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Walmart Sells JD.com Stake, Microchip Suffers Cyberattack, Union Pacific Warns of Strike in Canada, and Latest News

Fernanda T
Latest News
August 21 2024 8:12AM

Walmart (NYSE:WMT), JD.com (NASDAQ:JD) – Walmart intends to raise up to $3.74 billion by selling its 5.19% stake in the Chinese e-commerce company JD.com. They are offering 144.5 million shares between $24.85 and $25.85 each, with Morgan Stanley as the broker. The sale aims to focus resources on the company’s operations in China and other priorities. JD.com shares fell 7.0% in pre-market trading, while Walmart shares rose 0.1%.

Microchip Technology (NASDAQ:MCHP) – Microchip Technology suffered a cyberattack that compromised servers and operations, detected on August 17. The company isolated affected systems and reduced operations to investigate, impacting its ability to fulfill orders. The chipmaker, crucial for U.S. defense, is still assessing the full financial impact of the incident.

Union Pacific (NYSE:UNP) – Union Pacific warned that a potential rail strike in Canada would have “devastating consequences” for the U.S. economy, with more than 2,500 railcars affected daily. CEO Jim Vena highlighted that the impacts have already begun and that the strike could increase costs for industries and delay operations by up to five days.

Alphabet (NASDAQ:GOOGL), Energix Renewables (USOTC:ENREF) – A U.S. appeals court ruled that Google must face a lawsuit filed by Chrome users who allege improper data collection, even after disabling synchronization with their Google accounts. The court found that users may have been led to believe their data wouldn’t be collected. Waymo, another Alphabet subsidiary, doubled its paid rides to 100,000 per week in three months, expanding its robotaxi services in areas like San Francisco and Phoenix. The company, which operates 700 autonomous vehicles, continues to grow despite skepticism and intense regulation, with Alphabet planning a $5 billion investment. Additionally, Energix Renewables announced a long-term agreement with Google to supply electricity and renewable energy credits from its solar projects, aiming to power the tech giant’s growing AI data centers. Energix will initially provide 1.5 gigawatts by 2030, with potential to expand the partnership. Alphabet shares rose 0.3% in pre-market trading.

OpenAI – OpenAI has entered into a multi-year partnership with Condé Nast to integrate content from brands like Vogue and The New Yorker into its AI products, including ChatGPT and SearchGPT. Financial terms were not disclosed. In recent months, the company has also signed similar deals with other major publications.

Texas Instruments (NASDAQ:TXN) – Texas Instruments (TI) announced that its free cash flow (FCF) will increase in 2026 as demand recovers and capital expenditures decrease, following pressure from Elliott Investment Management. TI, which expects revenue between $20 billion and $26 billion for 2026, estimates capital expenditures will range from $2 billion to $5 billion, compared to initial plans of $5 billion per year through 2026. Recently, TI said it expects to receive up to $1.6 billion to build new facilities under the U.S. CHIPS and Science Act. The company has been expanding production to avoid chip shortages but plans to reduce investments, boosting FCF per share to $8 to $12 in 2026. Shares rose 0.9% in pre-market trading.

Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) – TSMC inaugurated its first European factory in Dresden, East Germany, with an $11 billion investment, half funded by German government subsidies. The factory, focused on automotive and industrial chips, will begin production in 2027. The initiative is part of the EU’s strategy to produce 20% of global semiconductors by 2030, reducing reliance on Asia amid geopolitical tensions between the U.S. and China. TSMC holds 70% of the plant, while Infineon, NXP, and Bosch each own 10%. Shares fell 1.3% in pre-market trading.

Trump Media & Technology Group (NASDAQ:DJT) – Shares of Trump Media & Technology Group closed down 3.71% to $21.42 on Tuesday, marking the eighth consecutive session of losses. The decline reflects Trump’s reduced chances in the elections and his recent activity on the X platform. The company, with a loss of $16.4 million in the quarter, saw its market value fall to $3.776 billion. Shares rose 2.3% in pre-market trading.

