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Boeing, Aurora Cannabis, Vera Bradley & more

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Traders work on the floor of the New York Stock Exchange, October 30, 2018.

Brendan McDermid | Reuters

Traders work on the floor of the New York Stock Exchange, October 30, 2018.

Check out the companies making headlines midday Wednesday:

Aurora Cannabis — Shares of Aurora Cannabis rose 13.94 percent after the company announced that billionaire activist investor Nelson Peltz will join as a strategic advisor. The company added that it has granted Peltz options to purchase 19.96 million common Aurora shares; if exercised, he would be the company’s second-largest shareholder.

Boeing — Shares of Boeing whipsawed after Canada and the U.S. announced they will restrict commercial use of the Boeing 737 Max. Canada and the U.S. joins a list of dozens of other nations that took steps to ground the 737 jets after the second crash of the model in less than six months happened over the weekend.

Express — Shares of Express dropped 10.1 percent after the clothing company’s fourth-quarter results showed its same-store sales fell 6 percent, exceeding a Refinitiv estimate of a 5.6 percent decline. Express also reported revenue that missed estimates by 1.2 million, bringing in $628.4 million. The retailer’s earnings beat estimates by 3 cents at 19 cents per share.

Vera Bradley — Shares of the fashion company were up 21.82 percent after the company reported quarterly earnings that beat Wall Street estimates. The company posted a fourth-quarter profit of 25 cents per share, 1 cent higher than Refinitiv estimates. Vera Bradley’s revenue for the quarter also topped expectations.

Switch — The data center company rose 6.87 percent after reporting better-than-expected fourth-quarter earnings. Switch posted earnings of 5 cents per share, 2 cents higher than a Refinitiv estimate.

Fiat Chrysler — The automaker’s shares fell 0.9 percent after the company recalled more than 800,000 vehicles, citing new emission guidelines from the Environmental Protection Agency.

J.P. Morgan Chase — Shares of J.P. Morgan Chase rose 0.3 percent after the banking giant announced it would expand into nine new U.S. markets, several of which are dominated by rivals Bank of America and Wells Fargo.

Juventus Football Club — Shares of the Italian soccer club surged more than 17 percent after superstar player Cristiano Ronaldo netted three goals against Atletico Madrid, sending them to the quarterfinals of the Champions League.

Oaktree Capital Group — Shares of asset manager Oaktree Capital surged 12.3 percent after news broke that Brookfield Asset Management will buy a 62 percent stake in the company. The firms together will have about $475 billion in assets under management and $2.5 billion of annual fee-related revenue, according to a press release.

—CNBC’s Yun Li, Nadine El-Bawab and Jessica Bursztynsky contributed to this report.



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Bonds are flashing a huge recession signal — here’s what happened to stocks last time it happened

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“Yield curve inversion won’t signal doom,” Jonathan Golub, chief U.S. equity strategist at Credit Suisse, said in a note last year. “While an inversion has [preceded] each recession over the past 50 years, the lead time is extremely inconsistent, with a recession following anywhere from 14-34 months after the curve goes upside down.”

The most recent recession, in 2008, came 24 months after the 2-year and 10-year yield curve inverted on Dec. 30 in 2005, Golub pointed out. Back then, the stock market scored an 18.4 percent gain 18 months after the inversion and 17 percent return 24 months later, the analyst said.

Stocks started to go downhill only about 30 months after the inversion in 2005 as the S&P 500 eventually wiped all the gains around mid-2007 and lost a whopping 30 percent in early 2009 as the great financial crisis raged, according to Credit Suisse.

The stock market has jumped 21 percent from its Christmas Eve low as fears of an economic downturn and a full-on trade war with China recede. However, the rally was put on hold this week as the Fed‘s policy reversal reignited the recession fears. The central bank announced no rate hikes this year versus the two rate increases that were predicted as recently as December, and it also reduced its outlook for GDP to 2.1 percent in 2019 from a 2.3 percent forecast in December.

“Our core logic behind the inversion call still holds — it’s a bet the market will begin pricing in a ‘policy error’ risk,” said Ian Lyngen, BMO’s head of U.S. rates, in a note. “Unlike when the Fed was still clinging to the hope of another hike or two in 2019, an inversion now will occur as investors worry the FOMC’s on hold stance will prevent them from cutting rates quickly enough to stave off a more severe recession.”



