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General Motors Co. said Tuesday that it rejected a proposal by billionaire investor David Einhorn’s hedge fund Greenlight Capital to create a dual-class common stock structure, that in effect eliminate the dividend on the existing common stock. GM said it believes Greenlight’s proposal creates “unacceptable risks,” including the auto maker’s loss of its investment grade credit rating, material governance challenges and uncertain investor demand. “For seven months, we’ve extensively reviewed the proposed dual-class structure, as well as other capital allocation strategies, and concluded that continuing to execute our strategy and adhering to our current disciplined capital allocation framework is the best path to deliver increased value,” said Chief Executive Mary Barra. Greenlight also nominated four candidates for election to GM’s board, but GM said the board has “unanimously determined” it would not recommend any of the nominees for election. GM’s stock rallied 3.3% in midday trade, as a WSJ report of Greenlight’s proposal made the rounds. The stock has now gained 3% year to date, while the S&P 500 has tacked on 5.2%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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From:: Stock Market News

Apple Inc.’s stock rallied 1.1% in midday trade Tuesday, putting it on track for its fifth record close this month, and 11th so far this year, after a bullish note from UBS. The stock was changing hands at $142.36, above the March 20 record close of $141.46, but below the March 21 all-time intraday high of $142.80. UBS analyst Steven Milunovich said he could envision a scenario that pushes Apple’s stock price up to $200 over the next 2 to 3 years, which is 40% above current levels. Even Milunovich’s “most likely scenario” has Apple’s stock at $175, which is 23% above current levels. A third scenario Milunovich described was a bearish one, as iPhone maturation, the lack of new products and margin pressure could knock the stock down to $125, or 12% below current levels. The has soared 23% year to date, while the SPDR Technology Select Sector ETF has climbed 9.5% and the Dow Jones Industrial Average has gained 4.4%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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From:: Stock Market News

House Speaker Paul Ryan said Tuesday he wouldn’t put a timeline on a new effort to repeal and replace Obamacare after last week’s failure of a Republican bill. “This is too important not to get right,” Ryan told reporters at a news conference on Capitol Hill. The Wisconsin Republican said his party also wants to move ahead on border security and a tax-code overhaul.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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From:: Stock Market News

Shares of General Motors Co. jumped 2.6% in morning trade Tuesday, after The Wall Street Journal reported that billionaire investor David Einhorn was pressuring the automaker to boost stock prices. Citing people familiar with the matter, the WSJ reported that Einhorn is pushing GM to split its common stock into two classes, one that pays dividends and another that entitles shareholders to earnings, including share repurchases, after the dividend is paid. Einhorn believes the move would attract new investors, and could raised GM’s market capitalization by $38 billion, the WSJ reported, compared with the current market capitalization of about $53.2 billion. Einhorn’s hedge fund Greenlight Capital owned 13.17 million shares of GM, or about 0.9% of the shares outstanding, and call options to buy 25 million more shares, as of Dec. 31, according to SEC filings. The stock has gained 1.2% over the past three months, while the S&P 500 has tacked on 4.2%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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From:: Stock Market News

The “big announcement” from Ford Motor Co. that President Donald Trump tweeted about earlier Tuesday, highlighting “JOBS! JOBS! JOBS!,” was Ford saying it would “create or retain” 130 jobs as it expands capacity at the Romeo Engine Plant in Michigan. That was part of Ford’s plan to invest a total of $1.2 billion in three Michigan plants: $850 million to retool Michigan Assembly Plant to build Ford Ranger vehicles, starting at the end of 2018, and to build Ford Bronco vehicles in 2020; $150 million to expand capacity for engine components for several vehicles at Romeo Engine Plant; and $200 million to support a previously announced data center it was building. In January, Ford said it was spending $700 million and adding 700 new jobs to build a data center at its Flat Rock Assembly Plant. Ford’s announcement Tuesday come less than a week after the automaker provided a first-quarter profit outlook that was below expectations, and less than two weeks after announcing a $642 million investment in a German plant that makes Ford Focus vehicles. The stock rose 0.8% in morning trade, after tumbling 9.8% over the previous seven sessions. The stock has now lost 4.9% year to date, while the S&P 500 has gained 4.6%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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From:: Stock Market News

Amazon.com Inc. announced Tuesday that it is launching AmazonFresh Pickup, a grocery service that’s free for Prime members. Customers place their grocery orders online and can have them ready for pickup in 15 minutes or more and brought to a customer’s car. Orders have no minimum threshold. AmazonFresh Pickup, which is currently in beta for employees, is available in two Seattle locations. Amazon shares are up 0.5% in Tuesday trading, and up 46.8% for the past year. The S&P 500 index is up nearly 15% for the last 12 months.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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From:: Stock Market News

Shares of CryoPort Inc. plunged 44% to a 4 1/2-month low in active morning trade Tuesday, after the company announced that pricing of a relatively-large share offering at a deep discount. Volume topped 1.9 million shares within the first 15 minutes after the open, compared with the full-day average of about 30,500 shares. The life sciences commodities delivery company said it priced the public offering of 5.5 million newly issued common shares at $2 a share, which was 47% below Monday’s closing price of $3.75. The offering represents an 31% increase to the number of shares outstanding, based on FactSet data. The company plans to use the proceeds from the offering, which it expects to be $9.9 million after fees, to grow its business. The stock had rallied 16% year to date through Thursday, but was now shedding 36% so far this year, while the S&P 500 has gained 4.6%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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From:: Stock Market News

U.S. stocks opened slightly lower on Tuesday, putting the Dow on track for a ninth straight daily decline as investors continued to grapple with the uncertain legislative outlook in Washington. The Dow Jones Industrial Average fell 27 points, or 0.1%, to 20,529. The blue-chip average is coming off eight straight down days, its longest streak since 2011. The S&P 500 dipped 2.5 points to 2,339, a drop of 0.1%. The Nasdaq Composite Index slid 3 points to 5,828, a slide of less than 0.1%. Recent market losses have been fueled by the failure of House Republicans and President Donald Trump to pass an overhaul of the health care system, which has been read as a litmus test for how easily the Trump administration can enact other economic legislation. Markets have rallied since the election, in large part on bets that Trump’s proposals on taxes and regulation would accelerate economic growth if enacted. A failure to sign them into law could put those gains at risk. Among the most active stocks of the day, both utilities and telecom shares fell 0.4%. Both sectors are considered defensive plays. On the upside, energy rose 0.4% alongside a 0.9% rise in the price of crude oil.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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From:: Stock Market News

Carnival Corp. shares rose 1.5% in Tuesday trading after the cruise company reported first-quarter earnings that beat estimates. Net income was $352.0 million, or 48 cents per share, up from $142.0 million, or 18 cents per share, for the same period last year. Adjusted EPS was 38 cents, beating the 35-cent FactSet consensus. Revenue was $3.8 billion for the quarter, up from $3.7 billion last year and meeting the FactSet consensus. Passenger ticket sales totaled $2.8 billion, up from $2.7 billion last year and in line with the FactSet consensus. Onboard and other revenue was $978.0 million, up from $923.0 million and ahead of the $962.0 million FactSet consensus. The company expects second-quarter adjusted EPS of 43 cents to 47 cents, compared with the 46-cent FactSet consensus. The company also raised the full-year outlook to a range of $3.50 to $3.70 from December guidance of $3.30 to $3.60. The FactSet consensus is $3.61. Carnival shares are up 20.1% for the past year, while the S&P 500 index is up 15% for the last 12 months.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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From:: Stock Market News