Warner Bros Discovery (NASDAQ:WBD) – Warner Bros Discovery announced plans to invest $8.5 billion in a new studio in Las Vegas, provided the state grants promised tax incentives. In partnership with the University of Nevada and Birtcher Development, “Warner Bros. Studios Nevada” will be located on a 34-acre campus, with complete facilities for film and TV production.

Netflix (NASDAQ:NFLX) – Netflix shares reached an intraday record on Tuesday before retreating to close up 1.43%. The company reported more than 150% growth in advertising sales commitments for 2024. Netflix’s advertising strategy, including partnerships for upcoming releases and live events like “Squid Game,” “WWE Raw,” and NFL games on Christmas, has generated significant market excitement. Netflix launched an ad-supported version in 2022, and this strategy has already reached 40 million monthly active users globally as of May.

Walt Disney (NYSE:DIS) – India’s antitrust body assessed on Tuesday that the $8.5 billion merger between Reliance and Walt Disney could harm competition, especially due to control over cricket broadcasting rights. The Competition Commission of India (CCI) has asked the companies for explanations within 30 days, which could delay the deal’s approval. Shares rose 0.2% in pre-market trading.

Hyatt Hotels (NYSE:H) – Hyatt Hotels will purchase Standard International for up to $335 million, acquiring brands like Standard and Bunkhouse Hotels. The deal includes 21 properties in global cities and over 30 new projects.

Kroger (NYSE:KR), Albertsons (NYSE:ACI) – Kroger is offering $10.5 billion in bonds to finance its $24.6 billion merger with Albertsons. The offering could be one of the largest of the year. Citigroup and Wells Fargo are leading the issuance. The merger faces regulatory and legal challenges.

Amazon (NASDAQ:AMZN) – Amazon’s heavy spending on artificial intelligence, following a period focused on profits, worries investors, fearing a negative impact on cash flow. Since the August report, its shares have lagged behind other tech giants, with the lack of dividends and share buybacks increasing pressure on the company. Shares fell 0.1% in pre-market trading.

Lennox International (NYSE:LII), Carrier Global (NYSE:CARR), Johnson Controls (NYSE:JCI), Trane Technologies (NYSE:TT) – HVAC companies are seeing growth due to increased demand for air conditioning systems amid rising global temperatures. The shift to new cooling systems and the need for frequent replacements are also boosting their revenues. However, these companies’ stocks have become more expensive, reflecting the sector’s strong performance.

Uber Technologies (NYSE:UBER) – Uber hired Rebecca Tinucci, a former Tesla executive, to lead its transition to electric vehicles. Tinucci, who will start on September 16 as the global head of sustainability, will be responsible for driving Uber’s goal of fully electrifying its fleet by 2040, with a $800 million investment by 2025.

Tesla (NASDAQ:TSLA) – The European Union will reduce import tariffs for Tesla’s China-made electric vehicles from 20.8% to 9%. Other electric vehicle companies will also see reduced tariffs, but non-cooperating companies will face rates of 36.3%, up from 37.6%. The decision follows a review of proposed measures. Tesla received a lower tariff as Beijing offers fewer subsidies to foreign companies. The measure is under consultation and could take effect in November. Tesla shares fell 0.1% in pre-market trading.

Rivian (NASDAQ:RIVN), Stellantis (NYSE:STLA) – Rivian’s head of manufacturing, Tim Fallon, is leaving the company to join Stellantis as head of manufacturing in North America starting September 2. His departure comes as Rivian expands its Normal, Illinois, factory to produce the R2 SUV, a smaller and cheaper model. Carlo Materazzo, a former Stellantis executive, will take over production on an interim basis. Stellantis announced that its investments in Belvidere, Illinois, will be delayed but stated that it remains committed to the project and is not violating its union contract. The United Auto Workers union, however, is considering legal action and a possible strike, accusing the automaker of not fulfilling its production commitments. Additionally, Stellantis CEO Carlos Tavares will visit Detroit to develop a strategy to address issues in the automaker’s North American operations, which are facing declining sales and high inventories. He seeks to reassure employees and investors and demonstrate his commitment to improving the situation. Stellantis shares rose 1.2% in pre-market trading. Rivian shares rose 0.5% after falling 2.4% on Tuesday.

