Categories
Future

Suitors Circling Selfridges Test Future of Post-Pandemic Retail


More than a year into the pandemic that’s dramatically changed consumer habits, one of the most prized retail assets in the U.K. is potentially coming up for sale, testing the appetite for physical outlets in an era of online shopping.

Selfridges & Co. Ltd., the luxury emporium best known for its giant department store on London’s Oxford Street, may be on the block with a 4 billion pound ($5.64 billion) price tag following an unsolicited approach, according to people familiar with the discussion. The current owner, the Canadian Weston family, has hired Credit Suisse to advise on the overture from an unidentified buyer, said the people, who asked not to be named because the deliberations aren’t yet public.

The department store is among the most famous in the world, eclipsed in London only by Harrods. While other brands have struggled or closed down entirely, Selfridges was able to withstand the downturn in recent years with its blend of cutting-edge fashion and a broad range — the shoe department is among the largest in the world and the rooftop terrace is a popular gourmet destination. A considerable part of the asset’s value lies in the real estate, which spans a large section of Oxford Street, London’s most popular shopping mile.

But the Weston clan also prides itself in its longterm approach to investments. Since gaining control of Selfridges 18 years ago, the family has invested heavily in the store. The store has outlets in Manchester and Birmingham, where Selfridges occupies a windowless space-age building vaguely reminiscent of a giant silver slug. Besides, the timing of a sale may not be ideal, said Peter Williams, the former chief executive officer of Selfridges who ran the business before the sale to the Westons.

“Oxford Street and Central London will be the last to recover from Covid because of the lack of tourists so why would you sell it now?” Williams said. “If I was in their shoes I would bat away any approach quickly as it can be a distraction and doesn’t help the running of the business. Particularly right now when everyone is working so hard to bring physical retail back to life.”

Spokesmen for Selfridges and Credit Suisse both declined to comment on the potential sale.

Expansion Drive

Founded in 1908 by Harry Gordon Selfridge, the retailer came under control of Canadian businessman Galen Weston in 2003 for almost 600 million pounds. The group has since expanded to other department store chains, including Arnotts and Brown Thomas in Ireland, Holt Renfrew in Canada and de Bijenkorf in the Netherlands. The holdings outside the U.K. and Ireland wouldn’t be included in the proposed sale, the people said.

Assessing the value of the real estate will be

Photographer: Stuart C. Wilson/Getty Images

a key part of any possible sale. A chance to own the 540,000 square foot (50,168 square meters) Beaux Arts store on Oxford Street is an attractive proposition. But it’s also become a location increasingly surrounded by vacant neighbors. Rival department stores on the U.K.’s busiest shopping street including Debenhams and House of Fraser have closed, while John Lewis is pursuing plans to convert part of its store into offices.

About 9.4% of retail space in London’s West End is now vacant, causing rents for the best central London stores to plunge by about 14% in the year through March, according to research published by U.K. property agent Savills Plc. Oxford Street rents are down almost 18% in the period, the broker’s data show. That’s hit investor demand for stores in London’s tourist heartlands, with deals in the first quarter down by almost 46% from a year earlier.

Active Owners



Source link

Categories
Future

Ant Group Explores Future Without Chinese Billionaire Jack Ma


Text size



Source link

Categories
Future

Future Group urges SIAC to modify order to exclude FRL


MUMBAI :
Future Group, which is locked in a legal battle with Amazon.com Inc., has asked a Singapore arbitration court to remove Future Retail Ltd (FRL) from the scope of its order that temporarily blocked the Kishore Biyani-led group from selling its assets to billionaire Mukesh Ambani.

In a modification application on 11 March, Future Group has asked the Singapore International Arbitration Centre (SIAC) to review its October interim ruling, two people with direct knowledge of the development said on condition of anonymity.

“Future Group has realized that due to the Singapore court’s order, Future Retail cannot proceed with the deal with Reliance Industries Ltd,” said one of the two people. “The group’s application seeks an interim stay on the emergency arbitration order and removal of Future Retail from the scope of the order till the final outcome is decided.”

