Our Monday morning market recap includes last week’s big news beyond the Fed meeting and the S&P 500’s all-time high. JCPenney warned that tariffs affect women the most. Plus, from Slack’s IPO and Canopy Growth’s strong Q4 sales growth to Gavin Newson’s wildfire fund and Apple’s big announcement, here are the takeaways you need to know heading into this final week of June. Take a look.
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Pink tax, pink tariffs?
JCPenney and several US companies continue to oppose President Trump’s proposed fourth tranche of tariffs on Chinese imports. In a letter addressed to the United States Trade Representative, JCPenney indicated that Trump’s latest round of proposed tariffs will hurt US consumers—and it looks like women will be affected the most.
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Canopy Growth’s Q4 earnings
Cannabis juggernaut Canopy Growth reported its fourth-quarter earnings last week. Sales were up almost 13% sequentially and about 191% year-over-year. Find out the company’s most important revenue growth drivers and how it has performed post-earnings versus its peers.
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Slack went public
Slack went public on Thursday, valued at over $23 billion and besting Uber’s recent IPO. The stock opened at $38.25—which was 47% higher than the NYSE’s reference price of $26. Since it’s a direct offering, the company isn’t going to get any of the money. But early investors such as Accel, and the company’s cofounder and CEO as well as early employees, have already made fortunes. Find out why Slack’s public offering differs from the other unicorn IPOs we’ve seen this year.
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Another IPO on the horizon
Meanwhile, the California-based extreme value retailer Grocery Outlet Holding announced last week that it priced its IPO at $22 per share. This level is well above its target price range of $18–$19. Here’s what you need to know about the company before it goes public.
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Job cuts at AT&T
AT&T announced last week that it plans to cut as many as 1,800 jobs from its wireline segment by August or September. The cuts are mainly the result of an ongoing slowdown in AT&T’s fiber deployments. Yet there are a lot more places in the US that haven’t made the upgrade from copper to fiber.
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The thing about healthcare stocks…
Barclays expects the Fed to cut interest rates by 50 basis points in July—three months earlier than previously expected—and it’s discovered an interesting relationship between healthcare stock prices and rate cuts.
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More opposition to the T-Mobile–Sprint deal
On Friday, four more US states sued to block T-Mobile and Sprint’s proposed merger deal on the grounds of antitrust concerns. Both stocks were down for the day. Hawaii, Massachusetts, Minnesota, and Nevada are all opposing the deal, which the companies say will help them fight streaming giants like Amazon and Netflix.
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A wildfire fund and PG&E
Gavin Newson, the Governor of California, proposed a liquidity fund for state utilities to help pay for wildfire-related damages. Meanwhile, PG&E is seeking bankruptcy protection under Chapter 11 in the wake of last year’s deadly Camp Fire. The stock rallied almost 15% last week as a result.
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A disappointment—but maybe not a surprise
Exelixis announced disappointing results for its trial combining cobimetinib and atezolizumab for advanced melanoma. But this wasn’t the first time the combination yielded unfavorable results. And, based on the stock reaction, shareholders might not have been very confident about the trial. Had they already priced in the failure for the stock?
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Last week’s all-time high for the S&P 500
The S&P 500 Index opened at 2,955.18 on Thursday and posted a high for the day of 2,956.62—a new record for the index. The Fed meetings and US–China trade optimism fueled the gains. Check out which stocks were the top performers and which ETFs can give you access to these gains.
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Tech bouncing back?
The tech-heavy NASDAQ Composite has continued to rebound in the wake of last week’s Fed meetings. Tech stocks rallied after the Fed implied that it could slash interest rates if the economy’s outlook doesn’t improve. After Slack’s stellar debut, the G20 meetings and earnings season will be the next big drivers.
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Apple could be moving away from China
Apple seems to be considering at least partially moving its iPhone and other product manufacturing out of China. According to a report on Wednesday, the company wants to move ~15%–30% of its production out of the country. We took a look at why Apple would want to make this move and what the transition could look like.
This article originally appeared on Market Realist and was syndicated by MediaFeed.org.
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