So much for three being a charm. The third day of the government shutdown sent the major averages down by roughly 1%. The slide came amid an apparent lack of progress in negotiations. In fact, Democrats and Republicans seem to agree on only one thing: they made no substantive progress during a meeting with President Obama yesterday. Meanwhile, today came official word that the shutdown means no September jobs report as was originally planned for tomorrow. The Labor Department did release weekly jobless claims this morning. The report showed there were 308,000 new claims, below estimates of about 315,000. This week's furloughs mean there will be more claims next week.
Tesla (TSLA) is tanking on a YouTube video that shows one of its Model S sedans on fire. The stock fell 4% today, adding to a 6% loss during yesterday's session. Nevertheless, the stock remains up more than 400% so far this year, giving the company a market cap of $22 billion. A Tesla rep says the fire was caused when metal debris directly hit one of 16 modules within the car's battery pack. The company also says the flames were isolated by fire barriers within the car and were therefore contained to a small section in the front of the vehicle. The video, however, shows a fireball.
Beverage company Constellation Brands (STZ) rose more than 3% after serving up earnings ahead of the opening bell. The company posted adjusted profits of 96-cents a share, beating estimates which were for 88-cents. Revenues missed just slightly at $1.52 billion versus expectations for $1.53 billion. The company says it was helped by the acquisition of Grupo Modelo's U.S. beer business from Anheuser-Busch. There's lots for Constellation shareholders to toast. The stock was up 55% year-to-date even ahead of today's gains.
Online referral service Angie's List (ANGI) fell 17% on a report in the The Wall Street Journal. It said the online referral service has cut its subscription price to $10 in a number of key cities like New York, Chicago, and San Francisco. That's a 75% discount on the regular price of $40. It has been a wild week so far for the stock. It dropped 10% on Tuesday after the announcement that the company's Chief Technology Officer was out the door. There was a however, a bounce back of 3.5% yesterday. Before today's losses, the stock had more than doubled over the past year.
Herbalife (HLF) fell more than 6% today despite an endorsement of sorts from Bill Ackman. The activist investor who labeled the company a pyramid scheme last year is now changing the amount of his short position. In a letter to investors of his Pershing Square hedge fund, Ackman writes, "In recent weeks we have restructured the position by reducing our short equity position by more than 40% and replacing it with long-term derivatives." Ackman originally had a $1 billion short bet against the business. Herbalife shares are up 22% in the past month and 127% so far this year.
BlackBerry (BBRY) fell 3% today despite Citigroup upgrading the phone maker to neutral from sell saying the company's market share losses have already played out. Meanwhile, The Wall Street Journal reports that Cerberus Capital Management is among at least two companies that could make an offer for the BlackBerry. Keep in mind, Blackberry claims it already has a tentative buyout offer from shareholder Fairfax Financial.
Tell Us What You Think!
Post something in the comments section below.