The latest plea is an attempt by Future Group to pave the way to complete the 24,713 crore asset sale deal with Reliance Industries.

The modification application in the Singapore tribunal follows the Delhi high court upholding the validity of the arbitration court’s order.

Amazon has challenged Future Group’s asset sale to Reliance Industries on the grounds that it violated a contract that Kishore Biyani entered with Amazon for an investment in a group company.

The cash-strapped Future Group is trying to expedite the deal to pay creditors and save the Big Bazaar retail chain from collapse.

Emails sent to spokespeople for Future Group, Amazon and Reliance Industries remained unanswered.

The real battle is, however, between Amazon and Reliance over a bigger slice of the Indian retail market that is estimated to exceed $1.3 trillion by 2025.

Amazon founder Jeff Bezos has made India a key focus of its global plans. Amazon fears that access to assets of Future Retail will give rival Reliance Retail a crucial edge in the battle for dominance of the Indian market.

The Reliance Industries-Future Group deal is still to get court clearance because of Amazon’s lawsuits against Future Group.

Amazon contends that Future Group can’t sell assets to 30 specified entities, including Reliance Industries, without the US company’s consent as per a commercial agreement signed in August 2019.

Future Group, which has been caught in the battle between Bezos and Ambani, has been struggling to repay around $3 billion worth of dues to lenders.

The Reliance Industries-Future Group deal is awaiting clearances from the Supreme Court and the National Company Law Tribunal (NCLT) right now.

The case in the Supreme Court is scheduled to be heard on 19 March.

But even as the legal clearances are awaited, Reliance has extended operational support to Future Retail to prevent a deterioration in asset quality.

Reliance has also extended an internal deadline for the completion of the purchase by six months to accommodate for delays caused by the legal battle. Some of Future Retail’s lease agreements for stores have been transferred to Reliance to ease the burden on the troubled retailer and avoid defaults.

Integration of the workplaces of Reliance Retail and Future Group has also begun, and many Future Group employees have started undergoing training to work under Reliance Retail.

On 22 February, the Supreme Court directed NCLT not to approve the deal till it pronounces its final judgement.

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.



Source link

Categories
Reviews

J&J Single-Dose Covid-19 Vaccine Gains Backing From FDA Advisory Panel


Johnson & Johnson’s


JNJ -2.64%

single-dose Covid-19 vaccine worked safely and should be authorized for use in the U.S., a panel of experts advised federal health regulators Friday.

The advisory committee’s vote in support of the vaccine’s authorization is the last step before the U.S. Food and Drug Administration issues a decision, which is expected Saturday.

The panel, a group of 22 medical specialists in fields like internal medicine, pediatrics, vaccines and epidemiology, regularly advises the FDA about experimental vaccines. It voted to recommend shots from

Pfizer Inc.


PFE -0.98%

and partner

BioNTech


BNTX -2.94%

SE and

Moderna Inc.


MRNA 4.33%

before the agency authorized them in December.

During the all-day public meeting, representatives from the FDA and J&J discussed the safety and effectiveness of the company’s vaccine in a 44,000-plus subject study, as well as how effective the J&J vaccine is in preventing new cases caused by variants.

The give-and-take of questions and answers can be valuable in bolstering public confidence in the shot, according to FDA officials.

The vaccine was 66% effective at protecting people from moderate to severe Covid-19, an FDA review found, and even more effective at preventing severe disease alone.

“If authorized, Janssen’s vaccine candidate would play a pivotal role in the global effort to fight Covid-19,”

Johan Van Hoof,

global head of vaccines research at J&J’s Janssen pharmaceutical unit, said during the panel’s meeting. “A single-dose regimen offers the ability to vaccinate a population faster.”

