Here Are Three Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average rose on Monday after coming off a week in which the index gained less than 0.1%.
- PepsiCo Inc. (PEP) CEO Indra Nooyi will step down from the beverage and snack maker after 12 years.
- Rite Aid Corp. (RAD) tumbled 10.5% after issuing a profit warning.
Wall Street Overview
Stocks rose on Monday, Aug. 6, despite an escalation in the trade war between Washington and Beijing.
The Dow Jones Industrial Average rose 66 points, or 0.26%, to 25,458, the S&P 500 rose 0.39% and the Nasdaq was up 0.43%.
Chinese state media outlets made the trade battle personal, lashing out at Donald Trump on Monday. The Communist Party’s People’s Daily newspaper said Trump was starring in his own “street fighter-style deceitful drama of extortion and intimidation.” China’s finance ministry on Friday targeted $60 billion worth of U.S. goods with import duties. China’s Shanghai Composite fell 1.26% on Monday.
Trump tweeted over the weekend that China “which is for the first time doing poorly against us, is spending a fortune on ads and P.R. trying to convince and scare our politicians to fight me on Tariffs- because they are really hurting their economy. Likewise other countries. We are Winning, but must be strong!”
PepsiCo Inc. (PEP) CEO Indra Nooyi plans to step down after leading the beverage and snack maker for 12 years. Nooyi will step aside as CEO on Oct. 3, but will remain chair until early 2019. Taking over as CEO will be company insider Ramon Laguarta, who ran the company’s Europe Sub-Saharan Africa division before being elevated to president last year.
The stock rose 1.6% on Monday.
Watch more analysis of PepsiCo’s CEO change on ‘Morning Jolt‘ below.
Rite Aid Corp. (RAD) tumbled 10.5% after it issued a profit warning for 2019, saying Monday that “generic drug purchasing efficiencies” would be about $80 million less than previously anticipated. Rite Aid said it expects an adjusted loss in fiscal 2019 of between 4 cents a share and breakeven, compared with previously issued guidance for adjusted profit of 2 cents to 6 cents.
Newell Brands Inc. (NWL) posted second-quarter adjusted earnings of 82 cents a share, 4 cents higher than analysts’ estimates. Sales of $2.2 billion were down from $2.5 billion a year earlier. The company cut its sales and earnings guidance and shares fell 13.14%.
Tyson Foods Inc. (TSN) posted adjusted earnings in its fiscal third quarter of $1.50 a share, beating analysts’ estimates of $1.38. Sales were $10.05 billion, which came in below forecasts of $10.22 billion. Tyson rose 3.34% on Monday.
Drug distributor Cardinal Health Inc. (CAH) rose 0.7% after posting adjusted earnings of $1.01 a share in its fiscal fourth quarter. Analysts expected earnings of 93 cents. Revenue of $35.35 billion also topped forecasts. The company also said adjusted earnings in fiscal 2019 would range from $4.85 to $5.10 a share; analysts had been calling for $4.92.
Esposito will run the securities division, one of the largest on Wall Street, alongside current executive Ashok Varadhan, the Journal reported, citing people familiar with the matter. The division has struggled, bringing in revenue of $12 billion last year, down from a peak of $33 billion in 2009.
Berkshire Hathaway Inc. (BRK.A) (BRK.B) , run by billionaire Warren Buffett, reported second-quarter operating earnings of $6.9 billion, or about $2.79 a Class B share, beating forecasts that called for operating earnings of $2.27.
Revenue in the second quarter rose to $62.2 billion from $57.3 billion a year earlier.
Berkshire’s insurance unit, which includes Geico and several large reinsurance firms, reported a $943 million underwriting profit, compared with a year-earlier loss of $22 million.