Well, in unsurprising news, Wells Fargo (WFC) is once again making headlines. Its board has decided to cancel a total of $60 million in stock awards to CEO John Stumpf and retiring consumer banking chief Carrie Tolstedt. The board will conduct an independent review into sales practices. This comes after Wells was forced to pay $185 million settlement over 2 million unauthorized customer accounts were created by employees to meet sales targets. (Wells Fargo is a holding in Action Alerts PLUS).
In other bank news, The Royal Bank of Scotland Group (RBS) will pay $1.1 billion to resolve claims that it sold toxic mortgage-backed securities to credit unions that later failed, according to the U.S. National Cred Union Administration. This comes as RBS prepares to settle a number of U.S. cases where it is accused of mis-selling mortgage-backed bonds, bringing the U.S. regulator's recoveries against various banks to $4.3 billion over the sales of such securities, Reuters reported. NCUA Board Chairman Rick Metsger said the agency plans to continuing pursuing recoveries against financial firms that are believed to have contributed to the financial crisis.
Meanwhile, Nike (NKE) investors were running away from the stock quickly after its latest quarterly report. Despite solid top- and bottom-line beats, shares of the sneaker giants were down in premarket trading Wednesday -- that's because future orders fell short of expectations. Worldwide future orders rose 7%, which is less than the 8% Wall Street has forecast. Nike also cut its full-year gross profit margin guidance as it sees margins falling by 125 basis points in the second quarter and remaining unchanged for the second half of the year.
Finally, Tesla Motors (TSLA) CEO Elon Musk's next mission is to colonize Mars. SpaceX is developing a massive rocket and capsule to transport large numbers of people and cargo to the red planet. Musk outlined his plans for the Mars rocket, capable of transporting 100 passengers per trip. He hopes to get the cost of travel down to roughly the "cost of a medium house in the United States, about $200,000."
Here's Musk's tweet that shows a simulation preview of the interplanetary transport system:
Full Interplanetary Tranport System presentation in ~30 mins. Simulation preview: https://t.co/lKAxabzfKX— Elon Musk (@elonmusk) September 27, 2016