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Tyson recalling nearly 70,000 pounds of chicken strips after a report of metal pieces

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A bag of Tyson Foods Inc. frozen chicken is arranged for a photograph in Tiskilwa, Illinois, U.S., on Thursday, May 5, 2016. Tyson is scheduled to release earnings figured on May 9.

Bloomberg | Bloomberg | Getty Images

A bag of Tyson Foods Inc. frozen chicken is arranged for a photograph in Tiskilwa, Illinois, U.S., on Thursday, May 5, 2016. Tyson is scheduled to release earnings figured on May 9.

Tyson Foods is recalling over 69,000 pounds of its ready-to-eat chicken strips after two consumers complained of finding metal in their meals, according to the U.S. Department of Agriculture’s Food Safety and Inspection Service.

The frozen strips were produced Nov. 30, 2018, and have “best by” dates of Nov. 30, 2019. The products include the 25-ounce bags of fully cooked and frozen buffalo-style chicken strips, 25-ounce bags of fully cooked crispy chicken strips, and cases of Spare Time fully cooked, buffalo-style chicken strips. The products to be recalled have “P-7221” on the back of the packaging.

The three products were shipped to retailers nationwide, according to the FSIS, and to Michigan and Washington for institutional use.

A spokesman for Tyson did not immediately respond to a request for comment.

No adverse reactions or injuries have been reported, according to the Tyson website. Customers who have these products should either throw them away or return them to the place of purchase.

This is the second major recall for the food company this year. In January, the company recalled more than 36,000 pounds of chicken nuggets after consumers complained of the product containing rubber.



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Tiffany, Nike, Avon Products & more

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Customers carry Tiffany & Co. shopping bags outside the company's flagship store in New York, March 18, 2014.

Craig Warga | Bloomberg | Getty Images

Customers carry Tiffany & Co. shopping bags outside the company’s flagship store in New York, March 18, 2014.

Check out the companies making headlines midday Friday:

Tiffany — Shares of Tiffany rose 3.2 percent after the jewelry retailer reported mixed fourth-quarter results. The retailer reported earnings of $1.67, 7 cents higher than expected, and revenues of $1.321 billion, missing estimates by $11 million. Tiffany also reported a 1 percent drop in worldwide sales, while Refinitiv had estimated 0.8 percent increase.

Citigroup, Bank of America, J.P. Morgan Chase, Morgan Stanley and Goldman Sachs — Bank shares all fell at least 2.9 percent as worries over the global economy sent Treasury yields lower. The benchmark 10-year rate fell below the 3-month yield, causing a yield-curve inversion, which often signals a recession is on the horizon.

Nike — Shares of Nike declined 6.6 percent after the sneaker maker reported weaker-than-expected sales in North America for its third-quarter. Nike also warned that its revenue growth could slow during its fourth-quarter. The company stated it was partially hurt by fewer Converse-branded merchandise.

Cintas — Shares of Cintas plunged 6.5 percent after the company reported weaker-than-expected sales for the previous quarter, while its full-year revenue outlook also disappointed investors.

Nokia — Shares of Nokia fell 6.1 percent after the network equipment maker revealed it is investigating transactions at Alcatel-Lucent, the rival it acquired in 2016, and that it alerted U.S. authorities to these possible compliance issues.

Avon Products — Shares of the beauty company rose 10 percent following a Wall Street Journal report that Avon is exploring a sale to Brazilian rival Natura. The company reportedly would acquire both the publicly traded Avon that operates worldwide and the private North American business.

Papa John’s International — The pizza maker’s stock rose more than 6 percent after announcing former basketball star Shaquille O’Neal joined its board of directors. The company also announced O’Neal is investing in nine Papa John’s restaurants in Atlanta.

Boeing — Boeing shares dropped more than 2.5 percent after an Indonesian airline canceled a $6 billion order for 49 of the company’s 737 Max jets.

—CNBC’s Jessica Bursztynsky and Nadine El-Bawab contributed to this report.



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