General Motors: No More Major Safety Concerns, Dismissals to Come
General Motors: No More Major Safety Concerns, Dismissals to Come
Shake Shack Shares Slip on Morgan Stanley Downgrade; Stocks Fall on Greece
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As its internal probe nears completion, General Motors has assured that there are no more major safety concerns following an investigation that has unearthed a total 15.8 million model recalls for the automaker. The internal review uncovered at least 13 deaths associated with a faulty ignition switch causing vehicles to stall when in use, fail to deploy airbags in the event of a crash and limit driver control of braking and steering. CEO Mary Barra also told reporters before the company’s annual shareholder meeting that no further dismissals were likely after 15 employees were fired last week and a further 5 disciplined as a result of the recall scandal.
U.S. stocks extended losses in midday trading after European leaders failed to reach a debt agreement with Greece at Tuesday's Eurogroup meeting in Brussels. Greece Prime Minister Alexis Tsipras, armed with his ‘no’ vote victory in Sunday's referendum, met with European leaders in Brussels but didn't submit a new proposal, according to reports. Eurogroup President Jeroen Dijsselbloem told reporters in Brussels there is ‘a great sense of urgency’ to come to a resolution and he is waiting to hear new proposals from Greek officials. Greek banks have days of liquidity left. Providing solvency to Greece's system is top of mind during Tuesday's discussions. Crude prices fell 3.1 percent to $50.89 a barrel, after falling 7.7 percent on Monday. Shake Shack (SHAK) was downgraded by Morgan Stanley to UNDERWEIGHT from EQUAL WEIGHT. The analysts said the stock was overvalued. Shares fell 10 percent.
U.S. stocks opened steady Tuesday, as European leaders gather in Brussels to discuss the next steps after Greek residents voted down the terms of the bailout officer in a referendum Sunday. Fitbit (FIT), is benefitting after RW Baird issued an upbeat research note on the maker of fitness activity trackers. Analyst William Power initiated coverage of Fitbit with an OUTPERFORM rating and stock price target of $52, which is 29% above Monday's closing price. People between the ages of 35 and 48, commonly known as Generation X, are not only getting deeper in debt than the baby-boom generation that came before them, they’re getting used to the burden, a new study shows, and experts say that that’s bad news for their long-term finances. Google’s (GOOG) refusal to implement the EU’s controversial right to be forgotten rules in the U.S. amounts to an unfair and deceptive business practice, a frequent critic of the search engine giant said. Consumer Watchdog will file a complaint against Google with the U.S. Federal Trade Commission today.
In Tuesday's Analysts' Actions, TheStreet highlights a positive note on Salesforce (CRM) as well as a couple of downgrades on Shake Shack (SHAK) and Tesla Motors (TSLA) by Wall Street firms. Analysts at Deutsche Bank lowered their rating on the electric car maker to HOLD from BUY, but still liked its battery systems technology. The firm increased its price target on shares of Tesla to $280 from $245. Analysts at Morgan downgraded burger joint Shake Shack to UNDERWEIGHT from EQUAL WEIGHT, while maintaining its $38 price target. Analysts believe the stock is 'expensive.’ And, Brean Capital analysts upgraded Salesforce to BUY from HOLD with an $85 price target. The firm sees the company’s growing opportunity to upsell customers on its cloud-based services. TheStreet's Kurumi Fukushima reports in New York.
For Tuesday, July 7 TheStreet highlights one company scheduled to report its latest quarterly financial results as well as the key economic data to watch on Wall Street as traders get back into the swing of things after the long holiday weekend. The new earnings season starts off with financial results from the Container Store Group Inc (TCS) after the market close closes. On the economic calendar, we point out key data including international trade, the Redbook, the JOLTS report, and consumer credit for the month of May. International trade is composed of merchandise, or tangible goods, and services. It is available nationally by export, import and trade balance. The Redbook is a weekly indicator of consumer spending. It measures comparable store sales at chain stores, discounters, and department stores. The Labor Department's JOLTS, or Job Openings and Labor Turnover Survey, defines job openings as all positions that are open on the last business day of the month. TheStreet's Kurumi Fukushima reports in New York.
U.S. stocks survived Greece's 'no' vote with only minor losses Monday, but oil prices weren't so lucky. All three major stock indexes closed lower, but the real turmoil was found in the commodities market. The drama in Greece fanned fears of lower global economic growth, which sent oil prices sharply lower by 7.4 percent to $52.74 a barrel. The looming Tuesday deadline for nuclear negotiations with Iran also put downward pressure on prices. This sent shares of energy stocks lower. Transocean (RIG) fell 4.2 percent. About 61 percent of voters in Greece rejected a bailout package demanded by Greece's European creditors and the International Monetary Fund. The 'no' vote on Sunday leaves the possibility of a 'Grexit' wide open, as experts said Greek banks have just days of liquidity remaining. A 'Grexit' would mean a return to the drachma for Greece or the creation of an alternative currency. Meanwhile, health insurance giant Aetna (AET) agreed to purchase Humana (HUM) in a deal announced Friday for roughly $230 a share, or $27 billion. Aetna was the worst performing stock in the S&P 500. Shares dipped almost 7 percent.
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