Wall Street firms that are expected to generate some excitement on Monday’s trading session include Tesla Motors Inc (NASDAQ:TSLA), Outerwall Inc (NASDAQ:OUTR) and Alcoa Inc (NYSE:AA).
Tesla fire incident to have short term impact
Investors will most probably keep an eye on Tesla Motors Inc (NASDAQ:TSLA) after the EV manufacturer shed 5 percent in value after a fire incident in a Model S in Washington State. CEO Elon Musk supported the safety features and design of the vehicle, which helped the stock regain 4.4 percent in after-hours trading.
In a statement, Musk said that a Model S struck a semi-trailer part that pierced the underside of the Model S with extreme force of 25 tons.
“Only a force of this magnitude would be strong enough to punch a 3-inch-diameter hole through the quarter-inch armor plate protecting the base of the vehicle,” he said. After hitting the semi-trailer, fire broke out in the car’s front battery module, but it was contained and did not spread into the compartment, Musk said.
Analysts believe that this accident will cause some harm to Tesla Motors Inc (NASDAQ:TSLA), near term stock value. In the long term, this incident is not going to impact Model S orders and delivery growth rate, according to Craig Irwin from Wedbush.
Jana Partners fuel Outerwall surge
Shares of Outerwall Inc (NASDAQ:OUTR) surged around 8 percent in after-hours trading, influenced by revelation of the stake owned by Jana Partners LLC. The activist investment fund now holds a 13.5 percent stake in Outerwall and will consider strategic alternatives including sales, according to the Wall Street Journal. Outerwall provides DVD rental kiosks to malls and grocery stores.
Alcoa estimates lowered
Alcoa Inc (NYSE:AA) witnessed declining estimates over its third quarter outlook by J.P. Morgan from 12 cents to 5 cents, impacted by sluggish aluminum prices. Alcoa, which once had the stature of a stock whose quarterly earnings reports were the signal of the start of earnings season, has now been dethroned on the Dow Jones Industrial average by Nike Inc. Alcoa Inc (NYSE:AA) will announce its third quarter results on Tuesday.
On average, analysts are estimating earnings to be $0.06 per share and revenue of $5.72 billion for the third quarter.