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Electric truck maker Nikolas shares fall as SEC reportedly examines short sellers fraud claims – CNBC

https://www.cnbc.com/2020/09/15/nikolas-shares-fall-as-sec-reportedly-examines-short-sellers-fraud-claims.html

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Trevor Milton CEO of Nikola

Massimo Pinca | Reuters

Shares of electric truck maker Nikola fell Tuesday after Bloomberg news reported that the U.S. Securities and Exchange Commission is looking into short seller claims that the company misled investors.

Short seller Hindenburg accused Nikola founder Trevor Milton of making false statements about its technology in order to grow the company and partner with auto companies.

The report, titled “Nikola: How to Parlay An Ocean of Lies Into a Partnership With the Largest Auto OEM in America,” was released two days after the company announced a deal with General Motors that sent both companies’ shares soaring. It characterized Nikola as an “intricate fraud built on dozens of lies” by Milton.

The SEC is reportedly looking at whether Nikola may have violated securities laws, according to Bloomberg.

The SEC routinely probes short seller claims. There’s no guarantee that the commission will launch a full investigation, but the report was enough to send Nikola shares tumbling in after-hours trading on Monday and again in morning trading Tuesday. Shares of the company dropped by about 6% after the markets opened.

The SEC declined to comment Tuesday morning. Nikola, in a statement Monday, said it “proactively contacted and briefed” the agency last week regarding the report. Nikola said it “welcomes the SEC’s involvement in this matter.”

The report was released two days after General Motors said it is taking an 11% stake in Nikola. GM said it planned to produce Nikola’s electric pickup truck, the Badger, by the end of 2022. GM CEO Mary Barra on Monday said the automaker conducted “appropriate diligence” on the company.

Hindenburg doubled down on its claims Tuesday after Nikola’s response Monday. The short seller said Nikola failed to address a majority of questions raised by the report, which characterized Nikola’s response as having “holes big enough to roll a truck through.”

Nikola has repeatedly denied and disputed the claims, however the company on Monday confirmed one of Hindenburg’s largest claims — that it staged a video showing a truck that appeared to be functional but wasn’t.

Nikola did not immediately have a response to Hindenburg’s most recent comments. 

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Stocks making the biggest moves in the premarket: Disney, Micron, Dow Inc., GM & more – CNBC

https://www.cnbc.com/2020/09/30/stocks-making-the-biggest-moves-in-the-premarket-disney-micron-dow-inc-gm-more.html

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Take a look at some of the biggest movers in the premarket:

Walt Disney (DIS) – Disney is cutting 28,000 jobs in its theme parks division, as the coronavirus impacts park visits and as the company’s flagship Disneyland resort remains closed for the foreseeable future due to restrictions imposed by California.

Palantir (PLTR) – Palantir will begin trading on the New York Stock Exchange today in a direct listing, with the NYSE setting a reference price of $7.25 per share for the data analytics company’s stock. That values Palantir at $15.8 billion ahead of its market debut.

Asana (ASAN) – Asana will also begin trading today on the NYSE, with a reference price of $21 per share for the software company. Palantir and Asana are only the third and fourth companies to go public via direct listing, following Spotify (SPOT) and Slack (WORK).

Micron Technology (MU) – Micron beat estimates by 9 cents a share, with quarterly earnings of $1.08 per share. The chip maker’s revenue also beat forecasts. Micron gave a lower-than-expected current-quarter revenue estimate, however, partly due to the U.S. government ban on shipments to China’s Huawei Technologies.

Dow Inc. (DOW) – The materials science company announced plans to reduce its global workforce costs by 6%, although it did not announce how many jobs might be cut. It will take a current quarter charge of $500 million to $600 million in connection with the restructuring.

General Motors (GM) – GM will not close its deal to buy a stake in electric truck maker Nikola (NKLA) today, according to sources who spoke to CNBC’s Phil LeBeau. Talks between the two sides will continue, however, amid accusations by short-seller Hindenburg Research that Nikola had misled investors about its technology. Nikola has denied those accusations.

Caesars Entertainment (CZR) – The casino operator’s $3.7 billion bid to buy William Hill was accepted by the British betting firm, with William Hill saying it believed the deal was the best option for shareholders at an attractive price.

Canada Goose (GOOS) – The outerwear maker was upgraded to “outperform” from “market perform” at Cowen, which noted the company’s strong brand equity and global strength.

Royal Dutch Shell (RDS.A, RDS.B) – The energy giant said it plans to cut up to 9,000 jobs, after completing a broad cost-cutting review. Those cuts will be completed by the end of 2022, at a projected savings of up to $2.5 billion annually.

Apple (AAPL) – Apple CEO Tim Cook was granted 333,987 restricted stock units, his first stock grant since 2011. Apple’s board said it made the award in recognition of Cook’s “outstanding leadership.”

Moderna (MRNA) – Moderna’s experimental Covid-19 vaccine appears safe and shows signs of working in older adults, according to study results published in the New England Journal of Medicine.

