Here is what you need to know.
Tesla wants to buy SolarCity. Tesla has offered to buy SolarCity for between $26.50 to $28.50 per share, valuing the company at almost $3 billion. Such a deal would bring together two companies founded by Elon Musk. The higher end of the range represents a 35% premium from Wednesday’s closing price. “Tesla customers can drive clean cars and they can use our battery packs to help consume energy more efficiently, but they still need access to the most sustainable energy source that’s available: the sun,” Tesla said in a statement announcing the offer.
FedEx beats. The delivery giant announced adjusted earnings of $3.30 per share, edging out the $3.28 that was expected. Revenue climbed 7.1% to $12.97 billion, which was ahead of the $12.77 billion that analysts were anticipating. FedEx sees current fiscal year adjusted earnings of $11.75 to $12.25 per share compared to the Thomson Reuters consensus of $12.05. “Fiscal 2016 was a successful year for FedEx in many ways,” Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer, said in the earnings release.
Janet Yellen moves her testimony to the House Financial Services Committee. On Tuesday, Fed Chair Janet Yellen testified before the Senate Banking Committee, noting the Fed will be cautious when raising rates even though it expects data on the labour, employment, and inflation fronts to improve. While Wednesday’s prepared remarks will be the same as Tuesday’s, there will once again be a Q&A session by members of the committee. The hearing will begin at 10 a.m. ET.
Visium Asset Management is having a rough year. Visium Asset Management’s flagship fund, healthcare focused Visium Balanced Fund, is down 10.18% year-to-date through June 17, according to performance estimates viewed by Business Insider. That’s worse than the 9.3% loss it had suffered through May. Additionally, the firm’s global fund, which it sold to AllianceBernstein last week, is off 3.82% for the year, according to the estimates. Sanjay Valvani, a star trader at Visium, was found dead Monday evening in what appeared to be a suicide. Valvani was recently charged with insider trading, and had pleaded not guilty.
Oil is back above $50. West Texas Intermediate crude oil has reclaimed the $50 per barrel mark after Tuesday’s American Petroleum Institute data showed a larger than expected draw. According to the API, inventories fell by 5.2 million barrels, which was a lot larger than the 1.7 million barrel drawdown that was expected. Currently, WTI trades up 0.8% at $50.29.
Foreign companies might soon be able to list in China. The People’s Bank of China is considering allowing foreign companies to list their shares on the mainland as part of its ongoing effort to open up its economy. Additionally, Beijing will allow mainlanders to invest in overseas capital markets, says the South China Morning Post, citing the PBOC’s 2015 annual report. No timetables have been announced.
The Bank of Thailand kept policy on hold. Thailand’s central bank held its benchmark interest rate at 1.50%, as expected. According to the BOT, “The committee saw merit in preserving policy space given that the Thai economy would still be facing risks going forward, such as the fragile global economic recovery, monetary policy divergence among major advanced economies, the result of the EU referendum in the U.K. (‘Brexit’) and financial stability concerns in China.” The Thai baht ended Wednesday’s session little changed at 35.24 per dollar.
Stock markets around the world are mixed. Germany’s DAX (+0.5%) leads the gains in Europe after Japan’s Nikkei (-0.6%) trailed in Asia. S&P 500 futures are up 2.00 points at 2082.50.
Earnings reporting is light. Barnes & Noble, Bed Bath & Beyond, and Red Hat are among the companies reporting after markets close.
US economic data picks up. The FHFA Housing Price Index will be released at 9 a.m. ET and existing home sales will cross the wires at 10 a.m. ET. US crude oil inventories will be announced at 10:30 a.m. ET. The US 10-year yield is down one basis point at 1.69%.