Dow Jones Futures: Watch These 5 IPOs; Did You Fall Asleep On Tesla Stock? - Investor's Business Daily

Dow Jones futures edged lower late Monday, along with S&P 500 futures and Nasdaq futures. Tesla (TSLA) touted its self-driving advances Monday but a sinking Tesla stock made the case for putting investing on autopilot. Meanwhile, while Lyft stock has flopped after a much-hyped initial public offering, a number of recent IPO stocks are worth watching. They include tech unicorns Pinterest stock and Zoom stock, but also Tradeweb stock, Jumia stock and PagerDuty stock.

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To be clear, none of these IPOs has even a short IPO base. They should not be bought right now. But these five IPOs have acted well so far. Pinterest (PINS), Zoom Video Communications (ZM), Tradeweb Markets (TW), Jumia Technologies (JMIA) and PagerDuty (PD) are all growing rapidly. Zoom stock and Tradeweb stock are actually profitable.

Lyft stock could also set up eventually. But it's preferable for an IPO base or other consolidation to form after a modest uptrend. Lyft stock has fallen well below its 72 offering price.

Dow Jones Futures Today

Dow Jones futures fell 0.15% vs. fair value. S&P 500 futures sank 0.1%. Nasdaq 100 futures were slightly below fair value. Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.

Current Stock Market Rally

The current stock market rally continued to hover near record highs. The Dow Jones dipped 0.2%, the S&P 500 index rose 0.1% and the Nasdaq composite 0.2%.

Growth stocks tended to outperform. Among the best ETFs, Innovator IBD 50 (FFTY) advanced 0.5% on Monday. The iShares Expanded Tech-Software Sector ETF (IGV) rebounded 1% after losing 1.6% last week. The VanEck Vectors Semiconductor ETF (SMH) did dip 0.1% but after spiking 3.3% last week.

Tesla Autonomy Day

Tesla Autonomy Day was a chance for CEO Elon Musk to tout Tesla autonomous driving features. Musk said a new chip and other hardware are capable of full self-driving, once the software improves. He also said lidar is "lame" even as nearly every other self-driving effort uses the laser-based sensors extensively. Musk also suggested a Tesla robotaxi service could begin next year.

Tesla Autonomy Day event kicked off in late afternoon and continued after the stock market close.

Tesla Stock

Tesla stock fell 3.85% to 262.75 on Monday, with the Autonomy Day event having little impact. Investors may be looking ahead to the Tesla earnings report on Wednesday, with forecasts for a loss.

Tesla stock actually makes the case for putting investing on autopilot.

The relative strength line, which tracks a stock vs. the S&P 500 index, hit a six-month low on a daily chart. But on a weekly chart, the RS line is at its lowest level since late 2016, and almost at a five-year low.

Since a truly impressive rally in 2013, Tesla stock has failed to keep up with the S&P 500 index. At that September 2013 peak, investors would have been better off selling Tesla stock and buying an S&P 500 index mutual fund or ETF.

Of course, an active investor could have found dozens or hundreds of quality stocks over the past several years that outperformed the S&P 500 index for long stretches. But don't invest in speculative stocks if you're going to be asleep at the wheel.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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2019-04-23 00:22:30Z
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Tesla: Elon Musk Borrowing Update - Seeking Alpha

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1. Tesla: Elon Musk Borrowing Update  Seeking Alpha
2. Musk Takes Aim at Panasonic Over Tesla Battery Production  Bloomberg Markets and Finance
3. Tesla Puts Restraining Order on Car-Following 'Short-Seller' Ahead of Autonomy Day  Jalopnik
4. Musk Duels Panasonic in Rare Public Battle With Key Supplier  Bloomberg
5. 10 things Tesla (TSLA) retail investors want to know from Q1 2019 earnings call  Teslarati
6. View full coverage on Google News

https://seekingalpha.com/article/4255727-tesla-elon-musk-borrowing-update

2019-04-22 16:50:00Z
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Beyond Meat looks to raise $183.8 million in its IPO - CNBC

Beyond Meat said Monday that it expects its initial public offering to price between $19 and $21 per share, giving the company a market value as high as $1.21 billion.

