It’s a busy day on Wall Street with many big names active in early morning trading. SolarCity and Tesla shares both saw strong reactions after the latter announced a bid for the former, while Winnebago shares were boosted by strong earnings report and The Priceline Group benefited from an upgrade by Barclays. Adobe Systems, McDonald’s and FedEx were also active in early trading.
TSLA and SCTY: Tesla Motors and SolarCity saw nearly equal and opposite reactions in early trading after last night’s announcement that the automaker had bid $2.8 million to acquire the solar panel installer. Tesla CEO Elon Musk is also SolarCity’s chairman and majority shareholder.
WGO: Winnebago shares moved higher after the company announced better-than expected results. The RV manufacturer posted adjusted earnings of 53 cents per share, smashing the consensus by 9 cents. Revenue was also ahead of consensus as the company reported strength in towable products.
PCLN: The Priceline Group shares rose after Barclays analysts upgraded them from Equal Weight to Overweight. The firm said the stock is undervalued because investors are too pessimistic about the company’s potential.
ADBE: Adobe Systems reported better-than-expected adjusted earnings results in its earnings report last night, coming in 3 cents ahead of consensus at 71 cents per share. Revenue was in line with expectations, but guidance for the current quarter was weaker than expected. Some firms downgraded the company, and shares declined on Wednesday morning.
MCD: McDonald’s stock edged lower after Reuters reported that it had received more than six bids for its locations in Hong Kong and China. The fast food chain could see as much as $3 billion from the sales of those stores. Also Nomura analysts downgraded McDonald’s from buy to Neutral on the back of decelerating same-restaurant sales in the U.S.
FDX: FedEx reported better-than expected adjusted earnings of $3.30 per share. Revenue also beat expectations, but the shipping and logistics firm posted a GAAP loss on the back of adjustments for pensions and expenses connected with the TNT acquisition.
FBHS: Fortune Brands Home & Security replaces Cablevision Systems in the S&P 500 after closing bell tomorrow. Altice, a Europe-based company, acquired Cablevision.