U.S. futures indicated a lower opening Wednesday as crude oil prices continue to drop. European markets were all down with a few hours left until the close. In Asia, only the Shanghai Composite saw gains, while the Hang Seng and the Nikkei both finished in the red.
Shares of Nortek (NTK) jumped in premarket trading on news that U.K.-based Melrose Industries is buying the company for $2.8 billion. Under the terms of the agreement, the offer price is $86 per Nortek share, net in cash and without interest, which represents a premium of approximately 37.6% to the closing price of Nortek shares on July 5. This means that London-based Melrose will acquire a company that made 90% of its revenue in North America.
Walgreens Boots Alliance (WBA) shares are poised to open lower Wednesday after mixed quarterly results. The Illinois-based company reported fiscal third-quarter profit of $1.1 billion, with adjusted earnings of $1.18 per share that topped Wall Street expectation of $1.14. The drugstore chain posted revenue of $29.5 billion, falling just short of analysts' expectations of $29.9 billion. Walgreens expects full-year earnings between $4.45 and $4.55 per share. Walgreens is a holding in Jim Cramer's Action Alerts PLUS portfolio.
Tesla Motors (TSLA) shares dropped in early trading on news that it knew about the deadly crash of a Model S sedan in Florida before a $2 billion stock offering, according to a report by Fortune. The automaker learned of the May 7 crash, which occured in Autopilot mode, shortly after it happened and disclosed it to the government nine days later, Fortune reported. The National Highway Safety Administration is investigating the incident. This comes as a new Tesla crash comes to light: A Tesla Model X crashed and rolled over while in Autopilot mode on the Pennsylvania Turnpike last week, according to the Detroit Free Press. The man driving the car and his passenger both survived the crash.
Shares of MasterCard (MA) were down slightly before the bell following news that it faces a damages claim worth up to $24.6 billion over card charges paid by U.K. consumers over a 16-year period. This comes nearly two years after the European Union ruled that so-called interchange fees on its debt and credit cards were unfair. A class action claims that MasterCard set high fees with the knowledge it was overcharging consumers. MasterCard said that it "firmly disagrees with the claims." MasterCard is a holding in the Trifecta Stocks portfolio.
-- Written by Anders Keitz
