Apple hits $3trn market capitalization
With its shares closing above the $190.734 threshold on Friday, Apple (APPL:NASDAQ) became the first American company to close with a $3 trillion market valuation.
Recent days have seen a rise in the price of the tech giant’s stock, which closed at all-time highs. Apple now has a value greater than five of the 11 sectors of the S&P 500, according to Dow Jones Market Data.
In January 2022, the company briefly reached the milestone but was unable to close above it.
Apple shares closed 3.9% higher for the week.
Lordstown Motors files for bankruptcy
Lordstown Motors (RIDE:NASDAQ), one of the most well-known electric vehicle startups in the US has filed for bankruptcy protection,
The filing was announced Tuesday after talks fell through on a plan for investment partner Foxconn Technology to buy $170 million in shares of the electric-truck maker, Lordstown said.
Former President Donald Trump hailed Lordstown as a savior for an abandoned General Motors plant in northeast Ohio when it was once one of the most well-known startups to go public during the SPAC boom. In November 2021, Lordstown sold the facility to Foxconn after the start-up experienced production problems.
Lordstown shares sank 28.5% for the week
Walgreens to close 450 stores globally
Pharmacy chain Walgreens (WBA:NASDAQ) plans to close 150 of its locations in the U.S. and 300 more in the United Kingdom.
The store closures which are part of ongoing cost-saving initiatives are expected to occur before the end of Walgreens’ 2024 fiscal year in May 2024. The company also announced that more than 500 corporate personnel jobs would also be cut.
Store closings come as Walgreens reported net income of $118 million, about 59% below the previous year, and failed to meet earnings expectations, based on Wall Street analysts.
Shares of Walgreens fell by 9.3% for the week.
Tesla beats Q2 delivery target
Tesla (TSLA:NASDAQ) second-quarter production and delivery numbers easily beating analysts’ expectations as the effects of the electric-vehicle maker’s price cuts, combined with federal EV tax credits, are boosting sales.
Tesla reported 479,700 global deliveries and 466,140 global deliveries for the quarter. The delivery figure easily exceeded both the 448,599 unit consensus estimate from Wall Street and the 422,875 total from the previous quarter. The second quarter’s production and delivery totals for Tesla set all-time highs.
Tesla’s second-quarter delivery beat indicates the company’s price cuts are continuing to boost sales both in the US and abroad. The company also got another boost from the federal government in Q2, as all trims of the Model 3 sedan qualified for the full $7,500 federal tax credit. However, the question remains how much of Tesla’s bottomline is affected by the spate of price cuts.
Shares of Tesla finished the week 2% higher.
Carnival posts record bookings
Carnival (CCL:NYSE) posted record cruise bookings, while its second-quarter revenue came in above Wall Street estimates.
However, the cruise company posted a quarterly loss of $407 million due to rising operational costs. Adjusted cruise costs for the quarter, excluding fuel, were up 13.5% from the same period in 2019, before the pandemic. Carnival said its operational costs are expected to exceed previous estimates for the year.
Carnival shares rose 19.1% for the week.
Wall Street banks clear Fed stress test
Wall Street banks cleared the Fed’s stress tests, a vote of confidence following the banking crisis earlier this year.
The Federal Reserve said all 23 firms—including JPMorgan Chase (JPM:NYSE), Goldman Sachs (GS:NYSE), and other bank giants—performed well in the annual exercise, bolstering their shares.
Investors are also watching for expected changes to dividend payouts. A Barclays analyst said he expected several banks to increase their dividends after the release of the stress test results.
JPMorgan shares gained 4.8% for the week, while Goldman Sachs shares and Bank of America posted weekly gains of 2.5% and 3.3%, respectively.