Top 10 News for 8/1 - 8/5: Nonfarm Payrolls Outpace in July; Uber and Didi Partner-up; Nike Says 'Adios' to Golf Equipment
- Donald Trump Sworn in as 45th U.S. President
- Wall Street ends higher as Trump becomes president
- Walgreens Boots Alliance (WBA) Said to Face Antitrust Concern for Rite Aid (RAD) Fix - Bloomberg
- Bristol-Myers Squibb (BMY) Says It Won't Pursue Accelerated U.S. Regulatory Pathway for Opdivo Plus Yervoy in Lung Cancer
- Apple (AAPL) Sues Qualcomm (QCOM) Over Patent Royalties in Antitrust Case - Bloomberg
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2. Tesla (Nasdaq: TSLA) and SolarCity (Nasdaq: SCTY) entered a $2.6 billion merger agreement early this week. Terms of the merger: it is an all-stock transaction with an equity value of $2.6 billion based on the 5-day volume-weighted average price of Tesla shares as of July 29, 2016. Under the agreement, SolarCity stockholders will receive 0.110 Tesla common shares per SolarCity share, valuing SolarCity common stock at $25.37 per share based on the 5-day volume weighted average price of Tesla shares as of July 29, 2016.
On Wednesday, Tesla reported Q2 EPS of ($1.06), versus the analyst estimate of ($0.56). Revenue was $1.3 billion, versus the consensus of $1.62 billion. The company also delivered 14,402 new vehicles consisting of 9,764 Model S and 4,638 Model X, with the number being better than results released in July.
3. Bristol-Myers Squibb Company (NYSE: BMY) shares were hit on Friday after the company announced that CheckMate -026, a trial investigating the use of Opdivo (nivolumab) as monotherapy, did not meet its primary endpoint of progression-free survival in patients with previously untreated advanced non-small cell lung cancer (NSCLC) whose tumors expressed PD-L1 at = 5%. The company will complete a full evaluation of the CheckMate -026 data and work with investigators on the future presentation of the results.
4. July was a tough month for U.S. auto manufacturers:
- Ford Motor (NYSE: F) total truck sales, including pickups and vans, grew 5 percent in July versus a year ago with 87,104 sold. Overall company U.S. sales were down 3 percent, with 216,479 total vehicles sold. (The Street was looking for a drop of 0.5 percent.)
- General Motors (NYSE: GM) sold 236,235 vehicles to individual or “retail” customers in July, up 5 percent year-over-year. GM’s total sales in July were down less than 2 percent to 267,258 vehicles. (The Street was looking for a drop of 1 percent.)
- FCA US LLC (NYSE: FCAU) reported U.S. sales of 180,727 units, up 0.3 percent compared with sales in July 2015 (180,124 units). (The Street was looking for an increase of 1.9 percent.)
5. Emerson (NYSE: EMR) announced an agreement to sell Network Power to Platinum Equity and a group of co-investors. The transaction is valued at $4 billion and Emerson will retain a subordinated interest in Network Power. The sale of Network Power is expected to close by December 31, 2016, subject to customary regulatory approvals.
6. Time Warner (NYSE: TWX) reported Q2 EPS of $1.29, which was $0.13 better than the analyst estimate of $1.16. Revenue for the quarter came in at $7 billion versus the consensus estimate of $7.05 billion. Time Warner Inc. and Hulu LLC also announced that Time Warner will become a 10% owner of Hulu, the premium streaming TV service that offers the best of current season programming, premium original content, films and full seasons of hit series. Time Warner joins The Walt Disney Company, 21st Century Fox, and Comcast in the joint venture. The stake was said to be valued at around $583 million.
7. Uber China and Didi Chuxing entered a merger agreement this week. Didi had been Uber's fierce rival in China and Didi is also said to be investing around $1 billion in Uber's global company. Uber has stated that it lost $2 billion over two years operating in China, but is profitable in the U.S. and Canada.
8. NIKE, Inc. (NYSE: NKE) announced that it will accelerate innovation in its Golf footwear and apparel business and will partner with more of the world’s best golfers. With this new focus, Nike Golf will transition out of equipment - including clubs, balls and bags. Callaway Golf Co. (NYSE: ELY) shares ripped higher on the news.
9. Trina Solar Limited (NYSE: TSL) announced that it has entered into a definitive agreement and plan of merger with Fortune Solar Holdings Limited and Red Viburnum Company Limited, a wholly owned subsidiary of Parent, pursuant to which the Company will be acquired by an investor consortium in an all-cash transaction implying an equity value of the Company of approximately $1.1 billion.
10. salesforce.com (NYSE: CRM) agreed to acquire word processing app Quip in a deal valued around $582 million. Quip's word-processing platform is designed to be used by teams to edit documents or spreadsheets on mobile devices, wearables and desktops. salesforce had a prior investment in the company.
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