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The Street
The Street
Business
TheStreet Staff

Stock Futures Mixed After Biden-McCarthy Meeting; Lowe's Q1 Report; Tesla, Shell and Yelp -- 5 Things to Know

1. -- Stock Futures Mixed as Biden, McCarthy Meet, Disagree on Debt Limit

U.S. equity futures on Tuesday morning were mixed after President Joe Biden and House Speaker Kevin McCarthy on Monday met to discuss the nation's debt ceiling but could not come to terms.

At last check, futures were off 48 points on the Dow Jones Industrial Average and 4 points on the S&P 500, while Nasdaq Composite futures ticked up 1.5 points. 

Reports say that Biden and McCarthy met for an hour, called the talks productive, and said they'd continue to talk in the coming days. White House and congressional negotiators were set to meet Monday night as well.

The Treasury Department has said that on June 1 it probably will run out of cash to pay the country's bills, triggering a historical first default by the U.S. and potentially creating chaos in world markets.

The two sides'' broad positions are clear: McCarthy wants spending cuts that the president rejects as extreme, and Biden wants new taxes that the top House Republican rejects.

2. -- Lowe's Cos. Stock Eases; Q1 Profit Up, Outlook Cut

Lowe's Cos., the home-improvement chain, reported higher fiscal-first-quarter earnings, beating the Wall Street consensus estimate, and lower same-store sales

For the quarter ended May 5 the Mooresville, N.C., chain reported net income of $3.77 a share compared with $3.51 a share in the year-earlier quarter.

Adjusted earnings in the latest period were $3.67 a share, up 5%. Analysts surveyed by FactSet, as reported by MarketWatch, were expecting $3.44 a share.

First-quarter comparable sales fell 4.3%.

Lowe's pared its full-year outlook for earnings to a range of $13.20 to $13.60 from a range of $13.60 to $14. It now sees comparable sales down 2% to 4%, compared with the previous estimate of flat to down 2%.

At last check in the premarket Lowe's (LOW) stock was off 0.8%.

3. -- Tesla Offers China-Made Cars for Sale in Canada

Tesla, the world leader in electric vehicles, is listing China-produced vehicles for sale in Canada, opening a new market for those cars and easing a potential supply issue in the U.S., Reuters reported.

In British Columbia the Austin group (TSLA) is offering for sale certain Model 3 sedans and Model Y midsize SUVs. The cars, produced at the company's Gigafactory Shanghai, are the first such shipments made to North America from that facility, Reuters reported.

The move opens a new market for the China-produced Teslas, which last year accounted for more than half Tesla's output, the news service reported. 

And it could help the company maintain the vehicles it makes in Texas and California for sale in the U.S., where they qualify for U.S. federal tax incentives for buyers.

The China-made cars qualify for tax incentives in Canada, which does not tie those incentives to the places where the cars were produced, Reuters said.

4. -- Shell PLC Faces Pressure From Climate Activists

The oil giant Shell is set to hold its annual meeting on Tuesday, and it is facing pressure from an activist investor to cut its carton emissions, CNBC reports.

After posting record profits, Shell is facing a resolution at the meeting from Follow This, a Dutch firm that invests in large oil companies, the site reported.

The resolution calls on Shell to set its climate targets in line with the Paris Agreement and commit to carbon-emissions cuts by 2030, CNBC reported.

The proposal itself is in line with a Dutch court’s 2021 ruling that Shell should reduce its global carbon emissions by 45% by the end of the decade, CNBC reported. The company has appealed that decision.

5. -- Investor Said to Call on Yelp to Explore Options, Including Sale

A Manhattan investment firm and investor in Yelp is calling on the recommendation site to explore strategic options, including putting itself up for sale, people familiar with the matter told The Wall Street Journal.

TCS Capital Management, holder of 4% of Yelp, (YELP) suggests that Yelp could find a buyer among tech and media companies or private-equity firms for at least $70 a share, the people told the paper. 

Yelp stock closed Monday at $32.52, giving it a market capitalization of $2.25 billion. The stock is higher in the premarket on Tuesday.

The TCS proposal is laid out in a letter to be delivered to Yelp's board on Tuesday, the paper reported. The stock traded near $100 in 2014.

The letter says TCS stands ready to bid for Yelp; alternatively, it proposes that Yelp could explore a merger with Angi, (ANGI) formerly Angie's List, the paper reported.

 

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