As highly transmissible coronavirus variants sweep across the world, scientists are racing to understand why these new versions of the virus are spreading faster, and what this could mean for vaccine efforts. New research says the key may be the spike protein, which gives the coronavirus its unmistakable shape. Illustration: Nick Collingwood/WSJ

A rollout of the J&J vaccine could add enough shots in the U.S. by the end of March to boost the total number of people vaccinated by 20%. Health authorities are pushing to inoculate enough people as quickly as possible so that business, schools and other establishments can fully reopen.

SHARE YOUR THOUGHTS

How would you grade the vaccine rollout? Join the conversation below.

J&J has said it would deliver about 20 million doses for U.S. use by the end of March.

The FDA often convenes public meetings of outside experts to scrutinize experimental drugs, devices and vaccines up for agency approval, in part to boost public acceptance of the products should they be cleared for wide use.

J&J’s vaccine appeared to be safe in its pivotal study, the FDA found, aside from being effective.

“The known and potential benefits of Ad26 outweigh the known and potential risks,” Macaya Douoguih, head of clinical development and medical affairs at J&J’s Janssen unit, said during Friday’s meeting, using a code name for J&J’s vaccine.

FDA medical officer Yosefa Hefter said there are still unknowns about the vaccine, including the duration of immune protection and the safety and effectiveness in children.

An FDA analysis for the committee meeting also said rare cases of deep vein clots and of blockages in lung arteries were slightly more common in vaccine recipients than in placebo patients, and that the FDA considers these as “of clinical interest.”

The vaccine was effective “across demographic subgroups,” the FDA said. The demographic subgroups in the large study of J&J’s vaccines included racial and ethnic groups such as Black, Latino and Asian people, and age groups such as those 60 years and older.

Researchers also assessed efficacy in people who had underlying medical conditions including obesity and high blood pressure before entering the clinical trial. Sometimes vaccines don’t work as well in older people because of weakened immune systems.

One exception was that the vaccine appeared to be less effective in people 60 and older who had certain underlying medical conditions like diabetes and high blood pressure.

The Pfizer-BioNTech and Moderna vaccines also worked effectively across various demographic subgroups.

The vaccine was less effective in South Africa, where a more-transmissible Covid-19 variant has thrived, than in the U.S. J&J is among the companies working on new shots targeting the new strain, against which several current vaccines don’t appear to work as well.

J&J’s Covid-19 shot was, however, very effective against severe and critical cases in South Africa. The vaccine was 73.1% effective in preventing such cases occurring at least 14 days after vaccination, and 81.7% effective in preventing such cases at least 28 days after vaccination.

How Viral Vector Vaccines Work

Johnson & Johnson’s vaccine relies on a different mechanism for conferring immunity than traditional vaccines.

Traditional Vaccines

1. In classic vaccines, such as those against measles and polio, the patient is inoculated with weakened or inactivated versions of the virus. This triggers the immune system to produce specialized antibodies that are adapted to recognize the virus.

2. After vaccination, the antibodies remain in the body. If the patient later becomes infected with the actual virus, the antibodies can identify and help neutralize it.

Johnson & Johnson’s Vaccine

Scientists have isolated the genes in coronavirus responsible for producing these spike proteins. The genes are spliced into weakened, harmless versions of other viruses.

Instead of using the whole virus to generate an immune response, these vaccines use only coronavirus’s outer spike proteins, which are what antibodies use to recognize the virus.

Weakened virus with

spike protein genes

When injected into a patient, the genetically engineered viruses enter healthy cells where they produce coronavirus spike proteins.

The spike proteins produced by the cells prompt the immune system to mount a defense, just as with traditional vaccines.

Vaccine-generated antibody response

1. In classic vaccines, such as those against measles and polio, the patient is inoculated with weakened or inactivated versions of the virus. This triggers the immune system to produce specialized antibodies that are adapted to recognize the virus.

2. After vaccination, the antibodies remain in the body. If the patient later becomes infected with the actual virus, the antibodies can identify and help neutralize it.

Johnson & Johnson’s Vaccine

Scientists have isolated the genes in coronavirus responsible for producing these spike proteins. The genes are spliced into weakened, harmless versions of other viruses.

