The Score: The Business Week in 7 Stocks
July 20 2018 - 5:38PM
Dow Jones News
By Laine Higgins and Caitlin Ostroff
Goldman Sachs Group Inc. - DOWN 0.2% (Tuesday)
Goldman Sachs headlined the bank earnings show this past week,
notching a 51% increase in quarterly profit and announcing that
veteran investment banker David Solomon would succeed Lloyd
Blankfein as chief executive on Oct. 1. Its shares, among the
worst-performing among big U.S. banks this year, edged down 0.2% on
Tuesday. Meanwhile, JPMorgan Chase & Co., Citigroup Inc., Bank
of America Corp. and Morgan Stanley all beat earnings expectations;
Wells Fargo & Co. did not.
Arconic Inc. - UP 8.1% (Monday)
In the first trading session after The Wall Street Journal
reported that the aerospace-parts maker was the subject of takeover
interest from several private-equity firms, shares soared 10%
Monday. The New York company, which was part of Alcoa Corp. before
the aluminum maker broke itself up, also on Monday unveiled its
largest-ever supply deal with Boeing Co. and announced a new
partnership with Lockheed Martin Corp. Monday's stock move was a
record one-day gain for the company and boosted Arconic's market
value by almost $1 billion.
Amazon.com Inc. - UP 1.2% (Tuesday)
Website outages on your company's self-declared midsummer
shopping holiday? No problem for Amazon. Prime Day, a 36-hour
promotional period, kicked off on midday Monday with outages on the
tech giant's mobile app and website that delivered error messages
to many customers' screens. The good news: The error messages had
pictures of dogs, which caused a minor internet sensation. Oh, and
customers ordered more than 100 million products in 36 hours.
Shares rose 1.2% Tuesday, making Amazon the second U.S. company
ever to top $900 billion in market cap.
Netflix Inc. - DOWN 5.2% (Tuesday)
Investors were in no mood to binge on Netflix after the
video-streaming site reported quarterly results after Monday's
closing bell. Although Netflix's second-quarter profit surged to
$384.3 million, it missed its expected subscriber growth by over a
million users. Netflix blamed the underwhelming numbers on faulty
internal forecasting and not on business reasons such as price
increases. Investors interpreted the miss as a sign that the
fast-growing company, whose stock has roughly doubled this year,
may be slowing down. Shares fell 5.2% Tuesday.
Alphabet Inc. - UNCH. (Wednesday)
The European Union's antitrust regulator found Wednesday that
Alphabet's Google had abused the dominance of its Android operating
system in smartphones, leveling a record $5 billion fine and
ordering changes to business practices. The EU said Google must
stop requiring that phone makers and telecom operators preload its
search engine and Chrome web browser on smartphones that use the
Android system, a potentially far-reaching and costly order that
Google plans to appeal. Shares of the parent company fell 1% in
early trading Wednesday but recovered to end the day unchanged.
Berkshire Hathaway Inc. - UP 5.3% (Wednesday)
Berkshire Hathaway's shares will soon be fair game for Chairman
Warren Buffett as he looks to spend a cash pile topping $100
billion. The conglomerate's board late Tuesday changed a policy
that had restricted share buybacks to prices below 120% of the
stock's book value, a benchmark not seen since 2012. Now, after the
company reports earnings Aug. 3, the Oracle of Omaha will be free
to repurchase shares if he feels the price is right. It's the
latest sign that Mr. Buffett is struggling to smartly spend
Berkshire's massive cash hoard. Class B shares leapt 5.3% on
Wednesday.
State Street Corp. - DOWN 7.4% (Friday)
The custody bank said it plans to buy financial-data firm
Charles River Systems for $2.6 billion, nearly nine times its
revenue. To pay for the deal, State Street canceled plans to buy
back about $950 million in stock this year. State Street's shares
fell 7.4% Friday as investors worried the company overpaid.
Separately Friday, in reporting earnings that missed some analysts'
expectations, State Street said its exchange-traded-fund business
saw no net inflows in the second quarter, the latest sign of a
slowdown in the ETF arena.
(END) Dow Jones Newswires
July 20, 2018 17:23 ET (21:23 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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