According to its latest filing with the Securities and Exchange Commission, the El Segundo, California-based company plans to raise $183.8 million through the IPO. Beyond, which manufactures plant-based meat substitutes, plans to list on the Nasdaq Global Market with the ticker "BYND."

The company, which filed the paperwork for an IPO at the end of March, plans to use the proceeds from going public to invest in current and additional manufacturing facilities, research and development, and sales and marketing. It also plans to use the proceeds for working capital and general corporate purposes.

Burgers with its fake meat can be found at national restaurant chains like Carl's Jr. and T.G.I. Friday's. Consumers can also find Beyond's products at Whole Foods, Kroger and Target. Its high-profile investors include Bill Gates, Leonardo DiCaprio and Tyson Foods.

The company reported revenue of $87.9 million and a net loss of $29.9 million in 2018.

The number of Americans who choose vegan or vegetarian diets has remained stagnant over the last decade, but more are embracing "flexitarian" diets. Nearly 40 percent of Americans are trying to eat more plant-based foods, according to a Nielsen Homescan survey.

Beyond and rivals like Impossible Foods have taken advantage of the increasing public awareness about meat consumption's health and environmental risks. And unlike previous iterations of veggie burgers, the companies have created products that closely mimic the taste and texture of real meat.

Goldman Sachs, J.P. Morgan, Credit Suisse, Merrill Lynch, Pierce, Fenner & Smith, Jefferies and William Blair are underwriting the IPO.

WATCH: Beyond Meat taps investment banks for IPO

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2019-04-22 14:10:02Z
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Stocks fall at the open as the busiest week of earnings season kicks off - CNBC

Stocks traded lower on Monday as Wall Street braced for the busiest week of the earnings season.

The Dow Jones Industrial Average fell 83 points, while declines in the financials and industrials sectors pushed the S&P 500 down by 0.3%. The Nasdaq Composite also slipped 0.3%.

Boeing contributed the most to the Dow's losses, falling 1% after The New York Times reported that workers at the company's 787 jet plant have complained about shoddy production and bad safety practices.

More than 140 S&P 500 companies are scheduled to release their quarterly results this week, including Coca Cola, Procter & Gamble, United Technologies, Verizon, Twitter, Lockheed Martin and eBay. Facebook, Microsoft and Tesla Motors are also set to report later this week.

Halliburton and Kimberly-Clark are among the companies that reported better-than-expected quarterly results on Monday morning. Their shares rose 1.6% and 5.3%, respectively.

So far, the majority of corporate earnings reports have topped expectations. FactSet data shows 76.5% of the S&P 500 companies that have posted earnings have surpassed analyst estimates. Analysts came into the season with low expectations for the season, forecasting a 4.2% drop in profits.

"Considering the bar has been set very low for first-quarter profits, the likelihood is that any surprises could be on the upside," said Bruce Bittles, chief investment strategist at Baird, in a note. "Historically, stocks have done best when earnings gains have been modest as opposed to when earnings growth has been strong."

The broader market also fell after the South China Morning Post reported China's policy-making committee will pursue structural changes to its economy, rather than add stimulus. Chinese stocks closed sharply lower overnight, with the Shanghai Composite losing 1.7% while the Shenzhen A Shares index declined 1.5%.

Wall Street also focused on the oil market as U.S. crude rose 2.2% after the Trump administration said it will not allow the purchase of Iranian oil by some countries. The move could take about 1 million barrels per day out of the oil market. Energy shares rose along with oil prices. The Energy Select Sector SPDR Fund (XLE) traded 1% higher, led by Marathon Oil and Apache.

On the data front, existing home sales for March are expected at 10 a.m. ET.

—CNBC's Holly Ellyatt contributed to this report.

