It’s merger Monday as Elon Musk’s electric car company and favorite of high-end shopping malls Tesla is acquiring Solar City — from Musk himself.
The Dow Jones Industrial Average is lower by 24 points to 18,407, the S&P 500 is down by 3 points to 2,170 and the Nasdaq is flat at 5,162. The S&P Retail ETF is losing 30 cents to trade at $44.79.
The Macerich Co. delivered second-quarter earnings that beat analysts’ expectations and the stock was higher by over 1 percent to trade at $90.68. The shopping center company recorded revenue of $259.9 million Net income was $45.2 million, or 31 cents a share, which was much higher than last year’s $14.4 million and beat the consensus for 20 cents a share. Funds from operations was $160.3 million or $1.02, which topped the Capital IQ estimate for $155 million and 98 cents a share. On a positive note, mall tenant sales increased to $626 a square foot over last year’s $623 for the same period.
Etsy Inc. stock is higher by 8 percent to $10.93 following the initiation of coverage with a Buy rating from Citigroup and a target price of $14. The analyst believes that Etsy has the potential to increase margins and called it the “pride of Brooklyn.” Etsy reports after the market close on Tuesday. The FactSet estimate is for revenue of $80 million and a loss of 1 cent a share.
Coty Inc. approved a 10 percent increase in the company’s annual dividend. The cosmetics giant will now pay 27.5 cents a share versus the previous 25 cents a share. The increase in the dividend demonstrates that the company believes it can steadily earn enough cash to meet that deliverable. Coty stock is up by 11 cents to sell at $26.98.
Nike Inc. lowered the price of its LeBron 14 basketball shoe to $175 from $200, which was the price of the LeBron 13. Nike is trying to compete with the very successful Under Armour Inc. Steph Curry sneaker, which retails for $134.99. Nike also trimmed the price of Kevin Durant’s shoe to $150 from its previous price of $180. Nike stock is going up in price by 6 cents to trade at $55.56 in early trading.
Europe’s indices are mostly lower following the latest bank stress tests. Monte dei Paschi di Siena came in with the weakest capital position. In Asia, Japan and Hong Kong closed higher, while China ended the day slightly lower.