Ford, Marriott, Amazon.com: Stocks That Defined the Week
March 20 2020 - 8:01PM
Dow Jones News
By Francesca Fontana
Ford Motor Co.
Detroit's auto makers are temporarily shutting down factories in
the U.S., Mexico and Canada to limit the spread of the new
coronavirus. Ford, General Motors Co., and Fiat Chrysler
Automobiles NV came to the decision Wednesday after discussions
with union leaders. The shutdown will be treated like other routine
work stoppages, during which the companies are required to provide
affected employees with extra pay to supplement unemployment
benefits. Ford shares fell 10% Wednesday.
Comcast Corp.
Theater closures aren't stopping Universal Pictures from showing
its movies. The film studio, owned by Comcast, said Monday that by
the end of the week, recently released films like "The Invisible
Man," "The Hunt" and "Emma" will be available for digital rental
for $19.99 in the U.S., or the equivalent value in overseas
markets. Paying the rental fee will allow customers 48 hours to
watch the movie. The move is a massive change from Hollywood's
long-established business model that could upend the industry if
other studios follow suit. The decision comes amid widespread
closures of movie theaters as the global coronavirus pandemic
spreads. Comcast shares fell 8.4% Monday.
Boeing Co.
Boeing workers are bracing for possible cuts as a cash drain
ravages their company. The Wall Street Journal reported Thursday
that Boeing is considering a dividend reduction and possibly laying
off workers at its jetliner plants. The coronavirus-driven collapse
in passenger traffic has forced airlines to park hundreds of planes
and left them unwilling to take new ones, even as Boeing works to
overcome the yearlong grounding of its 737 MAX. Earlier in the
week, Boeing said it was seeking at least $60 billion to aid the
U.S. aerospace industry, asking for support from private and public
sources. Boeing shares fell 4.1% Thursday.
General Mills Inc.
U.S. consumers are stocking up on food to ride out the pandemic,
meaning more demand for Cheerios cereal, Yoplait yogurt and
Progresso soup. The company that makes those products said
Wednesday that retailers in North America and Europe have started
buying more and its factories are running at near capacity to keep
up. Over the past week people have started stocking up on
essentially all foods, not just staples like soup and flour, Chief
Executive Jeff Harmening said. General Mills said it has
contingency plans to keep factories running if workers stay home
due to school closures and social-distancing measures. General
Mills shares fell 3.2% Wednesday.
Marriott International Inc.
The world's largest hotel company is starting to furlough
employees as economic damage from the coronavirus pandemic mounts.
Marriott said Tuesday that it expects to temporarily lay off tens
of thousands of workers as it ramps up hotel closings around the
world. The company began shutting down some of its managed
properties last week. The employees at these properties won't be
paid while on furlough but the bulk will keep receiving health-care
benefits paid for by the hotel owner, which for the vast majority
of the brand's properties isn't Marriott. Marriott is also trimming
staff through furloughs at properties that are still operating. The
staff reductions include everyone from general managers to
housekeepers. Marriott shares fell 13% Tuesday.
Amazon.com Inc.
Amazon.com is going on a hiring spree as millions turn to online
deliveries as a way of limiting the spread of the new coronavirus.
The tech giant plans to hire an additional 100,000 employees in the
U.S. and is raising pay for all employees in fulfillment centers,
transportation, stores and deliveries in the U.S. and Canada by $2
an hour. The decision shows the dual challenge Amazon and its peers
face as they try to meet surging demand and also take care of
employees at the front lines of the pandemic. The 100,000 new
Amazon jobs, in locations across the U.S., will be added at a time
when broader retail is contracting and retailers rethink operating
physical stores during a pandemic. Amazon shares gained 7%
Tuesday.
Altria Group Inc.
Altria's CEO has contracted the coronavirus illness, becoming
one of the first leaders of a major U.S. company to be hit by the
fast-spreading outbreak. Howard Willard, the tobacco giant's
chairman and chief executive officer, is taking a temporary medical
leave of absence and Finance Chief Billy Gifford will assume his
authority and responsibilities until he returns. Altria also
announced a two-week suspension of operations at the Richmond, Va.,
manufacturing center where it makes Marlboros after two employees
tested positive for the virus. The company said it has enough
cigarette inventory to continue shipping at current rates for about
two months. Altria shares fell 7.6% Friday.
Write to Francesca Fontana at francesca.fontana@wsj.com
(END) Dow Jones Newswires
March 20, 2020 19:46 ET (23:46 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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