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Tag: industrial news

  • Nvidia identified as target of French antitrust raid: WSJ

    Nvidia identified as target of French antitrust raid: WSJ

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    Nvidia Corp.’s offices in France were the subject of a dawn raid Wednesday by French antitrust regulators, according to a report by the Wall Street Journal on Thursday, which cited sources close to the raid.

    Nvidia
    NVDA,
    +1.46%

    is widely recognized by Wall Street as the biggest chipmaker that stands to gain from the current AI frenzy, as data centers that run the AI models need more and more hardware and software to sustain workloads. Shares of the $1.065 trillion company are up 195% year to date.

    On Wednesday, the Autorité de la Concurrence, France’s national competition regulator, said it had carried out the raid at “the premises of a company suspected of having implemented anticompetitive practices in the graphics-cards sector,” and refused to comment on “the entity or on the practices in question.”

    Nvidia declined to comment to both the Wall Street Journal and MarketWatch.

    Nvidia’s stock closed up 1.5% at $430.89 in Thursday trading following the report, while the S&P 500 index
    SPX,
    +0.59%

    gained 0.6%.

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  • Tesla sued for racial discrimination, retaliation by EEOC

    Tesla sued for racial discrimination, retaliation by EEOC

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    Tesla Inc. was sued Thursday by the U.S. Equal Employment Opportunity Commission, which alleges the EV maker violated federal law by “tolerating widespread and ongoing racial harassment of its Black employees” at its Fremont, Calif., plant, and by retaliating against those opposing the harassment.

    Black employees at the Fremont factory, Tesla’s
    TSLA,
    +2.44%

    first assembly plant and for years its only vehicle-manufacturing facility in the U.S., “have routinely endured racial abuse, pervasive stereotyping and hostility” as well as having racial slurs hurled at them, the lawsuit alleges.

    “Slurs were used casually and openly in high-traffic areas and at worker hubs,” the EEOC said. Black employees “regularly” saw graffiti with slurs, swastikas, threats and nooses throughout the facility, including on desks, in bathroom stalls and elevators, according to the suit.

    Tesla, which disbanded its media relations team during the pandemic, did not immediately return a request for comment. In August, SpaceX, another one of Tesla’s Chief Executive Elon Musk’s companies, was sued by the Justice Department over its hiring practices.

    Employees who spoke up against the racial hostility suffered retaliations that included being fired or transferred, the EEOC said.

    The lawsuit was filed in the U.S. District Court for the Northern District of California after attempts at reaching a settlement before the litigation. It seeks compensatory and punitive damages as well as back pay for the affected workers. It also seeks changes to Tesla’s employment practices to prevent discrimination in the future, the EEOC said.

    A Black Tesla employee was awarded $137 million in 2021 by a jury that agreed he was subjected to racial harassment at the Fremont factory, but in April 2022 a judge reduced the award to $15 million.

    Shares of Tesla have doubled so far this year, compared with an advance of around 12% for the S&P 500 index
    SPX.

    The first Model S rolled out of the Fremont factory in 2012, and the plant now makes Model S, Model 3, Model X and Model Y vehicles, with capacity to make more than a million vehicles a year as well as energy products and battery cells.

    Tesla opened up its second U.S. vehicle-making factory in the Austin, Texas, area in the spring of 2022.

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  • Betting markets now see a Trump 2024 win as likelier than a Biden victory — and give Newsom better chances than Trump’s GOP rivals

    Betting markets now see a Trump 2024 win as likelier than a Biden victory — and give Newsom better chances than Trump’s GOP rivals

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    Donald Trump’s chances of winning the 2024 presidential election appear to be improving this week, as betting markets tracked by RealClearPolitics put them just ahead of President Joe Biden’s for the first time this year — at 32%, compared with 30%.

    That’s illustrated in the below chart, which also shows Democratic Gov. Gavin Newsom of California with an 8% chance of getting elected president, even though he has ruled out a White House run repeatedly. Newsom’s chances are ahead of those for Trump’s rivals for the Republican nomination, such as Florida Gov. Ron DeSantis and former U.N. Ambassador Nikki Haley.

    To be sure, betting markets got last year’s midterm elections wrong and can be poor predictors for several reasons. The clientele for political gambling tends to be right-leaning and male, and betting markets can get caught up in narratives as well as skewed by unreliable polls, one expert in political gambling and prediction markets told MarketWatch last year.

    Trump’s chances of winning the 2024 presidential election have hit a new high for the year, as Biden seems to fade a bit, DeSantis has seen a big drop, and some bettors like Michelle Obama.


    RealClearPolitics

    Trump’s improved chances come as he skipped a GOP primary debate for a second time, instead giving a speech Wednesday night directed at Michigan auto workers in which he suggested that none of the debaters deserved to become his vice president.

    The former president has 56.6% support in national primary polls, according to a RealClearPolitics moving average of surveys. He has been indicted this year in two separate election-interference cases, a hush-money case and a classified-documents case, but many Republican voters have rallied around him.

    DeSantis is a distant second in those polls with 14.4% support, followed by Haley at 5.8%, entrepreneur Vivek Ramaswamy at 5.1% and former Trump VP Mike Pence at 4.2%. In aggregate, the non-Trump GOP candidates get 35.9% support in RCP’s average of national polls, compared with Trump’s 56.6%. In RCP’s average of surveys for Iowa, which holds the first major contest in the GOP primary, they get 46.4% support vs. his 49.2%.

    Now read: DeSantis says at debate that Trump’s spending ‘set the stage for the inflation that we have now’

    See also: Gas tax a target at Republican debate. Here’s what you’re paying now.

    Plus: Instagram, other social media should be banned for anyone 16 and under, Ramaswamy says at GOP debate

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  • Elizabeth Warren, Bernie Sanders urge FTC’s Khan to finalize controversial merger rules

    Elizabeth Warren, Bernie Sanders urge FTC’s Khan to finalize controversial merger rules

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    A group of Democrats in the House and Senate are imploring the country’s top antitrust enforcement cop to implement sweeping new changes to its merger-review protocol, according to a new letter viewed exclusively by MarketWatch.

    The Federal Trade Commission, along with the Justice Department’s antitrust division, recently proposed changes to forms that companies proposing deals of a certain size must submit to the government, which critics say would suppress the market for mergers and acquisitions.

