Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average
ended higher in a partial rebound from the previous session.
- Amazon.com Inc. (AMZN) reached an agreement to acquire online pharmacy PillPack.
- Walgreens Boosts Alliance Inc. (WBA) fell 9.5% after the Amazon news and despite third-quarter earnings and sales topping analysts' expectations.
Wall Street Overview
Stocks ended higher on Thursday, June 28, as investors continued to count the cost of trade tariffs and protectionism among the world's biggest economies.
Sentiment was soured a bit by signals that growth was starting to slow because of the tit-for-tat trade wars that have escalated since early March, and a statement from Donald Trump's top economic adviser that Trump was "not retreating" in his approach to trade with China.
The Dow Jones Industrial Average
First-quarter GDP growth in the U.S. was revised lower to 2% from 2.2%, reflecting weaker consumer spending. Economists had expected the final estimate of first-quarter U.S. economic growth to come in at 2.2%.
"This acquisition could be the launchpad for the long-feared broader entry of Amazon into retail pharmacy space, just months after news reports had brought some relief that Amazon was not ready yet to enter drug distribution," said Evercore ISI analyst Ross Muken in a note on Thursday.
Walgreens, meanwhile, posted fiscal third-quarter adjusted earnings of $1.53 a share, well ahead of Wall Street forecasts of $1.48. Sales rose 14% to $34.3 billion, with the bulk of coming from the company's American retail pharmacy division.
Amazon also rolled out a program that lets entrepreneurs around the country launch businesses that deliver Amazon packages.
In a statement, Amazon said it would take an "active role" in helping entrepreneurs start, set up and manage their own delivery business. According to Amazon, successful owners can earn as much as $300,000 in annual profit operating a fleet of up to 40 delivery vehicles.CMG) fell 6.6% after the burrito chain said Wednesday it would close up to 65 stores and incur restructuring costs of $115 million to $135 million.
The company also laid out plans for easier-to-understand digital ordering and faster moving lines at restaurants, including clearly marked pick-up shelves.
Chipotle's CEO Brian Niccoll told TheStreet's Executive Editor Brian Sozzi that moving faster on digital was key to unlocking the company's growth potential.
Madison Square Garden Co. (MSG) rose 14.2% after the company said it would examine spinning off its sports businesses - which include the New York Knicks and New York Rangers - from its concert-hosting and entertainment-venue operations.
Apple Inc. (AAPL) is considering creating a single subscription offering that would encompass its original TV shows, music service and magazine articles, two people familiar with the company's plans told The Information. Shares rose 0.75%.