A trust that controls General Motor's liability from before the 2009 bankruptcy cancels a settlement that would have forced "new" General Motors (GM -1.7%) to pay out $1B in damages throguh stock in the faulty ignition switch case.
Plaintiff lawyers are challenging the timing of the development.
The latest 13F from Berkshire Hathaway (BRK.A, BRK.B) shows a 17.5M share stake in the roughed-up credit card issuer (shares down 18% YTD). The filing also shows Berkshire exited its GE stake over the last quarter. Synchrony (NYSE:SYF) was spun out of GE about three years ago; shares are up 2.9% after hours.
The 13F also shows a new 18.6M share stake in Store Capital (NYSE:STOR) - an investment that had been announced in late June.
Boosted stakes for Berkshire: Bank of New York (NYSE:BK), GM, and Apple (NASDAQ:AAPL).
General Motors (NYSE:GM) issues a recall on over 690K 2014 Chevy Silverado and 2014 GMC Sierra pickups due to a potential software issue that could impact steerinng.
Defect description: "These vehicles may experience a temporary loss of electric power steering (NYSEARCA:EPS) assist followed by a sudden return of EPS assist, particularly during low-speed turning maneuvers."
Key events are scheduled for the companies listed below next week.
Notable earnings reports: Marriott International (NYSE:MAR), CBS (NYSE:CBS) and Tyson Foods (NYSE:TSN) on August 7; Disney (NYSE:DIS), Priceline (NASDAQ:PCLN), Wayfair (NYSE:W), Michael Kors (NYSE:KORS) on Augusy 8; Ctrip.com (NASDAQ:CTRP), Mobileye (NYSE:MBLY) and Mylan (NASDAQ:MYL) on August 9; Nvidia (NASDAQ:NVDA), Alibaba (NYSE:BABA), Macy's (NYSE:M) and News Corp (NASDAQ:NWSA) on August 10; J.C. Penney (NYSE:JCP) on August 11.
Expected IPO pricings: Zealand Pharma (Pending:ZLND) on August 8, Contura Energy (Pending:CTRA) on August 9, Ranger Energy Services (Pending:RNGR) on August 10.
IPO quiet period expirations: Avenue Therapeutics (NASDAQ:ATXI), Esquire Financial (Pending:ESQ), Mersana Therapeutics (NASDAQ:MRSN); Aileron Therapeutics (NASDAQ:ALRN), Blue Apron (NYSE:APRN), Dova Pharmaceuticals (NASDAQ:DOVA) on August 8; Byline Bancorp (NYSE:BY), Tintri (NASDAQ:TNTR) on August 9.
Secondary offering lockup expirations: Aeglea BioTherapeutics (NASDAQ:AGLE), Exact Sciences (NASDAQ:EXAS), Evolent Health (NYSE:EVH), Ctyokinetics (NASDAQ:CYTK) on August 7; Monroe Capital (NASDAQ:MRCC), Accelerate Diagnostics (NASDAQ:AXDX) on August 8; Becton Dickinson (NYSE:BDX) on August 9, Foundation Building Materials (NYSE:FBM) on August 9; Kinsdale Capital (Pending:KNSL), TPI Composite (NASDAQ:TPIC) on August 10.
Notable annual meeting: Pandora (NYSE:P) on August 7, Ralph Lauren (NYSE:RL) on August 10, Merrimack Pharmaceuticals (NASDAQ:MACK) on August 11.
Special shareholder meetings: Farmers National Banc (OTCPK:FMBN) on August 8, Central Valley Community Bancorp (NASDAQ:CVCY), Folsom Lake Bank (OTCPK:FOLB) on August 10.
Analyst/Investor day: BorgWarner (NYSE:BWA) on August 7, Equifax (NYSE:EFX) on August 9.
Business update call: Barnes & Noble Education (NYSE:BNED) on August 7
FCC watch:: The deadline for the agency to deny Sinclair Broadcast's (NASDAQ:SBGI) purchase of Tribune Media (NYSE:TRCO) is August 8.
FDA watch: Gilead (NASDAQ:GILD) expects to find out if its single tablet daily regimen for HIV is accepted for review. TherapeuticsMD (NYSEMKT:TXMD) to receive Advice Letter on TX-004HR. A drug approval call is scheduled for Jazz Pharmaceuticals (NASDAQ:JAZZ) on August 7.
