Grubhub, Marriott International, Abbott Laboratories: Stocks That Defined the Week
May 15 2020 - 8:24PM
Dow Jones News
By Francesca Fontana
Grubhub Inc.
A takeover could be on the menu for Grubhub. The Wall Street
Journal reported Tuesday that the meal-delivery company and Uber
Technologies Inc. are discussing a deal that would unite them as
the coronavirus pandemic sparks a surge in demand for their
services. Uber, which operates a big meal-delivery unit known as
Uber Eats and Grubhub are considering a deal that would value the
company at roughly $6 billion. Grubhub shares soared 29%
Tuesday.
Fox Corp.
Will there be a fall TV season? The Fox network released its
schedule on Monday ahead of other major networks as the pandemic
makes it difficult to forecast what broadcasters can put on the air
in September. Fox Broadcasting Co., a unit of Fox Corp., had
slightly more clarity than others, in part because some of its top
shows like "The Simpsons" are animated productions that are able to
make new episodes during the crisis. Advertisers typically commit
to spending billions on network programming, and the sales pitch
has gotten tougher for networks as viewers turn away from
traditional television in favor of streaming services. Fox shares
fell 1.4% Monday.
Marriott International Inc.
Hotels are slowly starting to reopen and global occupancy rates
are leveling off, welcome news for lodging companies. Marriott
International Chief Executive Arne Sorenson told investors Monday
that travel demand has improved in Greater China and that lodging
demand in most of the rest of the world appears to have stabilized,
albeit at very low levels. In the past two weeks, occupancy in
North America stood at around 20% at limited-service hotels, and
Mr. Sorenson said that anemic occupancy levels are better than
closures. He expects operations to break even at about 30%
occupancy at longer-stay hotels and about 40% at full-service
brands. Marriott shares lost 5.6% Monday.
Cisco Systems Inc.
Cisco is selling fewer switches and routers, but the shift to
remote work could give the company a boost. Some customers said the
shift to remote work had served as a "wake-up call" to update their
technology, Chief Executive Chuck Robbins said Wednesday as the
network-equipment giant reported a quarterly sales decline driven
by lower sales at its core infrastructure-platforms business. Cisco
is betting on a revenue boost from its videoconferencing-service
Webex, which companies use to host virtual conference calls. The
company extended a series of free offers and trials of Webex as
companies moved to remote work during the pandemic. Cisco shares
gained 4.5% Thursday.
FedEx Corp.
The coronavirus pandemic has created an unexpected peak season
for FedEx. The delivery giant is trying to ease the strain by
capping the number of items that about two dozen retailers can ship
from certain locations, The Wall Street Journal reported Thursday.
The limits are similar to what the company does during Christmas
and other busy shipping seasons. Many retailers have seen
e-commerce sales surge since they were ordered to close thousands
of their stores, unleashing a flood of packages into FedEx's
delivery network. Customers with shipping limits include Kohl's
Corp., Nordstrom Inc., and Bed Bath & Beyond Inc. FedEx shares
fell 0.2% Thursday.
Abbott Laboratories
Abbott is reeling from a disappointing grade on its coronavirus
test. The Abbott ID Now, widely used to detect coronavirus in fewer
than 15 minutes, missed nearly half of the positive cases detected
by another common test, researchers at NYU Langone Health reported
in a study posted online Tuesday ahead of formal publication. The
White House has used the device to regularly test President Trump,
Vice President Pence and other top officials, and Abbott said it
has distributed about 1.8 million of the tests. Abbott said
Thursday it will change the test's instructions for a second time,
telling users that negative results are "presumptive" and should be
verified with an alternative test for patients with signs of the
virus. Abbott shares declined 1.8% Wednesday.
Qualcomm Inc.
The Trump administration is threatening to ignite another round
of U.S.-China economic tensions with new export restrictions that
would cut off Chinese telecom-equipment maker Huawei Technologies
Co. from overseas suppliers, making life more difficult for
semiconductor makers like Qualcomm. The regulations stop foreign
semiconductor manufacturers whose operations use U.S. software and
technology from shipping products to Huawei without first getting a
license from U.S. officials, essentially giving the U.S. Commerce
Department a veto over the kinds of technology that Huawei can use.
U.S. makers of semiconductors worry that the rules will slash their
sales not only to Huawei but other Chinese firms. Qualcomm shares
fell 5.1% Friday.
Write to Francesca Fontana at francesca.fontana@wsj.com
(END) Dow Jones Newswires
May 15, 2020 20:09 ET (00:09 GMT)
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