United Airlines, Pfizer, Spotify Technology: Stocks That Defined the Week
By Francesca Fontana
United Airlines Holdings Inc.
Stormy skies lie ahead for airlines. United Airlines on Tuesday
said it would trim more flying this quarter in response to stalling
demand while cost-cutting efforts will reduce how much cash it
burns moving into the fall as Covid-19 cases surge in many parts of
the country. In the spring, United cut more flights than rivals
such as Delta Air Lines Inc. and American Airlines Group Inc. as
the pandemic sapped travel demand. United shares fell 4.2%
Chevron has agreed to a $5 billion takeover of Noble Energy Inc.
The deal, announced Monday, is a sign of life in energy-sector
deal-making since oil prices plummeted in March due to widespread
shutdowns and travel bans. Chevron Chief Executive Mike Wirth said
that Noble's assets have low operating costs and require little
near-term investment, preserving Chevron's ability to navigate
economic uncertainty. Noble is Chevron's first big strategic move
after walking away from a high-profile bidding war for Anadarko
Petroleum Corp. last year, after being outbid by Occidental
Petroleum Corp. Chevron shares fell 2.2% Monday.
The U.S. has agreed to pay Pfizer and BioNTech SE nearly $2
billion to provide millions of Americans with their experimental
Covid-19 vaccine free of charge. Under the $1.95 billion agreement,
the U.S. Department of Health and Human Services and the Defense
Department will receive 100 million doses of the vaccine should it
be cleared by regulators, and can also acquire an additional 500
million. The vaccine has shown promising preliminary results and is
set to enter late-stage testing this month. Pfizer shares climbed
Spotify Technology SA
The world's largest record company has signed on to Spotify's
"two-sided marketplace." The streaming company's new licensing
agreement with Vivendi SA's Universal Music Group will put its
long-awaited strategy -- involving music companies paying the
platform for marketing, data and analytics -- to the test.
Universal holds some 40% market share in recorded music in the
U.S., and the deal has secured that massive catalog for streaming.
Universal was an early adopter of Marquee, the streaming platform's
sponsored recommendation that labels can pay to send to Spotify
users who are interested in a given artist. Spotify shares added
Remote work is still driving strong sales for Microsoft. The
software maker on Wednesday said sales rose 13% to $38 billion in
its fiscal fourth quarter, driven by sustained demand for its
cloud-computing service Azure. But profit margins declined, which
finance chief Amy Hood said reflects Microsoft's investments in
increasing its cloud capacity, giving out free software trials and
offering flexible financing options for customers struggling with
slowdowns in their business. The company said the pandemic has hurt
small and medium-size businesses and their spending on Office and
Windows software in recent months, and it expects that to continue
in the current quarter. Microsoft shares fell 4.4% Thursday.
Candy sales this Halloween may not be so sweet. The owner of
Reese's and Jolly Rancher said on Thursday that it plans to make
less themed candy for the holidays due to the pandemic, to avoid
having loads of leftovers to pull back or mark down.
Trick-or-treating makes up about half of Hershey's Halloween candy
sales, while the rest is generated by people buying candy for
themselves and family. Chief Executive Michele Buck doesn't expect
the potential sales hit to be significant, and Hershey is
considering shifting marketing to focus on home candy bowls if it
seems like fewer people plan to venture out. Hershey shares rose
Walt Disney Co.
The premiere of " Mulan" is off Disney's calendar for now.
Disney said on Thursday it is forgoing its planned Aug. 21 premiere
of the live-action remake of the animated classic as the pandemic
roils Hollywood. The entertainment giant said that it is also
delaying the release of future installments in the "Avatar" and
"Star Wars" series by a year each. Earlier in the week, AT&T
Inc.'s Warner Bros. indefinitely postponed the release of " Tenet,"
an action-thriller from director Christopher Nolan that was
expected to be the first big studio movie of the Covid era. Disney
shares fell 0.8% Thursday.
Write to Francesca Fontana at email@example.com
(END) Dow Jones Newswires
July 24, 2020 19:44 ET (23:44 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
Gráfica de Acción Histórica
De Sep 2020 a Oct 2020
Gráfica de Acción Histórica
De Oct 2019 a Oct 2020