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2019-04-22 13:39:19Z
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Here's everything that has gone wrong for Kraft Heinz in the last year - CNBC

The departure of Kraft Heinz CEO Bernardo Hees follows a string of headaches for the consumer packaged foods company over the last year.

Shares of Kraft Heinz rose 2% in premarket trading Monday following the announcement that former Anheuser-Busch InBev executive Miguel Patricio would replace Hees as CEO.

The iconic food company's stock, which has a market value of about $40.2 billion, has fallen more than 43% in the last year as it struggles to keep up with changing consumer tastes and stiff competition from new brands. Sales have grown stagnant, and its cost-cutting has recently fallen short, especially as commodity costs grow steeper.

In February, the company revealed that it had received a subpoena from the Securities and Exchange Commission back in October related to its accounting policies and internal controls. It further disappointed investors with the news that it slashed its dividend by 36% and took a $15.4 billion write-down on Kraft and Oscar Mayer, two of its biggest brands. It also announced revenue and earnings that fell well short of Wall Street's estimates.

Four days after the batch of bad news, Warren Buffett told CNBC that Berkshire Hathaway overpaid for Kraft. Back in 2015, the billionaire CEO teamed up with Brazilian private equity firm 3G Capital to finance the merger between Kraft and Heinz. Berkshire and 3G are two of the company's biggest shareholders.

Months earlier, in August, 3G trimmed its stake in the company by 7%, bringing its total ownership to about 22%. 3G founder Jorge Lemann said at the time that the company's business model of buying up strong consumer brands is facing new difficulties from upstart young brands.

As a result of its troubles, Kraft Heinz has been weighing a number of divestitures, including its Maxwell House coffee business and Breakstone's sour cream and cottage cheese brand. Last November, the Capri Sun owner sold its Canadian dairy business and Indian beverage business for $1.23 billion, with the proceeds going toward paying down its debt.

After signalling that another acquisition could be on its way in early 2018, the company passed on the opportunity to bid on Pinnacle Foods, which was instead snapped up by Conagra Brands. And amid speculation that Kraft Heinz could buy Campbell Soup, Hees told analysts that the company doesn't want any long-term regrets when it comes to mergers and acquisitions.

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2019-04-22 13:00:59Z
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Ghosn lawyer requests bail after ex-Nissan chair indicted for 4th time - Fox Business

TOKYO, April 22 (Reuters) - Japanese prosecutors indicted Carlos Ghosn on Monday on another charge of aggravated breach of trust, a Tokyo court said, the fourth charge against the former Nissan Motor Co Ltd chairman, which his lawyers met immediately with a bail request.

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The charge came on the day Ghosn's latest detention period was set to expire. Ghosn had been out on bail when authorities arrested him for a fourth time on April 4 on suspicion he enriched himself at a cost of $5 million to the automaker.

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"We are confident that we have the evidence to successfully prosecute all four cases," an official from the prosecutor's office said at a briefing after the indictment was announced.

Ghosn has denied all four of the charges, which include understating his income, and said he is the victim of a boardroom coup. He has accused former colleagues of "backstabbing," describing them as selfish rivals bent on derailing a closer alliance between Nissan and its top shareholder, France's Renault SA.

"Carlos Ghosn is innocent of the latest charges brought against him by the Tokyo prosecutors, aided and abetted by certain Nissan conspirators," a Ghosn representative said in a statement.

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The case has exposed tensions in the Nissan-Renault alliance forged by Ghosn some two decades ago when the French automaker invested in Nissan, then on the brink of bankruptcy - a deal that gave Renault control over its larger partner.

Nissan is due to reject a management integration proposal from Renault and will instead call for an equal capital relationship, the Nikkei newspaper said on Monday, citing sources.

Ghosn's arrest has also focused a harsh light on Japan's judicial system, which critics refer to as "hostage justice" as defendants who deny their charges are often not granted bail.

Under Japanese law, prosecutors are able to hold suspects for up to 22 days without charge and interrogate them without their lawyers present. In accordance with these terms, prosecutors had to indict or release Ghosn by Monday.