Nio (NYSE:NIO) – Nio plans to install charging stations in all 2,844 counties in China by June 2025 and expand its battery swap stations to more than 2,300 counties by the end of 2025. The company already has over 23,000 charging stations and 2,480 battery swap stations. The swap stations promise to exchange batteries in three minutes. Shares rose 2.1% in pre-market trading after closing down 5.4% on Tuesday.

BP Plc (NYSE:BP) – Iraq has decided to share profits with BP in developing the Kirkuk oil and gas fields, abandoning low-margin service contracts to attract major Western companies and boost production. BP, which returned after nearly five years, signed a preliminary agreement to develop four fields in Kirkuk. Shares rose 0.3% in pre-market trading after closing down 2.2% on Tuesday.

Exxon Mobil (NYSE:XOM), Hess (NYSE:HES), Chevron (NYSE:CVX) – An arbitration panel will decide a dispute between Exxon Mobil and Chevron over the value of Hess’s oil assets in Guyana after Chevron offered $53 billion to acquire Hess. Exxon argues that the deal with Chevron should trigger a preemption right due to the high valuation of the Guyana fields, while Chevron and Hess disagree, stating that no change of control justifies the right. The outcome could impact the merger and the economic benefits planned by Chevron. Both Exxon and Chevron shares rose 0.3% in pre-market trading.

PayPal Holdings (NASDAQ:PYPL), Adyen NV (EU:ADYEN) – Adyen NV will integrate PayPal’s FastLane checkout, facilitating quick purchases for consumers and expanding PayPal’s reach. This collaboration marks the first public partnership between the rivals, benefiting both by leveraging Adyen’s merchant network and consumer trust in PayPal. PayPal shares closed up 3.5% on Tuesday and rose 0.2% in pre-market trading.

Bank of America (NYSE:BAC) – BofA strategists recommend caution with AI investments, suggesting a focus on more stable assets. Despite impressive gains in tech stocks, enthusiasm for AI may have peaked, with growth expectations for AI ETFs declining. They indicate sectors like consumer goods and finance as promising alternatives.

Wells Fargo (NYSE:WFC) – Wells Fargo decided to sell its commercial mortgage servicing business to Trimont, making it the largest commercial real estate debt servicer in the U.S. With the deal, Trimont will manage $640 billion in loans. Wells Fargo remains focused on its core operations, while Trimont strengthens its leadership in the sector. The deal is likely to close in early 2025.

Citigroup (NYSE:C) – Citigroup notes that the carry trade is back, but now hedge funds are borrowing in U.S. dollars instead of yen. This shift is due to expectations of U.S. interest rate cuts, making the dollar more attractive for these operations, especially in emerging markets.

KKR & Co. (NYSE:KKR) – KKR and Japanese real estate company Hulic have made a $2 billion offer to buy the Shiodome City Center, a skyscraper in Tokyo, from Singapore’s sovereign wealth fund GIC. The sale, potentially one of the most expensive in Japan, could be affected by ongoing discussions and changes in the real estate market.

Johnson & Johnson (NYSE:JNJ) – Johnson & Johnson announced the acquisition of V-Wave for up to $1.7 billion, aiming to expand its market for heart disease devices. J&J will pay $600 million upfront, with up to $1.1 billion additional contingent on regulatory and commercial milestones.

Eli Lilly (NYSE:LLY) – Eli Lilly shares closed up 3.05% on Tuesday after the company announced that its tirzepatide medication reduced the risk of type 2 diabetes by 94% in adults with prediabetes and obesity. Tirzepatide also helped patients lose an average of 22.9% of body weight, outperforming semaglutide. Shares rose 0.2% in pre-market trading.

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