Markets
GPS

3 Stocks to Watch on Tuesday: Consolidated Edison, Inc. (ED), Gap Inc (GPS) and SolarCity Corp (SCTY)

InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips

The stock market was unable to recover from its two-week slump yesterday, with Monday turning in mixed results. The S&P 500 edged 0.1% higher, while the Dow Jones Industrial Average slid 0.2% Monday.

A number of companies had unfortunate news after the bell yesterday, including Consolidated Edison, Inc. (NYSE: ED ), Gap Inc (NYSE: GPS ) and SolarCity Corp (NASDAQ: SCTY ).

SolarCity Corp (SCTY)

The struggling solar panel installer had some disappointing news for investors on Monday night, and investors responded in kind.

SolarCity reported a beat in revenues, bringing in $122.6 million to top analyst expectations of $110 million.

That was about the only place where SCTY surprised to the upside.

SolarCity registered a first-quarter loss of $2.56 per share, which fell well short of estimates for $2.31 per share. Meanwhile, SolarCity projected a wider-than-anticipated Q2 loss, providing guidance of -$2.70 to -$2.80 per share vs. expectations for $2.13.

SCTY investors were already on edge, as the news comes just days after Jim Chanos spoke on CNBC about his short position in SolarCity , saying the company is "losing money on every installation and making it up in volume."

The result? Losses of at least 20% in Tuesday's premarket trade.

Gap Inc (GPS)

Gap shares also were headed to a big splat on Tuesday morning.

GPS gave troubling guidance for the current quarter while announcing disappointing same-store sales results for April.

Comps declined 7% for the month, well short of expectations for expansion of 0.5%. That came on weakness across its major brands, Gap, Banana Republic and Old Navy, with the latter looking the worst at a 10% decline.

That has prompted Gap to lower its quarterly guidance to a range of 31 to 32 cents per share, where analysts were looking for 44 cents.

The company is now considering its options for international Banana Republic and Old Navy locations.

GPS shares were tanking 12% in premarket trade.

Consolidated Edison, Inc. (ED)

ConEdison shares were hit after the bell following the announcement of a secondary offering.

The company revealed that it will be selling 8.8 million of its common shares, with an additional 1.32 million that will be made available to the underwriters.

Per ConEd:

"The offering is being made in connection with the agreement, announced in April 2016, by a Con Edison subsidiary to purchase an equity interest in a gas pipeline and storage joint venture but is not conditioned upon completion of the purchase. Con Edison expects to use the net proceeds that it receives from the offering for general corporate purposes, including repayment of outstanding short-term debt, and to subsequently fund the purchase of the joint venture interest with available cash and the proceeds from the issuance of additional short-term debt."

Among the underwriters are Citigroup Inc (NYSE: C ), J.P. Morgan Chase & Co. (NYSE: JPM ) and Wells Fargo & Co (NYSE: WFC ).

ED stock was looking to open Tuesday off 2%.

As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.

More From InvestorPlace

The post 3 Stocks to Watch on Tuesday: Consolidated Edison, Inc. (ED), Gap Inc (GPS) and SolarCity Corp (SCTY) appeared first on InvestorPlace .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

GPS ED JPM C

Other Topics

Stocks

Latest Markets Videos