Information of the day for August 20, 2024
Yuki Iwamura / Bloomberg by way of Getty Photos
Lowe’s (LOW) lowers its full-year steerage; media govt Edgar Bronfman Jr. has reportedly submitted a proper $4.3 billion bid for management of Paramount International (PARA); shares of Hawaiian Airways father or mother Hawaiian Holdings (HA) are leaping after the Division of Justice (DOJ) cleared Alaska Air Group’s (ALK) $1.9 billion buy of the provider; Boeing (BA) reportedly discovered cracks within the construction of its 777X jetliner in preliminary take a look at flights; the European Union (EU) cuts tariffs on imports of China-made Tesla (TSLA) electrical autos (EVs). U.S. inventory futures are little modified after shares ended greater yesterday, with the S&P 500 nearing its all-time closing excessive. Right here’s what traders must know at present.
1. Lowe’s Follows Rival Dwelling Depot, Slashes Full-Yr Outlook
Lowe’s (LOW) lower its full-year outlook for gross sales and revenue on delicate do-it-yourself (DIY) spending, whereas reporting quarterly income that missed analysts’ forecasts. Lowe’s posted second-quarter income of $23.59 billion, beneath Seen Alpha expectations of $23.90 billion, although adjusted earnings per share (EPS) of $4.10 beat forecasts. The corporate attributed the quarterly gross sales stoop to “continued stress in DIY larger ticket discretionary spending and unfavorable climate adversely impacting gross sales.” Lowe’s mentioned comparable gross sales for its full yr would fall by 3.5% to 4%, versus its prior forecast of a decline of two% to three%, and guided whole gross sales of $82.7 billion to $83.2 billion, down from $84 billion to $85 billion. The house enchancment chain’s lowered outlook follows decrease steerage from rival Dwelling Depot (HD) final week. Shares are edging greater in premarket buying and selling.
2. Bronfman Reportedly Bids $4.3B for Management of Paramount
Media govt Edgar Bronfman Jr. has reportedly submitted a proper $4.3 billion bid for Nationwide Amusements, the controlling shareholder of Paramount International (PARA), after Skydance Media struck a deal for Shari Redstone’s media empire final month. In keeping with The Wall Road Journal, Bronfman’s provide for Nationwide Amusements is analogous in worth to Skydance’s, however aside from a $400 million breakup payment, a key distinction is that there is no such thing as a dilution for Paramount shareholders, because it isn’t an all-stock bid. Bronfman has secured financing from high-net-worth people and household places of work, and is teaming up with film producer Steven Paul, the report mentioned. Paramount shares are down about 3% in premarket buying and selling.
3. Hawaiian Holdings Inventory Surges as Alaska Air Merger Clears Hurdle
Shares of Hawaiian Airways father or mother Hawaiian Holdings (HA) are leaping 11% in premarket buying and selling after the Division of Justice (DOJ) cleared Alaska Air Group’s (ALK) $1.9 billion buy of the provider. Alaska Airways, whose shares are up 2%, mentioned the DOJ had allowed the overview interval to run out with out difficult the merger, which was introduced final December. The 2 airways now need to win approval from the U.S. Transportation Division earlier than the merger can shut. In February, the DOJ requested for extra data so as to consider the doable antitrust implications, however persevering with negotiations led the deadline for the deal to be prolonged a number of instances.
4. Boeing’s Newest Mishap: Cracks in New 777X Jetliner
Boeing (BA) has reportedly discovered cracks within the construction of its 777X jetliner in preliminary take a look at flights, one other mishap for the provider this yr. In keeping with commerce publication The Air Present, the corporate is grounding its 777X take a look at fleet after an inspection confirmed the failure of a key engine mounting construction. Boeing shares, that are falling 1% in premarket buying and selling, are down greater than 30% this yr because the airplane maker grapples with a sequence of setbacks since a door plug indifferent throughout an Alaska Airways flight and led the Federal Aviation Administration (FAA) to floor enlargement plans for its best-selling 737 MAX.
5. EU Cuts Tariffs on China-Made EV Imports From Tesla
The European Union (EU) has lower tariffs on Tesla’s (TSLA) China-made electrical autos (EV) imported into the area. The European Fee (EC), the EU’s enforcement arm, mentioned Tesla autos imported from China would see tariffs lower to 9% from a provisional 20.8%. In June, the EU mentioned it will provisionally impose further tariffs of as much as 38.1% on imported Chinese language EVs as a result of they benefited “from unfair subsidisation” that threatens home producers of battery electrical autos (BEVs). The European determination comes round three months after U.S. President Joe Biden boosted tariffs on Chinese language EV imports to 100% from 25%, saying the transfer was aimed toward defending American staff from “China’s unfair commerce practices.” Tesla shares are up 1% in premarket buying and selling.
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