Instead of using the whole virus to generate an immune response, these vaccines use only coronavirus’s outer spike proteins, which are what antibodies use to recognize the virus.

Weakened virus with

spike protein genes

When injected into a patient, the genetically engineered viruses enter healthy cells where they produce coronavirus spike proteins.

The spike proteins produced by the cells prompt the immune system to mount a defense, just as with traditional vaccines.

Vaccine-generated antibody response

1. In classic vaccines, such as those against measles and polio, the patient is inoculated with weakened or inactivated versions of the virus. This triggers the immune system to produce specialized antibodies that are adapted to recognize the virus.

2. After vaccination, the antibodies remain in the body. If the patient later becomes infected with the actual virus, the antibodies can identify and help neutralize it.

Johnson & Johnson’s Vaccine

Scientists have isolated the genes in coronavirus responsible for producing these spike proteins. The genes are spliced into weakened, harmless versions of other viruses.

Instead of using the whole virus to generate an immune response, these vaccines use only coronavirus’s outer spike proteins, which are what antibodies use to recognize the virus.

Weakened virus with

spike protein genes

When injected into a patient, the genetically engineered viruses enter healthy cells where they produce coronavirus spike proteins.

The spike proteins produced by the cells prompt the immune system to mount a defense, just as with traditional vaccines.

Vaccine-generated antibody response

1. In classic vaccines, such as those against measles and polio, the patient is inoculated with weakened or inactivated versions of the virus. This triggers the immune system to produce specialized antibodies that are adapted to recognize the virus.

2. After vaccination, the antibodies remain in the body. If the patient later becomes infected with the actual virus, the antibodies can identify and help neutralize it.

Johnson & Johnson’s Vaccine

Instead of using the whole virus to generate an immune response, these vaccines use only coronavirus’s outer spike proteins, which are what antibodies use to recognize the virus.

Scientists have isolated the genes in coronavirus responsible for producing these

spike proteins. The genes are spliced into weakened, harmless versions of other viruses.

Weakened virus with

spike protein genes

When injected into a patient, the genetically engineered viruses enter healthy cells where they produce coronavirus spike proteins.

The spike proteins produced by the cells prompt the immune system to mount a defense, just as with traditional vaccines.

Vaccine-generated antibody response

J&J, citing preliminary evidence in an analysis released by the FDA, said the vaccine was 65.5% effective in preventing asymptomatic infections in a subset of study subjects.

Health authorities have been watching whether Covid-19 shots can stop people without symptoms from transmitting the virus. The virus has largely been spread by people who were infected but didn’t realize it because they had no symptoms.

The vaccine was less effective in South Africa, where a more-transmissible Covid-19 variant has thrived, than in the U.S. J&J is among the companies working on new shots targeting the new strain, which several current vaccines don’t appear to work as well against.

Write to Thomas M. Burton at [email protected] and Peter Loftus at [email protected]

Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8



Source link

Categories
Future

The Store As A Hub Model And The Consumer Is The Pilot


In collaboration with Melissa Gonzalez, CEO & Founder of The Lionesque Group who shared her insights on fulfillment, personalization and sustainability as well as recent proprietary surveys results

The year 2020 was an unprecedented test of adaptability for brands and retailers and a year that transformed consumer behavior. Retailers including Target
TGT
, Nike
NKE
, Williams Sonoma
WSM
, and Best Buy
BBY
(to name a few) have all called out years of digital transformation plans accelerated into months. Consumers also adapted their behavior at an accelerated pace and will be more fluid in their transitions between online and offline in 2021 and beyond. With elevated expectations for a seamless shopping experience, consumers now demand flexible fulfillment, personalization, safety, and sustainability as the price of entry into their wallet. That was a tall order for retailers and brands during a holiday where shipping capacity was constrained and return rates likely spiked, reversing unsustainable trends from the past few quarters. The key to surviving and thriving in 2021 and beyond? The store-as-a-hub-model—a framework that Target, Walmart
WMT
and Nordstrom
JWN
adopted early and one that every retailer will need to follow in order to remain relevant.

