Activist investor Bill Ackman's day is ending on a sour note as shares of Herbalife (HLF) jumped 14% in after-hours trading after the company reported first-quarter results that beat analyst expectations. Herbalife also said it is close to a settlement with the Federal Trade Commission regarding an investigation into the company's business practices and whether it's a pyramid scheme. Ackman has been shorting the company since 2012.
Ackman suspends campaign https://t.co/exR6fZn2fr¿ Jon Boorman (@JBoorman) May 5, 2016
Elsewhere, in campaign news, Republican leaders have so far not warmed to Donald Trump being the party's presumptive presidential nominee. 2012 presidential candidate Mitt Romney said he's not attending the Republican National Convention this summer. Former Presidents George H.W. Bush and George W. Bush said they will not endorse Trump and that they are also skipping the convention. Meanwhile, House Speaker Paul Ryan expressed hesitancy to support Trump in an interview with CNN.
If eight years of low interest rates haven't already convinced you that the Federal Reserve is planning rate increases gradually, perhaps you will be further convinced by John Williams, who is the president of the Federal Reserve Bank of San Francisco. In an interview with CNBC, Williams said that the Fed should stay on its strategy of gradually reducing accommodation and that two to three rate hikes this year would be "reasonable."