Major indexes moved in relative harmony with the ups and downs of the U.S.-China trade spat, plunging Monday as the Trump administration cast doubt on the prospects of an agreement and recovering over the next few days as the White House softened its rhetoric.
The Dow Jones Industrial Average shed 0.7% and notched its fourth consecutive down week, closing Friday’s session at 25764.00. The S&P 500 and Nasdaq Composite also lost ground on the week, falling 0.8% and 1.3%, respectively.
Among individual stocks, American Express Co. rose 1.9% Thursday after saying it had agreed to buy Resy, a company that helps customers reserve tables at high-end bars and restaurants. Pinterest Inc.’s first earnings report as a publicly traded company was headlined by a larger-than-expected quarterly loss — and a 13% decline in shares on Friday.
Here, the stocks that defined the week:
Shares of semiconductor companies shuddered after the Trump administration on Wednesday clamped down on U.S. exports to Huawei Technologies Co., requiring suppliers to apply for a license
in order to keep selling to the Chinese state-run tech giant. Huawei last year spent about $11 billion on components manufactured by American companies, including chip makers like Qualcomm and Broadcom Inc. Qualcomm shares fell 4% Thursday
, while Broadcom shares shed 2.3%.
It may be months before Boeing’s 737 MAX jets return to the skies. Federal regulators aren’t likely to approve a software fix
to the plane’s automated flight-control system for several weeks, The Wall Street Journal reported, a delay that is likely to create headaches for airlines heading into the summer travel season. Boeing shares lost 4.9% Monday
. The delay is particularly troublesome for Southwest Airlines Co., which has been unable to operate scores of its planes since Boeing grounded the model in March following two fatal crashes. Southwest fell 3.2% Monday.
Consumers can sue Apple for forcing them to buy apps exclusively from the tech giant, the Supreme Court ruled
, threatening a lucrative revenue source for the company amid slowing iPhone sales. The split ruling focused on a preliminary issue in a broader antitrust case that could make Apple liable for substantial monetary damages. Apple typically takes a 30% cut of every app it sells, and a 15% cut of subscriptions sold through the App Store after subscribers’ first year. Apple shares tumbled 5.8% Monday
. A spokeswoman said the company is confident it will prevail in the antitrust lawsuit.
Walmart shares rose 1.4% Thursday
after the company reported strong first-quarter sales growth
, adding to a four years of strong results. Executives also said the U.S.-China trade spat prompted Walmart to raise prices on some goods to offset higher tariffs.
Separately, on Tuesday, Walmart said it will invest $800 million to expand one-day delivery
, a service it will begin offering free on about 200,000 products for shoppers in Phoenix, Las Vegas and Southern California. The initiative takes aim at Amazon.com Inc., which this past week rolled out a program that offers employees three months of pay and a bonus of $10,000 to quit their jobs and start their own local package-delivery businesses
Beyond Meat Inc.
Coming soon to a fast-food joint near you: alternative meat. Canadian coffee-and-doughnut chain
Tim Horton’s said Wednesday that is testing three breakfast items
with plant-based products from Beyond Meat and could roll out the items to its 4,000 locations by the end of summer. Beyond Meat shares rose 12% Wednesday
following the news. Tim Horton’s is now the second fast-food chain owned by Restaurant Brands International Inc. to offer alternative-meat products to its menus—in April, Burger King began selling an Impossible Whopper made with a patty from Beyond Meat rival Impossible Foods Inc.
Deere & Co.
The U.S.-China trade battle is taking a toll on American farmers—and Deere. The maker of tractors and other
farming machinery lowered its profit and sales forecasts
as farmer demand waned amid a host of headwinds
, including weaker soy demand and an unseasonably cold spring. Chief Executive Samuel Allen said the challenges have prompted farmers to become “much more cautious about making major purchases.” Deere now expects full-year profit of $3.3 billion on a 5% increase in equipment sales, down from expectations for $3.6 billion in profit on a 7% bump in sales. Deere shares dropped 7.7% Friday.
The Google of China posted its first quarterly loss since going public in 2005
, reporting a net loss of 327 million yuan ($47.5 million) in the latest period. That’s a sharp reversal from last year’s quarterly profit of 6.69 billion yuan.
Baidu executives attributed to the loss to weak advertising, a trend they said could continue amid a slowdown in the Chinese economy. Prospects for a quick rebound are cloudy: The company’s attempts to diversify into new sectors, like driverless vehicles and artificial intelligence, have yet to offset declining revenue from its core search advertising
business. Baidu’s American depositary receipts plunged 17% Friday.
Source of this (above) article: https://blogs.wsj.com/moneybeat/2019/05/17/the-score-the-business-week-in-7-stocks-42/?mod=_relatedInsights