Streetbeat News

Labor Issues

AREN

Sports Illustrated faces mass layoffs following a missed $2.8-million licensing payment by Arena Group Holdings Inc (NYSE:AREN) to Authentic Brands Group. Authentic has terminated the licensing agreement with Arena Group, which could result in the layoff of all Sports Illustrated staff. The Sports Illustrated Union and the NewsGuild of New York have issued a statement urging Authentic to continue publishing the magazine. Arena Group's stock price dropped 18.08% to $1.06.

Portfolio Pulse from Dustin Blitchok

January 19, 2024 | 6:59 pm

PMVP

PMV Pharmaceuticals shares have dropped following the company's announcement of a strategic workforce reduction.

Portfolio Pulse from Benzinga Newsdesk

January 19, 2024 | 6:36 pm

ALLY

AVGO

CELH

DIA

LRCX

PYPL

QCOM

QQQ

SMH

SPY

TXN

W

XLK

XLU

The S&P 500 and Nasdaq hit new all-time highs, with the S&P 500 reaching 4,819 points and the Nasdaq 100 surpassing 17,000 points. The surge is attributed to AI-driven stocks and strong chipmaker performance, with the VanEck Semiconductor ETF (SMH) up significantly. Consumer confidence reports exceeded expectations, and despite mixed signals from Fed officials, the market did not react negatively. Treasury yields rose, and major ETFs like SPY, DIA, and QQQ also saw gains. Sector-wise, XLK outperformed while XLU lagged. Notable stock movers included PayPal (PYPL), Broadcom (AVGO), QUALCOMM (QCOM), Texas Instruments (TXN), Lam Research (LRCX), Ally Financial (ALLY), Wayfair (W), and Celsius Holdings (CELH).

Portfolio Pulse from Piero Cingari

January 19, 2024 | 6:30 pm

GOOGL

Scientists from Google's DeepMind are reportedly in discussions to depart and establish their own AI startup. This news could indicate potential shifts in Google's AI leadership and strategy, and may impact investor sentiment regarding Google's future in AI innovation.

Portfolio Pulse from Benzinga Newsdesk

January 19, 2024 | 5:38 pm

F

Ford Motor Company (NYSE:F) is creating 900 new jobs and adding a third crew at Michigan Assembly Plant for increased production of Bronco, Bronco Raptor, and the new Ranger pickups. Despite this expansion, Ford is reducing F-150 Lightning production to balance production and profitability, affecting some employees. Approximately 1,400 employees will be impacted by the shift change at the Rouge Electric Vehicle Center, with reassignments and retirement incentives offered. Ford anticipates global EV sales growth in 2024 and is launching the 2024 Mustang Mach-E GT. Ford's stock price dropped slightly by 0.50% to $11.05.

Portfolio Pulse from Nabaparna Bhattacharya

January 19, 2024 | 4:47 pm

AMZN

Amazon Web Services (AWS) plans to invest approximately $15.5 billion in Japan from 2023 to 2027 to expand data centers and operations. This investment aims to capitalize on the increasing volume of data processed due to the AI boom. AWS has previously invested 1.51 trillion yen in Japan over 12 years. The new investment in Japan will surpass the planned investment in India. John Felton has been appointed as the new CFO of AWS, succeeding Richard Puccio. Despite AWS's slower growth due to economic uncertainty, Amazon has had a significant year with initiatives in robotics, AI, and custom silicon chips, alongside workforce downsizing across various units. Amazon's stock rose 64% last year but is slightly down in the latest trading session.

Portfolio Pulse from Anusuya Lahiri

January 19, 2024 | 3:45 pm

M

Macy's Inc (NYSE:M) is set to lay off 13% of its corporate workforce, approximately 2,350 positions, which is about 3.5% of its total workforce including Bloomingdale's and Bluemercury subsidiaries. The company is also closing five of its 560 stores. These changes are part of a new strategy to enhance competitiveness and optimize cost structure, overseen by the incoming CEO Tony Spring. The company also plans to offshore certain business areas. Macy's shares rose 0.39% to $18.00 in premarket trading.

Portfolio Pulse from Nabaparna Bhattacharya

January 19, 2024 | 1:59 pm

W

Wayfair shares have risen following the announcement of a workforce realignment plan, which entails a reduction of about 13% of its global workforce.

Portfolio Pulse from Benzinga Newsdesk

January 19, 2024 | 1:48 pm

W

Wayfair Inc (NYSE:W) shares surged over 15% after announcing a workforce reduction of approximately 1,650 employees, or 13% of its global workforce. The company expects to incur costs of $70 million-$80 million due to the job cuts, primarily for employee severance and benefits, with most costs expected in Q1 2024. The restructuring is projected to save over $280 million annually, contributing to a significant increase in Adjusted EBITDA in 2024. Despite challenges in revenue growth, CEO Shah remains positive about market share gains and anticipates over $600 million in Adjusted EBITDA in 2024 in a flat revenue scenario. Wayfair will release Q4 FY23 results in February 2024. In Q3 FY23, Wayfair reported a 3.7% Y/Y sales increase to $2.94 billion and an adjusted EPS of $(0.13), with over $1.28 billion in cash and equivalents.

Portfolio Pulse from Lekha Gupta

January 19, 2024 | 1:17 pm

F

Ford anticipates growth in global electric vehicle (EV) sales in 2024 and plans to create approximately 900 new jobs by adding a third crew at its Michigan Assembly Plant. This expansion is aimed at increasing production to meet the rising demand for EVs.

Portfolio Pulse from Benzinga Newsdesk

January 19, 2024 | 12:44 pm