Regeneron Pharmaceuticals (REGN) – The drugmaker said its experimental Covid-19 treatment was effective in treating early-stage illness, improving symptoms and reducing virus levels in patients who were not hospitalized.

Duke Energy (DUK) – Duke was approached by NextEra Energy (NEE) about a takeover recently, according to people familiar with the matter who spoke to The Wall Street Journal The paper said Duke rejected the approach but that NextEra was still interested in pursuing a combination of the two Southern utility companies.

Sherwin-Williams (SHW) – The paint producer boosted its sales and profit outlook, thanks in large part to a boost in painting projects by homebound consumers.

Starbucks (SBUX) – Starbucks was upgraded to “outperform” from “market perform” at Cowen, which notes that the coffee chain has expanded digital access with new pay options and also seen rapid growth in curbside pickup.

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Stocks making the biggest moves in the premarket: Disney, Micron, Dow Inc., GM & more – CNBC

https://www.cnbc.com/2020/09/30/stocks-making-the-biggest-moves-in-the-premarket-disney-micron-dow-inc-gm-more.html

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Take a look at some of the biggest movers in the premarket:

Walt Disney (DIS) – Disney is cutting 28,000 jobs in its theme parks division, as the coronavirus impacts park visits and as the company’s flagship Disneyland resort remains closed for the foreseeable future due to restrictions imposed by California.

Palantir (PLTR) – Palantir will begin trading on the New York Stock Exchange today in a direct listing, with the NYSE setting a reference price of $7.25 per share for the data analytics company’s stock. That values Palantir at $15.8 billion ahead of its market debut.

Asana (ASAN) – Asana will also begin trading today on the NYSE, with a reference price of $21 per share for the software company. Palantir and Asana are only the third and fourth companies to go public via direct listing, following Spotify (SPOT) and Slack (WORK).

Micron Technology (MU) – Micron beat estimates by 9 cents a share, with quarterly earnings of $1.08 per share. The chip maker’s revenue also beat forecasts. Micron gave a lower-than-expected current-quarter revenue estimate, however, partly due to the U.S. government ban on shipments to China’s Huawei Technologies.

Dow Inc. (DOW) – The materials science company announced plans to reduce its global workforce costs by 6%, although it did not announce how many jobs might be cut. It will take a current quarter charge of $500 million to $600 million in connection with the restructuring.

General Motors (GM) – GM will not close its deal to buy a stake in electric truck maker Nikola (NKLA) today, according to sources who spoke to CNBC’s Phil LeBeau. Talks between the two sides will continue, however, amid accusations by short-seller Hindenburg Research that Nikola had misled investors about its technology. Nikola has denied those accusations.

Caesars Entertainment (CZR) – The casino operator’s $3.7 billion bid to buy William Hill was accepted by the British betting firm, with William Hill saying it believed the deal was the best option for shareholders at an attractive price.

Canada Goose (GOOS) – The outerwear maker was upgraded to “outperform” from “market perform” at Cowen, which noted the company’s strong brand equity and global strength.

Royal Dutch Shell (RDS.A, RDS.B) – The energy giant said it plans to cut up to 9,000 jobs, after completing a broad cost-cutting review. Those cuts will be completed by the end of 2022, at a projected savings of up to $2.5 billion annually.

Apple (AAPL) – Apple CEO Tim Cook was granted 333,987 restricted stock units, his first stock grant since 2011. Apple’s board said it made the award in recognition of Cook’s “outstanding leadership.”

Moderna (MRNA) – Moderna’s experimental Covid-19 vaccine appears safe and shows signs of working in older adults, according to study results published in the New England Journal of Medicine.

Regeneron Pharmaceuticals (REGN) – The drugmaker said its experimental Covid-19 treatment was effective in treating early-stage illness, improving symptoms and reducing virus levels in patients who were not hospitalized.

Duke Energy (DUK) – Duke was approached by NextEra Energy (NEE) about a takeover recently, according to people familiar with the matter who spoke to The Wall Street Journal The paper said Duke rejected the approach but that NextEra was still interested in pursuing a combination of the two Southern utility companies.

Sherwin-Williams (SHW) – The paint producer boosted its sales and profit outlook, thanks in large part to a boost in painting projects by homebound consumers.

Starbucks (SBUX) – Starbucks was upgraded to “outperform” from “market perform” at Cowen, which notes that the coffee chain has expanded digital access with new pay options and also seen rapid growth in curbside pickup.

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Seven airlines close billions of dollars in loans with Treasury – Fox Business

https://www.wsj.com/articles/seven-airlines-close-billions-of-dollars-in-loans-with-treasury-11601434822?mod=hp_lista_pos2

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The U.S. Treasury said it has closed loans to seven passenger airlines and joined with the industry to call on Congress to extend more aid to prevent massive job cuts later this week.

Airlines continue to grapple with a sharp drop-off in travel because of the coronavirus pandemic and accompanying restrictions. The loans were one of two major sources of aid to airlines under the Cares Act passed in March. Airlines also received $25 billion to continue paying workers through the summer.

Airlines…

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