Closing Bell
The Dow Jones Industrial Average stretched its winnings streak to seven sessions Friday, leading the three major indices in gains. The Nasdaq was the lone index to close in the red.
The Dow Jones Industrial Average rose 0.37%, or 91 points to 24,830, while the S&P 500 rose 0.17%, or 5 points to 2,728, and the Nasdaq fell 0.03%, or 2 points to 7,403.
Several Gun Manufactures Sever Ties With Dick's Sporting Goods
Dick's Sporting Goods (DKS) decision to raise the age of those allowed to purchase firearms at its stores to 21 and its announcement that it will no longer sell assault-style weapons is costing it the business of some gun manufacturers.
O.F. Mossberg & Sons announced that it would no longer be doing business with the retailer.
"It has come to our attention that Dick's Sporting Goods recently hired lobbyists on Capitol Hill to promote additional gun control," Mossberg & Sons CEO Iver Mossberg wrote in a press release. "Make no mistake, Mossberg is a staunch supporter of the U.S. Constitution and our Second Amendment rights, and we fully disagree with Dick's Sporting Goods' recent anti-Second Amendment actions."
MKS Supply announced days earlier that it will stop doing business with Dick's.
We believe that refusing to sell long guns to adults under age 21, while many young adults in our military are not similarly restricted, is wrong. We believe that villainizing modern sporting rifles in response to pressure from uninformed, anti-gun voices is wrong," MKS Supply president Charles Brown wrote a statement. "We believe that hiring lobbyists to oppose American citizens' freedoms secured by the Second Amendment is wrong. Dick's Sporting Goods and Field & Stream, in purportedly doing all of these things, have demonstrated that they do not share our values. [We're] standing by the American people by refusing any further sales to Dick's Sporting Goods & Field & Stream."
Starbucks Changes Bathroom Policy to Allow for Use by Everyone
Starbucks (SBUX) is being proactive following an embarrassing incident after cops were called on two African American men accused of loitering.
The company will now allow anyone access to its bathrooms, regardless of whether they have purchased anything at the store or not.
"We don't want to become a public bathroom, but we're going to make the right decision 100 percent of the time and give people the key," Schultz said at the Atlantic Council in Washington, D.C. "Because we don't want anyone at Starbucks to feel as if we are not giving access to you to the bathroom because you are 'less than.' We want you to be 'more than.' "
US Postal Service Nearly Triples Second Quarter Loss
The U.S. Postal Service bled $1.3 billion in the second quarter, nearly triple the $562 million the company lost a year ago.
The service reported total revenue of $17.5 billion in the quarter, a 1.4% increase from a year ago. Shipping and Packages revenue rose by 9.5% while First-Class and Marketing Mail revenue fell by $181 million.
"Despite growth in our package business, our financial results reflect systemic trends in the marketplace and the effects of an inflexible, legislatively mandated business model that limits our ability to generate sufficient revenue and imposes costs upon us that we cannot afford," said Postmaster General and CEO Megan J Brennan. "America needs a financially strong Postal Service that can invest in its future and can continue to fulfill the needs of American businesses and consumers. With continued aggressive management and greater legal authority to respond to changes in our marketplace and to control our costs, the Postal Service can return to financial sustainability."
Dropbox Tanks In Spite of Earnings Beat
Dropbox Inc. (DBX) is finding out that Wall Street investors are looking for more than earnings beats and revenue growth.
The file storage company reported earnings of 8 cents per share, beating expectations of a nickel, on revenue of $316.3 million vs. $309.2 million analyst expectations.
However, the companies guidance, while above estimates, wasn't enough to convince the bears at Nomura to change their mind about the company's trajectory.
Nomura analyst Christopher Eberle said that the results lacked the "incremental details that would alter bearish thesis." He noted that the top- and bottom-line beats weren't very wide and that the second quarter and full year guidance were underwhelming "aside from certain metrics."
Barclays CEO Fined Over $870,000 for 'Conduct Breach'
Barclays (BCS) CEO Jes Staley was fined 642,430 pounds ($870,557) by British regulators for attempting to uncover the identity of a whistle-blower who sent an anonymous letter raising concerns about the recruitment of one of Staley's former colleagues at JPMorgan Chase.
Staley attempted to identify the letter writer twice, despite being told that it was inappropriate for him to do so.
The fine is equivalent to about 15% of Staley's yearly salary. In a separate statement Barclays said that it cut Staley's 2016 bonus by 500,000 pounds.
"Mr. Staley breached the standard of care required and expected of a chief executive in a way that risked undermining confidence in Barclays' whistle-blowing procedures," Mark Steward, executive director of enforcement and market oversight at the Financial Conduct Authority, said in an emailed statement to Bloomberg Friday. "Whistle-blowers play a vital role in exposing poor practice and misconduct in the financial services sector."
Premarket
U.S. futures were climbing ahead of the opening bell Friday, indicating a positive open for markets one day after all three major indices closed the day in positive territory.
Dow futures were rising 0.23%, indicating an open 56 points higher, while Nasdaq Futures gained 0.15%, indicating an open 11 points higher, and S&P futures rose 0.23%, indicating an open 6 points higher.
Markets in Asia had a mixed session with the Shanghai Composite being the lone major index to close trading down 0.35%. The Hang Seng and Nikkei meanwhile rose 1.02$ and 1.16% respectively.
European markets were faltering, led by the CAC 40 which declined 0.3%, the DAX which was down 0.27% and the FTSE 100 which was declining 0.07% with about four hours left in trading.
