Yahoo Finance 6 big things you missed in the markets Wednesday: Peloton, Sears, Viacom
Snoozefest.
Boring, upward moving markets of 2019 continued into Wednesday as investors clung to hopes of a U.S. trade deal with China and a dovish set of Federal Reserve minutes. The Dow Jones Industrial Average rose 91 points on the session, posting a four-day winning streak. Strength continued in tech names such as Amazon and Facebook.
Here are five things you missed from the world of finance on Wednesday, compliments of Yahoo Finance.
Peloton keeps doing its thing.
The privately held fitness startup known for its $2,000-plus connected spinning bikes has continued its business momentum into 2019, president William Lynch (former CEO of Barnes & Noble) said on Yahoo Finance’s ‘The Final Round.’ Reports have stated Peloton is profitable and could be nearing an initial public offering in 2019.
Rumors have persisted that Peloton would be a great acquisition by Apple, which is pushing aggressively into the health market via the Apple Watch.
Lynch downplayed interest in being acquired by Apple or another company.
Peloton Fun Facts:
Peloton’s last funding round was for $550 million in August 2018, valuing the company at $4 billion.
TCV, known for being an early investor in Facebook and Netflix, led the recent capital raise.
The company is fresh off releasing a $3,995 connected treadmill.
Is Jenny Craig on the sales block?
The private equity-backed weight management company reportedly hired Rothschild to explore a sale in September. With Nutrisystem recently sold for an astounding $1.4 billion to health company Tivity, Jenny Craig’s potential pursuit of a deal looks timely.
Jenny Craig CEO Monty Sharma brushed off a question about a deal on Yahoo Finance’s ‘YFi AM ’ on Wednesday.
“I can’t speak to the sale of the company, but I could say that the company performed really well last year and we are enjoying what we do as a team,” Sharma said.
Cash is king... for now.
Investors are all about the cash early on in 2019 as market volatility in December damaged psyche (and numerous stock prices).
Money-market funds alone have received $165 billion of inflows in the past 60 days compared with $42 million of outflows from stock funds, said Goldman Sachs. The investment bank estimates that major investors — such as mutual funds and pension plans — have 41% of their portfolio allocated to stocks to start the first quarter. That is down from 45% at the beginning of the fourth quarter of last year. Meanwhile, cash allocation has ticked up to 13% from 12% during that same timespan.
Deutsche Bank Chief Investment Officer of the Americas Deepak Puri said investors now face a new reality.
“Correlations between equities and bond markets are closer than most people think,” Puri said. “Investors need to get used to the idea that they aren’t going to get that 10%-plus return on the S&P 500 they have been used to.”
The future of Viacom.
If Viacom is talking with CBS again about a merger, the top guy at the former is keeping it hush hush.
“The more things change, the more they stay the same in terms of a narrative of a CBS/Viacom merger,” Viacom CEO Bob Bakish said on Yahoo Finance’s ‘The Final Round.’ Bakish said he remains focused on growing the company and releasing hit movies. He declined to comment on speculation the two were exploring a merger.
CBS’ board will have its annual meeting on Jan. 31 amidst the heightened deal speculation.
Highlight: "Viacom … is a story of turnaround and evolution," @viacom CEO Bob Bakish tells @jpmanga at CES. "Clearly there was work to do. ... We radically grew the television business." Full interview: https://t.co/ObzMOMFjVy pic.twitter.com/5xbe5wXXAQ
— Yahoo Finance (@YahooFinance) January 9, 2019
Hump Day fun.
Interested in getting a new gig this year that pays more money? Then get an active U.S. coast guard license and take a stab at running a tiny island.
The payday: $130,000.
This $130,000 job lets you run a tiny island. Are you up for the six-figure gig? pic.twitter.com/WkQFoMXwP9
— Yahoo Finance (@YahooFinance) January 9, 2019
Sears clings to life.
The Sears saga rages on.
Failed CEO Eddie Lampert had until 4:00 p.m. Wednesday to place a $120 million deposit with the courts to participate in a Jan. 14 auction for the bankrupt retailer’s assets. It’s unclear if Lampert put forth that bid — two Sears spokesman did not return Yahoo Finance’s requests for comment.
Lampert reportedly is working on a better offer than the one Sears rejected last week. At the time, Lampert offered $4.4 billion for 425 stores and other assets. The company deemed the cash component ($3 million) as insufficient.
Brian Sozzi is an editor-at-large at Yahoo Finance. Follow him on Twitter @BrianSozzi
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