Rite Aid (RAD:NYSE) hopes to stop opioid lawsuits by filing for bankruptcy

Rite Aid stock loses half of value in one day

A slurry of opioid lawsuits has pushed Rite Aid (RAD:NYSE) into filing for bankruptcy. The pharmacy chain is expected to file for chapter 11 in the coming weeks to address mass federal and state lawsuits over its alleged role in the sale of opioids.

The filing would cover Rite Aid’s more than $3.3 billion debt load and pending legal allegations that it oversupplied prescription painkillers.

Rite Aid would join a number of prescription opioid manufacturers, including OxyContin maker Purdue Pharma, that have been bankrupted by lawsuits accusing the companies of fueling a drug abuse crisis in the U.S.

Rite Aid shares plummeted 51% Friday, and is down 54% for the week.

Peloton Interactive rough ride far from over

Peloton’s (PTON:NASDAQ) rough ride is far from over. The fitness equipment maker reported a larger-than-expected quarterly loss due to a costly equipment recall, amidst a decline in paying subscribers.

Peloton also issued unexpectedly weak sales guidance and said it likely wouldn’t be cash-flow-positive for the next two quarters.

Peloton, which many regarded as a ‘pandemic stock’ has continued to struggle with waning demand as normality has returned and people have returned to gyms. This has slowed the business and pushed inventory levels higher.

Peloton shares sank 23% Wednesday, and are down 16.83% for the week

Penny-pinching consumers dry up Macy’s sales

Department stores’ sales are drying up after a pandemic-era flood of spending. Macy’s (M:NYSE) reported declining second-quarter revenue as consumers spent less at its stores. Spending on apparel boomed early in the pandemic, but now inflation-weary consumers are cutting back on some discretionary items.

Chief Executive Jeff Gennette noted that rising delinquencies cut credit card revenues to $120 million in the second quarter. She expects additional challenges for American shoppers as federal student-loan payments are set to resume in September.

Macy’s shares plunged 14% Tuesday, and are down 21% for the week.

Nordstrom sales drop due to theft and slowdown in discretionary spending

Nordstrom (JWN:NYSE) reported revenue of $3.77 billion for the second quarter, above expectations of $3.65 billion, and earnings per share of $0.84 compared to estimates of $0.44.

However, sales were down 8.3% compared to the same period a year ago, and remained below pre-pandemic levels.

Declining discretionary spending, credit card delinquencie,s and rising theft have affected revenue of the retailer

Nordstorm shares are down 19.4% for the week.

Nvidia shows it is more than AI buzz

Surging AI interest mey be propelling Nvidia’s (NVDA:NASDAQ) stock to new heights, but the chip maker has shown it still has a resounding business model. Nvidia posted record sales that doubled from a year ago, beating estimates.

Chief Executive Officer Jensen Huang said in an interview with The Wall Street Journal, that the company still isn’t shipping close to demand, suggesting there is more upside even after a pair of record-breaking quarters.

Nvidia’s stock has more than tripled this year, with the buzz around the technology making the chipmaker a $1 trillion company

Nvidia shares rose 3.2% Wednesday, and is up 3.5% for the week.

Warner Bros pushes the release of blockbusters to next year

The writer and actors strikes are causing delays of big-budget Hollywood releases. Actors and writers haven’t been able to promote films since their union went on strike in mid-July, per union rules laid out by the Writers Guild of America and Screen Actors Guild.

Warner Bros. Discovery (WBD:NYSE) said thursday that earlier scheduled films like “Dune: Part Two,” “Godzilla x Kong: The New Empire” and “Lord of the Rings: The War of the Rohirrim,” would now be released throughout next year.

Warner Bros. Discovery shares fell 3.4% Friday, and is down 3.92% for the week.