Here are five important updates for investors beginning their trading day:
Market Performance: The S&P 500 rebounded on Thursday, recording its first positive day of the week and breaking a three-day losing streak with a 0.21% increase. The Nasdaq Composite saw a rise of 0.76%. However, the Dow Jones Industrial Average fell by 140.59 points, or 0.33%, marking its first four-day losing streak since June. Treasury yields saw a slight decrease after reaching a three-month high on Wednesday.
Tapestry and Capri Merger Blocked: A federal judge has halted Coach owner Tapestry’s proposed $8.5 billion acquisition of Michael Kors parent company, Capri. The decision follows a brief trial in New York where the FTC expressed concerns about potential harm to competition, possible price increases, and reduced employee benefits. Despite the ruling, Tapestry plans to appeal. Following the news, Capri’s shares dropped by about 50%, while Tapestry’s shares increased by 10%.
Tesla Stock Surge: Tesla’s stock experienced its best day since May 2013, surging 22% to close at $260.48. This significant rise followed the announcement of strong earnings and CEO Elon Musk’s predictions of vehicle growth that exceeded analyst expectations. This rally also increased Musk’s net worth by approximately $26 billion.
Microsoft CEO’s Compensation: Microsoft CEO Satya Nadella sought a pay reduction yet still saw a 63% increase in total compensation, amounting to over $79.1 million for fiscal 2024. Most of this compensation came in the form of stock. Nadella requested a reduction in his cash compensation due to security incidents that attracted criticism from the U.S. government. Microsoft is also assessing how employee contributions to security efforts might influence their compensation.
- Onion Recall at Fast Food Chains: Burger King and Taco Bell are removing onions from certain locations due to an E. coli outbreak linked to McDonald’s Quarter Pounders. The recall is based on a notification by U.S. Foods concerning four onion products from Taylor Farms. Burger King’s parent company, Restaurant Brands International, is withdrawing onions from 5% of its U.S. outlets, identifying them as products from the affected Colorado facility. Taco Bell’s parent company, Yum Brands, has not disclosed the number of restaurants impacted.
These updates reflect contributions from CNBC staff including Pia Singh, Gabrielle Fonrouge, Jacob Pramuk, Lora Kolodny, CJ Haddad, Ari Levy, Jordan Novet, and Amelia Lucas.
