AT&T, Oracle, Wendy's, Apple: Stocks That Defined the Week
September 13 2019 - 5:27PM
Dow Jones News
By Francesca Fontana
Citigroup Inc.
Citigroup and other bank stocks rose Monday, buoyed by rising
Treasury yields. Investors recalibrated their expectations for rate
cuts following a speech by Federal Reserve Chairman Jerome Powell
Sept. 6, analysts said, sending yields higher. Shares of financial
companies tend to fare poorly when interest rates are declining,
and vice versa. Shares of Citigroup gained 4.3% Monday, while Wells
Fargo & Co. added 2.7% and JPMorgan Chase & Co. rose
2.5%.
AT&T Inc.
One of the most powerful activist investors is challenging
AT&T's media ambitions. Hedge fund Elliott Management on Monday
disclosed a $3.2 billion stake in AT&T, criticized the
company's strategy to expand further into media and called on the
telecommunications giant to shed unnecessary assets. "AT&T has
suffered from operational and execution issues over the past
decade, for which the current leadership team is accountable,"
Elliott wrote in a letter to AT&T's board and made public
Monday. AT&T defended its strategic direction and said it would
engage with the hedge fund. AT&T shares rose 2.1% Tuesday.
Wendy's Co.
Breakfast could be bad for Wendy's. Wendy's stock slumped 1.9%
Monday after the burger chain said that investments in more menu
items for breakfast had prompted it to adjust guidance for its
current fiscal year. Breakfast has become an increasingly
competitive part of the day for major fast-food companies, as rival
McDonald's Corp. has pointed to competition in breakfast as a key
area of concern. Wendy's said that it will spend $20 million to add
more menu items and longer hours at its 5,813 domestic restaurants.
Wendy's currently sells breakfast items at about 300 restaurants
after earlier efforts to expand nationwide were abandoned.
Apple Inc.
Apple has upped the stakes as it enters the streaming ring. In
addition to revealing a trio of upgraded iPhones Tuesday, Apple set
monthly prices for its TV+ video-streaming service at $4.99,
largely undercutting rivals. The company is making just a handful
of shows available for the TV+ debut in November, but at $4.99 a
month TV+ is much cheaper than Netflix's $12.99 and Disney's $6.99.
Apple can afford to discount the services because of the profit it
earns on hardware and its distribution edge over competitors. Apple
shares gained 1.2% Tuesday.
Uber Technologies Inc.
Uber vowed to fight back after California lawmakers passed
landmark employment legislation on Wednesday that would upend the
business model of companies that rely on contract workers. The
legislation intends to force companies to reclassify certain
contract workers as employees, a serious threat to Uber and Lyft as
their business models have relied on flexible labor and minimal
worker costs. Uber legal chief Tony West said that Uber intends to
continue working for a compromise solution after California
legislature passed a bill that would reclassify certain contract
workers as employees. Uber gained 1.5% Wednesday.
Oracle Corp.
During a time of intensifying competition, the software giant is
losing one of its CEOs. Oracle said late Wednesday that one of its
two chief executives, Mark Hurd, will take a medical leave of
absence, leaving Safra Catz as Oracle's sole CEO. Since September
2014, Oracle has had an unusual leadership structure in which Mr.
Hurd and Ms. Catz share the CEO title, while Oracle co-founder
Larry Ellison is chairman and technology chief. Ms. Catz said Mr.
Hurd was "extremely engaged" with the business through the
company's fiscal first quarter, adding that "now Mark needs to
focus on his health." Oracle shares fell 4.3% Thursday.
PG&E Corp.
PG&E shares gained 10.7% Friday after the power company
agreed on an $11 billion settlement to resolve the majority of
claims by insurance carriers from the 2017 Northern California
wildfires and the 2018 Camp Fire. It would be the company's second
resolution with major groups of wildfire claimants. In June,
PG&E agreed to pay $1 billion to compensate more than a dozen
California cities, counties and agencies for losses resulting from
deadly wildfires sparked by its equipment. Camp Fire, which became
California's deadliest wildfire yet, killed at least 86 people last
year.
Write to Francesca Fontana at francesca.fontana@wsj.com
(END) Dow Jones Newswires
September 13, 2019 17:12 ET (21:12 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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