Tarjay is the poster child for the store as a hub model. We only need to look to Target’s recent Q3 same store sales growth of 21% which was evenly split between digital and physical stores to understand why brick-and-mortar will continue to matter, albeit in a different way, in 2021 and beyond. For select retailers like Target game changing stores re-models have resulted in significant share gains and I believe stores will continue to play a key role. It certainly doesn’t hurt that the consumer will likely continue to be all about one-stop shopping and Target ticks all the boxes.  It is also important to highlight that Target is fulfilling 95% of all orders from stores (75% of digital orders from stores) which means quicker fulfillment and higher profitability. One final stat on the importance of physical and digital integrated retail –after launching fresh/frozen/refrigerated pick-up in 1,600 stores, two thirds of customers are showing up to stores within four hours. Turns out the consumer is willing to drive to a store for instant gratification rather than have it delivered—a win for the consumer and the company’s bottom line. 

One of the best examples of the digital pivot was Best Buy moving to a new operating model within 48 hours after stores were shuttered back in March. Despite the shock to the operating model in the second half of Q1, the company retained 81% of the previous year’s sales without a single customer stepping foot in a store. Best Buy accomplished this by pivoting to the pavement (curbside pick-up), using its stores for fulfillment rather than selling and adapting its consultation model.  Most recently Best Buy was creative in solving shipageddon, asking employees to deliver in their local communities. While Best Buy is an efficient company one of the reasons for the pivot success in my opinion is the organization leads with empathy (expanded caregiver program, back up child care, a wellbeing strategy and proper compensation).  

Williams Sonoma has also transitioned seamlessly as digital exposure increased to 76% in Q2 (versus 56% last year), however don’t count stores out as brick-and-mortar continues to play a crucial role for the brand with Q3 demand store comps down only -4% year-over-year, and 20% of holiday orders expected to be fulfilled from, yes physical stores. While stores clearly still matter even the top performing retailers will come out the other side of 2020 with plans for fewer stores.  With the most recent results yielding digital comps of ~50% and stores comps of -11% Williams Sonoma not surprisingly is planning a future with fewer but more profitable stores.  Mall operators may be in for a rude awakening in 2021 and beyond as it’s not just the obvious suspects declaring bankruptcy —on the contrary some of the healthiest retailers around will be negotiating better real estate deals and shrinking footprints. 

Flexible Fulfillment: Survey Says Immediate Gratification Is The Way to Our Wallet

The concept of the “connected store” isn’t new, but in 2021 we’ll start to see a shift in prioritizing budget allocation, one that will increase IT infrastructure needs to support the growing expectation for buy online pick up in-store, pick-and-pack, and curbside pick-up capabilities. Next year and beyond, stores will need to seamlessly integrate into supply chain systems, connecting all channels, enabling them to flex from both a point of fulfillment to a place of discovery. They will achieve this through modular and agile design thinking in order to attract and satisfy a different kind of shopper, most notably, one who shops less frequently and consumes less overall—yet buys more per shopping trip. In a survey* conducted by the Lionesque Group (November 2020) the biggest determining factor for a positive experience included same-day pickup availability and mobile phone notifications when product is ready.

With economics supporting a company’s ability to fulfill orders from the store, flexible fulfillment is proving advantageous to brands and retailers as they are benefiting from lower freight costs and improved margins, while consumers benefit from shorter, even same day pick up times. This will motivate brands and retailers to further invest in these initiatives.

Personalization: Survey Says “BYOD”

While the store will continue to serve to solidify a point of loyalty, it will be on the onus of individual brands to determine what value their physical stores will serve in the customer journey. The events of 2020 will have conditioned consumers to plan store visits more purposefully – where research will have been done ahead of time, and visits will be done with intention. Merchandising will need to be more consciously and purposefully curated, shifting away from capacity per square foot and focusing instead on experience per square foot economics as seen with companies like Nike with the expansion of their Nike Live stores which focus on localization, personal service, and digital integration. 

