Futures Show Quarter-Point Fed Rate Cut Fully Priced in for July

Mexico becomes first country to ratify USMCA trade deal via Senate vote

Mexico on Wednesday became the first country to ratify the United States-Mexico-Canada Agreement (USMCA) agreed last year by the three countries to replace the 25-year-old North American Free Trade Agreement (NAFTA).

By an overwhelming majority, Mexico's Senate backed the trade deal negotiated between 2017 and 2018 after U.S. President Donald Trump threatened to withdraw from NAFTA if he could not get a better trade deal for the United States.

Mexican President Andres Manuel Lopez Obrador had already said the deal would be ratified this week in the Senate, where his leftist National Regeneration Movement (MORENA) and its allies have a comfortable majority in the 128-member chamber.

There has been little parliamentary opposition in Mexico to trying to safeguard market access to United States, by far Mexico's most important export market, and the deal was backed by nearly all the opposition lawmakers who voted.

The USMCA was ratified with 114 Senators voting in favor and four against. There were three abstentions.

Three of the four votes against the deal came from MORENA senators, as did one abstention. The other vote against the deal was from an independent senator, while two members of the center-right National Action Party (PAN) also abstained.

Seven senators were not present for the vote.

U.S. trade regulator approves United Health, DaVita deal with condition

The Federal Trade Commission said late Wednesday UnitedHealth Group Inc. UNH, +1.83% and DaVita Inc. DVA, +3.08% have agreed to a settlement to resolve FTC allegations their $4.3 billion deal would stifle competition in the Las Vegas area. Under the proposed settlement, UnitedHealth would have 40 days to sell DaVita’s healthcare provider in the Las Vegas region, known as HealthCare Partners of Nevada, to Intermountain Healthcare, a Utah-based healthcare provider and insurer. The acquisition was first announced in December 2017. UnitedHealth stock rose 0.6% and DaVita shares fell 0.1% in the extended session after ending the regular trading day up 1.8% and 3.1%.

Smith & Wesson maker American Outdoor Brands stock soars after earnings beat

Smith & Wesson maker American Outdoor Brands Corp. AOBC, +1.11% shares soared more than 8% in the extended session Wednesday after the company beat consensus estimates for earnings and revenue. The company reported fiscal fourth-quarter net income of $9.8 million, or 18 cents a share, compared with $7.7 million, or 14 cents a share, in the year-ago period. Adjusted for items such as amortization of acquired intangible assets, among other things, earnings were 26 cents a share, versus 24 cents in the year-ago quarter. Revenue rose to $175.7 million from $172 million in the year-ago period. Analysts surveyed by FactSet had estimated adjusted earnings of 16 cents a share on revenue of $169.2 million. For the fiscal first quarter, analysts model adjusted earnings of 10 cents a share on sales of $141.6 million. AOBC said it expected fiscal first-quarter adjusted earnings of 3 cents to 7 cents a share on sales of $120 million to $130 million. For fiscal 2020, analysts expect adjusted earnings of 82 cents a share on sales of $654.7 million; the company said it expects adjusted earnings of 76 cents to 84 cents a share on sales of $630 million to $650 million. AOBC stock has fallen 30% in the past year, with the S&P 500 index SPX, +0.30% rising 5.6%.

Oracle stock rallies as earnings top Wall Street view

Oracle Corp. shares rallied in the extended session Wednesday after the database giant topped Wall Street estimates for the quarter.

Oracle ORCL, -0.42% shares surged as much as 7% after hours and were last up 4%, following a 0.4% decline to close the regular session at $52.68.

The company reported fiscal fourth-quarter net income of $3.74 billion, or $1.07 a share, compared with $3.28 billion, or 79 cents a share, in the year-ago period. Adjusted earnings were $1.19 a share.

Revenue rose to $11.14 billion from $11.01 billion in the year-ago quarter.

Analysts surveyed by FactSet had forecast adjusted earnings of $1.07 a share on revenue of $10.93 billion.

Oracle posted cloud services and license support revenue of $6.8 billion, while analysts expected $6.76 billion. Cloud license and on-premise license revenues were $2.5 billion. compared with the $2.32 billion Street expectation.

Chanos' Kynikos Associates long on Tesla put options on March 31:Amended SEC filing

(Reuters) – Jim Chanos’ Kynikos Associates was long on Tesla Inc put options, not call options, on March 31, according to an amended Securities and Exchange filing on Wednesday.

The filing restated a May 15 filing by Kynikos, and shows that the firm held put options in Tesla, iRobot Corp and Coca-Cola Co on March 31. Kynikos’ earlier filing had said the firm held call options on those companies.

Futures Show Quarter-Point Fed Rate Cut Fully Priced in for July

Bond traders are virtually certain that the Federal Reserve will ease policy as soon as next month after the central bank indicated a readiness to cut rates for the first time in more than a decade to sustain the U.S. economic expansion.

The rate implied for the July 31 Fed decision dropped by 7 basis points after Wednesday’s policy statement to about 2.06%. That suggests about 31 basis points of rate cuts by then. The January 2020 fed funds futures contract implies close to 75 basis points of easing by the end of 2019.

In his post-meeting press conference, Fed Chairman Jerome Powell said that while the economy has performed reasonably well, many committee members see that the “the risk of less favorable outcomes has risen.” The chairman also said a rate cut would depend on incoming data and the risk picture.