Closing Bell: LIVE MARKETS BLOG

 | Jun 12, 2018 | 4:04 PM EDT
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Closing Bell

The Dow Jones Industrial Average was the lone major average to close trading in the red Tuesday as the Nasdaq and S&P 500 rose. 

The Dow fell 0.01%, or 2 points to 25,321, while the Nasdaq rose 0.57%, or 44 points to 7,704, and the S&P 500 rose 0.17%, or 5 points to 2,787.


U.S. Reveals Details of ZTE Settlement

Chinese handset maker ZTE will have to put $400 million into an escrow account as well as pay $1 billion in fines as part of its settlement with U.S. officials for violating sanctions against Iran and North Korea. 

The company will also have to replace the board of directors of two corporate entities within 30 days of when the order was signed on June 8. 

Under the settlement, ZTE will pay a total civil penalty of $1.7 billion, including $361 million that it has already paid as part of a March 2017 agreement. 


Seattle Bows to Amazon, Reverses Course on Business Tax

Seattle is set to repeal a tax on companies with a large number of employees meant to fund the city's homeless initiatives, succumbing to large employers like Amazon Inc. (AMZN) that opposed the new taxes. 

"This week, the City Council is moving forward with the consideration of legislation to repeal the current tax on large businesses to address the homelessness crisis," Mayor Jenny Durkan said. 

The taxes would have been levied on companies that generated more than $20 million in revenue. There are 585 businesses in the city that would have qualified for the $275-per-employee tax. 


Daimler Is the Latest Company Caught in German Diesel Scandal

The German Transport Ministry ordered Mercedes-Benz maker Daimler to recall 238,000 vehicles in Germany due to the unauthorized use of software cheat devices that it said were present on 774,000 Mercedes-Benz vehicles. 

Daimler has pledged to work or removing the software, which is designed to defeat diesel emissions tests, as well as cooperate with German regulators. 

Daimler joins Volkswagen (VLKAY) as a German automaker caught using the device. Volkswagen faced about $30 billion in fines over its emissions scandal. 


California Cheesecake Factories Held Liable for Wage Thefts

Cheesecake Factory (CAKE) restaurants in San Diego, Escondido and Orange County in California were found liable for $4.5 million in wage thefts by the California Labor Commissioner's Office. 

The restaurant group hired a janitorial contractor, which then hired a subcontractor who underpaid 559 janitorial workers. 

Magic Touch Commercial Cleaning owner Zulma Villegas must pay more than $3.9 million to the workers in addition to more than $600,000 in citations and civil penalties. 


KeyBanc Now Expects Tesla to Deliver 30,000 Model 3s in the Second-Quarter

KeyBanc analyst Brad Erikson believes that Tesla Inc. (TSLA) will sell 50% more Model 3 vehicles in the second-quarter than the firm had previously thought. 

The firm now expects the electric vehicle maker to sell 30,000 Model 3s in the second quarter, up from its previous view of 20,000 vehicles sold. 

"Our checks with sales centers indicate Model 3 deliveries are tracking ~50% higher than our prior estimates for the quarter, prompting us to raise our estimates," analyst Brad Erickson said in a note to clients Monday. "While the longer-term debate on TSLA remains more balanced ... we maintain that evidence supporting the bear case is not likely to emerge in the near term, in our view."

Tesla shares were up 4.2% in morning trading. 


Explorer, Cherokee Perform Worst in IIHS Crash Test

Ford (F) Explorer and Jeep Grand Cherokee (FCAU) got the worst ratings in the latest battery of crash tests conducted by the Insurance Institute for Highway Safety.

"Although some vehicles in this group offer very good protection, in other models, the airbags, safety belts and structure showed serious deficiencies," said Insurance Institute Chief Research Officer David Zuby. "In those SUVs, a front-seat passenger would be at risk of injuries to the head, hip or leg in a right-side small overlap front crash."

The Explorer's structure collapsed during the tests. 

Of the eight SUVs tested, the Explorer and Grand Cherokee were the only ones to receive poor overall grades for the tests that focused on passenger-side impacts. 


Premarket

U.S. futures were declining across the board Tuesday ahead of the opening bell following a Monday session that saw all three major indices post modest gains. 

Dow Futures were falling 0.17%, indicating an open 43 points lower, while Nasdaq futures declined 0.11%, indicating an open 8 points lower, while S&P futures fell 0.12%, indicating an open 3 points lower. 

In Asia, markets continued to rally, led by the Shanghai Composite, which gained 0.89%, and the Nikkei, which rose 0.33%. 

In Europe, the DAX in Germany was the lone major market to cling to slim gains, rising 0.02% with about four hours left in trading. 

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