Category: Stock Market News

Shares of Tesla Inc. slumped 1.4% in premarket trade, on the back of downbeat deliveries data, but Baird analyst Ben Kallo said he believed the weakness will be short lived as investors start looking ahead to the Model 3 introduction later this month Kallo reiterated his outperform rating and stock price target of $368, which is 4.4% above Monday’s closing price of $352.62. Despite the disappointing second-quarter deliveries data, Kallo said what he believes is important is that Tesla indicated it expects to increase combined deliveries of the Model S and Model X, which demonstrates continued demand for Tesla vehicles. The Model 3 is set to be introduced on July 28. “The release of Q2 deliveries was another de-risking event for the stock, and we expect shares to trade higher as investors are increasingly able to focus on the Model 3,” Kallo wrote in a note to clients. He said the stock could “make new highs”–the record close was $383.45 on June 23–as Model 3 production ramps. The stock has soared 65% year to date through Monday, while the S&P 500 has gained 8.5%.

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Shares of auto parts retailers were headed for sharp losses Wednesday, after rival O’Reilly Automotive Inc. reported disappointing second-quarter sales, with particular weakness during the last two months. O’Reilly’s stock tumbled 8.4% ahead of the open, toward a near 2 1/2-year low. Among the company’s rivals, shares of Advance Auto Parts Inc. dropped 7.1%, on track to open at a near 3 1/2-year low. AutoZone Inc.’s stock shed 3.8% premarket toward the lowest open since October 2014, while Genuine Parts Co. shares slipped 1.8%.

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Amazon.com Inc. said Wednesday that it is creating 1,500 full-time jobs with its first Utah fulfillment center in Salt Lake City. The positions will be hourly associate jobs. Employees at the 855,000-square-foot facility will pick, pack and ship smaller items like books, toys and electronics. Amazon shares are up 0.8% in premarket trading, and up 31% for the past year. The S&P 500 index is up 16.3% for the last 12 months.

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Investment research firm Morningstar Inc. said Wednesday that it has named Jason Dubinsky chief financial officer, effective July 24. Dubinsky was most recently CFO of planning and central operations for Walgreens Boots Alliance Inc. . Morningstar shares are unchanged in premarket trading, and up 6.5% for the year so far. The S&P 500 index is up 8.5% for 2017 to date.

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CHICAGO (MarketWatch) — The Illinois state House is set to vote Wednesday on whether to join the state Senate in overriding a veto by Gov. Bruce Rauner of legislation that would end a two-year budget impasse. Rauner, a first-term Republican, called the legislation a tax hike of historic proportion, casting particular blame on longtime House Speaker Michael Madigan, a Democrat from the south side of Chicago. In an unusually active Fourth of July at the state assembly in downstate Springfield, the Senate early Tuesday joined the House in having passed spending and revenue bills. Rauner, who had promised to veto the legislation, followed through on that threat by midafternoon. Illinois has operated without a budget for two years. In New Jersey, meanwhile, Republican Gov. Chris Christie signed budget legislation ending a government shutdown, saying his signing off on spending increases pushed by Democrats there represented the nature of compromise. A budget deal also ended a shutdown in Maine.

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Shares of O’Reilly Automotive Inc. tumbled 8.2% in premarket trade Wednesday, after the auto parts retailer reported second-quarter same-store sales that were well below expectations. The company said same-store sales declined 1.7%, below its previously-provided guidance of 3% to 5%, and below the FactSet consensus of 3.9%. Chief Executive Greg Henslee said that after an upbeat April, the sales environment was “more challenging” the rest of the quarter, due to what the company believes were “continued headwinds from a second consecutive mild winter and overall weak consumer demand.” He said the shortfall will have a “consequent impact on our operating profitability,” which will be reported on July 26. The stock, which is on track to open at the lowest level seen during regular session hours since Feb. 4, 2015, has plunged 21% year to date through Monday, while the SPDR S&P Retail ETF has lost 6.9% and the S&P 500 has gained 8.5%.

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Amazon.com Inc. said Wednesday that it is making more than 100 deals available today via its Alexa-operated devices including the Echo, Amazon Tap, Fire TV and Fire tablets. These deals will last through July 17. On Prime Day, which is July 11, shoppers using Alexa will have access to deals two hours before the general public. First-time Alexa shoppers between today and Prime Day will receive a $10 promo code. And for a limited time, Alexa users who sign up for their first year of Prime save $20, making a one-year membership $79. Amazon shares are up 0.4% in premarket trading, and up 31% for the past year. The S&P 500 index is up 16.3% for the last 12 months.

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Shares of Monogram Residential Trust Inc. rocketed 21% toward a record high in premarket trade Wednesday, after the real estate investment trust announced over the holiday that it will be acquired by a fund led by Greystar Real Estate Partners in a deal valued at $3 billion. Under terms of the deal, the Greystar led fund will pay $12 in cash for each Monogram share outstanding, a 22% premium to Monday’s closing price of $9.80, and 11% above the Dec. 30, 2016 record close of $10.82. The stock began trading in November 2014. The acquisition is expected to close during the second half of 2017. “We are pleased to have reached this agreement, which maximizes value at a substantial premium to our existing share price,” said Monogram Chairman Alan Patton. “We are confident that today’s announcement represents the best path forward for all of Monogram’s stockholders.” Monogram’s stock had lost 9.4% year to date through Monday, while the SPDR Real Estate Select Sector ETF had gained 5.7% and the S&P 500 had climbed 8.5%.

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Moody’s Investors Service has revised the outlook on Qatar’s sovereign rating to negative from stable, while affirming the issuer’s senior unsecured rating at Aa3. The change is due to the economic and financial risks arising from the ongoing dispute between Qatar and a group of countries, including its fellow Gulf Cooperation Council (GCC) neighbors Bahrain (Ba2 negative), Saudi Arabia (A1 stable) and the United Arab Emirates (UAE, Aa2 stable),” Moody’s said in a statement. The likelihood that the dispute will create a lengthy period of uncertainty extending into 2018 has increased and a resolution in the next few months is unlikely, said the statement. “Absent a swift resolution, economic activity will likely be hampered by the measures imposed so far,” said Moody’s. “While Qatar’s hydrocarbon exports are not affected at this stage, there have been reports of disruptions to certain non-hydrocarbon exports and a forced shutdown of helium production. “

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Shares of Oracle Corp. were indicated up nearly 1% in premarket trade Wednesday, after the software giant was upgraded at KeyBanc Capital, which cited increasing confidence in the company’s cloud offerings. Analyst Monika Garg raised her rating to overweight, after being at sector weight since October 2015. She kept her stock price target at $61, which implies a 24% gain from Monday’s closing price of $49.36. Garg said there were four main reasons for the upgrade: 1) Oracle’s cloud business could double to a $12 billion business within two years; 2) the conversion of Oracle’s existing customers to the cloud is still in its early stages; 3) the growth of artificial intelligence will help fortify Oracle’s power of incumbency; and 4) margins could start expanding after years of cloud investment. “We have increasing confidence in the multiyear potential within cloud where optimism is warranted, in our view,” Garg wrote in a note to clients. The stock has soared 28% year to date through Monday, while the SPDR Technology Select Sector ETF has climbed 12% and the S&P 500 has gained 8.5%.

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