The market’s recent rally came to a halt Monday as U.S. stocks dipped ahead of the April earnings season. The S&P 500 and the Dow Jones Industrial Average both fell 0.3% Monday.
Investors should keep tabs on Tesla Motors Inc (NASDAQ:TSLA), Walt Disney Co (NYSE:DIS) and Allergan plc Ordinary Shares (NYSE:AGN) as the week progresses.
Here’s what you need to know heading into Tuesday’s action:
Tesla Motors Inc (TSLA)
Tesla shares suffered a late-Monday setback as the company failed to fulfill a crucial target of its core business in the first quarter of the current fiscal year.
The electric car maker delivered 12,420 Model S vehicles and 2,400 Model X vehicles, good for a total of 14,820 vehicles for its most recent period. This marks close to a 50% increase year-over-year … but it still failed to live up to estimates. TSLA expected to ship about 16,000 vehicles.
Tesla said it missed its projection because of a shortage of Model X parts from suppliers in January and February.
The news had TSLA off some 4% in Monday’s premarket trading, though Tesla shares are up roughly 25% in the past month on excitement for the release of the Model 3, as well as the 276,000 preorders logged during the weekend.
Walt Disney Co (DIS)
Disney shares took a small tumble in after Monday’s close as Thomas O. Staggs announced that he was leaving the company.
The news came as a shock due to the fact that Staggs — who served as the chief operating officer until now — was widely considered to be the favorite to take over as Disney CEO following Robert A. Iger’s recent retirement. However, from a Los Angeles Times report:
“Disney’s board of directors was not yet prepared to make a final decision regarding the CEO selection, and Staggs ‘read the tea leaves,’ said one person close to the company who was not authorized to comment publicly.”
DIS shares were off fractionally in Tuesday’s premarket trading.
Allergan plc Ordinary Shares (AGN)
Allergan shares were set to crash Tuesday morning as the drug maker is facing an obstacle in its proposed merger with Pfizer Inc. (NYSE:PFE).
The Treasury Department announced new rules created to prevent U.S. companies from moving their headquarters to another country for tax purposes. The move will curb many of the financial benefits that Allergan’s deal with Pfizer would’ve brought.
Moving headquarters overseas to certain countries allows U.S. companies to lower their tax rates. Pfizer’s headquarters are located in New York, but Allergan’s are in Dublin, Ireland. That in turn puts the $150 billion AGN-PFE merger into question entirely.
AGN was off nearly 20% before Tuesday’s opening bell.
As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.
