Gaming commission to allow Wynn Resorts to retain its gaming license

The Massachusetts Gaming Commission will allow Wynn Resorts to retain its gaming license but will fine the company $35 million, the commission announced Tuesday evening.

In a written statement, MGC Chair Cathy Judd-Stein said: “Ensuring public confidence in the integrity of the gaming industry and the strict oversight of the gaming establishments through rigorous regulation is our principal objective.” But “with that comes an equally significant duty of fairness.”

The decision clears the path for the global casino company to open its $2.6 billion property Encore Boston Harbor in Everett, Massachusetts, in June.

Regulators had tackled serious questions about the company’s suitability after investigators determined the company repeatedly and over years had turned a blind eye to employees’ accusations of rape, sexual harassment and other misconduct against founder and then-CEO Steve Wynn. He has said he had romantic relationships with workers but has consistently denied any coercion.

Jeffries gaming analyst David Katz says, “In terms of what expectations were for potential outcomes, this is at the positive end of the range. On the other end of the range — where Wynn couldn’t keep the license, the building or its executive team — would have been more disruptive to the company and the stock.”

On April 7, Jeffries upgraded Wynn Resorts to a buy rating with a price target of $170. “Our thesis is: this is the last big project they have. They go through a capital pivot where the spending stops and the cashflow goes up and the leverage goes down and it accretes to the equity value,” Katz said.

Harry Curtis, gaming analyst at Nomura/Instinet, says the commission’s decision “has long-term, positive implications for Wynn’s ability not only to compete, but to succeed, in larger scale, global destination markets.”

The company had defended itself by saying that it separated from its CEO shortly after the allegations were made public in The Wall Street Journal in January 2018. Wynn resigned on Feb. 6 that year and sold his entire stake by mid-March.

Wynn Resorts had contended the company is no longer about a single man. Executives and board members argued strenuously the company had reinvented itself, with new leadership, a new board with three new women as directors, new policies and a new commitment to transparency with regulators.

The MCG decision spares Wynn resorts from the much more damaging fate of losing its gaming license. The commission acknowledged all the internal changes and said, “Wynn is likely to be a successful operator in Everett.”

The commission also reviewed the suitability of CEO Matt Maddox and co-founder Elaine Wynn, Steve’s ex-wife, the only two individual qualifiers remaining from the original license application, and decided they are suitable.

Gaming regulators have voted to fine Maddox $500,000 for what they called his failures in enforcing company policy.

Also the commission is requiring the board to hire an executive coach for Maddox to focus on leadership development and will require the roles of chairman and CEO to remain separated for the 15-year term of the license.

Maddox was the longtime protege of Steve Wynn — and his appointed successor. In a three-day hearing in March, after investigators presented their report, regulators grilled Maddox about why he didn’t know about multiple settlements, complaints or mishandling of allegations.

In its post-hearing brief, Wynn Resorts responded: “… the settlements were known to very few within the Company who worked in silos, meaning that some individuals became aware of certain settlements, but not others.”

Wynn Resorts fiercely defended its CEO in the brief, arguing the commission applied the standard of suitability as “one that judges his leadership, which is not a statutory criterion in the Gaming Act.”

Regulators had pressed Elaine Wynn in the March hearing about why, as a board member, she hadn’t revealed to the board or to gaming regulators the existence of a 2005 multimillion-dollar settlement between Steve Wynn and a former employee. She testified in a hearing in February that she had fulfilled her responsibility by informing then-General Counsel Kim Sinatra.

Sinatra is among a number of former executives named and blamed by gaming regulators in both Nevada and Massachusetts for systemic failures to enforce company policy. The company says those employees are no longer with the company.

In February, the Nevada Gaming Commission fined Wynn Resorts a record $20 million for failing to protect employees and apply its own policies to Steve Wynn. But it followed up that decision with a letter to Wynn Resorts confirming that in Nevada, Maddox was determined to have met suitability requirements.

Wynn Resorts had held off announcing a date for its first-quarter earnings release and call while it waited on the decision in Massachusetts.

Stocks making the biggest moves after hours: Apple, AMD, Mondelez

The Apple logo is seen on the window at an Apple Store on January 7, 2019 in Beijing, China.

