China were up 23% year-over-year to 146,399.


U.S. futures were showing weakness ahead of the market open Monday after a strong close to the week in the Friday session. 

The tech sector will be in focus this week with the annual Consumer Electronics Show officially kicking off in the Las Vegas Tuesday. 

Futures contracts on the tech-heavy Nasdaq were down 0.14% ahead of the opening bell while Dow and S&P 500 futures fell 0.07% and 0.16%, respectively. 

Asian markets closed the day solidly in the green and the major indices in Europe were also gaining, except for the FTSE100 in the U.K., which fell 0.13% with less than four hours left in trading. 

Nvidia to Power AI for Volkswagen and Uber

Nvidia (NVDA) shares were up nearly 3%, or $5.90, to $221.30 in premarket trading Monday after the chipmaker announced that it reached a deal with Volkswagen (VLKAY) and Uber to provide artificial intelligence solutions for the two companies ahead of the Consumer Electronics Show in Las Vegas. 

"Autonomous driving, zero-emission mobility and digital networking are virtually impossible without advances in AI and deep learning. Combining the imagination of Volkswagen with NVIDIA, the leader in AI technology, enables us to take a big step into the future," Volkswagen CEO Herbert Diess said. 

Meanwhile, Uber selected Nvidia technology to power its fleet of self-driving vehicles. Uber started using Nvidia GPU computing technology in its first test fleet of Volvo SUVs and currently uses the company's processors to run deep neural networks for its autonomous cars and freight trucks. 

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