Shares of General Electric (GE) gained about 8% in early morning trading Tuesday after the struggling multinational conglomerate announced plans to spin off its health-care business and separate its stake in Baker Hughes (BHGE) over the next few years.
Netflix, Salesforce, Spotify and Northrup Grumman are the companies to watch.
The slimmed-down company will focus on jet engines, power plants and renewable energy, which GE hopes will reward battered shareholders who have seen the stock lose more than half its value over the past 20 years. "This is really the culmination of 10 years of observations I've had about the company," said Chief Executive Officer John Flannery, a GE veteran who took the helm in August with a mandate to revamp the company. GE said its plan will strengthen its balance sheet by reducing debt, building up cash and further shrinking GE Capital.
GE CEO: This is the end of the blue chip's overhaul — 'We are finished'|| 105294811
Tandem Diabetes Care Inc. bulls still see upside for the insulin pump maker, even after shares increased ten-fold so far this year. Sell-side analysts rushed to boost their price targets for one of the Russell 2000 Index's best performers in the wake of last week's Food and Drug Administration approval of a technology for the company's insulin pump. Piper Jaffray analyst JP McKim called the approval a "game changer" that will help attract patients and give them reason to upgrade to newer pumps.
Another corrective move in shares of Nvidia (NASDAQ:NVDA) is taking shape courtesy of geopolitical tensions. Chip stocks came unglued to kick off the trading week, and nowhere was investor panic more pronounced than in Nvidia. Escalating trade war fears and stricter foreign ownership measures aimed directly at large-cap technology were behind the price swoon which clipped the semis by more than 3.5% and NVDA stock by an outsized 4.7%.
Jun.26 -- President Donald Trump turned his attention to Harley-Davidson's decision to move some production overseas to avoid European Union tariffs while his administration offers conflicting messages on trade plans. Bloomberg's Kevin Cirilli reports on "Bloomberg Markets: The Open."
