The first is AstraZeneca (AZN) on rumors of a third Pfizer (PFE) takeover bid. There are new reports that Pfizer will make another offer at about $89 a share which would value AstraZeneca at about $113 billion. Pfizer's second bid of $106 billion for AstraZeneca was rejected last week. Pfizer CEO Ian Read is scheduled to speak next week in front of two British parliamentary committees about the takeover.
McDonald's (MCD) released same-store sales this morning. The company reported global sales grew 1.2% in April, roughly in line with estimates, but it continued to struggle in the U.S. market, where sales were flat. Sales in Asia were stronger, up 2.9% in April.
We're also watching shares of Toyota (TM). The world's number one automaker reported record annual profits for its fiscal year, ending March 31. A weaker yen helped boost sales to 10 million vehicles for the first time, but a $1.2 billion settlement with the Justice Department connected to its massive 2009 recall did put a dent in its net income for the latest quarter. Toyota also said that it expects earnings to slow down as the benefits of a weaker yen begin to taper off.
Staying in the auto space, Ford (F) announced it will buy back $1.8 billion worth of its own stock to help reduce its debt. The automaker had debt of about $16 billion at the end of the first quarter.
Wall Street was not impressed with Tesla (TSLA) even after the electric car maker's earnings and revenue beat estimates. The company said constraints in battery supplies will limit production in the second quarter, and spending related to its growth plans will leave it with a negative cash flow this year. The stock has had an impressive run-up over the past year, but it’s had a rough ride in recent weeks, down more than 20% from an all-time high of $265 in mid-February.
Priceline (PCLN) reported earning this morning that handily beat estimates. The company earned $7.81 a share on analysts' expectations of $6.92 a share. Revenue rose 26% to $1.64 billion on estimates of $1.63 billion. Priceline showed growth in the Asian market, and its acquisition of Kayak.com helped grow its user base.
Despite the better-than-expected results for both Tesla and Priceline, both stocks were lower in early trading as investors focused on disappointing forward guidance from the high-priced momentum names.