Apple, General Motors, Novavax: Stocks That Defined the Week
January 29 2021 - 7:41PM
Dow Jones News
By Francesca Fontana
Apple Inc.
Tech giants are churning out record profits, but investors
aren't satisfied. Apple reported its most profitable quarter ever
on Wednesday, thanks to demand for higher-end iPhones and its
laptops and tablets. Facebook posted record revenue and profit, but
warned of headwinds to its ad business this year amid new curbs on
the use of customer data for ad targeting. Apple shares lost 3.5%
Thursday, and Facebook shares fell 2.6%.
General Motors Co.
GM plans to run out of gas by 2035. That is the auto giant's
target date for phasing out its gasoline- and diesel-powered
vehicles, Chief Executive Mary Barra announced in a social-media
post Thursday. GM is among the first major car makers to put a
timeline on transitioning to a fully electric lineup, and aims to
be carbon neutral by 2040. It's a big shift, as vehicles that run
on fossil fuels and emit pollution account for about 98% of GM's
sales today. Its biggest money makers such as sport-utility
vehicles are also among its least fuel-efficient. GM's goal of
going all-electric within 15 years hinges partly on government
incentives and other support to nudge consumers toward plug-in
cars. GM shares gained 3.5% Thursday.
Apollo Global Management Inc.
Leon Black's reign at Apollo Global Management is coming to an
end. The powerful Wall Street figure plans to cede his CEO role to
co-founder Marc Rowan by July 31 after an independent review
revealed larger-than-expected payments to disgraced financier
Jeffrey Epstein that Dechert LLP nevertheless deemed justified. Mr.
Black paid him a total of $148 million for legitimate advice on
trust- and estate-tax planning, plus a $10 million donation to his
charity -- far more than was previously known. The monthslong
review also found no evidence that Mr. Black was involved in the
criminal activities of the late Epstein, who was indicted in 2019
on federal sex-trafficking charges involving underage girls. Apollo
shares rose 7.2% Tuesday.
McDonald's Corp.
McDonald's isn't loving a new round of Covid-19 shutdowns. The
burger giant said on Thursday that its U.S. sales improved in the
recent quarter, but tightened restrictions aiming to curb the
spread of the virus are hurting its global sales and profit.
Tightened limitations on businesses and indoor dining, particularly
in Western Europe, dragged on its business abroad. The chain has
relied on drive-throughs to help maintain sales in the U.S. during
the pandemic, but a smaller proportion of its restaurants have
drive-throughs abroad. Pandemic-related costs, including spending
on safety equipment, also ate into its profit during the quarter.
McDonald's shares fell 0.1% Thursday.
Walgreens Boots Alliance Inc.
It is up to a new leader to remedy Walgreens's recent ills. The
U.S. drugstore giant on Tuesday named Starbucks Corp. operating
chief Rosalind Brewer as its next leader, setting her up to be the
only Black woman leading a Fortune 500 company today. The retail
veteran, who goes by "Roz," joined Starbucks and its board in 2017.
She helped the company shift focus to takeout operations during the
pandemic and has worked to diversify its leadership. Ms. Brewer
will join Walgreens and its board on March 15, replacing Stefano
Pessina. Walgreens has been struggling to turn itself around, with
the pandemic complicating its efforts. Walgreens shares added 4.1%
Wednesday.
Southwest Airlines Co.
For U.S. airlines, 2020 was their bumpiest year ever. U.S.
airlines lost nearly $35 billion last year as the coronavirus
pandemic wiped out travel, according to earnings reports. Southwest
Airlines lost nearly $3.1 billion last year -- its first annual
loss since 1972, the year after the Dallas-based carrier began
flying, the company reported Thursday. January and February
bookings stalled amid high levels of Covid-19 cases and
hospitalizations, and Southwest said it would be cautious about
bringing more flights back. The airline expects to stop bleeding
cash sometime this year, but said it couldn't predict exactly when.
Southwest shares added 1% Thursday.
Novavax Inc.
Another Covid-19 vaccine is pointing in the right direction.
Novavax said Thursday that its vaccine was 89.3% effective at
protecting people from Covid-19 in an interim analysis from its
late-stage study in the U.K., where a worrisome strain of the
coronavirus has been circulating. However, the vaccine was less
effective in a separate, middle-stage study in South Africa, where
yet another variant has spread. Novavax said it started work on a
modified version of its vaccine that better targets the South
African strain. The vaccination drive has gained fresh urgency
since the emergence of strains that may spread more quickly than
the old version of the virus and evade some treatments. Novavax
shares jumped 65% Friday.
Write to Francesca Fontana at francesca.fontana@wsj.com
(END) Dow Jones Newswires
January 29, 2021 19:26 ET (00:26 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
Novavax (NASDAQ:NVAX)
Historical Stock Chart
From Aug 2024 to Sep 2024
Novavax (NASDAQ:NVAX)
Historical Stock Chart
From Sep 2023 to Sep 2024