Amazon.com, Chevron, Lululemon: Stocks That Defined the Week
December 13 2019 - 6:12PM
Dow Jones News
By Francesca Fontana
Amazon.com Inc.
Amazon.com said in a legal filing that President Trump exerted
"improper pressure" on the Defense Department to keep a lucrative
cloud-computing deal from going to company founder Jeffrey Bezos, a
sign of how significant the stakes are in the multibillion-dollar
cloud business. Amazon.com is protesting the awarding of the $10
billion Joint Enterprise Defense Infrastructure contract to
Microsoft Corp. in October. Amazon shares fell 0.1% Monday.
PG&E Corp.
PG&E has reached a settlement with California wildfire
victims. The $13.5 billion settlement removes a significant
obstacle to its emergence from chapter 11 protection. The bankrupt
utility company bowed to demands for more money for fire victims
and gave in to pressure from California Gov. Gavin Newsom to
improve its corporate governance and implement stricter safety
protocols. Under the settlement, PG&E will pay half of the
$13.5 billion in cash and half in stock, an important concession to
fire victims who were concerned the utility's stock could be a
risky bet. PG&E shares gained 16% Monday, the first trading day
after the settlement.
NortonLifeLock Inc.
Lots of companies would like the keys to this seller of
identify-theft protection and antivirus software. The $16 billion
NortonLifeLock has attracted deal interest from a handful of
potential suitors including rival McAfee LLC, The Wall Street
Journal reported Monday. The consumer-software firm was once known
as Symantec Corp. and changed its name after closing a $10.7
billion deal to sell its enterprise-security business to Broadcom
Inc. in early November. Permira and Advent International Corp. also
proposed a takeover before the Broadcom deal closed. NortonLifeLock
shares gained 3.5% Tuesday.
Chevron Corp.
One of the world's biggest energy producers is making a big
concession: In an age of abundant oil and gas some of its holdings
won't be profitable anytime soon. Chevron said Tuesday it wrote
down the value of a number of properties, notably its U.S. shale
holdings in Appalachia, by a combined $10 billion to $11 billion.
Chevron is also restructuring its operations to focus on fewer
prospects in the face of persistently low natural gas prices, and
will explore sales of some assets. Chevron shares fell 1.4%
Wednesday.
Lululemon Athletica Inc.
Lululemon wants to test how far men will stretch. After building
its brand by convincing women to wear its pricey yoga pants outside
of the gym, the company says its most promising customers now are
men. On Wednesday, Lululemon Chief Executive Calvin McDonald said
total revenue for men's apparel grew 38% in the third quarter and
reiterated the company's goal of doubling the men's business by the
end of 2023. As Lululemon seek to expand that business, the company
hopes to persuade male shoppers that its pants are worth a price
tag approaching $200 for the costliest pair. Shares fell 3.7%
Thursday.
Fiat Chrysler Automobiles NV
Peace in the New Year. That's what the United Auto Workers
agreed to Wednesday when it secured a new four-year contract with
Fiat Chrysler. The ratification is the last of three deals
negotiated this year by UAW, closing a grueling round of labor
negotiations for UAW leaders. The union now has new contracts in
hand at Fiat Chrysler, General Motors Co. and Ford Motor Co. The
new deal with Fiat Chrysler includes terms that will likely close a
longstanding labor-cost gap between the Italian-American car
company and its larger rivals, labor experts say. Fiat Chrysler
shares added 2.6% Thursday.
Broadcom Inc.
A limited trade deal between the U.S. and China announced Friday
didn't immediately help Broadcom, which has struggled amid the
ongoing trade war. Shares fell 3.8% Friday. The chip maker posted
weaker fourth-quarter figures late Thursday, dented by the U.S.
export ban of some items to Chinese telecom giant Huawei
Technologies Co. Huawei accounted for about $900 million of
Broadcom's sales in its previous fiscal year. Still, Chief
Executive Hock Tan said he expects the company's semiconductor
business to bounce back later in the fiscal year.
Write to Francesca Fontana at francesca.fontana@wsj.com
(END) Dow Jones Newswires
December 13, 2019 17:57 ET (22:57 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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