- The stock is now up a whopping 104% from the beginning of the year.
What's moving markets today: March 12, 2019
By CNN Business
Larry Page personally awarded a $150 million stock grant to Android creator Andy Rubin despite an ongoing investigation over allegations of his sexual misconduct, a lawsuit claims.
Page, Google’s cofounder and the CEO of its parent company Alphabet, is said to have made the decision on his own, without the approval of the board, and “only later sought the rubber-stamp” of the board’s compensation committee, according to a revised shareholder lawsuit filed on Monday. The suit cites board meeting minutes and internal emails.
The New York Times first revealed details about harassment claims against multiple executives, including Rubin, and their multi-million dollar exit packages in October. The latest allegations about Page’s role may further upend Google, which has already seen employees around the world stage walkouts over this issue.
Corporate moods are darkening, according to a key business survey released Tuesday.
IHS Markit's Business Outlook Survey recorded its lowest reading in two years in February, indicating that fewer companies plan to increase their hiring, profitability, and investment in the coming year (although the net figure is still positive).
The survey comes off a surprisingly weak February jobs report, and lends credence to the theory that a dip in hiring may indicate a broader slowdown is underway.
Other measures of business sentiment, including the Institute for Supply Management's Purchasing Manager's Index and the National Federation of Independent Business' Optimism Index, have also slowed markedly in recent months.
Despite the slowdown, American businesses remain more upbeat than those abroad, which IHS Markit measures using the same methodology.
The Dow fell 50 points at the open Tuesday, dragged down by Boeing.
- Boeing (BA) fell 4% Tuesday after several countries and airlines grounded their 737 MAX jets. That was the jet involved in two crashes in less than six months, including the Ethiopian Airlines crash Sunday.
- Disney’s (DIS) stock fell slightly after announcing it would complete its acquisition of 21st Century Fox on Wednesday, March 20.
- Networking company F5 (FFIV) fell 6% Tuesday after buying web server NGINX for $670 million.
- Walt Disney Company's deal to acquire most of 21st Century Fox will take effect on Wednesday, March 20, the companies just announced.
- The companies also detailed some of the final steps that have to happen before the deal closes.
- Staffers at Fox's sprawling movie and television studio are bracing for layoffs and other big changes once the deal takes effect.
- With Disney (DIS) gobbling up the studio and a suite of entertainment channels like FX, the remaining parts of 21st Century Fox (FOXA) will be spun off into a new company simply known as FOX.
- The slimmed-down FOX will include the Fox broadcast network, Fox News, and Fox Sports.
The government's latest consumer price index report didn't set off any major alarm bells on inflation. Overall prices were up 0.2% in February -- in line with forecasts. And prices have risen just 1.5% over the past 12 months. That probably means the Federal Reserve will be able to sit tight with interest rates for the foreseeable future.
But there was one nugget in the CPI report that should be of interest to just about everyone. Food prices rose at the highest rate since May 2014 last month.
Here are some of the items that you've probably noticed are more expensive when you buy them at the supermarket or online. Price increases are between January and February.
- Lettuce: Up 4.9%
- Canned fruits: Up 2.5%
- Frozen vegetables: Up 2.1%
- Butter: Up 3.1%
The company will open seven new stores this year. It operates around 730 stores in the United States today.
Despite the planned openings, Dick's disappointed Wall Street on Tuesday.
Sales during its most recent quarter dropped 2.2% compared with the same time last year.
Dick's sales outlook for this year also fell short of some analysts' expectations. Shares fell 4% pre-market.
Housing was one of the weakest sectors in the US economy last year. But, Goldman Sachs (GS) analysts said in a new report, "activity should pick up" in 2019.
Here's why, according to our Matt Egan:
- Boeing (BA) shares are down 3% in premarket trading.
- The stock closed 5% lower on Monday.
- More airlines and countries have grounded the plane, including Australia, Singapore and Mexican airline Aeromexico. Here's the full list.
- EU regulators have said they are closely monitoring the situation, but they have not yet taken steps to inspect or ground 737 MAX fleets.
- The Federal Aviation Administration has deemed 737 MAX planes airworthy.