The integration of in-store technology will be a critical component towards creating intelligent algorithms around merchandising strategies and in-store data capture (from the storefront window to the dressing room) to provide learnings to best support each individual shopper across all channels. For example, FitMatch—a company based on an AI tool that helps customers identify their body type and best fit with a brand—is one example of a fast-growing technology being integrated into the in-store dressing room experience. But even low-tech solutions, such as QR codes, are seeing a rise in both acceptance and active use. Almost a year into the pandemic, however, we’re still just scratching the surface of possibilities associated with delivering a personalized shopping experience in today’s “Bring Your Own Device” (BYOD) world. The same world where 60% of female respondents to our November 2020 survey* shared they prefer to be able to interact via their mobile device while in-store opening the line for more personalized shopping experiences.

 Sustainability-Yes The Customer Wants It All

Sustainability and ethics continue to be more closely aligning with products used in the creation of stores, shop in shops, and pop-ups. With consumers more strictly scrutinizing where their products come from and the ethics and practices of the companies selling them, the dedication to the environment and doing what is right for both people and planet has been reinforced by the tide of 2020. A commitment to reducing carbon, ethics in the supply chain, and human health are becoming table stakes when it comes to consumers’ values that contribute to high engagement and brand loyalty. 

Brands like Estee Lauder are making a commitment to building sustainability—whether pop-up or permanent—as they stand behind their mission to reduce greenhouse gas emissions and corporate climate action plan. Nike has also made progress in their commitment towards designing sustainable spaces, as exemplified by their flagship in Paris where they’ve weaved in 85,000 kilos of sustainable materials into their design. In addition, the Kids shoe subscription service recycles heavily used shoes into playground material.  Levi’s is also leading the charge on sustainability as a leader in reducing chemical and water use in products (did you know a pair of jeans can take 90 gallons of water to produce?). The company uses more than 20 water-saving finishing techniques and importantly shares their knowledge with the industry.

*Primary Research Data Survey conducted by The Lionesque Group, an MG2 Company, November 2020. 1,312 respondents, 52.5% Women, 47.5% Men ~20% of respondents rural, ~30% urban, and ~50% suburban

 



Source link

Categories
Future

Dow Slips Amid New Travel Curbs


The index of blue-chip stocks fell 200.94 points, or 0.7%, to 30015.51, marking its largest one-day point and percentage decline in December. The S&P 500 slid 7.66 points, or 0.2%, to 3687.26 to extend its losing streak to a third session.

The tech-heavy Nasdaq Composite, in contrast, rose 65.40 points, or 0.5%, to 12807.92, a new all-time high.

Much of the stock market has lost steam this week as some nations began taking steps to curtail travel in an effort to contain the emergence of a fast-spreading variant of coronavirus from England. The U.K. imposed stringent restrictions on social and business activity, prompting concern that more countries may be required to adopt measures that would hamper the global economic recovery.

“It would be a brave man to suggest this will just remain a U.K.-specific issue,” said

Derek Halpenny,

head of research for global markets in the European region at MUFG Bank. “Are we going back into another phase of more pronounced global lockdowns again?”

Oil prices slipped for a second day amid growing worries over the new restrictions imposed on travelers from the U.K. to other countries. Brent crude futures, the benchmark in international energy markets, dropped 1.6% to $50.08 a barrel.

Meanwhile, the yield on the 10-year note ticked down to 0.917%, from 0.941% Monday, as some investors looked to the relative safety of U.S. government bonds. Yields fall when prices rise.

Investors are trying to gauge whether the new strain of Covid-19 will impact the efficacy of vaccines that are being rolled out this month.

BioNTech

Chief Executive

Ugur Sahin

said the vaccine developed by his company, in partnership with

Pfizer,

would likely work against the new variant and is being tested. If a new mutation would make the current vaccine ineffective, BioNTech can develop another tailored to the new variant in six weeks, he said.

Technology stocks traded higher on Nasdaq, in contrast to declines for the S&P and Dow.



