Stocks moved into the red Monday afternoon as investors braced for the start of what is expected to be a gloomy earnings season. Bobbi Rebell reports.
A late day slide putting pressure on stocks, even as oil prices hit a four-month high. Tesla Motors is recalling 2700 Model X sport utility vehicles. This comes one week after the electric car company had received 253,000 pre-orders in 36 hours for its Model 3 mass market sedan. Financial advisor Steve Dudash of IHT says sell the stock: (SOUNDBITE) STEVE DUDASH, PRESIDENT, IHT WEALTH MANAGEMENT, (ENGLISH) SAYING: "They cannot produce that number of cars. There's no way they can produce cars at the price they're claiming." Canadian Pacific abandoned its bid to buy Norfolk Southern, sending shares of Canada's second largest railroad operator higher. The opposite case with Britain's Daily Mail. The newspaper owner is in talks with potential partners to make a joint offer for Yahoo's web assets, driving the Internet company's shares higher. Beep beep from Hertz. The rental car company warned that rental revenue for the first quarter and full year would be lower than previously forecast. It blamed excess fleet capacity. Shares of rival Avis Budget fell in sympathy. Chesapeake Energy shares the S&P 500's biggest gainer Monday after the natural gas producer amended its deal with its lenders, holding on to its $4 billion loan. The Department of Justice announced Goldman Sachs has agreed to pay $5 billion to settle claims that it misled mortgage bond investors during the financial crisis. In Europe, mining and bank shares pushed stocks higher. But the FTSE 100 finished flat.