Monsanto Company (MON), General Mills, Inc. (GIS) and Toyota Motor Corp (ADR) (TM): 3 Stocks to Watch on Wednesday

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Tuesday’s trading day saw the relief rally we all were hoping for. The fallout from the United Kingdom’s “Brexit” vote finally slowed, leading to strong gains for the S&P 500 (up 1.78%) and the Dow Jones Industrial Average (up 1.56%).

Monsanto Company (MON), General Mills, Inc. (GIS) and Toyota Motor Corp (ADR) (TM): 3 Stocks to Watch on WednesdayToday looks to include much of the same, and you can include General Mills, Inc. (NYSE:GIS) in that number thanks to strong earnings. However, Monsanto Company (NYSE:MON) and Toyota Motor Corp (ADR) (NYSE:TM) might not be joining in the fun today.

Here’s a look at what’s moving all three.

Monsanto Company (MON)

Monsanto shares might not be participating in the marketwide relief rally on Wednesday after big misses on its fiscal third-quarter top and bottom lines.

MON earned $2.17 per share on an ongoing basis in the quarter, which fell well short of estimates for $2.42 per share. That came on revenues of $4.19 billion, missing expectations by roughly $300 million.

Monsanto also disappointed by saying that it expects full-year ongoing EPS to fall at the low end of its guidance range of $4.40 to $5.10 per share, including a gross profit decline of just under 5% for its core Seeds and Genomics segment.

Meanwhile, a European Union antitrust agency is apparently jumping the gun on a potential merger between Bayer AG (OTCMKTS:BAYRY) and Monsanto, with EU Antitrust Chief Margrethe Vestager saying that a “final decision must strictly and impartially apply European merger control rules.” However, the companies have not yet filed for a merger.

MON shares were trading flat amid a likely up day for the broader markets.

General Mills, Inc. (GIS)

GIS shares were up in Wednesday’s premarket trade on an earnings beat and dividend hike.

General Mills earned 62 cents per share for its fiscal fourth quarter — more than double the 30 cents it earned in the year-ago quarter. On an adjusted basis, its 66 cents per share were better than the 60 cents expected by Wall Street. Meanwhile, revenues were off 8.6%, but still managed to top estimates of $3.86 billion.

On top of that, GIS improved its dividend by 4% to a new payout of 48 cents per share, which will be payable Aug. 1, 2016, to shareholders of record as of July 11, 2016. At current prices, GIS shares yield about 2.9%.

General Mills has held up exceptionally well, up 14% year-to-date and off only about a percentage point post-Brexit. If today’s premarket gains hold, GIS stock should open at all-time highs.

Toyota Motor Corp (ADR) (TM)

TM shares are off this morning after the company issued yet another recall — this time for 3.37 million cars thanks to a pair of potential defects.

On late Tuesday, Toyota said it would be recalling 1.43 million cars to repair possible cracks in air bag inflators, affecting Prius and Lexus CT200h models.

The company followed that up with an announcement on Wednesday that it would have to repair another set of potential cracks — this time in evaporative fuel emissions control units in some of its Prius, Auris hatchback and Corolla models, dating all the way back to 2006.

As a note, the airbag recall was not related to the string of Takata recalls plaguing the company.

TM stock was down 2% in premarket trade.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/06/monsanto-company-mon-general-mills-inc-gis-and-toyota-motor-corp-adr-tm-3-stocks-to-watch-on-wednesday/.

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