    The new form will require companies to provide much more information to antitrust enforcers before they seek to consummate a deal. Most controversially, that would include narrative information about the strategic rationale for a transaction as well as studies, surveys, analyses and reports which were prepared by the company as it considered the deal.

    “The new proposed [form] and associated instructions will facilitate efficient premerger review and ensure effective enforcement of antitrust laws,” wrote the lawmakers, including Sens. Elizabeth Warren, a Massachusetts Democrat, and Bernie Sanders of Vermont, an independent who votes with Democrats.

    The letter, dated Sept. 27, was also signed by Democrats including Sen.  Mazie Hirono of Hawaii, and Reps. Becca Balint of Vermont, Henry Johnson of Georgia, Rashida Tlaib of Michigan, Summer Lee of Pennsylvania, Lori Trahan of Massachusetts, Ilhan Omar of Minnesota, Mark Pocan of Wisconsin, Katie Porter of California and Greg Casar of Texas. No Republicans signed the letter.

    The lawmakers lament the state of the U.S. economy today, arguing that the updated premerger process is necessary to combat growing concentration of industry and the digital transformation of the economy.

    “Unchecked consolidation hurts consumers, small businesses, workers, and the economy,” the letter reads. “Consolidation leads to higher prices, less innovation, and reduced quality for consumers. It prevents small businesses from entering markets or competing fairly: for example it is twice as expensive for small businesses to borrow money compared to dominant ones, and there are fewer startups in states where a few companies dominate markets.”

    The lawmakers note that since the current premerger notification process was instituted nearly 45 years ago, the required forms have not been updated, and only require companies to provide basic information that don’t “give regulators clarity as to whether a deal may substantially lessen competition.”

    The FTC and DOJ proposed the changes in July, and then extended the period for accepting public comments on the proposal to Sept. 27, and it’s possible the final rule is amended before the agencies adopt it. There is no set timeline for when the FTC will vote to adopt any changes.

    Some antitrust experts are skeptical that the proposed changes will hold up in court, if they are implemented as proposed.

    “The proposed changes are likely to face a rocky path ahead,” wrote Justin Hurwitz of the University of Pennsylvania’s Center for Technology, Innovation & Competition, in a recent analysis.

    “They appear to violate legislative intent that [the premerger process] not unduly delay transactions or require the production of materials the firms did not already create as par of evaluating the transaction.”

    Hurwitz added that “the premerger notification process serves an important function, but it is a tax on on all mergers,” and predicted that the proposed changes will likely not “survive judicial review.”

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  • Micron, Peloton, GameStop, Workday, Nike, CarMax, and More Stock Market Movers

    Micron, Peloton, GameStop, Workday, Nike, CarMax, and More Stock Market Movers

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  • Diageo Backs FY 2024 Views Despite Persistent Cost Pressures

    Diageo Backs FY 2024 Views Despite Persistent Cost Pressures

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    By Michael Susin

    Diageo said expectations for fiscal 2024 remain unchanged despite warning of persistent continuing cost pressures and macroeconomic challenges.

    The liquor maker–which owns Johnnie Walker whisky and Tanqueray gin–on Thursday said it expects a gradual improvement on both organic net sales and operating profit growth from the first half of the fiscal year ending June 30 and then an acceleration in the second half, given softer comparators.

    Diageo said it is well-positioned to deliver its 2023-25 guidance for organic net sales growth of 5% to 7% a year and organic operating profit growth of 6% to 9% a year.

    “I am confident in the resilience of our business and our ability to navigate these headwinds while executing our strategic priorities,” Chief Executive Debra Crew said.

    The company changed its reporting and dividend currency to U.S. dollar from the pound at the start of fiscal 2024.

    Write to Michael Susin at michael.susin@wsj.com

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  • Instagram, other social media should be banned for anyone 16 and under, Ramaswamy says at GOP debate

    Instagram, other social media should be banned for anyone 16 and under, Ramaswamy says at GOP debate

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    Republican presidential hopeful Vivek Ramaswamy took aim at social-media companies during the second GOP presidential debate, saying Wednesday night that he would aim to ban anyone age 16 or under from using those companies’ platforms.

    “If you’re 16 years old or under, you should not be using an addictive social-media product — period,” said Ramaswamy, an entrepreneur who ranks fourth in GOP primary polls, according a RealClearPolitics average.

    He said this move would help with improving mental health and stopping the fentanyl epidemic. Earlier, Ramaswamy had talked about a mom and dad in Iowa whose son died after the teen bought Percocet laced with fentanyl through Snapchat.

    That type of ban would hit companies such as Meta Platforms
    META,
    -0.41%
    ,
    the parent of Instagram and Facebook; Snap
    SNAP,
    +1.80%
    ,
    the parent of Snapchat; X, formerly known as Twitter; and ByteDance, the Chinese parent of TikTok.

    Ramaswamy has started using TikTok in his White House campaign, and another GOP presidential candidate, former U.N. Ambassador Nikki Haley, attacked him over that at another point in the debate.

    “TikTok is one of the most dangerous social-media apps we could have,” she said. “Honestly, every time I hear you, I feel a little bit dumber.”

    Now read: Could Congress actually ban TikTok in the U.S.? Analysts see ‘procedural and practical hurdles’

    And see: GOP presidential debate: DeSantis says Trump’s spending ‘set the stage for the inflation that we have now’

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  • After fighting over connected fitness, Peloton and Lululemon join forces

    After fighting over connected fitness, Peloton and Lululemon join forces

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    Peloton Interactive’s stock jumped after hours Wednesday after the connected-exercise-bike maker and yoga-wear giant Lululemon Athletica announced a five-year partnership that will combine digital fitness with workout and athleisure gear starting next month.

    The move comes as the fitness industry recalibrates after a boom and bust in at-home workouts due to the pandemic, and after Peloton
    PTON,
    +0.65%

    and Lululemon
    LULU,
    -0.40%

    tried to compete with each other directly on connected fitness. But as part of the deal, Lululemon will stop selling its Lululemon Studio Mirror — its answer to Peloton’s pairing of exercise equipment and exercise videos — before the end of the year.

    Shares of Peloton climbed 13.3% after hours Wednesday. Lululemon’s stock was up 0.3% after hours.

    Under the partnership, Peloton will become the “exclusive digital fitness content provider” for Lululemon. Lululemon, meanwhile, will become Peloton’s “primary athletic-apparel partner.” Some Peloton instructors will also promote Lululemon’s clothing as part of the arrangement.