CRIMINAL COMPLAINT

According to the latest indictment, Ghosn caused a total of $5 million in losses to Nissan from July 2017 through July 2018.

During that period, prosecutors allege two separate payments of $5 million were made from the account of a Nissan subsidiary into the account of an overseas dealership. A total of $5 million was subsequently transferred from the dealership's account to another account in which Ghosn had an interest.

Nissan said it had filed a criminal complaint against the former chairman in relation to the matter, saying it had determined that some of its overseas payments had been ordered by Ghosn for his personal enrichment.

The payments were "not necessary from a business standpoint," Nissan said in a statement. "Such misconduct is completely unacceptable, and Nissan is requesting appropriately strict penalties."

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A court would likely rule on the bail request on Tuesday, Ghosn's lead lawyer, Junichiro Hironaka, told reporters.

Before Ghosn's latest arrest, he had been out on $9 million bail for 30 days. He is now being held in the same Tokyo detention center where he was detained for 108 days following his initial arrest on the tarmac at a Tokyo airport in November.

Kyodo news agency previously reported, without citing sources, that Nissan funds had been shifted through a car dealer in Oman to the account of a company Ghosn effectively owned.

Sources have previously told Reuters that Renault had alerted French prosecutors after uncovering payments it deemed suspect to a partner in Oman.

Evidence sent to French prosecutors showed much of the cash was channeled to a Lebanese company controlled by associates of Ghosn, who holds Lebanese citizenship, the sources told Reuters.

Ghosn's French lawyer denied the allegations.

(Reporting by Chris Gallagher, Naomi Tajitsu and Tim Kelly; Writing by David Dolan and Naomi Tajitsu; Editing by Muralikumar Anantharaman, Christopher Cushing and Kirsten Donovan)

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2019-04-22 12:42:32Z
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Oil Prices, Tesla, Boeing, Whirlpool and 420 - 5 Things You Must Know - TheStreet

Here are five things you must know for Monday, April 22:

1. -- Stock Futures Slide as Oil Prices Spike

U.S. stock futures pointed lower Monday as investors came off the three-day Easter break confronted with a sharp spike in oil prices on reports the State Department was preparing to announce that the U.S. will impose sanctions on any countries that refuse to stop importing Iranian oil.

Contracts tied to the Dow Jones Industrial Average fell 81 points, futures for the S&P 500 declined 9.15 points, and Nasdaq futures tumbled 33.25 points.

West Texas intermediate crude oil, the U.S. benchmark, was rising 2.3% to $65.55 a barrel after the Washington Post reported that Secretary of State Mike Pompeo will announce Monday that as of May 2, the State Department will no longer grant sanctions waivers to any country "that is currently importing Iranian crude or condensate." Futures for Brent crude, the European benchmark, rose 2.5% to $73.74 a barrel.

Iran is one of the world's largest global producers of oil, pumping out about 4.5 million barrels a day in 2018, according to the U.S. Energy Information Administration. But its output is far lower than that of the U.S., Saudi Arabia and Russia. The U.S., for example, produced nearly 11 million b/d during the same year, followed closely by Russia and Saudi Arabia.

2. -- Whirlpool and Halliburton Report Earnings Monday

Halliburton ( HAL - Get Report)  posted stronger-than-expected first-quarter revenue as a surge in global oil prices helped boost international drilling activity and offset rising costs in North America.

 

 

Kimberly-Clark's  ( KMB - Get Report)  first-quarter earnings topped estimates and the company confirmed its full-year outlook as sales from its personal care division, which includes Huggies diapers, offset weaker revenue from its tissue segment.

 

 

 

The economic calendar in the U.S. Monday includes Existing Home Sales for March at 10 a.m. ET.

3. -- Tesla to Discuss Its Autonomous Future

Tesla (TSLA - Get Report) will show off its autonomous driving capabilities at an event on Monday.