Sales and revenue update: TD Ameritrade (NASDAQ:AMTD) on August 7, WestJet Airlines (OTC:WJAFF) on August 10.
JPMorgan Auto Conference: Presenters for the event from August 8-9 include Adient (NASDAQ:ADNT), Dana (NYSE:DAN), Visteon (NYSE:VC), Cooper Tire & Rubber (NYSE:CTB), Delphi Automotive (NYSE:DLPH), General Motors (NYSE:GM), LKQ Corporation (NASDAQ:LKQ), Stoneridge (NYSE:SRI) and Avis Budget (NASDAQ:CAR).
Barron's mentions: Watch for Amazon (NASDAQ:AMZN), Facebook (NASDAQ:FB) and Google (GOOG, GOOGL) to make a major push into sports TV beyond occasional streaming to challenge ABC/ESPN, Fox (NASDAQ:FOXA), CBS, and NBC (NASDAQ:CMCSA). Big gains are seen for Delta Air Lines (NYSE:DAL), Finisar (NASDAQ:FNSR) and Voya Financial (NYSE:VOYA). There's some caution expressed on Tesla (NASDAQ:TSLA). Despite the rave reviews on the Model 3, the stock is seen as "priced to perfection" into the production ramp.
The pace of U.S. car and light truck sales fell off to a 16.73M vehicles pace in July, down from 17.8M a year ago.
A significant factor in the decline is the decision by major automakers to reduce the level of daily rental fleet sales amid the rise of Uber (Private:UBER), Lyft (Private:LYFT) and other ride sharing services. The strategy is expected to help lift automotive margins, even if volume numbers are lower, and falls in line with broad global strategy to highlight the bottom line over volume.
ALG estimates the average transaction price for a new light vehicle rose 2.1% to $32,989 in July. Average incentive spending per unit grew by $160 to $3,565.
Gaining U.S. market share during the month were Toyota (NYSE:TM) and Subaru (OTCPK:FUJHY), which both showed positive sales growth. The Detroit Three (GM, F, FCAU) all posted sharp drops for the month, but analysts expect a better result for August and September off a calendar benefit (extra selling day in Aug., extra weekend in Sept.) and continued strong demand for higher trim level trucks and SUVs.
The auto sector will stay in the spotlight today after the market closes when Tesla (NASDAQ:TSLA) reports Q2 earnings. While consensus estimates are for Tesla to report revenue of $2.51B, EPS of -$1.88 and an automotive gross margin rate of 24.33% -- it's the Model 3 production and delivery guidance which could steer shares. Bloomberg reports that options volatility implies a 7% move in Tesla shares up or down after the company spills numbers.
Key events are scheduled for the companies listed below next week.
Notable earnings reports: Pandora (NYSE:P) and Dish Network (NASDAQ:DISH) on July 31; Under Armour (NYSE:UAA), Apple (NASDAQ:AAPL), FireEye (NASDAQ:FEYE), Pfizer (NYSE:PFE) and Illumina (NASDAQ:ILMN) on August 1; Tesla (NASDAQ:TSLA) and Fitbit (NYSE:FIT) on August 2; GoPro (NASDAQ:GPRO), Yum Brands (NYSE:YUM), Shake Shack (NYSE:SHAK), Activision Blizzard (NASDAQ:ATVI) on August 3; Berkshire Hathaway (BRK.A, BRK.B), Cigna (NYSE:CI) on August 4.
Expected IPO pricings: Clementia Pharmaceuticals (Pending:CMTA) on August 2, Venator Materials (Pending:VNTR) on August 3.
IPO quiet period expirations: Snap (NYSE:SNAP), Laureate Education (NASDAQ:LAUR), Bison Capital Acquisition (NASDAQ:BCACU) and Constellation Alpha Capital (NASDAQ:CNACU) on July 31; Altice USA (NYSE:ATUS), Safety, Income & Growth (Pending:SAFE) and SG Blocks (NASDAQ:SGBX) on August 1.
