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Dell Stock Slide Offers Opportunities; Trump and Musk hold talks on X; GM Restructures China Operations, and More

Fernanda T
Latest News
August 13 2024 5:43AM

Dell Technologies (NYSE:DELL) – Dell Technologies’ shares have plummeted nearly 50% since May, driven by concerns over profit margins and Intel’s struggles. Melius Research analyst Ben Reitzes believes that despite the decline, Dell’s stock could present a buying opportunity, particularly if the company shows improvements in margins and profitability. Shares rose 3.3% in pre-market trading.

Tesla (NASDAQ:TSLA) – Donald Trump and Elon Musk had a delayed conversation on X due to technical issues, where Musk suggested a government role if Trump wins. The event, drawing 1.3 million listeners, turned into a Trump rally with Musk as the moderator. They criticized illegal immigration and discussed policies on electric vehicles and presidential campaigns. Trump urged Tesla supporters to vote for him, while Musk cautioned against demonizing electric vehicles. Musk advocated for sustainability without sacrifices, praised Tesla, and stated the economy still needs fossil fuels. Shares rose 0.4% in pre-market trading.

Electric and hybrid vehicles – According to EPFR Global data, investors are pulling money out of electric vehicle (EV) funds due to weaker growth forecasts and concerns about Donald Trump’s re-election, which could reduce incentives and increase tariffs on EVs. As of July 31, net outflows from these funds totaled $1.6 billion, surpassing 2023. In July, global sales of electric and plug-in hybrid vehicles increased by 21%, totaling 1.35 million units. China sold 880,000 vehicles, with a 31% growth year-over-year. BYD reported global sales increases of 13% and 44% for BEVs and PHEVs. In Europe, sales dropped 7.8% for the month, with a 12% decline in Germany through July. In the U.S. and Canada, sales grew by 7.1% in July. The EU imposed provisional tariffs on Chinese electric vehicles, primarily affecting MG Motor. Tesla and BYD are expected to face less impact due to local production and lower presence in Europe.

General Motors (NYSE:GM) – General Motors is laying off employees in China and planning a restructuring with SAIC. GM, which has seen significant sales declines since 2017, will focus on electric and premium vehicles. GM will reduce factory capacity and may implement further job cuts, aiming to improve profitability in the Chinese market.

Ford Motor (NYSE:F) – Ford and TXU Energy have announced a plan to offer free off-peak electric vehicle charging in Texas. Owners can charge at no cost from 7 p.m. to 1 p.m. the next day. This initiative aims to reduce costs and support a more efficient power grid. Shares rose 0.1% in pre-market trading.

Goodyear Tire & Rubber (NASDAQ:GT) – Goodyear will invest $418.4 million (C$575 million) to modernize its factory in Napanee, Ontario, creating 200 jobs by 2027 and securing 1,000 positions. The Canadian government will contribute C$64.3 million. The project aims to increase production, including tires for electric vehicles, and achieve zero emissions at the factory by 2040.

Alphabet (NASDAQ:GOOGL) – Investors in Alphabet are anticipating that Google’s hardware event will unveil AI innovations to reverse the recent market value loss of over $360 billion. The event will feature a major redesign of Pixel phones and new AI functionalities, potentially boosting the stock’s valuation. Google is advancing its hardware launch to compete with Apple’s iPhone, with Rick Osterloh, who now leads hardware and Android development, playing a key role. Osterloh joined Google in 2016 after leading Motorola. Additionally, in Russia, Google will disable AdSense accounts starting in August 2024, halting payments to Russian users of the service. This decision, affecting sites and content like YouTube videos, is due to developments in Russia and the region’s regulatory landscape. Shares rose 0.7% in pre-market trading.

Ansys (NASDAQ:ANSS), Synopsys (NASDAQ:SNPS) – The UK’s competition regulator is reviewing whether Ansys’ $35 billion acquisition by Synopsys would impact competition in the country. The Competition and Markets Authority has not yet launched a formal investigation. The merger could face regulatory challenges due to consolidation in the enterprise software sector.

