Happy Hump Day!
At the close, the Dow was up around 0.5%, or 117 points. The Nasdaq was up 0.08% and the S&P 500 was up 0.28%.
Teva CEO on 2020 Outlook
Teva Pharmaceuticals (TEVA) - Get Teva Pharmaceutical Industries Limited Sponsored ADR Report is anticipating a trough for 2019 but this is a natural development as the company restructures, according to CEO Kare Schultz.
"This is a trough year, as we have been saying since the beginning of the plan," he said. "This is the year where we bottom out on revenue and operating profit, and in 2020 we expect to return to growth and continue to do so in the coming years based on the launches of the new products."
Schultz explained his outlook in an interview with TheStreet's Kevin Curran, noting that the performance hit the company's conservative guidance for the fourth quarter and added that Wall Street was overly bullish in its 2019 targets.
Apple's Big Payday Comes From...Google?
Apple (AAPL) - Get Apple Inc. (AAPL) Report and Alphabet's Google (GOOGL) - Get Alphabet Inc. Class A Report increasingly compete directly with each other in areas such as phones and smart speakers, but Google also contributes significantly to Apple's top and bottom lines, reported TheStreet's Nelson Wang.
In a report out this week, Goldman Sachs analysts estimated that Google paid Apple a whopping $9.46 billion in 2018 in traffic acquisition costs (TAC) to be the default search engine on Apple devices and computers. The analysts had estimated in September the figure to be right around that mark, and finalized the number based on Google's fourth-quarter earnings report. That report showed that Alphabet spent a total of $26.7 billion in TAC in 2018, equivalent to 23% of Google's advertising revenue for the year.
To put that payment in perspective, $9.46 billion represented 23% of total revenue for Apple's Services group in 2018, and 33% of that group's gross profits last year, Goldman Sachs estimated.
Market Optimism Wednesday
Overall, the markets had a pretty positive day Wednesday.
TheStreet's Joseph Woelfel wrote that Donald Trump raised the prospect of an extension to the March 2 deadline, when tariffs on $200 billion worth of China-made goods could increase to 25% from 10%.
However, Jim Cramer thinks that investors should be a little cautious when thinking about the market optimism.
"Don't jump the gun is what I'm saying," Cramer explained on his Facebook Live show with TheStreet's Katherine Ross.