Kevin Frayer | Getty Images

Check out the companies making headlines after the bell:

Shares of Apple soared more than 5% in extended trading Tuesday following the release of the tech giant’s better-than-expected earnings for the fiscal second-quarter. Tim Cook’s company reported earnings per share of $2.46 on revenue of $58.02 billion. Wall Street estimated earnings per share of $2.36 on revenue of $57.37 billion, according to Refinitiv consensus estimates.

Apple’s iPhone revenue came in at $31.05 billion, slightly lower than the $31.10 billion expected. Services revenue beat estimates of $11.37 billion at $11.45 billion.

For the third quarter Apple expects to see revenue between $52.5 billion and $54.5 billion, guiding higher than the $51.94 billion in revenue that analysts had projected.

AMD shares surged as much as 7% after hours Tuesday after reporting strong first-quarter earnings and guidance in line with estimates. The semiconductor company earned $1.27 billion in revenue, topping estimates of $1.26 billion. Earnings per share were 6 cents, slightly higher than the forecast of 5 cents per share, according to Refinitiv. Gross margin was in line with estimates at 41%.

AMD expects to earn about $1.52 billion in revenue during the company’s second quarter. Analysts had projected $1.53 billion in revenue for that period.

Shares of Amgen fell as much as 1% after the bell Tuesday despite better-than-expected first-quarter earnings. The biotech copany posted earnings per share of $3.56, beating Refinitiv estimates of $3.48. Revenue came in at $5.56 billion, higher than the $5.54 billion expected by analysts.

Mondelez shares seesawed after market close Tuesday after the food company reported mixed first-quarter earnings. The Oreo cookie maker earned $6.54 billion in revenue, compared to the $6.55 billion forecast by analysts surveyed by Refinitiv. Earnings per share were 65 cents, topping estimates by 4 cents per share. 

The snack giant’s organic revenue increased 3.7%, beating estimates of a 2.3% increase.

Shares of insurance company Chubb ticked 1% higher in extended trading Tuesday following the release of its disappointing first-quarter earnings. Missing on the top and bottom lines, Chubb reported earnings per share of $2.54 on revenue of $6.73 billion. Wall Street expected earnings per share of $2.56 on revenue of $6.86 billion, according to Refinitiv.

Twitter could surge 20% to head back to multiyear highs: technician

Twitter ended April as one of the best performers in the S&P 500.

Todd Gordon, founder of TradingAnalysis.com, says the rally is just getting started.

“Twitter is a very good-looking chart post earnings. We saw some pretty impressive data following those earnings. Revenues were up 18% year over year and active users saw a pretty good increase, particularly in the U.S.,” Gordon said Tuesday on CNBC’s “Trading Nation. “

Given the strong fundamental case, Gordon sees Twitter clawing back from the losses suffered through the last half of 2018.

“As we take a look at the charts here, you can see that there’s a significant gap right here from $44 down into below $40, so on the back of this earnings report,” he said. “They’re trying to close that gap, which is a technical phenomenon that does often happen, so the gap closure will take place right around the $42.50 mark.”

Twitter gapped down below $40 in a sell-off in late July. It has not closed above that level in nine months.

“As I see this gap close happen, I think provided the overall market can maintain its current trend, which is up as we’re pressing or at new highs in the indexes, we should be able to 1) close that gap and 2) retest these old highs right around the $48 mark,” said Gordon.

A move back to its 52-week high at $47.79 represents 20% upside from Tuesday’s close. It has fallen 16% since hitting a multiyear high last June.

Gordon is buying the June 21 expiration 42/47 call spread for around $1.30. This is a bullish play that Twitter heads back above $47 by expiration.

Altice USA paid $200 million for streaming video start-up Cheddar

Jon Steinberg

Source: Jon Steinberg

Cable and internet provider Altice USA has agreed to buy news streaming start-up Cheddar for $200 million, snapping up a growing video site with a focus on ad revenue.

Cheddar founder and Chief Executive Jon Steinberg will stay on to lead Altice News, which includes Cheddar, News 12 and i24NEWS, an Israel-based 24-hour international news network. Altice USA CEO Dexter Goei told CNBC that Steinberg should be able to “turbocharge” Altice’s news offerings with a larger balance sheet at his disposal, and help Altice boster its advertising business.

