The Score: The Business Week in 7 Stocks
June 22 2018 - 6:52PM
Dow Jones News
By Laine Higgins and Caitlin Ostroff
Boeing Co. - 3.8% Tuesday
Investors are waking up to the idea that the trade war between
the U.S. and China could be the real deal. After China pushed back
against U.S. tariffs on $50 billion in Chinese products, saying it
would levy similar penalties against American goods, President
Donald Trump threatened Monday to retaliate with another $200
billion in tariffs. That sent a wide swath of the stock market
tumbling Tuesday. Boeing, which counts China as its largest market,
single-handedly took 94 points off the Dow Jones Industrial Average
that day.
Amazon.com Inc. - 0.9% Wednesday
The health-care partnership jointly announced by Amazon,
Berkshire Hathaway Inc. and JPMorgan Chase & Co. in January now
has a face. The business giants on Wednesday appointed Dr. Atul
Gawande as chief executive of a yet-to-be-named company tasked with
tackling rising employee health-care costs. Dr. Gawande's resume
includes practicing surgery at Brigham and Women's Hospital,
teaching at Harvard, writing for the New Yorker and serving as
executive director of Ariadne Labs, commitments he will maintain in
various capacities when he begins his new role July 9.
Walgreens Boots Alliance Inc. - 5.3% Wednesday
For the first time since 1907, General Electric Co. will not
trade as part of the 30-stock Dow Jones Industrial Average. It's
ceding its spot to drugstore retailer Walgreens, a move that gives
more weight to the consumer and health-care sectors of the U.S.
economy. Walgreens, which dates back to 1901, has expanded in
recent years by merging with a European drug wholesaler and buying
up stores from Rite Aid Corp. Its shares have declined 13% in the
past year, and it now has a market capitalization of $67 billion.
GE has declined 53% in that same span.
Starbucks Corp. - 9.1% Wednesday
Starbucks' stock was in need of a pick-me-up Wednesday after the
company announced it would close 150 U.S. stores and expected
global same-store sales growth of 1% in the current quarter, far
below Wall Street's expectations. The closures, which are
concentrated in urban areas where stores are clustered and rents
are high, are a sign the coffee giant overestimated Americans'
caffeine cravings and expanded too quickly. Chief Executive Kevin
Johnson said the company now plans to focus on growing the chain's
"digital relationship" with customers.
21st Century Fox - 7.5% Wednesday
Walt Disney Co. upped the ante in its bidding war with Comcast
Corp. for 21st Century Fox assets Wednesday, raising its offer to
more than $70 billion in cash and stock. That's up from its
original $52.4 billion stock bid and tops Comcast's unsolicited $65
billion all-cash proposal. The Fox board accepted the offer, which
equates to $38 a share, describing it as "superior to the proposal"
made by Comcast earlier this month. If the deal closes, Fox
shareholders would own 19% of the combined company. (21st Century
Fox and Wall Street Journal-parent News Corp share common
ownership.)
Intel Corp. - 2.4% Thursday
Intel Chief Executive Brian Krzanich resigned Wednesday after
the company learned that he'd had a relationship with an employee,
a violation of company policy. Chief Financial Officer Robert Swan
will serve as interim CEO until the company's search yields a
replacement leader. If the board picks an outsider, it will be the
first in the chipmaker's 50-year history. To counter the news,
Intel offered a rosy second-quarter forecast ahead of its earnings
call on July 26, but investors uncertain about the executive
shake-up sent the stock down anyway.
Chevron Corp. - 2% Friday
Members of the Organization of the Petroleum Exporting Countries
agreed Friday to boost output by about 600,000 barrels a day. That
was less than some observers had expected, and the news that the
world wasn't suddenly going to be awash in oil sent crude prices
higher. The energy sector led the S&P 500, while Chevron and
Exxon Mobil Corp. collectively added 29 points to the Dow's rise.
The deal still needs final approval from Russia and other non-OPEC
members. That's expected to come Saturday.
(END) Dow Jones Newswires
June 22, 2018 18:37 ET (22:37 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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