The electric vehicle maker and its CEO, Elon Musk, are expected to talk about the future of the company's autonomous driving system, highlighting its capabilities, laying out an aggressive rollout timeline and talking up the potential for autonomous ride-hailing and ride-sharing.

While autonomous driving has improved rapidly, fully autonomous level 5 capabilities across the entire country won't be seen anytime soon, according to TheStreet's Bret Kenwell. That doesn't mean some of the features and capabilities Tesla talks about on Monday won't come to fruition, but at the very least it may not be in the timeframe some investors are thinking. Musk already has talked about the price of Tesla's autonomous driving features increasing substantially in the future and said he believes buying a Tesla will result in an appreciating asset, rather than a depreciating asset.

The event, from Tesla's headquarters in Palo Alto, Calif., will begin at 2 p.m. ET, and comes two days before the company issues quarterly earnings.

Meanwhile, Tesla disclosed Friday it plans to cut its board to seven from 11 in a move the company said would allow the board to act more quickly and efficiently.

The four departing directors aren't leaving because of any disagreement with the company.

The board has come under closer scrutiny since August, when Musk tweeted that he had lined up funding and was considering taking Tesla private at $420 per share. That didn't happen, and regulators accused Musk of securities fraud.

4. -- Boeing Plant in South Carolina Plagued by 'Shoddy Production' - Report

A Boeing (BA - Get Report) plant in South Carolina that makes the 787 Dreamliner has been plagued by shoddy production and weak oversight that have threatened to compromise safety, said a report over the weekend in The New York Times.

A Times review of hundreds of pages of internal emails, corporate documents and federal records, as well as interviews with more than a dozen current and former employees, "reveals a culture that often valued production speed over quality. Facing long manufacturing delays, Boeing pushed its work force to quickly turn out Dreamliners, at times ignoring issues raised by employees," the report said.

Qatar Airways stopped accepting planes from the factory after manufacturing mishaps damaged jets and delayed deliveries, the Times reported, while workers have filed nearly a dozen whistle-blower claims and safety complaints with federal regulators, describing issues like "defective manufacturing, debris left on planes and pressure to not report violations," the Times reported. Others have sued Boeing, saying they were retaliated against for flagging manufacturing mistakes, according to the newspaper.

The Times report comes as Boeing deals with the grounding of its workhorse 737 MAX following two deadly crashes.

A team of international experts will meet next week for a review of the Boeing (BA - Get Report) 737 MAX to check fixes to the aircraft's automated flight system.

Civil aviation authorities from nine nations and international bodies - including Australia, China, Japan and the European Union - have confirmed they will join in the so-called Boeing 737 MAX Joint Authorities Technical Review, according to the Federal Aviation Administration. Earlier in April, the FAA created the review team, which has participants from NASA, the FAA, and other authorities. It's chaired by Chris Hart, a former head of the National Transportation Safety Board.

The Boeing 737 MAX was the aircraft involved in the two fatal crashes in October and March over Indonesia and Ethiopia. Hundreds of passengers and crew were killed in the accidents. Since the accidents, authorities around the globe ordered the aircraft grounded, and airlines, such as American Airlines ( AAL - Get Report) , have canceled flights with the jets through summer.

5. -- CBD Burgers Are a Hit at Carl's Jr. in Denver

CBD burgers from Carl's Jr. were a smoking success on Saturday, April 20 (or 420 - the international stoner holiday).

According to Alex McConnell, the Carl's Jr. district manager, the restaurant in Denver hosting the promotion "had a full parking lot (and) people waiting in the drive-thru" just before its 6 a.m. opening, said a report from Leafly.

"As soon as we opened the doors we had about 30 people in line and about 10 cars deep (in the drive-thru) so we hit the ground running, that's for sure," he told Leafly.

The store reportedly sold 102 burgers in the first hour of the promotion, and around 274 by 9 a.m.

The Rocky Mountain High: CheeseBurger Delight sold for $4.20 each, with a two per customer limit. 

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2019-04-22 12:23:00Z
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