Tuesday headlines include: Apple selling more than 10 million iPhones, Allergan considering a deal for Salix Pharmaceuticals, AstraZeneca shares sliding after new anti-inversion rules, Starbucks testing beer-flavored coffee and Carmax missing earnings estimates.
Sales of the iPhone 6 and iPhone 6 Plus crossed the 10 million mark in the first weekend they were on sale. Tim Cook, the company's CEO, said Apple (AAPL) could have sold even more phones if larger supplies had been available. Analysts had expected pre-orders of up to 10 million.
Botox-maker Allergan (AGN), which is itself the target of a takeover bid from Valeant Pharmaceuticals (VRX) and William Ackman's Pershing Square Capital Management, is reportedly in talks to acquire Salix Pharmaceuticals (SLXP). A successful deal for Salix would derail the Valeant/Ackman bid and would also likely mean the end of Salix's bid to acquire the Irish unit of Italian Cosmo Pharmaceuticals in a tax inversion deal. Media reports say that while talks between Salix and Allergan are ongoing, the two companies have not yet come to terms.
New rules unveiled by the Treasury Department late Monday have sent shares of AstraZeneca (AZN) sharply lower Tuesday morning. The rules, designed to stem the tide of tax inversions, could keep Pfizer (PFE) from making a new bid for AstraZeneca.
Coffee chain Starbucks (SBUX), which has recently announced plans to add alcohol to its menu, is testing a “dark barrel latte” in Ohio and Florida. The new drink will not be alcoholic, but instead contain a chocolaty stout flavored sauce, as well as whipped cream and dark caramel drizzle.
Auto retail chain Carmax (KMX) earned 70 cents per share in the quarter ended Aug. 31. Revenue during the quarter was $3.6 billion. On a non-GAAP basis, the company earned 64 cents per share. Analysts had expected the company to earn 67 cents per share on $3.57 billion in revenue.