JetBlue Airways (NASDAQ:JBLU) – JetBlue Airways shares dropped more than 20% on Monday after being downgraded by S&P and Moody’s following the company’s announcement to raise $3 billion in debt, largely secured by its TrueBlue loyalty program. S&P cited concerns over financial leverage and negative cash flow. Shares fell 1% in pre-market trading.

Spirit AeroSystems (NYSE:SPR) – Patrick Shanahan, CEO of Spirit AeroSystems, will receive a $28.5 million package following the company’s merger with Boeing. This sum includes $2.3 million in cash, $26.1 million in stock, and $45,000 in benefits. These payments incentivize the sale of companies, even if it results in the executive’s departure.

Embraer (NYSE:ERJ) – Embraer is nearing a deal to supply eight E190-E2 jets to Virgin Australia, edging out Airbus’s A220 in the competition. The order is valued at around $300 million, considering industry discounts.

Boeing (NYSE:BA) – Boeing is confident in the ability of its Starliner capsule to return NASA astronauts Butch Wilmore and Suni Williams to Earth, despite uncertainties. Former Space Shuttle commander Eileen Collins emphasized that this confidence is crucial for Boeing’s credibility. Recently, NASA considered using a SpaceX vehicle as an alternative. Shares rose 0.1% in pre-market trading.

Scotiabank (NYSE:BNS), KeyCorp (NYSE:KEY) – Scotiabank is acquiring 14.9% of KeyCorp for $2.8 billion, paying a 17.5% premium over the stock’s closing price last Friday. This investment aims to expand the Canadian bank’s presence in the U.S. market, where regional lenders are struggling. KeyCorp will allow Scotiabank to appoint two directors and will become the institution’s largest investor. Scotiabank shares fell 3.4% in pre-market trading, while KeyCorp shares dropped 0.1%.

Bank of America (NYSE:BAC)- Last week, BofA Securities clients purchased nearly $6 billion worth of U.S. stocks, the largest inflow since 2008 and the first in five weeks. Despite heavy selling this month due to recession fears, the S&P 500 fell 4% but has recently rebounded. While institutional clients bought, hedge funds and private investors sold. The largest inflows were into technology and communication services stocks.

Citigroup (NYSE:C) – Shobhit Maini, global head of digital assets at Citigroup, is leaving after more than 14 years at the bank to explore new opportunities in the digital assets sector. He will be succeeded by Deepak Mehra, who now leads the digital assets division. Shares rose 0.7% in pre-market trading.

Goldman Sachs (NYSE:GS) – Scott Rubner of Goldman Sachs sees a brief buying opportunity for U.S. stocks later this month. With reduced selling pressure and increased corporate buybacks, he expects a tactical improvement starting August 30. However, any potential rebound may be limited until the fourth quarter.

B. Riley Financial (NASDAQ:RILY) – B. Riley Financial shares plummeted 52% on Monday after the company announced the suspension of dividends due to losses related to a loan to the former CEO of Franchise Group. The company will face a loss of $435 million to $475 million in the second quarter and is delaying its financial filings. The SEC is also investigating the former CEO. Shares fell 0.1% in pre-market trading.

Blackstone (NYSE:BX) – Blackstone has sold 3,000 homes to the USS pension fund for $518 million (£405 million), one of the largest real estate deals of the year. The transaction involves shared ownership units from Sage Homes and is the second largest in the UK in 2024. Blackstone continues to invest heavily in residential real estate.

BlackRock (NYSE:BLK) – The activist fund of Boaz Weinstein of Saba Capital, which invests in BlackRock’s closed-end funds, is up 22% through July. Weinstein has pressured BlackRock to reduce discounts in its funds and improve returns, arguing that allowing exits at net asset value would benefit investors by $1.4 billion.