    The partnership will target customers across North America, the U.K., Germany and Australia. Starting Oct. 11, co-branded clothing across Lululemon’s products will be available at Peloton stores and online in the United States, the U.K. and Canada, and in Peloton’s markets by March. Beginning Nov. 1, Lululemon Studio All-Access Members will have access to Peloton classes.

    “Our two companies share a vision to advance wellbeing through movement, and this partnership ensures our lululemon Studio Members will have access to the most expansive and dynamic offering of fitness content possible,” Celeste Burgoyne, Lululemon’s president for the Americas and global guest innovation, said in a statement.

    Lululemon bought Mirror — an interactive fitness company that displayed workout videos and fitness data on an actual mirror — for $500 million in 2020, when much of the world still faced pandemic-related restrictions.

    Then, lockdowns eased and pre-pandemic habits returned. Gyms reopened. Peloton started getting into trouble. It has cut jobs, shaken up leadership and announced a recall of 2 million exercise bikes due to injury risks. Shares of the company have fallen more than 90% since late 2020.

    Lululemon stock, however, has run higher since that time. Some analysts last year said that clothing made by the company was less prone to a broader apparel discounting frenzy. During its most recent round of earnings, Lululemon raised its full-year outlook despite what it called a “dynamic operating environment.

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  • Micron sees nine-figure data-center sales in 2024, but another quarter of negative margins

    Micron sees nine-figure data-center sales in 2024, but another quarter of negative margins

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    Micron Technology Inc. is far from out of the woods yet when it comes to profitability as quarterly results came in better than expected Wednesday, but the memory-chip maker’s chief executive was upbeat about data-center sales in 2024 as AI fever rages on.

    While the Boise, Idaho-based chip maker topped expectations for its fiscal fourth quarter, it forecast a loss of $1.14 to $1 a share on revenue of $4.2 billion to $4.6 billion for the fiscal first quarter. Analysts surveyed by FactSet, however, had forecast, on average, a loss of 88 cents a share on revenue of $4.24 billion.

    Micron also expects negative gross margins for a fourth consecutive quarter in the fiscal first quarter, between a 6% and 2% loss, which Micron Chief Financial Officer Mark Murphy said on the call assumed no additional inventory write-down because of memory-chip pricing.

    Following gross margins of 22.9% reported in the first quarter of fiscal 2023, gross margins swung sharply to negative-31.4% as Micron reported its largest quarterly loss on record in March, writing off more than $1.4 billion in inventory. Those margins improved to negative-16.1% in the third quarter. On Wednesday, those continued to improve sequentially, to negative-9.1% in the fourth quarter.

    Additionally, the company said it is still experiencing headwinds from China’s cybersecurity review of the company’s products, which surfaced in March.

    Micron
    MU,
    +0.40%

    shares declined nearly 4% after hours Wednesday following a 0.4% rise to close the regular session at $68.21.

    On a conference call, Micron Chief Executive Sanjay Mehrotra told analysts he expects revenue from high-bandwidth memory chips designed for data centers “to begin in early 2024,” and that the company is “very much still on track for meaningful revenue, several hundred million dollars in our fiscal year 2024.”

    Back in July, Micron and Nvidia Corp.
    NVDA,
    +1.33%

    announced that Nvidia was using Micron’s HBM3 Gen2 high-bandwidth memory 1-beta DRAM chips in its AI data-center products. As the AI frenzy has raged on all year, data centers that must handle the enormous amounts of data and throughput required by AI models like Open AI’s ChatGPT, backed by Microsoft Corp.
    MSFT,
    +0.21%
    ,
    have boosted demand for hardware.

    Micron specializes in making DRAM and NAND memory chips. DRAM, or dynamic random access memory, is the type of memory commonly used in PCs and data-center servers, while NAND chips are the flash memory chips used in smaller devices like smartphones and USB drives.

    Read: Micron’s stock might be an excellent play for AI investors who want to diversify beyond Nvidia

    In the company’s last earnings report, Mehrotra called the bottom in the memory-chip market, but warned that smartphone and PC weakness could cut into AI gains. This time around, the CEO said smartphone and PC markets were “now at normal levels.”

    Read: AI will accelerate Micron’s recovery, analyst says

    For the fiscal fourth quarter, Micron reported a loss of $1.43 billion, or $1.31 a share, versus net income of $1.49 billion, or $1.35 a share, in the year-ago period.

    The adjusted loss, which excludes stock-based-compensation expenses and other items, was $1.07 a share, versus adjusted earnings of $1.45 a share in the year-ago period. Revenue fell to $4.01 billion from $6.64 billion in the year-ago quarter.

    Analysts had forecast Micron to report a fourth-quarter loss of $1.15 a share on revenue of $3.95 billion.

    Micron shares are up 36.5% year to date, compared with a 32.8% gain by the PHLX Semiconductor Index
    SOX,
    an 11.3% gain by the S&P 500 index
    SPX
    and a 25.1% rise in the Nasdaq Composite
    COMP.

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  • Costco is selling out of small gold bars ‘within a few hours,’ CFO says

    Costco is selling out of small gold bars ‘within a few hours,’ CFO says

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    Costco Wholesale Corp. sells lots of things you wouldn’t expect from a big-box retailer: caskets, caviar, six-pound tubs of Nutella. Add to that list one-ounce bars of gold, which the company on Tuesday said were selling out within a matter of hours.

    “I’ve gotten a couple of calls that people have seen online that we’ve been selling one-ounce gold bars,” Chief Financial Officer Richard Galanti said on Costco’s
    COST,
    +2.45%

    quarterly earnings call on Tuesday. “Yes, but when we load them on the site, they’re typically gone within a few hours, and we limit two per member.”

    Costco did not immediately respond to a request for more information about the types of gold bars it sells, how much they cost or the factors behind the demand. On Wednesday, the site showed a price of $1979.99 per ounce for the bars. Shares of Costco were up 1.3% on Wednesday.

    Gold is generally seen as a safe-haven investment and a hedge against inflation. Buying by central banks, lingering worries about a deceleration in the economy and jewelry purchases have helped prop up prices, according to data tracker Goldhub. But higher interest rates have acted as a counterweight, and some analysts have wondered whether more volatility is on the horizon for gold prices.

    Costco’s quarterly results, reported Tuesday, topped expectations. Analysts have said the retail chain remains attractive to customers who are looking for a break from higher prices.

    Shares of the company are up 23.8% so far this year. The S&P 500 Index
    SPX
    is up 11.4% over that period.

