Wall Street Approaches Record High
Wall Street approached a record high on Tuesday, following good quarterly reports from Coca-Cola and United Technologies. Both the S&P 500 and the Nasdaq grew, bolstered by the recent budget and debt deal President Trump made with Congress.
Currently, around 80% of the S&P 500 companies reported high second-quarter earnings. “The reaching of a debt ceiling agreement is positive news for all sectors at large, because it’s one additional question that gets removed from the outlook for growth and equities in general,” said Mike Loewengart, vice president of investment strategy at E*Trade Financial.
Huawei Cuts Jobs At US Branch
Huawei has cut nearly 600 jobs from their US research branch Futurewei as a result of a US trade blackout. In a statement, Huawei said “Futurewei Technologies announces a reduction in force, directly impacting over 600 US positions,” effective 22 July. Based in California, Futurewei is a research and development branch of Huawei.
The trade blackout is just part of a larger trade conflict between China and the US. It has been escalating for the last year. In addition, they’ve imposed nearly $1Bn in tariffs on each other. The US banned Huawei following 5G security concerns and is urging other countries to do the same.
Hasbro Profits Come From Avengers and ‘Magic’
Yet another company reported high second-quarter profits. Toymaker Hasbro recently reported a 9% jump in profits, driven primarily by Avengers action figures and card game Magic the Gathering. In the recent past, Hasbro has made deals with movie studios like Disney and Paramount. These deals include the rights to produce action figures and toys based on their movies. As a result, Hasbro shares rose 10% in morning trading.
Facebook To Settle FTC Privacy Allegations
Facebook has agreed to a settlement following allegations that is mishandled user security. As a result, Facebook will pay nearly $5Bn in damages. In addition, they will form a privacy committee and will agree to new certificates relating to user privacy. However, the FTC will not force Facebook to admit guilt in the issue.
Bed Bath & Beyond To Cut 7% Of Jobs
Bed Bath & Beyond recently announced that it will cut 7% of its staff. This includes their COO, Eugene Castagna. In addition, other layoffs include vice presidents, directors, and managers all working at their headquarters. The restructuring is expected to cost $12M, but make the company $18M by the end of the fiscal year.