3 Stocks to Watch on Tuesday: Apple Inc. (AAPL), Hershey Co (HSY) and United Continental Holdings Inc (UAL)

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It was a strong day for U.S. markets, spearheaded by a 1% rise in financials and a 0.3% rise in the healthcare industry. The S&P 500 gained 0.5%, the Dow Jones Industrial Average surged 0.3% and the Nasdaq Compsite increased 0.6%.

3 Stocks to Watch on Tuesday: Apple Inc. (AAPL), Hershey Co (HSY) and United Continental Holdings Inc (UAL)Today could be a bit more challenging, largely thanks to troubles plaguing Apple Inc. (NASDAQ:AAPL). A couple of other companies are worth keeping an eye on Tuesday, too, including Hershey Co (NYSE:HSY) and United Continental Holdings Inc (NYSE:UAL).

Here’s what you need to know:

Apple Inc. (AAPL)

Apple stock is going to open strongly lower on Tuesday amid a European Union antitrust ruling that will dig into AAPL’s mighty cash hoard.

EU regulators on Tuesday ordered Ireland to recoup up to 13 billion euros, or $14.6 billion, from Apple. That represents some 20 years’ worth of unpaid taxes, which EU’s European Commission says was the result of illegal state aid.

From Reuters:

“Apple, which with Ireland said it will appeal the decision, paid tax rates on European profits on sales of its iPhone and other devices and services of between just 0.005 percent in 2014 and 1 percent in 2003, the Commission said.”

Not that Apple will have to go begging, of course. AAPL has roughly $230 billion in cash and total investments, including more than $60 billion in cash and short-term investments. And it clearly won’t have to worry about repatriation in this instance.

Nonetheless, Apple’s Tim Cook says EU move has “serious, wide-reaching implications.”

AAPL shares were off roughly 2% in Tuesday’s premarket trade.

Hershey Co (HSY)

Hershey’s shares are plummeting now that it appears a major suitor has called it quits and is swearing off HSY.

Rumors had been swirling for month regarding a potential deal that would have united Hershey’s with Mondelez International Inc (NASDAQ:MDLZ). However, the two companies could not come to an agreement, and Mondelez said in a statement late Monday that it saw no path toward an agreement going forward.

MDLZ previously offered Hershey’s a merger offer in late June worth $107 per share, which would have been paid in cash and stock. The latter rejected the deal.

The news will certainly take some of the shine off what has been a strong year for HSY stock, up about 25% year-to-date. Shares are off 10% in Tuesday’s premarket action.

United Continental Holdings Inc (UAL)

United Airlines hired a former American Airlines Group Inc (NASDAQ:AAL) president to fill the same role.

Scott Kirby, 49, was pushed out of American Airlines on Monday and offered a severance package worth $13 million in cash and stock. United didn’t waste time, offering Kirby an offer the same day to become the airline’s new president.

United CEO Oscar Munoz currently is the president as well, so he’ll relinquish that position to Kirby. The latter will play a role in the company’s marketing, sales and management segments.

UAL shares were up more than 3% before Tuesday’s bell.

As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/08/3-stocks-to-watch-on-tuesday-apple-inc-aapl-hershey-co-hsy-united-continental-holdings-inc-ual/.

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