- Reuters/Mike Blake
Here is what you need to know.
Tesla wants to buy SolarCity. Tesla has offered to buy SolarCity for $26.50 to $28.50 a share, valuing the company at almost $3 billion. Such a deal would bring together two companies founded by Elon Musk. The higher end of the range represents a 35% premium from Wednesday’s closing price. “Tesla customers can drive clean cars and they can use our battery packs to help consume energy more efficiently, but they still need access to the most sustainable energy source that’s available: the sun,” Tesla said in a statement announcing the offer.
FedEx beats. The delivery giant announced adjusted earnings of $3.30 a share, edging out the $3.28 that was expected. Revenue climbed 7.1% to $12.97 billion, ahead of the $12.77 billion that analysts were anticipating. FedEx sees adjusted earnings for the current fiscal year of $11.75 to $12.25 a share; the Thomson Reuters consensus expects $12.05. “Fiscal 2016 was a successful year for FedEx in many ways,” Frederick W. Smith, the FedEx Corp. chairman, president, and CEO, said in the earnings release.
Janet Yellen moves her testimony to the House Financial Services Committee. On Tuesday, Federal Reserve Chair Janet Yellen testified before the Senate Banking Committee, noting that the Fed would be cautious when raising interest rates even though it expects data on the labor, employment, and inflation fronts to improve. While Wednesday’s prepared remarks will be the same as Tuesday’s, there will once again be a question-and-answer session by members of the committee. The hearing will begin at 10 a.m. ET.
Visium Asset Management is having a rough year. Visium Asset Management’s flagship fund, the healthcare-focused Visium Balanced Fund, was down 10.18% year-to-date through June 17, according to performance estimates viewed by Business Insider. That’s worse than the 9.3% loss it had suffered through May. The firm’s global fund, which it sold to AllianceBernstein last week, is off 3.82% for the year, according to the estimates. Sanjay Valvani, a star trader at Visium, was found dead Monday evening in what appeared to be a suicide. Valvani was recently charged with insider trading, and he had pleaded not guilty.
Oil is back above $50. West Texas Intermediate crude oil has reclaimed the $50-a-barrel mark after Tuesday’s American Petroleum Institute data showed a draw that was larger than expected. According to the API, inventories fell by 5.2 million barrels, much larger than the 1.7-million-barrel drawdown that was expected. WTI trades up 0.8% at $50.29.
Foreign companies might soon be able to list in China. The People’s Bank of China is considering allowing foreign companies to list their shares on the mainland as part of its effort to open up China’s economy. Beijing will also allow mainlanders to invest in overseas capital markets, the South China Morning Post says, citing the PBOC’s 2015 annual report. No timetables have been announced.
The Bank of Thailand kept policy on hold. Thailand’s central bank held its benchmark interest rate at 1.50%, as expected. According to the BOT, “The committee saw merit in preserving policy space given that the Thai economy would still be facing risks going forward, such as the fragile global economic recovery, monetary policy divergence among major advanced economies, the result of the EU referendum in the U.K. (‘Brexit’) and financial stability concerns in China.” The Thai baht ended Wednesday’s session little changed at 35.24 per dollar.
Stock markets around the world are mixed. Germany’s DAX (+0.5%) leads the gains in Europe after Japan’s Nikkei (-0.6%) trailed in Asia. S&P 500 futures are up 2.00 points at 2,082.50.
Earnings reporting is light. Barnes & Noble, Bed Bath & Beyond, and Red Hat are among the companies reporting after markets close.
US economic data picks up. The FHFA Housing Price Index will be released at 9 a.m. ET, and existing-home sales will cross the wires at 10 a.m. ET. US crude-oil inventories will be announced at 10:30 a.m. ET. The US 10-year yield is down one basis point at 1.69%.