Inflation is hurting large retailers. Walmart said Tuesday that higher product, supply chain and employee costs have eaten into its quarterly profit. The next day rival Target Corp.
announced weaker-than-expected quarterly earnings and said it would rather incur higher costs than raise prices for shoppers. Investors dumped shares of retail giants after the disappointing results, as inflation held near a four-decade high. Walmart stock lost 11% on Tuesday.
Spirit Airlines Inc.
A hostile takeover of Spirit Airlines is making the flight. JetBlue Airways Corp.
said on Monday that it was appealing directly to its shareholders at a discount by launching an offer to buy its shares, after Spirit rejected a $3.6 billion offer from the company. JetBlue to back an existing deal with Frontier Group Holdings. Inc.
The Board of Directors of Spirit Airlines Inc. on Thursday urged shareholders to reject the bid, over concerns that the deal with JetBlue would be blocked by antitrust regulators. Spirit shareholders will vote on June 10 on whether to accept the Frontier deal, which will create America’s fifth-largest airline. Spirit Airlines was up 13% on Monday.
Many children are now eligible for Pfizer booster shots. The Food and Drug Administration on Tuesday removed Pfizer and BioNTech SE‘S
Covid-19 booster for children aged 5 to 11, expanding its reach further to about 28 million children. The decision allows the third dose to be given at least five months after the second dose. On Thursday, the Centers for Disease Control and Prevention recommended that children age get a booster shot, paving the way for pharmacies, doctors and other vaccination sites to begin offering the shots. Pfizer stock rose 1.3% Tuesday.
The Golden Arches is leaving Russia. McDonald’s said on Monday that it would sell its business there, ending more than three decades in the country following the invasion of Ukraine. The fast food giant joins a group of Western companies to move out of Russia. McDonald’s said in March it would temporarily close 847 of its restaurants in Russia while continuing to pay the salaries of the 62,000 people it employs there. On Thursday, the company said it had agreed to sell its Russia business to Alexander Govor, an existing licensee, who operates 25 restaurants in Siberia. Mr. Govor will now operate McDonald’s entire Russian restaurant portfolio under a new brand. Shares of McDonald’s fell 0.4% Monday.
More bad news for Netflix. The streaming giant said it is cutting about 150 employees in a fresh round of layoffs as it struggles with slowing revenue growth and shrinking subscribers. The job cuts represent about 2% of Netflix’s total workforce. A company spokesman said most of the furloughed employees were based in the US, and the layoffs were based primarily on business needs rather than individual performance. The announcement comes after the company’s first quarterly loss of subscribers in more than a decade. Netflix shares fell 7% Wednesday.
Lawsuits and workers’ complaints have ruled out Apple’s return to work plan. The iPhone maker on Tuesday halted plans to begin bringing employees back to the office for an extra day per week, now two days back per week. Apple has gradually increased the number of in-office days as it rolls out its hybrid work plans. The pause comes amid an increase in Covid-19 cases in the San Francisco area and complaints from some workers about the proposed increase. Some employees have left the company because of their determination to rally more directly. Shares of Apple fell 5.6% on Wednesday.
Ford Motor Co.
Ford has recalled thousands of SUVs because their engines could catch fire. The automaker on Thursday recalled about 39,000 potentially explosive vehicles, including the 2021 Ford Expedition and Lincoln Navigator SUVs produced between late 2020 and early 2021. The company advised owners Owners are advised to park their vehicles outside and stay away from structures after receiving numerous reports of – hood burning while the vehicle is parked on and off. The auto industry is facing a wave of fire alarms in parked vehicles, many of which are in electric models, where fires are suspected to have been caused by faulty batteries. Ford shares rose 0.6 percent on Thursday.
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https://www.wsj.com/articles/walmart-spirit-airlines-netflix-stocks-that-defined-the-week-11653088836?mod=rss_markets_main Walmart, Spirit Airlines, Netflix: Stocks That Defined the Week