Photo:

Michael Nagle/Bloomberg News

“The big unknown is to what degree could the new strain make the efficacy of the vaccine lower,” said

Peter Garnry,

head of equity strategy at Saxo Bank. “If it just turns out to be more infections, and it doesn’t have an effect on the vaccine, then the market will be less concerned.”

Late Monday, a fresh $900 billion fiscal stimulus package was passed by Congress, ending weeks of anticipation from investors about whether lawmakers could end their stalemate. The bill, which includes direct checks to households and relief for small businesses, is expected to be signed by

President Trump.

Even so, the bill’s passage wasn’t enough to propel the broader stock market higher.

“We’ve had the positive news on the vaccines and the fiscal deal, so there’s probably not a catalyst to drive stocks meaningfully higher in the next few weeks,” said

Brian Levitt,

global market strategist at Invesco.

When Is the Market on Holiday?

Select stock-market closures through year’s end

  • Thurs. Dec. 24: U.S. stock market closes at 1 p.m. ET
  • Fri. Dec. 25: Markets closed
  • Mon. Dec. 28: London stock market closed
  • Fri. Jan. 1: Markets closed

Still, Mr. Levitt noted that he maintains a positive outlook on equities.

“In my opinion, betting against stocks over the next year and beyond is betting against medicine, science and policy makers,” he said. “And I’m not willing to make those bets.”

In corporate news,

Apple

rose $3.65, or 2.9%, to $131.88 after Reuters reported that the iPhone maker intends to move forward with its own self-driving car technology.

Exercise-equipment maker

Peloton Interactive

gained $16.82, or 12%, to $161.21, hitting a new all-time-high, after it agreed to buy commercial fitness-equipment provider Precor for $420 million in cash.

Travel stocks and shares of energy companies tumbled.

Norwegian Cruise Line Holdings

slid $1.70, or 6.9%, to $23.08.

Chevron

fell for an eighth consecutive day, losing $1.73, or 2%, to $84.36. That marks the longest losing streak for the oil giant since October 2013.

Meanwhile,

Tesla

tumbled $9.52, or 1.5%, to $640.34, extending its losses for the week to nearly 8%. The electric-car maker made its S&P 500 debut Monday.

Moves in stocks could be big and markets may be especially choppy in coming days because fewer people are trading as the holiday period starts, said

Salman Ahmed,

global head of macro at Fidelity International.

The final stretch of trading in December is historically positive for the stock market. But this week’s losses may be a sign that investors are starting to take profits after a blockbuster year, especially as they consider the possibility of tax changes after President-elect

Joe Biden

takes office, said

JJ Kinahan,

chief market strategist at TD Ameritrade. The S&P 500 is up 14% in 2020, and the Nasdaq Composite has catapulted 43% higher.

Footage shows empty supermarket shelves while trucks bearing cargo get stuck at the border after France imposed a travel ban on Britain following the spread of a new coronavirus strain. Other countries have also barred passengers from the U.K. Photo: Neil Hall/EPA/Shutterstock

Additionally, Mr. Kinahan noted, Tuesday’s worse-than-expected consumer confidence report may also be weighing on markets.

The Conference Board, a private research group, said its index of consumer confidence dropped to 88.6 in the first two weeks of December, from a revised 92.9 in November. Economists surveyed by The Wall Street Journal had expected a level of 97.5.

Still, there were small signs of optimism. Data from the Commerce Department showed Tuesday that U.S. gross domestic product—the value of all goods and services produced across the economy—increased at an annualized rate of 33.4% in the third quarter, slightly stronger than the previous estimate issued last month.

Overseas, European shares rebounded after Monday’s losses. The pan-continental Stoxx Europe 600 gained 1.2%.

Major stock indexes in Asia closed lower. China’s Shanghai Composite fell 1.9%, and South Korea’s Kospi declined 1.6%.

Write to Caitlin Ostroff at [email protected] and Caitlin McCabe at [email protected]

Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8



Source link

Categories
Future

Dow Futures Are Softer Amid a Fed and Treasury Clash


Text size



Source link