Jefferies Financial Group (NYSE:JEF), Sumitomo Mitsui Banking Corp (NYSE:SMFG) – Sumitomo Mitsui of Japan has increased its stake in Jefferies Financial Group to 10.9% and plans to reach 15%. The alliance, initiated in 2021, strengthens collaboration in mergers and acquisitions, capital markets, and corporate lending. SMBC CEO Toru Nakashima now joins Jefferies’ board.

Royal Bank of Canada (NYSE:RY) – Nadine Ahn, former CFO of Royal Bank of Canada (RBC), is suing the bank for wrongful termination, claiming gender stereotypes influenced her dismissal. Ahn alleges that RBC made false accusations about an undisclosed personal relationship with another executive, leading to her preferential treatment. She seeks approximately $36.38 million in damages.

Robinhood Markets (NASDAQ:HOOD) – Analyst Patrick Moley of Piper Sandler sees potential upside in Robinhood shares after they fell 25% from their July peak. He believes Robinhood can capitalize on the wealth transfer to younger generations and expand its operations with a new web platform and futures trading. Moley raised his price target from $20 to $23. Shares rose 0.3% in pre-market trading.

Crown Rock Holdings (NYSE:CCK), Occidental Petroleum (NYSE:OXY) – Crown Rock Holdings is selling 29.6 million shares of Occidental Petroleum in an offering coordinated by JP Morgan, Morgan Stanley, and RBC Capital Markets. Crown Rock received these shares as part of a $12 billion transaction with Occidental. Berkshire Hathaway, Occidental’s largest shareholder, has not yet expressed interest in the offering. Occidental Petroleum shares fell 0.4% in pre-market trading.

Berkshire Hathaway (NYSE:BRK.B) – Berkshire Hathaway will face a significant tax bill due to the sale of Apple shares, which yielded $59.6 billion in taxable gains in the second quarter. The company, led by Warren Buffett, may pay around $15 billion in taxes, significantly impacting its cash flow.

Exxon Mobil (NYSE:XOM) – Exxon Mobil is laying off 59 employees, including 10 in the Permian Basin and 39 in Dallas, following its $60 billion acquisition of Pioneer Natural Resources. The layoffs affect Pioneer’s former headquarters. Exxon has yet to explain the reasons for the staff cuts. Shares fell 0.1% in pre-market trading.

Chevron (NYSE:CVX) – Chevron has begun oil production in a Gulf of Mexico field, facing extreme subsea pressures of up to 20,000 psi. With a $5.7 billion investment, the Anchor project promises to operate for 30 years, producing up to 75,000 barrels daily. The innovative technology enables new deepwater developments.

Starbucks (NASDAQ:SBUX) – Activist investor Elliott Management wants Jesse Cohn to join Starbucks’ board. While discussions about the proposal have occurred, no agreement has been reached. Elliott, which holds a significant stake in Starbucks, has proposed expanding the board and improving governance, but Starbucks has not yet confirmed the change.

Johnson & Johnson (NYSE:JNJ) – J&J has received support for its $6.5 billion settlement in baby powder litigation, with over 75% of claimants in favor. The company faces about 61,000 lawsuits alleging that talc caused cancer. J&J seeks to use a “two-step” bankruptcy to resolve the litigation.

Pfizer (NYSE:PFE) – Pfizer announced on Monday that its Abrysvo vaccine for respiratory syncytial virus (RSV) generated a strong immune response in immunocompromised adults in an advanced study. A 120-microgram dose produced effective antibodies against RSV-A and RSV-B subtypes. The vaccine was well tolerated, with safety consistent with other studies. Shares rose 0.2% in pre-market trading.

Ascendis Pharma A/S (NASDAQ:ASND) – The Food and Drug Administration (FDA) has approved Ascendis Pharma’s Yorvipath as the only treatment for hypoparathyroidism, a rare endocrine disorder. Yorvipath, which continuously releases parathyroid hormone, will be commercially available in the first quarter of 2025. Analysts expect strong sales in 2025, despite the delayed launch.