Johnson & Johnson, J.M. Smucker, Best Buy: Stocks That Defined The Week
August 30 2019 - 6:56PM
Dow Jones News
By Francesca Fontana
J.M. Smucker Co.
Sales are suddenly not so sweet for J.M. Smucker. The causes?
Coffee, peanut butter and pet food. The company said falling prices
for coffee and peanut butter, two of its key products, dragged
sales down in its latest quarter. Smucker's pet-food business faced
significant competition as other pet-food makers lowered prices for
higher-end products to draw in consumers. Smucker bought the
producer of the Rachael Ray Nutrish pet-food brand last year for
$1.7 billion. Its rival General Mills Inc. has been expanding
distribution of Blue Buffalo pet food products. Shares fell 8.2%
Tuesday.
Altria Group Inc.
Two tobacco giants struggling with shrinking demand for their
core product are trying to think beyond cigarettes. Altria and
Philip Morris International Inc. are in advanced talks to merge,
The Wall Street Journal reported Tuesday, in a deal that would
reunite businesses that split apart in 2008. They still hold the
same portfolio of cigarettes, including Marlboro. But both
companies have been struggling with declining cigarette
consumption. They plan to jointly start selling a cigarette
alternative in September. Altria shares added 1.3% Wednesday, and
Philip Morris shares gained 3.7%.
Best Buy Co.
Best Buy can't buy a break from the U.S.-China trade war. Its
shares fell 8% Thursday after the electronics retailer cited
tariffs as a factor in disappointing second-quarter sales and a
narrowing of its revenue forecast for the year. Chief Executive
Officer Corie Barry, who took over the top job in June, said
Chinese-made goods account for about 60% of the company's cost of
goods sold, but that there are ways to significantly reduce the
share affected by tariffs. "We're actively engaged in mitigation
efforts to minimize the impact on consumers and our business," Ms.
Barry said.
Bristol-Myers Squibb Co.
Bristol-Myers Squibb took a big step toward acquiring Celgene
Corp. on Monday as the two pharmaceutical companies found a buyer
for a skin treatment. Amgen Inc. agreed to buy the psoriasis
treatment Otezla from Celgene for $13.4 billion in cash. The
decision came after the U.S. Federal Trade Commission raised
anticompetitive concerns related to anti-inflammatory drugs, of
which Otezla is an example. Analysts at JP Morgan Chase JPMorgan
Chase & Co. said in a note to clients there aren't any
additional FTC concerns on the horizon related to the merger with
Celgene. Bristol-Myers shares rose 3.3% Monday.
Dollar Tree Inc.
Some air went out of Dollar Tree after executives blamed a
global helium shortage for some sales weakness in the most recent
quarter. Dollar-store chains Dollar Tree and Dollar General Corp.
both said Thursday that lower-income shoppers who continue to spend
helped sales rise during the quarter, but lost balloon sales during
Mother's Day and Father's Day reduced comparable sales by 0.4%,
said Dollar Tree Chief Executive Officer Gary Philbin on a call
with analysts. Dollar Tree shares fell 1.9% Thursday while rival
Dollar General's shares soared 10.7%.
Papa John's International Inc.
The pizza maker recruited its new boss from the world of roast
beef. Papa John's hired Arby's President Rob Lynch Tuesday as its
chief executive, the company's second change at the top in less
than two years. Mr. Lynch said he was eager to push the chain past
controversy surrounding founder and former CEO John Schnatter and
refocus on its reputation for variety and fresh ingredients. Mr.
Schnatter left Papa John's board in March after using a racial
slur. Shares rose 9.5% after the announcement.
Johnson & Johnson
The opioid legal bills are piling up at big drug companies.
Johnson & Johnson shares rose 1.4% after a judge ruled the
drugmaker must pay $572 million for contributing to an
opioid-addiction crisis in Oklahoma. OxyContin maker Purdue Pharma
LP and its owners, the Sackler family, are in separate talks with
state and local governments to resolve more than 2,000 opioid
cases, The Wall Street Journal reported.
Write to Francesca Fontana at francesca.fontana@wsj.com
(END) Dow Jones Newswires
August 30, 2019 18:41 ET (22:41 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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