Twitter, General Electric, Walt Disney: Stocks That Defined the Week
May 29 2020 - 6:40PM
Dow Jones News
By Francesca Fontana
Twitter Inc.
Twitter is sparring with one of its most prominent users,
President Trump. It flagged a Friday tweet from Mr. Trump for
breaking what the company said are its rules about glorifying
violence, after applying a fact-checking notice earlier in the week
to other tweets from the president about voter fraud. Mr. Trump on
Thursday signed an executive order taking aim at what he said was
censorship by social-media companies. Twitter shares fell 2%
Friday.
Novavax Inc.
"Time is the most important thing here." That sense of urgency,
as expressed by Novavax Chief Executive Stanley Erck, explains why
the company started to scale up manufacturing of its experimental
coronavirus vaccine before starting the first human study of its
experimental coronavirus vaccine on Monday. Normally, Mr. Erck
said, the company would have waited six to nine months to start the
buildup. Because of the manufacturing buildup, Novavax said it
could produce up to 100 million doses this year, and potentially
more than one billion in 2021. It expects initial results in July
showing whether the vaccine is safe and triggers immune responses
in participants. Novavax shares gained 4.5% Tuesday.
General Electric Co.
Lights out for GE's last link to consumers. The conglomerate is
selling its lighting business, a unit that defined the company for
nearly a century, to Savant Systems Inc., a seller of
home-automation technology. Terms of the deal weren't disclosed,
but the transaction valued the unit at around $250 million, The
Wall Street Journal reported Wednesday. GE has exited those
consumer businesses as part of a yearslong restructuring, shifting
its focus to making heavy equipment, like power turbines, aircraft
engines and hospital machines. GE shares added 7.2% Wednesday.
Walt Disney Co.
The Magic Kingdom will look different when parkgoers return this
summer. Disney's theme park will begin reopening at reduced
capacity in mid-July, and the company's plans to protect against
coronavirus include limited attendance, plexiglass barriers and a
"social-distancing squad." Jim MacPhee, senior vice president of
operations at the park, said customers and staff will be required
to wear masks and complete temperature checks before entering the
park. Parades, fireworks presentations and character
meet-and-greets have been temporarily suspended. Disney's theme
parks have now sat empty for longer than at any time in the
company's history, throwing the surrounding local economy into an
unpredictable future and presenting a significant economic drain on
Disney's finances. Disney shares gained 0.5% Wednesday.
AT&T Inc.
HBO Max is here, but Amazon has been left out of the launch.
Amazon.com Inc. and AT&T are at odds over the streaming
service, which offers WarnerMedia movies and TV shows, including
all eight "Harry Potter" movies, "The Wizard of Oz" and "Friends."
Amazon has about five million customers who bought access to HBO
through its Prime Video Channels platform but aren't able to access
HBO Max, which on Wednesday became available to most other existing
HBO subscribers at no extra charge. Disputes between streaming
services are getting increasingly frequent and complicated, akin to
the fights that traditional cable networks often have with cable
and satellite operators. AT&T shares rose 3.3% Wednesday.
American Airlines Group Inc.
American Airlines is preparing to shrink. The airline will cut
its management and administrative staff by 30%, as demand has been
decimated by the coronavirus pandemic. The reduction amounts to
more than 5,000 of American's roughly 17,000 management and support
workers. The magnitude of coming job losses in the industry is just
beginning to take shape. United Airlines Holdings Inc. announced
plans to cut management ranks by 30% this month. Boeing Co. said
Wednesday that it is shedding over 13,000 jobs, including forced
cuts of 6,770 U.S. employees. Thousands of airline employees --
including 39,000 at American -- have taken unpaid leave or retired
early to help cut costs in recent months. American Airlines shares
fell 8.4% Thursday.
Salesforce.com Inc.
Salesforce is expecting slower sales growth for the year due to
the pandemic, despite the boost from work-from-home mandates. Many
customers of cloud software providers have increased usage during
the crisis, but many providers have said that signing new contracts
has slowed, as negotiations drag on with customers grappling with
how to adjust to the economic downturn. The business-software maker
said late Thursday that it has provided payment relief to some
customers affected by the pandemic, and has also made new
investments in the face of the crisis. Salesforce announced this
month a new suite of services for companies and governments seeking
resources to help manage the return of their employees as economies
exit quarantining measures. Salesforce shares fell 3.5% Friday.
Write to Francesca Fontana at francesca.fontana@wsj.com
(END) Dow Jones Newswires
May 29, 2020 19:25 ET (23:25 GMT)
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