Moderna, ViacomCBS, Goldman Sachs: Stocks That Defined the Week
June 12 2020 - 8:13PM
Dow Jones News
By Francesca Fontana
Moderna Inc.
The race for a coronavirus cure is picking up speed. This summer
three experimental vaccines will enter Phase 3 trials, the final
stage of testing meant to determine their safety and effectiveness,
The Wall Street Journal reported on Wednesday. Moderna's vaccine is
set to be first, followed by one co-developed by Oxford University
and AstraZeneca PLC and one by Johnson & Johnson. Moderna
shares gained 3.2% Wednesday.
Simon Property Group Inc.
Simon Property Group has decided to empty a big shopping bag.
The landlord is terminating its $3.6 billion deal to acquire rival
mall owner Taubman Centers Inc., the latest sign of the intense
pressure the retail sector is contending with during the
coronavirus pandemic. Taubman described Simon's attempt to
terminate the deal as "without merit" in a statement Wednesday
afternoon and said it still considers Simon to be bound by the
agreement. The pandemic has resulted in an explosion of requests
for rent relief, retailer bankruptcies and store closures, putting
pressure on all landlords including Simon, to conserve cash. Simon
shares fell 4% Wednesday.
ViacomCBS Inc.
" Cops" is off the air as antipolice sentiment builds in the
U.S. The long-running reality show, which showed the police in a
favorable light, was canceled by ViacomCBS unit Paramount Network
on Tuesday. The A&E network has also pulled its "Live PD"
program. The cancellations come after the killing of George Floyd,
a black man, while being arrested by a white Minneapolis police
officer. The death sparked nationwide protests. Other entertainment
content is being re-examined in the wake of the social movement.
AT&T Inc.'s HBO Max streaming service pulled "Gone With the
Wind" from on Tuesday for its long-criticized romanticism of
slavery. ViacomCBS shares lost 8.7% Tuesday.
Microsoft Corp.
Some of the biggest names in tech are having second thoughts
about allowing police to use their facial-recognition tools.
Microsoft's president said Thursday that the company won't sell the
technology to U.S. police until there is a national law regulating
its use. The pledge comes amid widespread concern about how the
software's potential for racial bias as outcry about police tactics
grows. Amazon.com Inc. on Wednesday also placed a one-year
moratorium on law-enforcement use of its facial-recognition
software, and International Business Machines Corp. earlier this
week said it had stopped developing and offering facial-recognition
software. Microsoft shares fell 5.4% Thursday.
Apple Inc.
Businesses are announcing big-dollar initiatives to promote
racial justice following Mr. Floyd's killing. Apple said Thursday
it would devote $100 million to a racial-justice initiative that
aims to invest in education, economic equality and criminal-justice
reform with a goal of increasing opportunities for people of color.
A couple of hours later, Susan Wojcicki, chief executive of the
YouTube arm of Alphabet Inc.'s Google, said the video platform
would create a $100 million fund aimed at amplifying content from
black creators, in addition to highlighting racial-justice issues
through its official channel. Apple shares fell 4.8% Thursday.
Boeing Co.
Boeing grounded plans to make 125 new jets this year amid a
potential glut of new planes that airlines can't afford. Spirit
AeroSystems Holdings Inc., the company's biggest supplier, said
late Wednesday it had been asked by Boeing to freeze a recently
restarted production of parts for the 737 MAX. More than half the
world's fleet has been parked after travel restrictions and
weakening economies brought much of the global airline industry to
a halt. Boeing halted MAX production in January, and the U.S.
aerospace giant has delivered just 60 jets this year. Boeing shares
plummeted 16% Thursday.
Goldman Sachs Group Inc.
The pandemic is complicating the outlook for the nation's
largest banks now that interest rates may stay near zero for years.
Federal Reserve officials on Wednesday projected no interest rate
increases through 2022 and said they were studying how to provide
more support to an economy battered by the new coronavirus and
related shutdowns. Lower interest rates make it more difficult for
banks to profit from lending, a key revenue source. The Fed also
predicted that some damage to the labor market could last for
years. Bank stocks fell the next day, with Goldman Sachs shares
losing 9.1% Thursday.
Write to Francesca Fontana at francesca.fontana@wsj.com
(END) Dow Jones Newswires
June 12, 2020 19:58 ET (23:58 GMT)
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