U.S. futures are looking to bounce back Tuesday as world markets start to stabilize following the U.K. referendum to leave the European Union. European markets are trading higher, with the CAC 40, the DAX and the FTSE 100 all up more than 2%. Asian markets finished mixed, with the Shanghai Composite and the Nikkei closing higher, at about 0.6% and 0.1%, respectively. The Hang Seng closed down slightly.
The third estimate for first-quarter gross domestic product (GDP) growth was revised upward to about 1.1%, according to the Bureau of Economic Analysis. This estimate is slightly higher than the Bloomberg consensus of 1%. Real GDP for the fourth quarter of 2015 increased 1.4%.
Volkswagen (VLKAY) shares are set to trade lower Tuesday after news that the car company's emission scandal will cost nearly $15 billion. Under the settlement, Volkswagen would repair or buy back polluting diesel vehicles and pay each own owner as much as $10,000, according to the Associated Press. The $14.7 billion price tag makes it the largest auto scandal settlement in U.S. history. It also includes $2.7 billion for environmental mitigation and another $2 billion for research on zero-emissions technology, the AP reported. The settlement still requires a judge's approval.
LendingClub (LC) shares increased more than 3% before the opening bell as the company appointed Scott Sanborn as CEO. However, in light of lower loan volumes in the second quarter, the company will be eliminating 179 positions. LendingClub expects to resume revenue and EBITDA growth in the first half of 2017.
Shares of SolarCity (SCTY) jumped more than 2% in early trading following news that the company formed a special committee to consider a bid from Tesla Motors (TSLA). The California-based company said directors Donald Kendall, Jr. and Nancy Pfund will serve on the special committee, with Kendall being chair. Tesla offered to buy all of SolarCity's remaining common stock for $26.50 to $28.50 per share, according to a Re/Code report.
Skyworks Solutions (SWKS) was up more than 2% in premarket trading after the Apple (AAPL) supplier announced it would power the flagship smartphones of Chinese firm Huawei. Skyworks' semiconductors will be in the Huawei's P9 and P9 Plus smartphones. In 2012, Huawei became the world's third largest smartphone manufacturer and Chinese demand for smartphones in 2016 is stronger than expected and could reach 442 million units, an increase of 7% compared to last year, according to a forecast by GfK.
Finally, Deutsche Bank (DB) shares were up 4% before the bell even though a report by the Financial Times said that billionaire investor George Soros shorted the bank's stocks following the U.K.'s referendum to leave the EU. Soros took a short position of 0.51% in Deutsche's stock on Friday; his bet equated to about 7 million shares, reported the FT. Soros famously made $1 billion betting against the pound in 1992.
-- Written by Anders Keitz