President Donald Trump turned heads Sunday after he proposed a joint cybersecurity unit with Russia coming out of the G20 Summit in Germany, only to backtrack hours later after it was panned on both sides. That included Sen. Lindsey Graham, R-S.C., who said, “It’s not the dumbest idea I have ever heard, but it’s pretty close.” Meanwhile, oil prices continue to slide Monday and gold will try to recover from last week’s slump.
Later this week, we’ll see the second-quarter earnings season get started with reports from the likes of JPMorgan Chase & Co. (NYSE:JPM) and Citigroup Inc (NYSE:C), but for today, Tesla Inc (NASDAQ:TSLA), Intel Corporation (NASDAQ:INTC) and ClubCorp Holdings Inc (NYSE:MYCC) are snatching the headlines.
Tesla Inc (TSLA)
Tesla CEO Elon Musk shared an image of the Model 3 sedan Saturday night.
Musk sent out a tweet saying, “Production unit 1 of Model 3 is now built and going through final checkout. Pics soon.” Then followed that up with a pair of images.
Musk added that the first complete Model 3 will be ready to go Friday, meaning it will beat the company’s expected completion date for the car by two weeks.
The Model 3 has been the talk of TSLA stock investors for more than a year now, as Tesla expands from its pricey luxury-focused electric vehicles and into the mass market. The Model 3 prices at just $35,000 to start — roughly half the price of the company’s Model S — and the company expects to release 20,000 units per month by the time December rolls around.
TSLA shares are up about 47% year-to-date, and that includes a major drop-off last week, which saw Tesla decline 13%. In fact, the stock actually entered bear market territory briefly with a 20%-plus drop from recent highs amid lackluster delivery data and snubs in a recent round of vehicle safety awards.
Intel Corporation (INTC)
INTC shares will continue their disappointing 2017 after a downgrade from analysts at Jefferies.
Jefferies’ Mark Lipacis dropped Intel from “Hold” to “Underperform” and slashed his price target from $38 to $29, representing nearly 15% downside from Friday’s close of $33.88.
Lipacis thinks Intel has the most to lose amid a “tectonic shift in computing toward a parallel model,” and thinks its Xeon products are inferior to those of Nvidia Corporation’s (NASDAQ:NVDA) in related fields.
Nvidia, Advanced Micro Devices, Inc. (NASDAQ:AMD), Cavium Inc (NASDAQ:CAVM) and Xilinx, Inc. (NASDAQ:XLNX) all pose threats to the entrenched chipmaker, he says.
INTC stock is off more than 1% this morning as a result, which will extend its 6%-plus losses year-to-date.
ClubCorp Holdings Inc (MYCC)
ClubCorp is jumping through the roof on news that it will be bought out by Apollo Global Management LLC (NYSE:APO).
The alternative investment manager will reportedly shell out $1.1 billion for ClubCorp, a nationwide operator of country clubs and golf services.
ClubCorp shareholders will get $17.12 per share, which represents a premium of 31% compared to the Friday closing price for MYCC stock.
The sale follows a January initiative in which ClubCorp sought out financial counsel from Jefferies and Wells Fargo in a bid to increase shareholder value, adding FrontFour Capital Group LLC to the mix in May.
The deal is expected to be completed by the fourth quarter, ClubCorp said.
MYCC stock is up about 30% on the news.
