Category: Stock Market News

Analysts at Baird on Tuesday downgraded SolarCity Corp. stock to neutral on its pending sale to Tesla Motors Inc. , which the analysts considered “highly likely” to go through. The deal “demonstrates growing interest in energy technology companies, which we think will continue as the focus on energy efficiency, renewable energy, and resource management increases,” the Baird analysts said. On Monday,the two companies held a call with analysts and touted money-saving opportunities for the proposed deal, valued at $2.6 billion. Shares of SolarCity fell 2.1% and shares of Tesla also declined 2% Tuesday.

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An early bounce by oil futures attributed to bargain hunting gave way to renewed selling pressure Tuesday morning, pushing the U.S. benchmark back below $40 a barrel. September West Texas Intermediate crude for September delivery on the New York Mercantile Exchange fell 23 cents, or 0.6%, to $39.83 a barrel. The contract had traded as high as $40.91 in early action, rebounding from heavy Monday losses that put crude back into bear-market territory. Oil remains shadowed by concerns over a global crude glut and uncertainty over near-term demand, analysts said.

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Shares of Ford Motor Co. dropped 2% in morning trade Tuesday, after the automaker reported a decline in U.S. vehicle sales in July, led lower by a drop in retail sales. Total company sales fell 3% from a year ago to 216,479 vehicles, as a 6% drop in retail sales to 161,158 vehicles offset a 6% increase in fleet sales to 55,321. Truck sales increased 4.8% to 87,104 vehicles, while SUVs dropped 5.6% to 69,521 vehicles and cars fell 9.3% to 59,854 vehicles. After Ford reported second-quarter results late week, Chief Financial Officer Robert Shanks said in a conference call that Ford was seeing sort of a “car recession,” according to a transcript provided by FactSet. The stock has now tumbled 12% since second-quarter results were reported. It has lost 13% year to date, while the S&P 500 has gained 6.2%.

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U.S. stocks opened lower Tuesday, adding to Monday’s modest losses, after tepid economic data and mixed corporate earnings. The PCE index, the Federal Reserve’s preferred inflation barometer, was unchanged in June, while the annual rate of core inflation was flat at 1.6%, below the Fed’s 2% target. The data were viewed as a prelude to a key employment report due on Friday, which could help shape the Fed’s future monetary policy. The Dow Jones Industrial Average lost 26 points, or 0.1%, to 18,376, the S&P 500 index fell 4 points, or 0.2%, to 2,166, while the Nasdaq Composite Index lost 14 points, or 0.3%, to 5,170.

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McDonald’s Corp. said Tuesday thatthe Chief Administrative Officer Pete Benson will retire on September 2 after 20 years with the company. McDonald’s, which is in the midst of a turnaround with help from its all-day breakfast menu, announced weaker-than-expected second-quarter same-store sales growth on July 26. McDonald’s said it will announce further organizational changes in the coming weeks. McDonald’s shares are down 0.2% in premarket trading, but up 18.2% for the past year. The S&P 500 Index is up 3.2% for the last 12 months.

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The Wendy’s Co. shares are down 1.4% in Tuesday premarket trading after the company was downgraded to sector perform from outperform at RBC Capital Markets on slowing same-store sales in the second quarter and in July. The bank lowered the price target to $11 from $12. Analysts believe there is a slowdown across the fast-food industry, though Wendy’s is feeling it more than others. However, Wendy’s has the tools, such as its value platforms, to regain share, RBC wrote in a note. McDonald’s Corp. same-store sales have slowed, but RBC analysts said in a separate note on the fast-food industry, also published Tuesday, that the company is poised for two-year stacked growth. And while the bank forecasts a second-quarter same-store sales decline of 1% for Burger King U.S., the bank believes the chain, which is owned by Restaurants Brands International Inc., , rebounded in recent weeks due to a Mac n’ Cheetos promotion and other value marketing. Mac n’ Cheetos are macaroni and cheese bites covered in Cheetos flavoring. Wendy’s shares are down 9.7% for the year so far while McDonald’s is down 0.1% and Restaurant Brands International is up 12.9%. The S&P 500 Index is up 6.2% for the year to date.

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TD Ameritrade Holding Corp. said Tuesday that Chief Operating Officer Marv Adams will resign later this year. Upon his departure, the COO position will be terminated. Adams, who joined the company in 2011, will serve in an advisory capacity for the next several months, reporting to CEO-elect Tim Hockey, before officially leaving the company on Dec. 1. Hockey will officially take the reins of CEO in September. TD Ameritrade said that it has chosen not to replace Adams, and will instead terminate the c-suite role and streamline its organizational structure to “better align with its future strategic goals and objectives.” Shares of the company rose 0.6% to $30.09 in premarket trade. They’ve traded in a narrow range in the past three months but are down 18.5% from 12 months ago. By comparison, the S&P 500 is up more than 3% in the past 12 months.

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Advaxis Inc. shares spiked 28% in pre-market trade Tuesday after the company announced a $40 million agreement with Amgen Inc. to develop and commercialize cancer immunotherapy treatment ADXS-NEO. The agreement includes a $40 million upfront payment to Advaxis and a $25 million purchase of the company’s common stock by Amgen, along with sales milestone payments of up to $475 million and additional royalty payments based on global sales. Amgen will be fully responsible for funding clinical and commercial activities for the treatment, which is preclinical, and Advaxis will lead clinical development through proof-of-concept and handle manufacturing responsibilities, the companies said. Immuno-oncology is an up-and-coming area of cancer treatment that uses the body’s immune system to fight the disease. Advaxis shares rose 8.6% over the last three months, compared with a 4.3% rise in the S&P 500 .

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Fresh Del Monte Produce beat second-quarter earnings expectations but missed on revenue Tuesday. Earnings rose to $97.7 million, or $1.86 per share, from $65.9 million, or $1.21 per share in the year-earlier period. Comparable earnings-per-share were $1.75, above the FactSet consensus of $1.37. Revenue decreased to $1.09 billion from $1.13 billion, below the FactSet consensus of $1.16 billion. The latest results include growth in fresh-cut and avocado product lines but lower sales volume in other fresh produce and banana business segments, the company said, attributed to bad weather and unfavorable exchange rates. The stock gained 28.3% over the last three months, compared with a 4.3% rise in the S&P 500 .

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Shares of Royal Caribbean Cruises Ltd. surged 2.3% in premarket trade Tuesday, after the cruise operator beat second-quarter profit expectations, while sales and its profit outlook were below views. For the quarter ended June 30, earnings rose to $229.9 million, or $1.06 a share, from $185.0 million, or 84 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to $1.09, above the FactSet consensus of $1.02. Revenue increased to $2.11 billion from $2.06 billion, just shy of the FactSet consensus of $2.17 billion, as a miss in passenger ticket revenue offset a beat in onboard and other revenue. Looking ahead, the company expects third-quarter adjusted EPS of $3.10, below the FactSet consensus of $3.38, and 2016 adjusted EPS of $6.00 to $6.10, compared with expectations of $6.23. “While there are always puts and takes in our key markets, our portfolio is performing as expected, our booked position remains strong, and our newbuilds are entering their markets to great fanfare,” said Chief Financial Officer Jason Liberty. The stock has tumbled 29% year to date through Monday, while the S&P 500 has gained 6.2%.

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