Herbalife soars after FTC rules it's not a pyramid scheme, Chipotle falls on downgrade

Here are some of the stocks the Yahoo Finance team will be watching for you today.

Herbalife (HLF) shares soared in early trading after the Federal Trade Commission determined the nutritional supplement seller is not a pyramid scheme. Instead, Herbalife is expected to pay $200 million over claims of misrepresentation and change some of its business practices. This is a major blow for hedge fund manager Bill Ackman, who has been in battling to prove the opposite and has a large short stake in the company.

Citigroup (C) reported a beat on both its top and bottom lines for the second quarter thanks to a rebound in fixed-income trading and fewer loan defaults. However, profit and revenue fell from a year ago.

Wells Fargo (WFC) posted earnings and revenue that matched analysts’ estimates for the second quarter as sales rose about 4% from a year ago, but lower interest rates continued to weigh on profits.

Chipotle (CMG) shares fell in early trading after Morgan Stanley downgraded the stock to equal-weight from overweight and cut its price target by 19% to $405 dollars a share. The investment firm pointed out in its research note this morning that new evidence from its survey shows that Chipotle is still struggling to woo back 25% of its customers and that a sales recovery will take much longer than expected.

Carmike Cinemas (CKEC) shares on are investors’ radars following a Reuters report that AMC (AMC) may be considering raising its $1.1 billion takeover bid for its smaller rival. Yesterday, Carmike said it would continue to hold discussions with AMC after it delayed a shareholder vote on the offer that was scheduled for today until July 25th.

Travel and tourism related companies such as Priceline (PCLN), Expedia (EXPE), Delta Air Lines (DAL) and American Airlines (AAL) were under pressure in the wake of the latest terror attack in France.