“Cheddar gives us a full suite of news, business and general news to advertise across multiple different markets,” Goei said. “But beyond the product, it’s about bringing on board a management team led by Jon Steinberg that knows how to create good news content and get distributed as broadly as possible.”

Steinberg started Cheddar in 2016 as a live-streaming business channel geared to a millennial audience, and has since expanded into general news. Goei said that Steinberg will continue moving the company into new areas. 

The deal comes as other digital media companies struggle to sustain their growth with Google and Facebook gobbling up the majority of online ad dollars. BuzzFeed and Vice Media recently announced dramatic layoffs, as did Verizon Media Group, which includes HuffPo, Yahoo and TechCrunch. 

Eric Piermont | AFP | Getty Images

Cheddar has aggressively pushed its programming onto a variety of pay-TV platforms and free streaming services by not charging affiliate fees — revenue paid from a pay-TV provider to the content creator. Cheddar’s linear programming is available to 40 million households through deals with Dish’s Sling TV, AT&T’s DirecTV Now, Hulu With Live TV, YouTube TV and others.

Rather than collecting fees from providers, the company has made money through advertising and is on pace to double its revenue to about $50 million this year, Goei said. 

Goei said he was impressed that Steinberg took a niche idea — business news for young people — and grew it into a respectable business through entrepreneurial force. He’s now backed by a company with a market capitalization of $16 billion and an enterprise value of $39 billion, which factors in all of its debt, including what it raised to acquire New York-area cable provider Cablevision for $17.7 billion in 2016.

“What I really care about is Jon being able to do better with our existing businesses and create original content,” Goei said. “This is about maximizing underinvested and underutilized assets at Altice USA.”

The deal for Cheddar was all in cash, though Steinberg, who owns a significant stake, will use half of his proceeds to buy Altice USA stock, Goei said. Steinberg couldn’t immediately be reached for comment.

Cheddar raised $54 million in venture funding from investors including AT&T, Comcast Ventures (owned by CNBC parent Comcast), Raine Ventures, Liberty Global, Goldman Sachs and Lightspeed Ventures. 

WATCH: Altice USA CEO on growth, cord-cutting, competition

FDA clears iQOS, Philip Morris’ heated tobacco device

Philip Morris had submitted two separate applications with the regulatory agency, one simply to sell the device, which heats tobacco rather than burning it, and another to market it as being less harmful than cigarettes. The agency has not yet made a decision on the latter application.

“While the authorization of new tobacco products doesn’t mean they are safe, the review process makes certain that the marketing of the products is appropriate for the protection of the public health, taking into account the risks and benefits to the population as a whole,” FDA’s Center for Tobacco Products Director Mitch Zeller said in a statement.

Even without the reduced-risk claim, the FDA’s decision marks a win for Philip Morris and Altria, the latter of which will sell iQOS in the U.S. iQOS is a key component of both companies futures as they try to pivot past cigarettes. Smoking rates in the U.S. continue to hit new record lows, causing the tobacco giants to diversify in search of growth.

The iQOS tobacco heating system contains three parts: a holder, tobacco stick and a charger. The pen-like device contains a ceramic and gold plate that heats Philip Morris-branded tobacco sticks up to 350 degrees Celsius. Tobacco in cigarettes burns at temperatures at or greater than 600 degrees Celsius.

When reviewing PMI’s application, the FDA found the aerosol iQOS products “contains fewer toxic chemicals than cigarette smoke, and many of the toxins identified are present at lower levels than in cigarette smoke.” The agency also found iQOS delivered similar nicotine levels as conventional cigarettes, “suggesting a likelihood that IQOS users may be able to completely transition away from combustible cigarettes” and use only iQOS.

Data also suggest non-smokers and kids won’t be attracted to iQOS, the FDA said. Still, the agency is placing “stringent restrictions” on how iQOS is marketed, particularly online and on social media. The company must notify FDA on its labeling, advertising, marketing plans and how it plans to restrict youth access, advertising and promotions.