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  • Hollywood writers strike declared over after boards approve new contract with studios

    Hollywood writers strike declared over after boards approve new contract with studios

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    LOS ANGELES — Leaders of the screenwriters union declared their nearly five-month-old strike over Tuesday after board members approved a contract agreement with studios, bringing Hollywood at least partly back from a historic halt in production.

    The governing boards of the eastern and western branches of the Writers Guild of America and their joint negotiating committee all voted to accept the deal, two days after the tentative agreement was reached with a coalition of Hollywood’s biggest studios, streaming services and production companies. After the vote they declared that the strike would be over and writers would be free to start on scripts at 12:01 a.m. Wednesday.

    Late-night talk shows — the first to go dark when writers walked out on May 2 — are likely the first shows that will resume. Scripted shows will take longer to return, with actors still on strike and no negotiations yet on the horizon.

    The writers still have to vote to ratify the contract themselves in early October, but lifting the strike will allow them to work during that process, the guild told members in an email.

    After Tuesday’s board votes, the contracts were released for the first time to the writers, who had not yet been given any details on the deal, which their leaders called “exceptional.”

    The three-year agreement includes significant wins in the main areas writers had fought for — compensation, length of employment, size of staffs and control of artificial intelligence — matching or nearly equaling what they had sought at the outset of the strike.

    The union had sought minimum increases in pay and future residual earnings from shows of between 5% and 6%, depending on the position of the writer. The studios had wanted between 2% and 4%. The compromise deal was a raise of between 3.5% and 5%.

    The guild also negotiated new residual payments based on the popularity of streaming shows, where writers will get bonuses for being a part of the most popular shows on Netflix
    NFLX,
    -1.44%
    ,
    Max and other services, a proposal studios initially rejected. Many writers on picket lines had complained that they weren’t properly paid for helping create heavily watched properties.

    The writers also got the requirement they sought that shows intended to run at least 13 episodes will have at least six writers on staff, with the numbers shifting based on the number of episodes. They did not get their desire for guaranteed staffs of six on shows that had not yet been ordered to series, settling instead for a guaranteed three.

    Writers also got a guarantee that staffs on shows in initial development will be employed for at least 10 weeks, and that staffs on shows that go to air will be employed for three weeks per episode.

    On artificial intelligence, the writers got the regulation and control of the emerging technology they had sought. Under the contract, raw, AI-generated storylines will not be regarded as “literary material” — a term in their contracts for scripts and other story forms a screenwriter produces. This means they won’t be competing with computers for screen credits. Nor will AI-generated stories be considered “source” material, their contractual language for the novels, video games or other works that writers may adapt into scripts.

    Writers have the right under the deal to use AI in their process if the company they are working for agrees and other conditions are met. But companies cannot require a writer to use AI.

    Still-striking members of the Screen Actors Guild-American Federation of Television and Radio Artists returned to the picket lines earlier Tuesday for the first time since the writers struck their tentative deal, and they were animated by a new spirit of optimism.

    “For a hot second, I really thought that this was going to go on until next year,” said Marissa Cuevas, an actor who has appeared on the TV series “Kung Fu” and “The Big Bang Theory.” “Knowing that at least one of us has gotten a good deal gives a lot of hope that we will also get a good deal.”

    Writers’ picket lines had been suspended, but they were encouraged to walk in solidarity with actors, and many were on the lines Tuesday, including “Mad Men” creator Matthew Weiner, who picketed alongside friend and “ER” actor Noah Wyle as he has throughout the strikes.

    “We would never have had the leverage we had if SAG had not gone out,” Weiner said. “They were very brave to do it.”

    The Alliance of Motion Picture and Television Producers, which represents the studios in negotiations, chose to deal with the longer-striking writers first, and leaders of SAG-AFTRA said they had received no overtures on resuming talks. That’s likely to change soon.

    Actors also voted to authorize their leadership to potentially expand their walkout to  include the lucrative videogame market, a step that could put new pressure on Hollywood studios to make a deal with the performers who provide voices and stunts for games.

    The Screen Actors Guild-American Federation of Radio and Television Artists announced the move late Monday, saying that 98% of its members voted to go on strike against videogame companies if ongoing negotiations are not successful. The announcement came ahead of more talks planned for Tuesday.

    Acting in videogames can include a variety of roles, from voice performances to motion capture work as well as stunts. Video game actors went on strike in 2016 in a work stoppage that lasted nearly a year.

    Some of the same issues are at play in the video game negotiations as in the broader actors strike that has shut down Hollywood for months, including wages, safety measures and protections on the use of artificial intelligence. The companies involved include gaming giants Activision Blizzard
    ATVI,
    -0.05%
    ,
    Electronic Arts
    EA,
    -1.13%
    ,
    Epic Games, Take 2 Productions
    TTWO,
    -0.99%

    as well as Disney
    DIS,
    -1.19%

    and Warner Bros.′
    WBD,
    +0.28%

    videogame divisions.

    “It’s time for the videogame companies to stop playing games and get serious about reaching an agreement on this contract,” SAG-AFTRA President Fran Drescher said in a statement.

    Audrey Cooling, a spokesperson for videogame producers, said they are “continuing to negotiate in good faith” and have reached tentative agreements on more than half of the proposals on the table.

    So far this year, U.S. consumers have spent $34.9 billion on videogames, consoles and accessories, according to market research group Circana.

    The threat of a videogame strike emerged as Hollywood writers were on the verge of getting back to work after months on the picket lines.

    The alliance of studios, streaming services and producers has chosen to negotiate only with the writers so far, and has made no overtures yet toward restarting talks with SAG-AFTRA. That will presumably change soon.

    SAG-AFTRA leaders have said they will look closely at the writers’ agreement, which includes many of the same issues, but it will not effect their demands.

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  • Retailers talk a lot about rising theft. But a retail industry report finds a key metric for it hasn’t increased that much.

    Retailers talk a lot about rising theft. But a retail industry report finds a key metric for it hasn’t increased that much.

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    Retail executives over the past year have talked a lot about “shrink” — or the losses they take due to theft, fraud or employee error — amid a flood of headlines about sometimes violent organized thefts at stores. But results from a retail-industry survey released Tuesday found the metric rose only modestly last year.

    The report from the National Retail Federation, a retail industry group, found that the average shrink rate in 2022 crept higher to 1.6% from 1.4% in the prior year, when calculated as a share of sales. The figure from 2022 is in line with those seen in 2020 and 2019.

