Skip to main content

Trending Market News Wednesday: Facebook, Denbury, L Brands

Facebook is taking the European Commission to court over a document request that the company says invades its privacy.
  • Author:
  • Publish date:

The major U.S. indices were rising Wednesday, breaking out of the recent volatile trading with all three major indices spending the majority of the session in the green. 

The Dow Jones Industrial Average was up 0.36% while the Nasdaq and S&P 500 both rose about 1%. 

Here are some of the Wall Street stories you may have missed today. 

Victoria's Secret Parent Cuts Costs

The stock price of Victoria's Secret parent L Brands  (LB) - Get Free Report jumped more than 30% after the price targets on the shares were upgraded by six analyst firms. Deutsche Bank raised its price target 68% to $27 a share. 

L Brands unveiled a plan to cut $400 million in annualized costs as it prepares to spin off Victoria's Secret after failing to sell the company earlier this year.

As part of the cost-cutting measures, L Brands will lay off 15% of its home-office workers and close 250 Victoria's Secret stores. 

Facebook Sues EU Over Document Request

Facebook  (FB) - Get Free Report is taking the EU to court regarding its own privacy after the bloc, conducting an antitrust probe, requested internal documents containing what the social-network operator called "highly sensitive data."

Facebook says it will cooperate with the European Commission's probe, but the "exceptionally broad nature of the commission's requests means we would be required to turn over predominantly irrelevant documents that have nothing to do with the commission's investigations, including highly sensitive personal information such as employees' medical information, personal financial documents, and private information about family members of employees," according to a report

Denbury Resources This Week Plans to File Prepackaged Chapter 11 

Oil and natural gas company Denbury Resources  (DNR) - Get Free Report said that it has reached a prepackaged Chapter 11 plan with creditors that will allow it to eliminate $2.1 billion in bond debt. 

The Plano, Texas, company expects to file the plan in U.S. Bankruptcy Court in Texas by Thursday.

The company expects to operate its business as usual during the Chapter 11 process thanks in part to a revolving loan exit facility of $615 million. 

"Recently our entire industry has been highly impacted by the global oil demand destruction caused by the covid-19 pandemic, driving record low oil prices and rapid changes in energy market conditions," Chief Executive Chris Kendall said.