Tesla, Macy's, eBay: Stocks That Defined the Week -- WSJ
February 08 2020 - 3:02AM
Dow Jones News
By Francesca Fontana
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (February 8, 2020).
Tesla Inc.
As traditional car giants sputter, Tesla is in the lead. General
Motors Co. and Ford Motor Co. gave tepid outlooks for the year
ahead to investors as they deal with weakening demand and rising
labor costs. Meanwhile, investors are gravitating to upstarts like
Tesla, whose valuation soared in recent days to more than $130
billion -- higher than that of GM, Ford and Fiat Chrysler
Automobiles NV combined. Telsa shares gained 20% Tuesday.
CVS Health Corp.
Aetna Inc.'s former chief executive is leaving the CVS board.
Mark Bertolini said he is being pushed off the board of CVS, The
Wall Street Journal reported Monday. Mr. Bertolini, who joined the
CVS board after the November 2018 closing of CVS's nearly $70
billion deal to buy Aetna, said he was willing to stay on the
board, and that the integration between the two companies isn't
complete. CVS Chairman David Dorman said in a statement the
remaining board members strongly back management and its direction.
CVS shares fell 1.3% Monday.
Edgewell Personal Care Co.
The U.S. consumer protection agency got in the way of a razor
maker's acquisition Monday. The Federal Trade Commission sued to
block a $1.37 billion deal in which Edgewell sought to buy upstart
rival Harry's Inc. The FTC alleged that the acquisition would
eliminate an important competitive force in an industry long
controlled by Edgewell and Procter & Gamble, which sell their
respective Schick and Gillette brands of men's razors, and
Intuition/Hydro Silk and Venus brands of women's razors. The
complaint alleges that Harry's, launched in 2013, has shaken up the
"comfortable duopoly" between the two companies. Edgewell shares
gained 13% Monday.
Macy's Inc.
Macy's is slashing jobs and shutting stores. The retailer plans
to close 125 department stores over the next three years and will
keep running about 400 of its namesake stores as shoppers continue
to make fewer trips to malls. The company is also cutting roughly
2,000 corporate jobs, or 10% of corporate and support staff, and
closing several offices. It will abandon a dual headquarters in
Cincinnati -- a structure Macy's has kept since 1994 when it was
still one of the country's biggest retailers -- and put all
headquarters roles in New York. Macy's shares gained 6%
Wednesday.
Estée Lauder Cos.
Coronavirus could spell trouble for Estée Lauder. The beauty
giant cut profit expectations, saying China's viral outbreak will
harm sales to travelers and Chinese consumers, which have been
major growth drivers. Estée Lauder's fast-growing and profitable
travel retail business -- comprised of duty-free spaces such as
airports and cruises -- will be hit hardest as airlines cancel
flights into China and overall tourism falls, Chief Executive
Fabrizio Freda said. "We expect to recover our momentum at the end
of this health crisis," Mr. Freda said in a call to investors.
Still, shares rose 5.1% Thursday as investors rewarded
better-than-expected quarterly results.
eBay Inc.
The owner of the New York Stock Exchange says deal talks with
eBay are off. Intercontinental Exchange Inc.'s Thursday
announcement came after The Wall Street Journal reported Tuesday
that the company made a takeover offer for eBay that could value
the sprawling online marketplace at more than $30 billion. ICE
shareholders didn't welcome the news, with shares falling 7.5%
while eBay's stock soared 8.8% Tuesday. ICE said late Thursday that
it was giving up on its consideration of "strategic opportunities"
with eBay based on conversations with investors.
Casper Sleep Inc.
Mattress-seller Casper became the first banner-name startup to
go public in 2020. In recent months, investors have grown wary of
companies like Casper -- highly valued startups that have yet to
turn a profit -- and its debut this past week didn't put those
fears to rest. Shares of the mattress company priced at $12, well
below the company's initial range of $17-to-$19 a share. They
jumped 13% on their first day of trading Thursday, but gave back
all their gains and then some when they dropped 15% to $11.49
Friday. Casper's $455 million market cap is less than half what it
had been valued at in a private funding round early last year.
Write to Francesca Fontana at francesca.fontana@wsj.com
(END) Dow Jones Newswires
February 08, 2020 02:47 ET (07:47 GMT)
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