“We fully support this objective,” PMI CEO Andre Calantzopoulos said in a statement. “FDA has set a high standard and we look forward to working with them to implement the order so that iQOS is reaching the right audience—current adult smokers. “

Last year, reduced-risk products generated $4.1 billion in sales, or about 14 percent of PMI’s total $29.63 billion in revenue. The company wants to boost that statistic to between 38 percent and 42 percent by 2025.

Since first launching iQOS in Nagoya, Japan, and Milan, in 2014, Philip Morris has introduced it in more than 40 markets around the world. In some places, growth has surged. In the U.S., iQOS will enter a market where e-cigarette growth is surging, thanks in large part to Juul. Altria in December invested $12.8 billion for a 35% stake in Juul. 

The Centers for Disease Control and Prevention estimates 34.3 million adults in the U.S. currently smoke cigarettes. Philip Morris says iQOS will appeal to adult smokers because it’s a closer experience to traditional cigarettes yet one that’s less harmful.

Anti-tobacco groups disagree. They say heat-not-burn products are just the latest ploy from Big Tobacco to hook people onto its products.

Former FDA Commissioner Scott Gottlieb had embraced the idea that nicotine alternatives can serve as an option for people who want to continue smoking. Under him, the FDA has adopted the belief that nicotine products exist on a continuum of risk where conventional cigarettes are the most deadly and others being possibly not as harmful.

Read the FDA’s full statement below:

The U.S. Food and Drug Administration today announced it has authorized the marketing of new tobacco products manufactured by Philip Morris Products S.A. for the IQOS “Tobacco Heating System” – an electronic device that heats tobacco-filled sticks wrapped in paper to generate a nicotine-containing aerosol. The FDA has placed stringent marketing restrictions on the products in an effort to prevent youth access and exposure.

Following a rigorous science-based review through the premarket tobacco product application (PMTA) pathway, the agency determined that authorizing these products for the U.S. market is appropriate for the protection of the public health because, among several key considerations, the products produce fewer or lower levels of some toxins than combustible cigarettes.

The products authorized for sale include the IQOS device, Marlboro Heatsticks, Marlboro Smooth Menthol Heatsticks and Marlboro Fresh Menthol Heatsticks.

While today’s action permits the tobacco products to be sold in the U.S., it does not mean these products are safe or “FDA approved.”

All tobacco products are potentially harmful and addictive and those who do not use tobacco products should continue not to. Additionally, today’s action is not a decision on the separate modified risk tobacco product (MRTP) applications that the company also submitted for these products to market them with claims of reduced exposure or reduced risk.

“Ensuring new tobacco products undergo a robust premarket evaluation by the FDA is a critical part of our mission to protect the public, particularly youth, and to reduce tobacco-related disease and death. While the authorization of new tobacco products doesn’t mean they are safe, the review process makes certain that the marketing of the products is appropriate for the protection of the public health, taking into account the risks and benefits to the population as a whole. This includes how the products may impact youth use of nicotine and tobacco, and the potential for the products to completely move adult smokers away from use of combustible cigarettes,” said Mitch Zeller, J.D., director of the FDA’s Center for Tobacco Products.

“Importantly, the FDA is putting in place postmarket requirements aimed at, among other things, monitoring market dynamics such as potential youth uptake.

We’ll be keeping a close watch on the marketplace, including how the company is marketing these products, and will take action as necessary to ensure the continued sale of these products in the U.S. remains appropriate and make certain that the company complies with the agency’s marketing restrictions to prevent youth access and exposure. As other manufacturers seek to market new tobacco products, the FDA remains committed to upholding the vital public health standards under the law and using all the tools at our disposal to ensure the efficient and appropriate oversight of tobacco products. “

Under the PMTA pathway, manufacturers must demonstrate to the agency, among other things, that marketing of the new tobacco product would be appropriate for the protection of the public health. That standard requires the FDA to consider the risks and benefits to the population as a whole, including users and non-users of tobacco products. Importantly this includes youth. The agency’s evaluation includes reviewing a tobacco product’s components, ingredients, additives and health risks, as well as how the product is manufactured, packaged and labeled. The review for the IQOS products took into account the increased or decreased likelihood that existing tobacco product users will stop using tobacco products, and the increased or decreased likelihood that those who do not use tobacco products will start using them.

