Rally resumes on Wall Street, Greece avoids default
Wall Street is building on yesterday's rally. All three major averages (^DJI, ^GSPC, ^IXIC) are higher across the board as oil trades at 2016 highs and after Greece reached a deal with its creditors that will unlock the next tranche of bailout loans.
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Tiffany (TIF) shares tanked in early trading. The upscale jewelry retailer gave a downbeat outlook for the year after it reported a miss on both its top and bottom lines for the first quarter. Sales fell 7.4% from a year ago as tourists spent less because of the stronger dollar.
Hewlett Packard Enterprise (HPE), after splitting up from Hewlett-Packard last year, will now merge its struggling IT services unit with computer sciences so it can focus more on its cloud services business and other growth areas. This comes as it reported earnings that met analysts' estimates, while revenue came in above forecasts.
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Microsoft (MSFT) is taking more steps to streamline its mobile phone operations, which it bought from Nokia two years ago. The company said it will lay off 1,850 workers and take a charge of $950 million as a result.
Monsanto (MON) rejected Bayer's $62 billion takeover offer because the bid was too low but said it was still open to a deal. Bayer responded by saying it's confident that they will be able to address any potential financing or regulatory concerns raised by Monsanto.
AB InBev (BUD) shares rose in early trading after the European Commission approved its plan to buy rival SABMiller for about $108 billion, but on the condition it will sell almost all of SABMiller's European assets.
But back in the U.S., the brewer's distribution incentives are being questioned. The Justice Department is contacting distributors and craft brewers about AB InBev according to Reuters. The Feds think current incentives are being made to suppress craft sales – rather than boost InBev’s sales. InBev has seen sales drop in recent years because of craft beers becoming more popular.
CEO pay on the rise
Certain CEO’s are getting paid more and more even when their stock prices don’t show it. A chief executive in the S&P 500 index made $10.8 million last year, according to the Associated Press. That’s including bonuses and other incentives. That’s up $500,000. The 4.5% pay raise is almost double than that of the typical American worker.
TSA on Capitol Hill
The head of the TSA is heading to Capitol Hill to explain why people are dealing with long security lines at airports. Long lines have been a problem at airports since early spring. The issue was flagged by Washington when thousands of people in Chicago missed their flights because of long security checks. The TSA is already replacing the management team in charge at Chicago’s O’Hare International airport.