    Still, the losses amounted to billions of dollars — $112.1 billion, up from $93.9 billion in 2021 — according to the report. And the report said that retailers were increasingly concerned about the violence of those crimes.

    “Far beyond the financial impact of these crimes, the violence and concerns over safety continue to be the priority for all retailers, regardless of size or category,” David Johnston, the NRF’s vice president for asset protection and retail operations, said in a statement.

    The NRF, working with the Loss Prevention Research Council — a research group founded by some of the nation’s biggest retailers — surveyed people in the industry who work in loss-prevention and asset protection. The report contained responses or information from 177 retail brands. The survey was distributed in May, June and July.

    The report was published the same day that Target Corp.
    TGT,
    -2.48%

    said it would close nine stores across four states next month, citing theft and dangers to employees.

    “In this case, we cannot continue operating these stores because theft and organized retail crime are threatening the safety of our team and guests, and contributing to unsustainable business performance,” Target said in a statement.

    The chain joins other retailers sounding the alarm about retail theft and closing stores, amid what executives have described as a spike in organized retail theft, or theft with the intent of reselling the goods. However, executives’ takes on earnings calls have differed slightly, and retailers are contending with other issues — like the fallout from inflation — that have hit financials.

    Also see: Costco CFO says inventory ‘in good shape,’ thefts have not ‘dramatically’ increased as earnings top estimates

    The fight over theft has played out, perhaps predictably, on partisan lines, with some blaming what they say are lax crime policies in large cities. But other analysts point to changes in the flow of foot traffic through population centers since the pandemic, and say the data is often too squishy and subjective to make any hard calls about the state of crime — and whether it’s rising or falling, particularly at retailers — in a particular area.

    More than two-thirds of the retailers surveyed by the NRF “said they were seeing even more violence and aggression” from organized retail theft compared with a year ago. Twenty-eight percent reported being “forced” to close a specific store location, the report said, while 45% said they cut operating hours, and 30% said they reduced or changed an in-store product selection as a result of retail crime.

    “The types of products shoplifters are targeting may not be based solely on price point,” the National Retail Federation said.

    “Products can range from high-price, high-fashion items to everyday products that have a fast resale capability,” the group said. “While ORC groups have traditionally targeted specific items or types of goods, that list has expanded to new categories like outerwear, batteries, energy drinks, designer footwear and kitchen accessories.”

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  • Costco earnings top Wall Street estimates, but stock falls

    Costco earnings top Wall Street estimates, but stock falls

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    Costco Wholesale Corp. shares slipped in the extended session Tuesday even after the membership warehouse chain reported quarterly results that topped Wall Street estimates.

    Costco
    COST,
    -1.01%

    shares fell 1.5% after hours, following a 1% decline in the regular session to close at $552.96.

    Costco reported fourth-quarter net income of $2.16 billion, or $4.86 a share, compared with $1.87 billion, or $4.20 a share, in the year-ago period.

    Revenue rose to $78.94 billion from $72.09 billion in the year-ago quarter.

    Analysts on average expected earnings of $4.82 a share on revenue of $78.81 billion, according to FactSet.

    Sales at stores open for at least a year rose 1.1%, or 3.8% adjusted for gasoline and currency, compared with the 3.5% Street estimates.

    Total annual revenue rose to $242.29 billion from $226.95 billion in the previous fiscal year. Analysts were forecasting $242.17 billion in revenue.

    Costco shares have gained 21.1% year to date, while the S&P 500 index
    SPX,
    -1.47%

    has gained 11.3%.

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  • Here’s how the Republican presidential candidates say they’ll whip inflation

    Here’s how the Republican presidential candidates say they’ll whip inflation

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    Inflation remains a top concern among Americans, so what do the Republicans seeking President Joe Biden’s job say they’ll do about it?

    MarketWatch asked the 2024 GOP White House hopefuls to give at least three ways that they would address the elevated prices that have blown up many household budgets.

    Most campaigns provided responses, while some didn’t but have offered proposals in other venues. See what they’re all planning below.

    The economy is the No. 1 issue for Republican voters, according to a recent Wall Street Journal poll, which found 36% citing the economy generally and an additional 10% citing inflation.

    MarketWatch contacted the eight contenders who took part in their primary’s first debate, along with former President Donald Trump, who skipped the debate, and two relatively well-known contenders who failed to qualify for the first debate, Larry Elder and former Congressman Will Hurd. They are listed below in order of their ranking in the latest polls, based on a RealClearPolitics moving average.

    Inflation was low when Trump became president, with prices rising less than 2% a year. That was even considered a problem before the COVID-19 pandemic, with inflation often characterized as stubbornly or persistently low. Inflation began to spike in 2021, shortly after Biden took office, due to a global shortage of goods and a huge rebound in consumer demand following the pandemic’s early stages. Economists say massive stimulus by both the Trump and Biden administrations as well as low interest rates fostered by the Federal Reserve helped to push inflation to a 40-year high.

    Biden has stressed that inflation, as measured by the consumer-price index, has “fallen by around two-thirds,” and he and his team have talked up their efforts to lower costs for prescription drugs and insulin, to crack down on junk fees for a range of services, and to use the Strategic Petroleum Reserve to lower gasoline prices. Biden’s re-election campaign didn’t respond to MarketWatch’s request for comment.

    Donald Trump

    “I would get inflation down,” Trump said in a recent interview with NBC’s “Meet the Press,” while saying that “we did a great job with inflation.” His campaign pointed MarketWatch to a number of policy proposals in which Trump himself is quoted.

    Former President Donald Trump walks over to speak with reporters before departing from Atlanta’s airport last month.


    AP

    • The former president says he’ll rein in what he calls Biden’s “wasteful spending,” which Trump says is key to stopping inflation. Trump is proposing to use what’s known as impoundment authority to reduce federal spending. That term refers to the ability of a president to withhold congressionally appropriated funds from their intended use, according to the Committee for a Responsible Federal Budget.

    • Trump also calls for boosting energy output. “When I’m back in the White House, I will immediately unleash energy production, slash regulations, like I did just three years ago, and repeal Biden’s tax hikes to get inflation down as fast as possible, and it will go quickly, so that interest rates can get back under control,” Trump says on his campaign website. “I would get inflation down, because drill we must,” he told “Meet the Press.”