In particular, through the FDA’s scientific evaluation of the company’s applications, peer-reviewed published literature and other sources, the agency found that the aerosol produced by the IQOS Tobacco Heating System contains fewer toxic chemicals than cigarette smoke, and many of the toxins identified are present at lower levels than in cigarette smoke. For example, the carbon monoxide exposure from IQOS aerosol is comparable to environmental exposure, and levels of acrolein and formaldehyde are 89% to 95% and 66% to 91% lower than from combustible cigarettes, respectively.

Additionally, IQOS delivers nicotine in levels close to combustible cigarettes suggesting a likelihood that IQOS users may be able to completely transition away from combustible cigarettes and use IQOS exclusively. Available data, while limited, also indicate that few non-tobacco users would be likely to choose to start using IQOS, including youth.

While these non-combusted cigarettes may be referred to as “heat-not-burn” or “heated” tobacco products, they meet the definition of a cigarette in the Federal Food, Drug and Cosmetic Act. Therefore, these products must adhere to existing restrictions for cigarettes under FDA regulations, as well as other federal laws that, among other things, prohibit television and radio advertising. In addition, to further limit youth access to the products and exposure to their advertising and promotion, the FDA is placing stringent restrictions on how the products are marketed – particularly via websites and through social media platforms – by including requirements that advertising be targeted to adults. The company must also give notification to the FDA of, among other things, its labeling, advertising, marketing plans, including information about specific adult target audiences, and how it plans to restrict youth access and limit youth exposure to the products’ labeling, advertising, marketing and promotion. The agency has issued a document providing its rationale for these postmarket requirements, which highlight important considerations for reviewing the company’s applications as well any potential future PMTAs for other products.

The FDA also is requiring all package labels and advertisements for these products to include a warning about the addictiveness of nicotine, in addition to other warnings required for cigarettes, to prevent consumer misperceptions about the relative addiction risk of using IQOS compared to combusted cigarettes.

With the authorization of these products, the FDA will evaluate new available data regarding the products through postmarketing records and reports required in the marketing order. The company is required to report regularly to the FDA with information regarding the products on the market, including, but not limited to, ongoing and completed consumer research studies, advertising, marketing plans, sales data, information on current and new users, manufacturing changes and adverse experiences. The FDA may withdraw a marketing order if it, among other reasons, determines that the continued marketing of a product is no longer appropriate for the protection of the public health, such as if there is an uptake of the product by youth.

The FDA is continuing its substantive scientific review of the company’s MRTP applications. The company would need to receive an MRTP order from the FDA before they could market a tobacco product with any implicit or explicit claims that, among other things, a product reduces exposure to certain chemicals or that use of the product is less harmful than another tobacco product or would reduce the risk of disease. If a company markets a tobacco product as an MRTP without authorization, the company would be in violation of the law and may face FDA advisory or enforcement actions.

Watch Mark Zuckerberg at Facebook’s F8 Developer Conference

Facebook is expected to peel back the curtain on some of its new initiatives at its F8 Developer Conference on Tuesday.  CEO Mark Zuckerberg is expected to speak at 1 p.m. ET.

Zuckerberg announced in March that he believes Facebook’s future lies in private communications. Following a year of privacy-focused scandals, Zuckerberg has been touting the shift to messaging, saying the company will prioritize encryption and user safety.

Zuckerberg’s new strategy followed the company’s plans to combine its three messaging services, WhatsApp, Instagram and Messenger. F8’s schedule includes more than a dozen sessions focused on Messenger, such as,  “Deep Dive on Messenger Updates.”

Facebook tends to use its developer conference to announce key product releases. Last year, for example, Facebook announced the sale of its Oculus Go virtual-reality headset, a dating feature and a yet-to-be-released feature that would let users erase their data from Facebook.

-CNBC’s Sal Rodriguez contributed to this report.

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Watch: Facebook bans personality quizzes on its platforms

YouTube algorithm changes negatively impact Google ad revenue

Susan Wojcicki, CEO of YouTube.

Michael Newberg | CNBC

Google has a YouTube problem, according to CFO Ruth Porat.

