The Score: The Business Week in 7 Stocks -- WSJ
July 07 2018 - 3:02AM
Dow Jones News
By Laine Higgins
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 (July 7, 2018).
General Motors Co. - 1.3% Thursday
Despite an unexpected 1.9% increase in first-half U.S. car
sales, stocks of American auto makers moved in fits and starts this
past week amid heated trade rhetoric between the U.S. and the
European Union as well as the initial salvos in an emerging trade
war with China. GM fell on Tuesday as industry executives cautioned
that a trade war could raise car prices by thousands of dollars and
slow sales. By Thursday, car companies on both sides of the
Atlantic got a reprieve after news of back-channel efforts to
eliminate car import tariffs. GM nearly recovered its losses from
Tuesday before falling 0.8% Friday after China's 25% tariff on U.S.
car imports took effect.
Dell Technologies Inc. - 9% Monday
After five years on the sidelines, Dell is coming back to the
public markets. But in lieu of an IPO, the pioneering tech firm is
opting for a complex maneuver to buy publicly traded DVMT, which
tracks Dell's roughly 80% stake in software firm VMware Inc., and
convert DVMT to class C common stock. Once completed, Dell Class C
shares will trade on the New York Stock Exchange for the first time
since founder Michael Dell and investment firm Silver Lake took the
company private in a leveraged buyout in 2013. Investors cheered
the move, sending shares of VMware up 10% and DVMT up 9% on Monday;
VMware said it would give an $11 billion special dividend tied to
the deal's completion.
Wynn Resorts Ltd. - -7.9% Monday
For the second-consecutive month, investors betting on strong
revenue growth from Macau's casinos got served with disappointing
numbers. Wynn, which has large exposure to the semiautonomous
Chinese gambling enclave, saw its stock fall 7.9% on Monday after
Macau reported revenue growth of 12.5%, below an expected 18%.
Separately, the company on Friday disclosed that General Counsel
Kim Sinatra, who knew for years about a $7.5 million settlement
between former Chief Executive Steve Wynn and a casino employee,
would step down July 15.
Glencore PLC - 8.1% Tuesday
Mining and trading giant Glencore disclosed Tuesday that it had
received a subpoena from the U.S. Justice Department regarding
compliance with money-laundering statutes and antibribery laws for
its operations in Congo, Nigeria and Venezuela dating to 2007.
Glencore's mining activity in Congo previously has come under
scrutiny from foreign governments and corruption watchdogs, but the
subpoena dated July 2 is broader and one analyst says it could
indicate a deep investigation. Glencore's stock, which trades in
London, plummeted nearly 12% when the news broke Tuesday morning
before recovering slightly to finish the session down 8.1%. In an
attempt to reassure investors, Glencore announced a $1 billion
stock buyback plan on Thursday, boosting shares 2.1%.
Facebook Inc. - 2.4% Tuesday
Facebook shares rose slightly Monday despite a 747-page report
delivered to Congress in which the social network disclosed it gave
dozens of companies special access to user data, including several
deals that contradict Facebook's previous public statements that it
restricted personal information to outsiders in 2015. Those gains
were more than erased during Tuesday's preholiday-truncated session
as the stock fell 2.4% after Facebook said it received questions
from the Securities and Exchange Commission and Federal Bureau of
Investigation related to the Justice Department and Federal Trade
Commission's probe of February's Cambridge Analytica data breach.
Shares rallied to end the week amid an analyst's upgrade.
Micron Technology Inc. - 5.5% Tuesday
A patent feud between Micron, the largest memory-chip maker in
the U.S., and United Microelectronics Corp. of Taiwan heated up on
Tuesday as UMC and another rival said the U.S. firm was temporarily
blocked by a Chinese court from selling certain products in China.
Shares of Micron, whose Chinese sales account for half of its
revenue, fell 5.5%. On Thursday, Micron shares recovered 2.6% after
the company said it would challenge the temporary ban and didn't
expect second-quarter revenue to stray from its previously expected
range of $8 billion to $8.4 billion.
Barnes & Noble Inc. - 1.7% Thursday
Two hours after the close of trading on the day before the
Independence Day holiday, Barnes & Noble disclosed the
dismissal of CEO Demos Parneros for violating an undisclosed
company policy. Mr. Parneros was removed from the bookseller's
board and didn't receive any severance pay. His ouster is the
latest sign of tumult for Barnes & Noble, which has had three
CEOs since 2016 as it struggles to compete with Amazon. Shares fell
1.7% on Thursday and slid 11% on Friday as investors continued to
digest the news.
Write to Laine Higgins at laine.higgins@wsj.com
(END) Dow Jones Newswires
July 07, 2018 02:47 ET (06:47 GMT)
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