Happy Tuesday Zingernation!
Goood morning Zingernation! All major indices are green heading into the open as investors look for more signs that we may have already bottomed. Yesterday, the markets had another roller-coaster day, opening up before quickly reversing and closing relatively flat.
Shares of Las Vegas Sands (LVS) and other casino stocks with Macau exposure are trading higher pre-market following news that China will ease its COVID restrictions for international travelers. Macau is a popular gambling tourist destination for international travelers.
1. Why Nike Shares Are Sliding
What Happened: Nike shares are trading lower Tuesday after the company reported earnings. Several analysts also lowered price targets on the stock following the company's quarterly results.
Why It Matters: Nike reported fiscal fourth-quarter revenue of $12.2 billion, which beat the estimate of $12.07 billion, according to data from Benzinga Pro. The company reported quarterly earnings of 90 cents per share, which beat the estimate of 81 cents per share.
2. Surging Gas Prices Increases Demand For Tesla Cars
What’s Happening: Some Uber Technologies, Inc and Lyft, Inc drivers found renting or buying a Tesla, Inc luxury electric car a relatively profitable option amid skyrocketing gas prices, Bloomberg reports.
Why It Matters: The average price for a gallon of gas in the U.S. surpassed $4 for the first time in March, pinching the gig drivers by more than $100 per day, up from $60 a day, making it challenging to earn a decent profit.
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3. JetBlue Makes Another Offer For Spirit Airlines
What Happened: In a Tuesday letter to Spirit shareholders, JetBlue CEO Robin Hayes declared his company’s “already superior proposal” would be sweetened with an “increased accelerated prepayment to $2.50 per share, structured as a cash dividend to Spirit shareholders promptly following the Spirit shareholder vote approving the combination between Spirit and JetBlue (subject to CARES Act limitations).”
Why It Matters: Hayes also promised an “enhanced reverse break-up fee of $400 million payable to Spirit in the unlikely event the transaction is not consummated for antitrust reasons,” along with a ticking fee mechanism designed to provide shareholders with monthly pre-payments of 10-cents per share between January 2023 and the date when JetBlue’s offer is either consummated or terminated.
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