On Monday, after reporting that ad revenue grew 15% versus the 24% it saw a year ago, Google’s parent company Alphabet saw its stock punished. It fell nearly 8% Tuesday morning.

According to Porat, YouTube was one of the culprits.

“While YouTube clicks continue to grow at a substantial pace in the first quarter, the rate of YouTube click growth rate decelerated versus a strong Q1 last year, reflecting changes that we made in early 2018, which we believe are overall additive to the user and advertiser experience,” Porat said on the company’s earnings call Monday.

Porat didn’t expand on precisely what changes in YouTube led to the poor ad revenue growth, and Google isn’t saying anything beyond her statements from Monday.

But if you wind the clock back a year, it’s easy to see what happened.

In January of 2018, Google announced changes to YouTube’s algorithms designed to stop “borderline content and content that could misinform users in harmful ways” from appearing in the feed of recommended videos you see on the side of a video page.

The goal was to make it harder to find videos full of conspiracy theories, fake news and all that other detritus that occasionally sent advertisers fleeing from the platform. Instead of YouTube directing you to a conspiracy theory about the latest school shooting, you were shown related videos from “authoritative” news sources the company considered worthy of bringing you accurate information.

On top of that, YouTube has removed millions of channels and videos that violated the company’s harmful content policies, most notably Alex Jones.

But all of those garbage videos also kept engagement high. It kept YouTube users tuned in to their feeds beyond the video they came to watch, even if the company said they only made up less than 1% of all videos on the site.

YouTube was literally incentivized to keep its algorithms pumping junk to the top of people’s feeds so people would keep watching and the ad dollars would keep flowing. A devastating Bloomberg report earlier this month showed that for years YouTube executives ignored warnings from their own employees that the misinformation and nastiness on the site had gotten out of hand.

For a long time, they chose the money over managing the mayhem.

Today, YouTube says it’s serious about cleaning up the issues that have plagued the site for years. But that clean-up appears to have come at the short-term cost of ad revenue growth. (Although it’s possible that Porat was referring to other types of changes, or engaging in some selective disclosure to guide investors away from other reasons for the growth slowdown.)

Investors punished the company on Monday by vaporizing more than $70 billion from its market cap.

But if YouTube can fix its content problems and continue to grow beyond its nearly 2 billion users, it has a chance to benefit in the long term.

The new system is still far from perfect, as The New York Times’ Kevin Roose pointed out in an interview with YouTube’s Chief Product officer Neal Mohan. It’s still possible to fall down a rabbit hole of horrible videos on YouTube. But, based on Porat’s comments, the changes were effective enough to hurt YouTube engagement.

Still, analysts on Tuesday didn’t sound too worried about YouTube’s longer term prospects, and cautioned there are other factors playing into the ad growth deceleration.

“YouTube has increased its focus on responsibility and safety, and it adjusted its algorithm in 1Q to reduce recommendations of content that comes close to violating guidelines or is misinformed or harmful,” J.P. Morgan analysts wrote in a research note Tuesday morning. They added that, “we don’t think there’s a single clear answer for Google’s [deceleration], but a number of factors are at work.”

With billions in market cap gone and analysts already downgrading Alphabet’s stock, the biggest question surrounding YouTube today is whether it will continue making improvements to curb the spread of toxic content or be shocked back into inaction for the benefit of its shareholders.

Amazon to create 400 new tech jobs in Denver with new office expansion

Denver, Colorado

Bridget Calip | Getty Images

Amazon plans to create 400 tech jobs and open a new office in downtown Denver, the company announced Tuesday.

The expansion of Amazon’s Denver Tech Hub will more than double the tech workforce in the city’s metro area, where Amazon currently employs more than 350 employees, according to the company. Amazon previously opened an office in Boulder, Colorado last fall. The expansion will offer job titles spanning software and hardware engineering, cloud computing, and advertising, the company said.

The new 98,000 square foot office will be located in Denver’s Lower Downtown neighborhood at Invesco’s 1515 Wynkoop LEED(R) Platinum building, according to the release.

Denver was one of 20 cities on Amazon’s shortlist during its search for a second headquarters location. The company ended up choosing both New York’s Long Island City and an area of Northern Virginia for its new offices before pulling out of the New York location following political backlash.