    • A Trump spokesman did not respond when asked for specifics about which Biden-approved tax increases Trump would repeal. The former president and his advisers, meanwhile, have reportedly discussed deeper cuts to both individual and corporate rates that would build on the 2017 Tax Cuts and Jobs Act.

    Ron DeSantis

    Florida Gov. Ron DeSantis, says a spokesman, “will reduce inflation by, among other measures, tackling government spending, unleashing domestic energy and removing burdensome Biden administration regulations.”

    Florida Gov. Ron DeSantis speaks in July during a press conference in West Columbia, S.C.


    AP Photo/Sean Rayford

    • In his economic plan, DeSantis leans heavily into energy policy for addressing inflation. “DeSantis will unleash our domestic energy sector, modernize and protect our grid and advance American energy independence. This will not only increase our economic and national security while reducing inflation, [but] it will also help fuel a manufacturing renaissance that will create jobs, revitalize our communities and improve our standard of living,” says his plan.

    • He told “CBS Evening News with Norah O’Donnell” that, as president, he would “stop spending so much money. We need a president that’s going to be a force for spending restraint, because that’s one of the root causes, with Congress spending so much.” He criticized both Democrats and Republicans for government spending.

    Vivek Ramaswamy

    Republican presidential candidate Vivek Ramaswamy speaks in April at an event in Iowa.


    AP

    “This isn’t complicated,” entrepreneur and author Vivek Ramaswamy said in a recent post on X. “Fight inflation, unleash growth by taking the handcuffs [off] the U.S. energy sector & dismantling the regulatory state.” His campaign didn’t respond to MarketWatch’s request for comment, but his campaign website offers the following proposals:

    • “Drill, frack & burn coal : abandon the climate cult & unshackle nuclear energy.”

    • “Launch deregulatory ‘Reagan 2.0’ revolution: cut > 75% headcount amongst U.S. regulators.”

    • Ramaswamy is also calling for dramatically changing the Federal Reserve, by ending the central bank’s dual mandate of keeping inflation low and maintaining full employment. “Limit the U.S. Fed’s scope: stabilize the dollar
      DXY
      & nothing more,” his campaign site says.

    Nikki Haley

    A spokesman for Nikki Haley’s campaign pointed to a Fox Business interview on Wednesday in which she called for ending the federal gas tax and cutting spending, as well as to her speech Friday in New Hampshire on her economic plan.

    Republican presidential candidate Nikki Haley is a former U.S. ambassador to the United Nations and former South Carolina governor.


    Getty Images

    • “We want to eliminate the federal gas tax completely,” Haley told Fox Business. “We have to get more money in our taxpayers’ pockets.” That tax helps pay for highways, but she said the system isn’t working, echoing a point that some policy analysts have previously made. Biden pushed for temporarily suspending the federal gas tax in 2022, but Congress didn’t provide sufficient support for his proposal. In her economic speech, Haley also promised to cut income taxes for working families and make permanent the tax cuts that small businesses scored in 2017’s GOP tax overhaul.

    • The former U.S. ambassador to the United Nations said members of Congress are “spending like drunken sailors,” as she promised to reduce the federal government’s outlays. “I will veto any spending bill that doesn’t take us back to pre-COVID levels,” she told Fox Business, referring to budgets that date to before the onset of the coronavirus pandemic in March 2020.

    • Haley in her speech Friday pledged to support the U.S. energy industry, as she suggested that Washington has been “stifling it.” She said: “We’ll drill so much oil and gas, families will save big on their utility bills.”

    Mike Pence

    A spokesman for Pence’s campaign pointed to the former vice president’s plan for “ending inflation,” which calls for actions such as reducing the federal government’s spending and changing the Federal Reserve’s job description.

    Former Vice President Mike Pence served as governor of Indiana and as a congressman before becoming Donald Trump’s running mate in 2016.


    AP

    • A Pence administration would “end runaway deficits by freezing non-defense spending, eliminating unnecessary government programs, repealing over $3 trillion in new spending under Biden, and reforming mandatory programs that drive our debt,” the plan says. Earlier this year, he urged “commonsense and compassionate” reforms for programs such as Social Security and Medicaid.

    • Pence wants to end the Fed’s dual mandate, which calls for the U.S. central bank to focus on full employment and stable prices. “Trying to serve two, often contradictory goals has led to wild fluctuation in rates,” his plan says, adding that it’s better to “leave employment policy to the president and Congress.”

    • The former vice president’s plan said he aims to bring supply chains and production “back home,” and that would happen by “removing regulatory burdens, enacting pro-growth tax policies, and ensuring access to abundant American energy.” In other words: “We will fight inflation by making America the best place to do business again.”

    • Similar to his 2024 GOP rivals, Pence blasts Biden’s energy policies, though some of the Democratic incumbent’s stances, such as his approval of the Willow drilling project in Alaska, have also been criticized by environmental groups. Pence’s plan says: “It is time to reverse Biden’s attack on American energy by restarting oil and gas leasing on federal lands, opening the Arctic and offshore regions for exploration
      XOP,
      approving safe transportation of oil and gas, mining rare earth minerals, and rejecting climate change hysteria that is causing U.S. energy
      XLE
      production to fall.”

    Chris Christie

    Former New Jersey Gov. Chris Christie addresses a New Hampshire audience in April.


    AP Photo/Charles Krupa

    Chris Christie’s White House campaign didn’t respond to MarketWatch’s requests for comment, but the former New Jersey governor has emphasized that reducing government spending will help tame inflation.

    “The out-of-control government spending has created this inflation,” Christie said in June during a CNN town hall. “I mean, even Larry Summers, who I don’t agree with much on, former Democratic Treasury secretary, warned Joe Biden, ‘Don’t do this spending. It’s going to cause the inflation.’ So, first, we need to bring spending down, and we’ve talked about that before.”

    Related: Larry Summers has a new inflation warning

    Tim Scott

    U.S. Sen. Tim Scott pointed to reducing the federal government’s spending and repealing one of Biden’s signature legislative packages, when asked about how he would address inflation.

    Tim Scott, a U.S. senator from South Carolina, speaks last month during the presidential debate in Milwaukee.


    Getty Images

    • Scott, from South Carolina, said in a statement that he would aim to “snap non-defense discretionary spending back to the pre-COVID 2019 baseline.” He described that as stopping Democrats from “turning the temporary pandemic into permanent socialism.”

