A new court ruling on the 2010 Gulf oil spill rocked shares of BP. A judge has found the oil giant “grossly negligent” in the Deepwater Horizon disaster. The decision opens the company to the possibility of as much as another $18 billion in fines. BP says it will appeal the decision. Shares tumbled about six percent to $44.89, their worst day in over three years.
Profits at Hovnanian soared as the home builder delivered more homes and its margins strengthened. But revenues came in below analyst estimates. Despite that, shares rose one percent to $4.25.
General Electric & Electrolux
Sweden’s Electrolux is reportedly close to buying General Electric’s appliance business: it could be a $2.5 billion deal. GE confirmed a month ago that it was reviewing strategic options, but now it looks like it is close to selling the unit. GE shares edged up a fraction to $25.96.
Nordstrom shares touched a new high after the retailer authorized a new stock buyback program of up to $1 billion. This adds on to the more than $320 million left in its existing repurchase program. The stock was up one percent to $70.43, closing below that record.
Dow component Verizon has hiked its quarterly dividend. The nearly 4-percent increase will bring the payout to 55 cents a share. It will be payable on November 3rd. Despite that shares fell a fraction to $49.72.
Mattress Firm & Sleep Train
Mattress firm is buying privately help Sleep Train for $425 million in an effort to expand its presence on the West Coast. Also Mattress Firm reported better than expected first quarter profit. Investors will sleep better tonight, shares were up 10 percent to $62.69.
Verifone also out with results that topped estimates. The company raised its full-year revenue forecast for the third time, encouraged by strong sales of its device that can accept chip-embedded credit cards. Shares popped 1.5 percent to $35.05.
Mobileye reported sharply higher revenue just one month after going public on strong demand for its products. The company makes cameras used to avoid car crashes. Still, shares fell almost 3.5 percent to $45.37.