- Stocks rebounded following a rough week for the markets.
- General Motors raised its 2024 guidance after it reported a big beat on the top and bottom lines for the first quarter.
- The Federal Trade Commission sued to block Coach parent Tapestry’s $8.5 billion acquisition of Capri Holdings.
Here are the most important news items that investors need to start their trading day:
1. Recovering
Stocks rebounded Monday following a rough week for the markets. The Dow Jones Industrial Average rose 0.67%. The S&P 500 jumped 0.87% and the Nasdaq Composite surged 1.11%, both ending six-day losing streaks. U.S. crude oil prices fell after Iran said it would not escalate its conflict with Israel. Investors had worried about higher oil prices contributing to inflation. Follow live market updates.
2. Big beat
General Motors raised its 2024 guidance Tuesday after reporting a big beat on the top and bottom lines for the first quarter. Truck sales in the automaker’s North American operation were largely responsible for the news, the company said. Revenue during the first three months of the year rose 7.6%, compared with the same period a year earlier. Net income also surged 26% during the first quarter. GM shares are up about 3% in the premarket.
3. Losing streak
New Tesla electric vehicles are parked outside a Tesla store on April 15, 2024 in San Mateo County, California.
Tesla shares extended their losing streak to seven days on Monday. The stock sank 3.4%, reaching its lowest level since January 2023. The drop comes as the electric vehicle maker reduced prices by as much as $2,000 on the Model Y SUV and entry-level Model 3 sedan. Tesla also lowered the price of its premium driver assistance system by one-third. Tesla will report its first-quarter earnings after the bell Tuesday. The company’s shares have declined about 43% this year, second worst among the S&P 500.
4. Blocking
Pedestrians walk past a Coach store on August 10, 2023 in Chicago, Illinois.
The Federal Trade Commission on Monday sued to block Coach parent Tapestry’s $8.5 billion acquisition of Capri Holdings. The deal, now temporarily halted, would combine two major names in luxury retail and put six brands under a single company: Tapestry’s Coach, Kate Spade and Stuart Weitzman, and Capri’s Versace, Jimmy Choo and Michael Kors. The proposed transaction would help the brands compete with European luxury names including LVMH’s Louis Vuitton and Burberry. A merged Tapestry and Capri Holdings would have over $12 billion in annual revenue and a presence in more than 75 countries.
5. Healthy earnings
Dr. Vasant Narasimhan, CEO of Novartis, speaking at the Healthy Returns conference in New York City on May 21, 2019.
Shares of Swiss drugmaker Novartis are up about 5% in the premarket following a better-than expected earnings report. Net sales climbed 11% in the first three months of 2024 and core operating income surged 22% over the same period. “Our performance was broad-based, across all key growth brands and geographies, allowing us to raise guidance for the full year 2024,” CEO Vas Narasimhan said in a statement.
— CNBC’s Brian Evans, Jesse Pound, Michael Wayland, Lora Kolodny, Melissa Repko and Karen Gilchrist contributed to this report.
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