U.S. futures were holding relatively flat Tuesday morning. All of the European markets were showing gains with a few hours left until the markets close. The Asian markets finished mixed; the Hang Seng and the Shanghai Composite finished in the green, while the Nikkei showed small losses.
Crude oil was on the rise again. Benchmark West Texas Intermediate was up nearly 0.8%, trading at around $47.35, while Brent Crude was gaining by about 0.6% and was trading around $49.55.
Apple (APPL) shares were dropping before the bell after the European Union demanded the tech giant to pay up to 13 billion euros ($14.5 billion) in back taxes, plus interest, to Ireland. The EU said Tuesday it found that Apple had received illegal tax benefits over 11 years. EU Competition Commissioner Margrethe Vestager said that Ireland granted tax breaks that made the multinational effective corporate tax rate on its European profits dropped to a mere 0.0005% in 2014 from 1% in 2003. Apple is a holding in Jim Cramer's Action Alerts PLUS portfolio.
Shares of Hershey Co. (HSY) plummeted by more than 11% after Mondelez (MDLZ) said it was no longer pursuing a deal. Mondelez first made a $23 billion bid in cash and stock, or $107 per share, for the company, which Hershey promptly rejected. Then Mondelez reportedly increased its offer for the company to $115 per share, according to the Wall Street Journal. But Hershey said talks would need to start at $125 per share, the Journal reported. Monedelez CEO Irene Rosenfeld said in a statement Tuesday that following additional discussions and recent shareholder developments at Hersey, the company determined that "there is no actionable path forward to an agreement."
American Airlines (AAL) shares were down roughly 2% in premarket trading after rival United (UAL) announced after the closing bell Monday that it has hired away American's president, Scott Kirby, who will oversee operations under United's CEO Oscar Munoz. In a statement, Munoz said that Kirby's appointment is the culmination of the formation of his senior leadership team.
Meanwhile, American Airline's COO Robert Isom will be filling Kirby's shoes until further succession plans are announced.
In earnings news, shares of DSW (DSW) were rising by more than 3% in early trading after posting top- and bottom-line beats. Earnings of $0.35 per share on revenue of $658.9 million for the period topped Wall Street's forecast of earnings of $0.29 per share on revenue of $656.2 million. The footwear and accessories retailer reiterated its full-year earnings forecast in the range of $1.32 to $1.42 per share.
"We've positioned fall inventories conservatively to chase the trend of the business and after conducting a comprehensive assessment of DSW's cost structure, we've identified actions, most of which will benefit 2017, with approximately $25 million in annualized cost savings," said CEO Roger Rawlins in a statement.
Finally, Abercrombie & Fitch (ANY) shares were dropping by more than 10% after reporting a drop in quarterly sales. A loss of $0.25 per share was wider than analysts' forecasts of a loss of $0.20 per share. Revenue of $783.2 million for the second quarter also missed Wall Street's expectations of $788.6 million. Comparable-store sales dropped 7% at Abercrombie and 2% at Hollister for the period. CEO Arthur Martinez said in a statement that flagship and tourist locations continued to account for the vast majority of the comparable sales decline as traffic remained a "significant headwind."