Wells Fargo, Apple, Walt Disney: Stocks That Defined the Week
June 26 2020 - 6:49PM
Dow Jones News
By Francesca Fontana
Wells Fargo & Co.
The Federal Reserve is keeping the nation's biggest banks on a
tight leash. The regulator on Thursday ordered banks to cap
dividends and suspend buybacks as a way of ensuring they stay
healthy during the recession. The Fed said its annual stress tests
showed that a prolonged downturn could saddle them with up to $700
billion in loan losses. Wells Fargo shares lost 7.4% Friday.
Apple Inc.
Apple is getting more serious about making its own chips. The
tech giant said Monday it plans to ship Macs later this year with
custom chips, ending a 15-year technology partnership with Intel
Corp. Custom components have cut costs, boosted performance and
increased Apple's control over future releases. But the shift has
roiled chip-makers shares and forced some suppliers to sell or exit
businesses. Apple said the transition from Intel to its own
processors would occur over the next two years; the first Macs with
custom-designed chips would ship by year-end. Apple shares rose
2.6% Monday.
Simon Property Group Inc.
The biggest shopping-center owner is eyeing the purchase of one
of its anchor tenants: J.C. Penney Co. Simon Property Group is
joining Brookfield Property Partners in exploring a bid for the
bankrupt department-store chain, The Wall Street Journal reported
Tuesday. Analysts said the trend of buying distressed tenants to
maintain occupancy isn't sustainable and is a worrying sign that
property owners' rent-collection business model is under siege. The
purchase would be Simon's third tenant acquisition in four years
and its third partnering with Brookfield. The two property owners,
in a consortium, previously bought Forever 21 Inc. and Aéropostale
Inc. Simon Property Group shares added 2.3% Tuesday.
Facebook Inc.
Facebook is trying to halt an expanding advertising boycott with
new rules governing its content. Chief Executive Mark Zuckerberg on
Friday unveiled policies designed to combat voter suppression and
better protect minorities on the platform. The company will begin
labeling posts that violate its policies but are deemed newsworthy
-- giving Facebook the option of labeling President Trump's posts.
The announcement came soon after consumer-goods giant Unilever PLC
said it would halt U.S. advertising on Facebook and Twitter Inc.
for at least the remainder of the year, joining a growing list of
companies that have vowed to boycott Facebook due to its issues
with hate speech and misinformation. Facebook shares lost 8.3%
Friday.
Walt Disney Co.
The Magic Kingdom has decided not to let anyone into one of its
key territories. Disney on Wednesday said that it would postpone
the scheduled reopening of its Disneyland Resort in Anaheim, Calif.
The park, which had been scheduled to reopen on July 17, will now
stay closed until an unspecified date. The company has faced
pressure to delay reopenings as coronavirus cases reach new highs.
Union officials representing workers sought help from the
California governor's office, and members of the public have signed
online petitions. Disney shares fell 0.6% Thursday.
Microsoft Corp.
Microsoft is giving up on bricks-and-mortar retail. The tech
giant has decided to permanently close its stores that shut in late
March as a result of the coronavirus pandemic. Microsoft said its
retail staff will serve customers from corporate facilities and
remotely, providing sales, training and support. Microsoft had more
than 80 Microsoft Store locations, most of which were in the U.S.,
which the company had used to promote its growing hardware
business. It opened its first location more than a decade ago.
Microsoft shares fell 2% Friday.
Gap Inc.
Can Kanye West save Gap? The casual-clothing retailer is teaming
up with Mr. West's fashion brand Yeezy on a collection called Yeezy
Gap that will debut next year. The rapper and fashion designer has
talked about wanting to partner with Gap in the past, and worked in
a Gap store while growing up in Chicago. T-shirts, jeans and a
version of the Yeezy hoodie will be available for men, women and
children at Gap stores and on its website beginning next year.
Prices will be in line with Gap's other offerings. Gap, which also
owns the Old Navy and Banana Republic brands, has been in a
yearslong slump, exacerbated by widespread store closures due to
the pandemic. Gap shares soared 19% Friday.
Write to Francesca Fontana at francesca.fontana@wsj.com
(END) Dow Jones Newswires
June 26, 2020 19:34 ET (23:34 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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