    • Scott said he would rescind the Inflation Reduction Act, which is Democrats’ big economic package aimed at addressing climate change, capping drug costs and raising hundreds of billions of dollars through taxes on corporations. “The Inflation Reduction Act actually increased inflation and the only thing it reduced was money in our pockets,” he said in his statement. “Cutting that off and restoring tax cuts and eliminating the tax increases would go a long way to having the kind of stimulative impact in our economy and controlling spending.”

    • Scott called for stronger economic growth. “We have to also grow our economy somewhere near 5% consistently,” he said, adding that could create 10 million jobs. The U.S. economy grew by nearly 6% in 2021 after contracting in 2020 as COVID hit, then it expanded by about 2% in 2022.

    Related: Republican presidential candidate Tim Scott says he wants to put the focus on tax cuts

    Asa Hutchinson

    Former Arkansas Gov. Asa Hutchinson blames “excessive federal spending” for leading to inflation when giving speeches, and outlines a plan for “fiscal responsibility” on his campaign site.

    Asa Hutchinson, governor of Arkansas from 2015 until this year, speaks at an Iowa event in April.


    Scott Olson/Getty Images

    • “Restore discipline by reducing federal government size, cutting spending, balancing the budget, and lowering the deficit to tame inflation,” it states.

    • When Hutchinson was governor, he signed a $500 million tax-cut package, saying “it could not come at a better time with the continued challenge of high food and gas prices.” That was in August 2022. On his campaign website, he repeats a call to cut taxes and “reduce regulations to boost the private sector and enhance wages for American workers.”

    Hutchinson’s campaign did not respond to a request for comment from MarketWatch.  

    Doug Burgum

    North Dakota Gov. Doug Burgum, a GOP presidential hopeful, speaks at the Iowa State Fair in August.


    Brandon Bell/Getty Images

    North Dakota Gov. Doug Burgum’s website says that as president he would “get inflation under control, cut taxes, lower gas prices
    RB00,
    +0.31%
    ,
    reduce the cost of living and help people realize their fullest potential.” It doesn’t provide specifics.

    A spokesman for Burgum’s White House campaign didn’t respond to MarketWatch’s requests for comment. A spokesman reportedly told the New York Times that the campaign will roll out its vision and plans on its own timeline.

    Larry Elder

    Larry Elder, a conservative radio host and a gubernatorial candidate in California in the failed 2021 recall of Democratic incumbent Gavin Newsom, said he views energy and tax policy and a constitutional amendment as ways to whip inflation.

    Larry Elder is a conservative radio host and former gubernatorial candidate in California.


    AP

    • “Reverse the war on oil
      CL00,
      +0.93%

      and gas
      NG00,
      -2.65%

      ; permit drilling in Anwar [Arctic National Wildlife Refuge]; authorize the Keystone Pipeline; reverse the Biden restrictions on drilling on federal lands; and encourage nuclear energy
      NLR,
      ” Elder said in a statement.

    • “Encourage an amendment to the Constitution to set spending to a fixed percent of the GDP,” he also said.

    • Elder said the reduction in spending forced by that constitutional amendment would “coincide with a steep reduction in personal and corporate income taxes,” offering further help to Americans with stretched budgets.

    Will Hurd

    2024 Republican presidential hopeful Will Hurd, a former Texas congressman, speaks in Iowa in July.


    AFP via Getty Images

    Former U.S. Rep. Will Hurd of Texas announced his candidacy in June but so far hasn’t made it to the debate stage. In his campaign-launch video, he labeled inflation “still out of control.”

    • In a post on X in June, Hurd called for reining in spending. “You cannot be putting government funds into, at a time where you’re seeing the rising inflation,” he said.

    • And he said tax hikes are a nonstarter when inflation is high. “The worst time to talk about increasing taxes is when everybody’s hurting from inflation.”

    • Hurd also said the deficit should be addressed, to “start bending the curve back on the debt.”

    Hurd’s campaign did not respond to a request for comment from MarketWatch.

    Now read: Republican presidential debate: Candidates could win with a clear economic message about the ‘crisis among working people’

    And see: As Biden joins UAW picket line, poll shows Democrats’ edge over GOP on ‘caring about people like me’ has vanished

    Jeffry Bartash contributed.

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  • ASOS 4Q Revenue Slipped on Weaker Performance; Sees EBIT at Bottom End of Guidance

    ASOS 4Q Revenue Slipped on Weaker Performance; Sees EBIT at Bottom End of Guidance

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    By Michael Susin

    ASOS said that fourth-quarter revenue slipped but cost-savings measures supported the group’s profitability, while earnings are expected to come in at the bottom end of its guidance.

    The online fashion retailer said on Tuesday that revenue for the quarter ended Sept. 3 fell 12%, while revenue for the year dropped 10%.

    The company said the fall was in line with the guidance given a weak performance in July and August amid a deterioration in the U.K. clothing market.

    Despite the fall in sales, the fourth quarter is anticipated to be profitable. The company reported that around 300 million pounds ($366.3 million) of profit improvement and cost savings have now been realised, in line with the annual guidance.

    Adjusted gross margin–which strips out exceptional and other one-off items– for the second half of fiscal 2023 rose by around 150 basis points, missing the guidance of above 200 basis points.

    The company added that earnings before interest and taxes for the second half is anticipated to come in at the bottom of the guided range of GBP40 million to GBP60 million, with free cash inflow in second half now expected to be around GBP60 million.

    Write to Michael Susin at michael.susin@wsj.com

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  • Intel’s Big Chip-Making Push in Germany Hits Bottleneck

    Intel’s Big Chip-Making Push in Germany Hits Bottleneck

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    Intel’s Big Chip-Making Push in Germany Hits Bottleneck

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  • Ford pauses work on $3.5 billion EV battery plant in Michigan

    Ford pauses work on $3.5 billion EV battery plant in Michigan

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    Ford Motor Co. said late Monday it has halted work on a $3.5 billion battery factory in Michigan, just days after the carmaker made concessions to its striking workers.

    “We’re pausing work and limiting spending on construction on the [Marshall, Mich.] project until we’re confident about our ability to competitively operate the plant,” a Ford
    F,
    +1.21%

    spokesperson said. “We haven’t made any final decision about the planned investment there.”

    Ford said in February it was investing $3.5 billion to build the facility in Marshall, about 100 miles west of Detroit. The plant, which Ford called BlueOval Battery Park Michigan, is part of Ford’s “commitment to American manufacturing,” the company said then.

