Streetbeat News

Labor Issues

DIS

Disney shares are trading lower due to overall market weakness and the ongoing SAG-AFTRA strike.

Portfolio Pulse from Benzinga Newsdesk

August 24, 2023 | 6:36 pm

AAL

DAL

LUV

UAL

ULCC

Morgan Stanley analyst Ravi Shanker predicts a durable surge in international travel, which is good news for US airlines. He expects the number of US passports issued in 2023 to set a new record due to the current travel boom. Delta Air Lines and American Airlines are set to expand flights to China once restrictions are eased. United Airlines is expected to be the most aggressive among the three due to its profitability on this route. Southwest Airlines has ratified several contracts with union work groups and continues negotiations. Frontier Group Holdings is facing fleet delays and operating challenges, but its stock is considered cheap enough to wait for 2024 normalization.

Portfolio Pulse from Shivani Kumaresan

August 24, 2023 | 5:36 pm

SPCE

The U.S. Justice Department has filed a lawsuit against SpaceX, alleging that the company discriminates against asylees and refugees in its hiring practices. The lawsuit claims that SpaceX discourages these individuals from applying and refuses to hire or consider them due to their citizenship status.

Portfolio Pulse from Happy Mohamed

August 24, 2023 | 3:50 pm

SPY

In a CNBC interview, Fed's Harker stated that there is evidence of easing labor market tightness. He expressed a desire to see a softening in the labor market, particularly in the service sector.

Portfolio Pulse from Happy Mohamed

August 24, 2023 | 2:14 pm

CHTR

CMCSA

T

TMUS

VZ

T-Mobile US, Inc plans to reduce its workforce by nearly 7% or 5,000 positions, incurring a pre-tax charge of approximately $450 million in Q3 2023. The company reiterated its FY23 guidance. The restructuring will mainly affect the corporate, back-office, and technology sectors. The company aims to centralize some functions to increase efficiency and cut costs. T-Mobile reported Q2 revenue of $19.2 billion, a 2.6% YoY decline, and EPS of $1.86, beating the consensus of $1.69.

Portfolio Pulse from Anusuya Lahiri

August 24, 2023 | 2:14 pm

TMUS

T-Mobile has announced plans to reduce its workforce by nearly 7%, which will result in a pre-tax charge of approximately $450M in Q3 of 2023. The company has reiterated its FY23 guidance as previously issued.

Portfolio Pulse from Happy Mohamed

August 24, 2023 | 2:02 pm

CLF

MT

X

Esmark has withdrawn its bid for the acquisition of United States Steel Corp (X) due to pressure from the company's workers union, which supports the bid from Cleveland-Cliffs Inc (CLF). Esmark had intended to offer $35 per share, matching CLF's offer. U.S. Steel has clarified that its labor agreement does not grant the union veto power over potential company sale decisions. ArcelorMittal SA (MT) is also rumored to be considering a bid for the acquisition.

Portfolio Pulse from Lekha Gupta

August 24, 2023 | 1:31 pm

MCD

McDonald's Corp. (NYSE:MCD) is facing several legal issues including a labor-related compensation case in Brazil, a racial discrimination lawsuit in Chicago, and is introducing a new McFlurry flavor in Australia. The legal challenges could potentially impact McDonald's stock.

Portfolio Pulse from Mohit Manghnani

August 24, 2023 | 1:16 pm

SPY

The initial jobless claims have been revised to 240K, with the prior also revised to 240K.

Portfolio Pulse from Benzinga Newsdesk

August 24, 2023 | 12:32 pm

AAPL

AMZN

ZM

Zoom Video Communications Inc. CEO Eric Yuan has called for employees to return to the office, stating that it's not possible to build trust or have great conversations over Zoom calls. This comes despite Zoom being one of the biggest beneficiaries of the shift to remote work due to the Covid-19 pandemic. Other big tech companies like Apple Inc. and Amazon.com Inc. have also asked their employees to return to the office, contributing to a decline in demand for video conferencing solutions. As a result, Zoom laid off 1,300 employees, or 15% of its workforce, in February this year.

Portfolio Pulse from Rounak Jain

August 24, 2023 | 8:47 am