A federal judge is approving a settlement between Elon Musk and federal regulators over his infamous tweet about taking Tesla private.
The Securities and Exchange Commission argued the tweet was misleading and harmed investors who bought stock in the electric car company as a result. The company is not going private.
Tesla and Musk, the company’s CEO, agreed to pay a total of $40 million in fines in the settlement Tuesday. The settlement allows Musk to hold on to his CEO post, but he will give up his seat as Tesla’s chairman for at least three years.
As part of the agreement, Tesla also must clamp down on Musk’s communications with investors. The company will be required to appoint an independent chairman and directors with no direct ties to Musk.
Markets In Brief: Uber IPO Could Put Company Calue at $120B
Uber may put forth an initial public offering early next year that values the ride-hailing business at as much as $120 billion, according to a media report.
The Wall Street Journal said Tuesday that Uber Technologies Inc. received valuation proposals from Goldman Sachs and Morgan Stanley. There is no guarantee Uber will fetch that valuation, or go public soon.
If it does, and at that price, the company would be worth more than Ford Motor Co., General Motors Co. and Fiat Chrysler Automobiles combined.
There are hurdles for Uber, past and present. In addition to a series of scandals including workplace sexual harassment, theft of intellectual property and the ouster of its co-founder, the company is facing increasing competition.
The Journal also reported Tuesday that Uber’s smaller, but chief rival, Lyft, had picked underwriters for a public offering expected in early 2019. JPMorgan Chase & Co. will lead the offering, along with Credit Suisse Group AG and Jefferies Group LLC, the Journal reported. Lyft was valued at $15.1 billion earlier this year.
Unitedhealth Beats All Around in 3Q, Raises Outlook
UnitedHealth is reporting better-than-expected profits and revenue for the third quarter and the company raised its outlook on strong trends in the insurance business.
Earnings jumped almost 30 percent to $3.19 billion, or $3.24. Earnings, adjusted for one-time gains and costs, came to $3.41 per share, which is 11 cents better than Wall Street was projecting, according to a survey by Zacks Investment Research.
The largest U.S. health insurer posted revenue of $56.56 billion, also topping expectations.
UnitedHealth Group Inc., based in Minneapolis, said Tuesday that it now expects per-share earnings of $12.80 this year, up from $11.80 to $12.05.
Morgan Stanley 3Q Profit Rises to $2.11B, Tops Estimates
Morgan Stanley says third-quarter profit rose to $2.11 billion from $1.78 billion a year ago.
The company, based in New York, says it had earnings of $1.17 per share compared with 93 cents a year earlier.
The results topped Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of $1 per share.
The investment bank posted revenue of $12.56 billion in the period. Its revenue net of interest expense was $9.87 billion, up from $9.2 billion a year ago and exceeding Street forecasts. Three analysts surveyed by Zacks expected $9.53 billion.
Morgan Stanley shares have fallen 17 percent since the beginning of the year. Shares rose 2.6 percent in premarket trading.
Goldman Sachs 3Q Profit Rose 18%, Topping Estimates
Goldman Sachs Group Inc. says third-quarter earnings rose 18 percent to $2.52 billion.
The company, based in New York, says it had earnings of $6.28 per share, up from $5.02 in the year-ago quarter.
The results topped Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of $5.42 per share.
The investment bank posted revenue of $8.65 billion in the period, up from $8.33 billion a year ago, and topping Street forecasts.
Goldman shares have dropped 16 percent since the beginning of the year, while the Standard & Poor’s 500 index has risen nearly 3 percent. Shares rose 1.3 percent in premarket trading
Domino’s Pizza 3Q Earnings top $84M
Domino’s Pizza Inc. (DPZ) on Tuesday reported third-quarter profit of $84.1 million.
The Ann Arbor, Michigan-based company said it had profit of $1.95 per share.
The results beat Wall Street expectations. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of $1.73 per share.
The pizza chain posted revenue of $786 million in the period, which did not meet Street forecasts. Five analysts surveyed by Zacks expected $789.6 million.
Domino’s Pizza shares have increased 44 percent since the beginning of the year. The stock has increased 41 percent in the last 12 months.
Johnson & Johnson Tops 3Q Expectations
Johnson & Johnson is edging out profit and revenue expectations for the third quarter and raising its profit outlook as domestic sales rise.
The company on Tuesday reported third-quarter earnings of $3.93 billion, or $1.44 per share. Earnings, adjusted for one-time gains and costs, were $2.05 per share, or 2 cents better than expected, according to a survey by Zacks Investment Research.
Revenue was $20.35 billion, also exceeding forecasts.
Johnson & Johnson expects full-year earnings in the range of $8.13 to $8.18 per share, with revenue in the range of $81 billion to $81.4 billion.
Company shares are down 4 percent this year.
Chinese Vaccine Maker Fined $1.3B After Scandal
A Chinese maker of rabies vaccine was fined 9.1 billion yuan ($1.3 billion) on Tuesday for falsifying production records in a scandal that prompted a nationwide crackdown on the industry.
Disclosure of the case, and the failure of authorities to act immediately after finding inconsistencies in the company’s records in late 2017, triggered a public outcry following deaths and injuries due to fake or shoddy medicines, milk, toys and other products.
Changchun Changsheng Life Sciences Ltd., which was ordered in July to suspend production, also was stripped of its licenses to make vaccines and drugs, the State Drug Administration announced.
The country’s No. 2 leader, Premier Li Keqiang, said in July the company “violated a moral bottom line.” Li ordered a nationwide inspection of other vaccine producers.
Rabies is endemic in parts of China.
No injuries were reported from use of Changsheng Life Science’s vaccines, but authorities ordered a recall of its products from Chinese and foreign markets.
The company’s chief executive and 14 other managers were detained in July after a surprise inspection found falsified production and inspection records starting as early as 2014.
Changsheng Life Sciences used expired materials, mixed different batches of products and failed to test them properly, according to Tuesday’s announcement. It said the company destroyed records to conceal its misconduct.
The announcement gave no indication of the status of possible criminal prosecutions.
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