    The plant was expected to employ about 2,500 workers at the start of production, scheduled for 2026. The $3.5 billion investment is part of Ford’s commitment to invest more than $50 billion in electric vehicles globally through that year.

    Employees in some parts of a Michigan Ford plant making Broncos and Rangers have been on strike since Sept. 14, part of a first wave of United Auto Workers’ labor action also hitting one plant each of General Motors Co.
    GM,
    +1.47%

    and Stellantis NV
    STLA,
    -0.57%

    after the union’s contract expired without progress in the negotiations.

    Read more: UAW strike: 5 things to know

    The UAW on Friday expanded the strike to 38 GM and Stellantis distribution centers across 20 states, but didn’t extend the labor action at Ford because it said it had won some concessions for the automaker, such as a return of cost-of-living adjustments.

    Ford was showing the UAW that it was “serious about reaching a deal,” union leadership said at the time.

    The strike comes at a time the legacy automakers are stretched thin to make investments in EVs, with batteries an especially critical — and pricey — components.

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  • These 20 growth stocks are worth considering on a pullback, says Citi

    These 20 growth stocks are worth considering on a pullback, says Citi

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    Citi has released a list of 20 large-cap growth stocks that it says present opportunities in the event of a pullback.

    “Our call since early summer has been to hold Growth and look to buy on pullbacks,” Citi analyst Scott Chronert said in a note released Monday, adding that Citi has had a tactical preference for cyclicals. “However, on the heels of the strong Cyclicals surge during June and July, and our upwardly revised S&P 500 target of 4600, the messaging has been to buy on pullbacks more broadly,” he wrote.

    Citi also notes that the Russell 1000 Growth Index
    RLG
    has sold off more than 6% from its mid-July high, although two-thirds of the stocks in the index are down 10% or more, with one-third down more than 20%. “This sets up for interesting intermediate to long-term stock selection opportunities,” Chronert said.

    Related: Preorders for the iPhone 15 have begun, and here’s a sign they’ve been ‘solid’

    The analyst acknowledged that there is still a risk of economic softening ahead, if not a recession. “Yet, the argument that Growth stocks can show fundamental resilience during periods of broader economic weakening is a theme that we have considered for several years now,” he said.

    Set against this backdrop, the analyst firm has compiled a tech-heavy list of 20 stocks that have a buy rating from Citi, have at least 75% of market cap assigned to growth, according to Russell, and have experienced a decline of 10% or more from year-to-date highs since March 31. Other common characteristics of the stocks include consensus estimates of free cash flow per share above March 31 levels and free cash flow per share within or above market-implied five-year-forward estimates.

    Tech heavyweights Apple Inc.
    AAPL,
    +0.74%

    and NVIDIA Corp.
    NVDA,
    +1.47%

    are on the list, along with Pinterest Inc.
    PINS,
    -2.47%
    ,
    Lam Research Corp.
    LRCX,
    +0.24%
    ,
    Teradata Corp.
    TDC,
    +0.36%
    ,
    Datadog Inc.
    DDOG,
    +0.09%
    ,
    MongoDB Inc.
    MDB,
    -0.73%
    ,
    HubSpot Inc.
    HUBS,
    +0.18%

    and KLA Corp.
    KLAC,
    +0.79%
    .
    The other stocks cited by Citi are Lockheed Martin Corp.
    LMT,
    -0.18%
    ,
    DraftKings Inc.
    DKNG,
    -1.44%
    ,
    Las Vegas Sands Corp.
    LVS,
    -0.98%
    ,
    Chipotle Mexican Grill Inc.
    CMG,
    -0.85%
    ,
    Netflix Inc.
    NFLX,
    +1.31%
    ,
    TKO Group Holdings Inc.
    TKO,
    -1.93%
    ,
    Rockwell Automation Inc.
    ROK,
    +1.09%

    and Paycom Software Inc.
    PAYC,
    +0.45%
    ,
    and healthcare stocks Bruker Corp.
    BRKR,
    +1.04%
    ,
    Insulet Corp.
    PODD,
    -0.66%

    and Intuitive Surgical Inc.
    ISRG,
    +1.75%
    .

    Related: Will Nvidia stock be like Apple or Cisco in the AI era?

    Shares of Apple, which recently launched its iPhone 15, are down 5.5% in the last three months. Shares of chip maker NVIDIA are up 2.8% over the same period, while Lockheed Martin is down 8.9% and DraftKings is up 8.6%. Las Vegas Sands is down 21.8% and Chipotle is down 8.8%, while Netflix is down 7.8%.

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  • Alcoa’s stock rocked after unexpected CEO transition

    Alcoa’s stock rocked after unexpected CEO transition

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    Shares of Alcoa Corp. slumped to a multiyear low Monday as the aluminum company said that Roy Harvey had been replaced as chief executive officer after seven years in the role.

    The company named William Oplinger as president and CEO, effective Sunday. Oplinger had served as Alcoa’s chief operations officer since February and before that as chief financial officer since November 2016.

    Alcoa’s stock
    AA,
    -5.20%

    dropped 5.1% in morning trading. That put it on track for the lowest close since March 1, 2021. It has tumbled 18% over the past three months and plunged 40.8% year to date, while the S&P 500
    SPX
    has rallied 12.8% this year.

    “In our opinion, investors have expressed concern around cash flow and the company’s medium to long-term outlook,” B. Riley analyst Lucas Pipes wrote in a note to clients. “While the timing of the transition is somewhat unexpected, we believe Mr. Oplinger is the most well-positioned candidate for the CEO role.”

    Harvey had been CEO since the company completed its separation from Arconic Inc. in November 2016. Arconic was acquired by Apollo Global Management Inc.
    APO,
    +1.55%

    in a deal that was completed in August 2023.

    “The transition of the president and CEO roles reflects the company’s succession planning process,” Alcoa said in a statement.

    “Our board believes Bill’s extensive experience with Alcoa makes him well-positioned to carry the company forward,” said Steven Williams, Alcoa’s board chair.

    B. Riley’s Pipes said that as Alcoa has faced challenging aluminum markets in recent quarters, and given the troubles associated with approvals of mine plans in Australia, he believes the change in leadership reflects the company’s desire to reposition its asset base for stronger cash-flow generation.

    “While Mr. Harvey has successfully transformed Alcoa in recent years, particularly as [Alcoa] has aggressively deleveraged, we believe the transition will be viewed favorably by investors,” Pipes wrote.

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