Alphabet, United, Novavax: Stocks That Defined the Week
July 10 2020 - 7:27PM
Dow Jones News
By Dan Fitzpatrick
Alphabet Inc.
Silicon Valley is backing away from Hong Kong. Google, Facebook
and Twitter said Monday they suspended requests for user data from
that city's law-enforcement agencies following China's imposition
of a national-security law. TikTok, a buzzy short-video platform,
also said it would pull its app from Google and Apple Inc.'s app
stores in Hong Kong. The moves have put U.S. technology titans on a
potential collision course with Beijing. Alphabet shares rose 2%
Monday.
Uber Technologies Inc.
Uber finally found a dinner date. It reached a $2.65 billion
deal to buy rival Postmates Inc. that will help it better compete
in restaurant delivery and the market for delivering groceries and
other staples. Uber would become the second-largest restaurant
delivery service in the U.S. by market share, following DoorDash
Inc., according to research firm Edison Trends. Grubhub Inc. ranks
third. Uber sought to buy Grubhub earlier this year to shore up its
position in the U.S., but the deal fell apart under regulatory
concerns and disagreements over price. Uber shares rose 6%
Monday.
Novavax Inc.
The drugmaker received a new injection from Uncle Sam. The
federal government will supply $1.6 billion to pay for clinical
studies of Novavax's experimental coronavirus vaccine and establish
large-scale manufacturing of doses. Novavax said Tuesday the
funding would allow it to deliver 100 million doses of its vaccine
for use in the U.S. -- possibly by the end of the year. Regeneron
Pharmaceuticals Inc. also said it received a $450 million federal
contract to manufacture thousands of doses of its experimental
Covid-19 treatment. Novavax shares surged 31.6% Tuesday.
United Airlines Holdings Inc.
The turbulence of Covid-19 is roiling United, which said
Wednesday it could be forced to shed almost half its U.S.
workforce. The carrier told 36,000 employees they could be
furloughed as soon as Oct. 1 because of the pandemic-driven slump
in passenger demand. The news followed an earlier warning from
United that a surge in U.S. coronavirus cases and new government
restrictions are keeping travelers from flying. Chicago-based
United is the first major U.S. carrier to detail possible mass
furloughs despite receiving billions of dollars in federal aid.
United shares dropped 0.6% Wednesday.
Berkshire Hathaway Inc.
Warren Buffett finally found something worth buying during the
Covid-19 contraction. Berkshire Hathaway's energy company agreed to
acquire pipeline and storage assets belonging to Dominion Energy
Inc. Berkshire Hathaway Energy already operates a $100 billion
portfolio of utility, transmission and generation businesses
providing natural gas and electricity to more than 12 million
customers. The Dominion acquisition, announced Sunday, will add
7,700 miles of natural-gas storage and transmission pipelines and
about 900 billion cubic feet of gas storage to its holdings.
Berkshire shares rose 2.2% Monday.
Walgreens Boots Alliance Inc.
The pharmacy chain swallowed a $1.7 billion loss in its latest
quarter due to fewer prescriptions in the U.S. and homebound
consumers. It also said Thursday that it plans to cut about 4,000
jobs in the U.K. and suspend stock buybacks. The Covid-19 pandemic
has been challenging for drugstores, as patients put off visiting
doctors and other health providers. Walgreens separately said it
would attach doctors' offices to hundreds of drugstores as the
pharmacy chain seeks to remodel itself as a health-care provider.
Walgreen shares dropped 7.8% Thursday.
Harley-Davidson Inc.
Harley-Davidson is losing some of its horsepower. The Milwaukee
motorcycle maker said Thursday it would cut about 700 jobs, or 13%
of its workforce, as part of a global overhaul. Harley-Davidson's
sales in its core U.S. market have been falling for years, and the
company replaced CEO Matt Levatich earlier this year with Jochen
Zeitz. The company reopened its factories after closures related to
the pandemic some weeks ago at lower production levels, reflecting
pressures including lower demand for motorcycles. Harley-Davidson's
shares rose 0.6% Thursday.
Write to Dan Fitzpatrick at dan.fitzpatrick@wsj.com
(END) Dow Jones Newswires
July 10, 2020 19:12 ET (23:12 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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