Herbalife is Investigated and Oracle Makes an Acquisition: Morning Buzzers
Stock futures apparently woke up with a hangover on Monday morning after tremendous gains on Friday. Investors are waiting for factory orders, due out at 10:00 a.m., that are expected to show about 2.4 percent growth after flat lining in November.
Futures at 8:55 a.m.: DJIA: -0.49%, S&P 500: -0.46%, NASDAQ: -0.53%.
Herbalife (NYSE:HLF) dropped as much as 9 percent in pre-market trading after a report indicates that the company is under investigation by the Federal Trade Commission. The company, which sells nutritional supplements and personal care products, has had a bumpy ride since December, when hedge-fund activist Bill Ackman announced a massive short position in the company, calling it a pyramid scheme and forecasting an investigation by regulators.
Chevron (NYSE:CVX) was off over 1 percent in pre-market trading after analysts at UBS downgraded the company’s stock from “Buy” to “Neutral” with a price target of $120. The oil and gas supermajor closed Friday at $116.50 per share after releasing relatively strong earnings last week. Chevron has been in rally mode since November and analysts could think that the run is over.