Apple, General Motors, Citigroup: Stocks That Defined the Week
By Francesca Fontana
Where will tech stocks go from here? Investors are questioning
whether the sector can keep leading the market higher. Shares of
Apple, Facebook Inc., Amazon.com Inc., Microsoft Corp. and Alphabet
Inc. fell this week, injecting volatility into the broad market.
The dizzying rally in technology stocks this year has helped fuel
the market recovery, but the scale of the gains raise the
possibility of large drawdowns this fall. Apple shares fell 1.3%
Peloton Interactive Inc.
Peloton is riding high. The exercise bike maker on Tuesday
announced new equipment and a lower price for its core stationary
bike, hoping to broaden its appeal following a surge of interest
for at-home gear. The $2,000-plus price tag for its bikes has drawn
the ire of critics who say its equipment is accessible only to rich
people. Now, its base model will cost $1,895 instead of $2,245.
Peloton also posted its first-ever profit this week after revenue
nearly tripled during its recent quarter. Peloton shares gained
Slack Technologies Inc.
The pandemic was a boon for Slack. Now it is a burden, too. The
business-software company on Tuesday reported record sales in the
recent quarter but saw some users cut back on use of the
workplace-collaboration tool. Slack Chief Executive Stewart
Butterfield said revenue retention suffered as some customers cut
staff and, with that, use of its software. Some businesses also
have slowed spending decisions on new technology, as they try to
make it through the downturn. The company has enjoyed increased
popularity from the pandemic, as millions of Americans work from
home, though not to the extent as some of its rivals. Slack shares
fell 14% Wednesday.
General Motors Co.
Investors are revved up following General Motors' agreement to
help Nikola Corp. develop and make new electric trucks. GM said
Tuesday it would receive an 11% stake in Nikola, a would-be rival
in the market for electrified pickups. The agreement is part of
GM's strategy to monetize its electric-vehicle technology by
providing it to outside companies, which will generate revenue and
help drive down costs. GM has more than a dozen electric-vehicle
models of its own in the works, including large pickup trucks that
one day could compete with Nikola's Badger. GM shares rose 7.9%
Tiffany & Co.
Tiffany's has lost its luster for LVMH. The French luxury-goods
giant, LVMH Moët Hennessy Louis Vuitton SE, said Wednesday it was
backing out of its $16.2 billion takeover of the iconic U.S.
jeweler because of trade disputes between France and the Trump
administration. Tiffany said it was using trade tensions as a
pretext to abandon a deal that had been signed before the pandemic
threw the luxury-goods industry into turmoil. The retailer has lost
many of the tourists who flocked to its flagship city stores. Its
sales of engagement jewelry fell, as some couples postponed
weddings during lockdown. Tiffany shares lost 6.4% Wednesday.
A timetable for a Covid-19 vaccine from AstraZeneca is getting
more difficult to diagnose. The company said Tuesday it paused
clinical trials of the experimental vaccine it is developing with
the University of Oxford after a participant in a U.K. study had an
unexplained illness. Chief Executive Pascal Soriot said Thursday
that the progress of a safety review into the sick participant will
determine the trial timeline, but that the vaccine could still be
ready by the end of 2020 or early 2021. Before the pause, the
company said it might have enough data by next month to submit the
vaccine to regulators for approval. Shares fell 0.6% Thursday.
Wall Street's last glass ceiling is shattering. Citigroup has
named Jane Fraser as its next CEO, making her the first woman to
run one of the nation's top banks. Ms. Fraser, who is currently
Citigroup's president and runs its global consumer bank, will
succeed Michael Corbat as top boss when he retires in February. The
timing of Mr. Corbat's retirement comes as a surprise, as he was
expected to remain CEO into 2022. Ms. Fraser, 53, has worked at
Citigroup for 16 years, and the bank has tapped her to handle a
number of difficult tasks including the bank's emergency response
to the coronavirus in North America. Citigroup shares lost 0.9%
Write to Francesca Fontana at firstname.lastname@example.org
(END) Dow Jones Newswires
September 11, 2020 19:18 ET (23:18 GMT)
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