E*Trade, Apple, Walmart: Stocks That Defined the Week -- WSJ
February 22 2020 - 3:02AM
Dow Jones News
By Francesca Fontana
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (February 22, 2020).
E*Trade Financial Corp.
The long-predicted M&A frenzy in the wealth management
industry is here. Wall Street stalwart Morgan Stanley agreed to buy
discount broker E*Trade in a $13 billion deal announced Thursday.
The all-stock deal is the biggest takeover by a giant U.S. bank
since the 2008 crisis. Earlier in the week, money manager Franklin
Resources Inc. agreed to buy rival Legg Mason Inc. for $4.5 billion
in cash. E*Trade shares soared 22% Thursday.
Apple Inc.
The coronavirus is rippling through the world's most valuable
company. Apple said Monday it won't meet its revenue projections
for the current quarter, as the coronavirus has limited iPhone
production and curtailed demand in China. Apple's announcement is
the most prominent example yet of the effects of the virus on
global business and markets. Apple's dependency on China's
manufacturing and consumer sectors makes the company vulnerable as
the coronavirus outbreak paralyzes the country. The company said
the situation in China is evolving, and it will provide more
information when it holds its earnings call in April. Apple shares
fell 1.8% Tuesday.
Walmart Inc.
Even the world's biggest retailer struggled to get shoppers to
spend during the holiday season. Walmart executives said the
critical period started strong around Thanksgiving but sales of
toys, videogames and apparel softened in the weeks before
Christmas. Chief Executive Doug McMillon said store sales suffered
from a late Thanksgiving as well as some merchandising missteps,
such as a lack of high-price, in-demand holiday toys and a glut of
inexpensive clothes and seasonal attire. Meanwhile, Walmart's U.S.
e-commerce sales rose 35% in the fourth quarter, boosted by online
grocery orders. Shares rose 1.5% Tuesday.
Bed Bath & Beyond Inc.
The new CEO of Bed Bath & Belong wants to eliminate
"purchase paralysis." To do that, Mark Tritton wants to declutter
stores, make aisles wider and stop piling merchandise up to the
ceiling. The former Target Corp. executive laid out his vision for
remaking the troubled retailer Tuesday. Mr. Tritton plans to trim
inventory by more than 10% this year, part of a broader plan that
calls for spending as much as $400 million on store remodels,
technology upgrades and supply-chain improvements. He joined the
struggling company in November after its top officials, including
the founders, were ousted by an activist investor. Shares gained
5.4% Tuesday.
L Brands Inc.
Les Wexner is giving up control of Victoria's Secret. The
82-year-old billionaire behind the lingerie brand and Bath &
Body Works agreed Thursday to sell a controlling stake in the
Victoria's Secret chain to private-equity firm Sycamore Partners
for $525 million. He also agreed to step down as chairman and chief
executive of L Brands. His decision to part ways with Victoria's
Secret is an admission that Mr. Wexner couldn't revive the fortunes
of the troubled brand he built around shopping malls and sex
appeal. The deal leaves the Victoria's Secret business as a
separate private company, and L Brands will be reduced to running
one chain: Bath & Body Works. L Brands shares fell 3.6%
Thursday.
ViacomCBS Inc.
ViacomCBS has a tough year ahead. The company reported a loss in
the quarter as Viacom completed its merger with CBS and said it is
targeting $750 million in cost cuts for the year, increasing its
guidance from $500 million. The company also unveiled its three
main streaming plans that will compete with Netflix Inc. and
others: a free ad-supported service called Pluto TV, an expanded
version of CBS All Access, and a third service anchored by Showtime
that will be the most expensive option. "We believe this strategy
of free, broad pay and premium pay is where the market will go,"
Chief Executive Bob Bakish said. Shares plummeted 18% Thursday.
Wells Fargo & Co.
Wells Fargo has reached a settlement with the government over
its long-running fake-account scandal. The nation's fourth-largest
bank agreed Friday to pay $3 billion to settle investigations by
the Justice Department and the Securities and Exchange Commission.
It is a victory for Charles Scharf, the bank's new boss who was
tasked with resolving the crisis. Regulators and prosecutors could
still take action against individuals involved in the debacle, in
which it became public in 2016 that an aggressive sales culture led
employees to open millions of possibly fake accounts. Last month,
the Office of the Comptroller of the Currency charged eight former
Wells Fargo executives over the scandal, including the former CEO.
Wells Fargo shares gained 0.8% Friday.
Write to Francesca Fontana at francesca.fontana@wsj.com
(END) Dow Jones Newswires
February 22, 2020 02:47 ET (07:47 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
Apple (NASDAQ:AAPL)
Historical Stock Chart
From Aug 2024 to Sep 2024
Apple (NASDAQ:AAPL)
Historical Stock Chart
From Sep 2023 to Sep 2024