When it decided against building its second headquarters in Long Island City, Amazon said it would continue hiring across its corporate offices and tech hubs in North America, rather than reopen its search for a another headquarters location. Denver isn’t the first HQ2 shortlist location where Amazon has announced an expansion. The company said in March it will add 800 tech jobs in Austin, Texas.

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Watch: Amazon is making one-day shipping the new standard for Prime members

Stocks making the biggest moves premarket: Alphabet, General Electric

Check out the companies making headlines before the bell:

Alphabet — The Google-parent reported better-than-expected earnings but its stock dropped nearly 8% in the premarket after posting a slowdown in advertising revenue growth. The company said its ad revenue grew by 15.3% in the first quarter, down from 24.4% in the year-earlier period.

General Electric — The industrial giant reported better-than-expected quarterly results as the company works to simplify its business and turn around the company. CEO Larry Culp also reaffirmed General Electric’s 2019 forecast, sending the stock up 8.5%.

AK Steel — Shares of the steel company rose 3.7% in the premarket after reporting earnings per share for the previous quarter that beat expectations. The company’s results got a boost from higher prices.

MGM Resorts International — The casino operator’s stock fell 3.2% on a big miss on quarterly earnings. MGM posted a profit of 5 cents per share, while analysts polled by Refinitiv expected earnings of 21 cents per share.

Western Digital — Shares of the data storage company fell about 5.5% on the back of weaker-than-expected fiscal third quarter results. Western Digital posted adjusted earnings per share of 17 cents on revenue of $3.67 billion. Analysts expected a profit of 46 cents per share on sales of $3.68 billion.

Yum China — Yum China posted first-quarter numbers that topped estimates amid strong performances from key businesses like KFC and Pizza Hut. The company posted adjusted earnings per share of 59 cents on revenue of $2.3 billion. Analysts polled by Refinitiv expected a profit of 54 cents per share on sales of $2.26 billion. Same-store sales rose 4% in the quarter, well above a forecast of 1.8%.

ConocoPhillips — ConocoPhillips shares rose 1.5% on the back of better-than-expected earnings and revenue. The company earned $1 per share on revenue of $10.1 billion. Analysts had forecast a profit of 90 cents per share and revenue of $9.039 billion.

Eli Lilly — Eli Lilly reported quarterly earnings that topped expectations and raised its full-year profit guidance. However, the stock fell more than 3% as revenue came in just below expectations.

McDonald’s — The Dow Jones Industrial Average component posted stronger-than-forecast results for the first quarter as same-store sales grew at a stronger pace than expected. McDonald’s earnings came in at $1.78 per share, 3 cents above a Refinitv estimate. Sales for the company totaled $4.956 billion, topping a $4.933 billion forecast.

MasterCard —The credit card company posted quarterly earnings and revenue that topped analysts’ expectations, sending its stock up more than 1%. MasterCard reported earnings per share of $1.78 on revenue of $3.899 billion. Analysts polled by Refinitiv expected a profit of $1.66 per share on revenue of $3.856 billion.

General Motors first-quarter earnings 2019

General Motors Chairman and CEO Mary Barra announces a $300 million investment in the GM Orion Assembly Plant plant for electric and self-driving vehicles at the Orion Assembly Plant on March 22, 2019 in Lake Orion, Michigan.

Bill Pugliano | Getty Images

General Motors will report first-quarter earnings before the market opens Tuesday.

Here’s what Wall Street is expecting, according to analysts surveyed by Refinitiv:

  • Earnings per share: $1.11
  • Revenue: $35.28 billion

In April, the company reported sales that fell 7% from a year ago, but said that buyers were interested in its more expensive sport utility vehicles and pickup trucks. It plans to launch more full-size pickups in the second half of 2019, with two new heavy duty pickups from Chevrolet and GMC.

As part of its plan to adapt to changing market demands, GM has idled factories that produce slow-selling vehicles, consequently cutting more than 14,000 jobs at factories in the U.S. and Canada. The company is also shifting focus towards self-driving and electrified vehicles.

Shares of GM have risen more than 6% over the last 12 months and are up more than 20% since the beginning of the year.

This story is developing. Please check back for updates.