Secondary offering lockup expirations: James River Corp (NASDAQ:JRVR) on July 31; Smart Sand (NASDAQ:SND) on August 1; Shopify (NYSE:SHOP), Artana Therapeutics (NASDAQ:PETX), Interpace Diagnostics (NASDAQ:IDXG) and Ignyta (NASDAQ:RXDX) on August 2; GoDaddy (NYSE:GDDY), American Superconductor (NASDAQ:AMSC) and AmpliPhi Biosciences (NYSEMKT:APHB) on August 3.
Notable annual meeting: Bristow Group (NYSE:BRS) on August 2; Electronic Arts (NASDAQ:EA), Michael Kors (NYSE:KORS) and Hasbro (NASDAQ:HAS) on August 3.
Business update call: Novan (NASDAQ:NOVN) on August 2.
Roadshow: Principal Financial Group (NYSE:PFG) on August 3.
FDA watch: Johnson & Johnson (NYSE:JNJ) is expected to post docs for sirukumab injection on July 31 ahead of an August 2 meeting; Pfizer's (PFE) Xeljianz is up for discussion on August 3.
Fixed Income Investor Call: Goldman Sachs (NYSE:GS) on August 1.
U.S. auto sales report: Kelley Blue Book forecasts a 6% drop in total volume for July. By automaker, KBB sees General Motors (NYSE:GM) -9% to 243K, Ford (NYSE:F) -6% to 202K, Toyota (NYSE:TM) -4% to 205K, Fiat Chrysler (NYSE:FCAU) -7% to 168K, Honda (NYSE:HMC) -4% to 147K, Nissan (OTCPK:NSANY) -6% to 125K, Hyundia/Kia (OTCPK:HYMLF) -11% to 120K, Subaru (OTCPK:FUJHY) -4% to 54K, Volkswagen 0% to 51K.
Wells Fargo San Francisco Biotech Corporate Access Day: ZIOPHARM Oncology (NASDAQ:ZIOP), Ionis Pharmaceuticals (NASDAQ:IONS), AveXis (NYSE:AVX), Global Blood Therapeutics (NASDAQ:GBT), Halozyme Therapeutics (NASDAQ:HALO), Immune Design (NASDAQ:IMDZ), MyoKardia (NASDAQ:MYOK), OncoMed Pharmaceuticals (NASDAQ:OMED), Sangamo Therapeutics (NASDAQ:SGMO), Alder Biopharmaceuticals (NASDAQ:ALDR), Array BioPharma (NASDAQ:ARRY) and Five Prime Therapeutics on August 1 and 2. (NASDAQ:FPRX).
Barron's mentions: Citigroup (NYSE:C) is seen rallying 50% and a new CEO at Honeywell (NYSE:HON) is seen driving share gains. On the tech front, a gloomy view is posted on Twitter (NYSE:TWTR), while Alphabet (GOOG, GOOGL) and Amazon (NASDAQ:AMZN) are expected to take a breather. There's a breakdown on why shorting the VIX (VXX, VXZ, XIV) is a tricky business.
Execs with General Motors (GM +0.7%) took a victory lap on the earnings call after the company topped profit estimates and also talked up the next-gen initiatives that are revving up in Detroit.
GM says it was the first automaker to mass produce 130 autonomous EVs in a month and noted the expansion of Maven to New York.
On the financial front, CFO Chuck Stevens said GM is on track to hit full-year EPS guidance of $6.00 to $6.50 and its cost efficiencies target of $6.5B through 2018. The backed guidance arrives even with GM adding 273K units in vehicle inventory in Q2 compared to a year ago.
General Motors (NYSE:GM) reports consolidated EBIT-adjusted of $3.7B and EBIT-adjusted margin of 10.0%.
The automaker says it recorded North America EBIT-adjusted of $3.5B and EBIT-adjusted margin of 12.2%.
Global deliveries were flat during the quarter due to a strategic decision to back away from the daily rental market in North America. GM ended the quarter with global market share of 11.5%.
GM says that its return on invested capital-adjusted of 30.4% is ahead of its target of 25%.
GM CEO Mary Barra: "Disciplined and relentless focus on improving our business performance led to a strong quarter and very solid frst half of the year. We will continue transforming GM to capitalize on growth opportunities and deliver even more value for our shareholders."