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Business

Wall Street totters after mixed earnings, trade halt glitch

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  • SEC investigating NYSE opening bell glitch
  • 3M slides on downbeat Q1 forecast
  • J&J falls on sales warning; GE down on weak profit view
  • Microsoft to report quarterly earnings after market close
  • Indexes: Dow up 0.18%, S&P 500 off 0.13%, Nasdaq down 0.25%

NEW YORK, Jan 24 (Reuters) – Wall Street was mixed on Tuesday as a raft of mixed earnings took some wind out of the sails of the recent rally.

The session got off to an rocky start, as a spate of NYSE-listed stocks were halted at the opening bell due to an apparent technical glitch, which caused initial price confusion and prompted an investigation by the U.S. Securities and Exchange Commission (SEC).

More than 80 stocks were affected by the glitch, which caused wide swings in opening prices in stocks, including Walmart Inc (WMT.N) and Nike Inc (NKE.N).

“It looks like NYSE got on it real early,” said Joseph Sroka, chief investment officer at NovaPoint in Atlanta. “Now they’re trying to determine what opening trade prices were.”

“Everyone involved in trade settlements is going to have a long day today.”

All three indexes sputtered near the starting line, with little apparent momentum in either direction.

Fourth quarter earnings season is in full swing, with 72 of the companies in the S&P 500 having reported. Of those, 65% have beaten consensus, just a hair below the 66% long-term average, according to Refinitiv.

On aggregate, analysts now expect S&P 500 earnings 2.9% below the year-ago quarter, down from the 1.6% year-on-year decline seen on Jan. 1, per Refinitiv.

“Earnings don’t make a bull or bear case for the market yet, but there’s an anxiousness among investors to be long when the Fed is done raising rates,” Sroka added. “We’re hitting a ramp in the earnings cycle, and by next week we’ll have a lot more information on the direction of the market.”

Economic data showed shallower-than-expected contraction in the manufacturing and services sector in the first weeks of the year, suggesting that the Federal Reserve’s restrictive interest rates are dampening demand.

The Dow Jones Industrial Average (.DJI) rose 60.69 points, or 0.18%, to 33,690.25, the S&P 500 (.SPX) lost 5.36 points, or 0.13%, to 4,014.45 and the Nasdaq Composite (.IXIC) dropped 28.39 points, or 0.25%, to 11,336.03.

Among the 11 major sectors of the S&P 500, industrials was down the most.

Intercontinental Exchange Inc (ICE.N), owner of the New York Stock Exchange, dropped 2.5% as SEC investigators searched for the cause of Tuesday’s opening bell confusion.

Alphabet Inc (GOOGL.O) shares dipped 1.8% after the Justice Department filed a lawsuit against Google for abusing its dominance of the digital advertising business.

Johnson & Johnson’s (JNJ.N) profit guidance came in above analyst expectations. Even so, its stock softened 0.3%.

Industrial conglomerates 3M Co (MMM.N) and General Electric Co (GE.N) both provided underwhelming forward guidance due to inflationary headwinds.

3M’s shares were off 5.1% while General Electric’s were modestly lower.

Aerospace/defense companies Lockheed Martin Corp (LMT.N) and Raytheon Technologies Corp (RTX.N) were a study in contrasts, with the former issuing a disappointing profit forecast and the latter beating estimates on solid travel demand.

Lockheed Martin and Raytheon were up 1.5% and 2.5%, respectively.

Railroad operator Union Pacific Corp missed profit estimates as labor shortages and severe weather delayed shipments. Its shares shed 2.7%.

Microsoft Corp (MSFT.O) is due to report after the bell.

Advancing issues outnumbered declining ones on the NYSE by a 1.16-to-1 ratio; on Nasdaq, a 1.06-to-1 ratio favored decliners.

The S&P 500 posted 27 new 52-week highs and 10 new lows; the Nasdaq Composite recorded 69 new highs and 21 new lows.

Reporting by Stephen Culp; Additional reporting by Shreyashi Sanyal and Johann M Cherian in Bengaluru; Editing by Aurora Ellis

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Business

Wall Street ends up with help from Nike, FedEx and consumer sentiment

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  • Consumer confidence rebounds in December
  • Data shows November home sales decline
  • Nike jumps on strong second-quarter results
  • FedEx soars on cost-cutting plans
  • Indexes up: Dow 1.60%, S&P 1.49%, Nasdaq 1.54%

Dec 21 (Reuters) – Wall Street’s three main stock indexes closed higher on Wednesday for their biggest daily gains so far in December with help from upbeat Nike (NKE.N) and FedEx (FDX.N) quarterly earnings, as well as improving consumer confidence and easing inflation expectations from investors.

Nike Inc shares soared 12% after beating profit expectations for its second quarter on strong holiday demand from North American shoppers, while FedEx finished up 3.4% and shares in cruise operator Carnival Corp (CCL.N) jumped 4.7% after posting a smaller-than-expected quarterly loss.

FedEx Corp (FDX.N), which sparked a market selloff in September after pulling financial forecasts, provided financial guidance and announced plans for $1 billion cost cuts.

Also, U.S. consumer confidence rose to an eight-month high in December as inflation retreated and the labor market remained strong while 12-month inflation expectations fell to 6.7%, the lowest since September 2021.

“We’re seeing a broad rally. It’s been helped by upbeat corporate commentary and an improvement in consumer confidence,” said Angelo Kourkafas, investment strategist at Edward Jones in St. Louis referring to Nike and FedEx.

The Dow Jones Industrial Average (.DJI) rose 526.74 points, or 1.6%, to 33,376.48, the S&P 500 (.SPX) gained 56.82 points, or 1.49%, to 3,878.44 and the Nasdaq Composite (.IXIC) added 162.26 points, or 1.54%, to 10,709.37.

Energy firms (.SPNY) were the biggest gainers among the S&P’s 11 major industry sector, adding 1.89%, as oil futures rose.

The smallest gainer among the sectors was consumer staples (.SPLRCS), which finished up 0.8%.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., December 7, 2022. REUTERS/Brendan McDermid

Still, Wednesday’s data also showed that U.S. existing home sales slumped 7.7% to a 2-1/2-year low in November as the housing market was hurt by higher mortgage rates. But the data may be fuelling investor hope that the Fed could ease up on its tightening policy.

“At the macro level you have economic weakness but at the micro level you have companies that are resilient and delivering positive expectations from an earnings perspective,” said Brian Price, head of investment management for Commonwealth Financial Network in Waltham, Mass. “That combination is going to be positive.”

Fears of a recession following the U.S. central bank’s prolonged interest rate hikes have weighed heavily on equities and these fears have put the S&P on track for its biggest annual decline since 2008 and a decline for December.

“There’s still a lot of uncertainty and we’re likely to see a lot of volatility early in the year as we could be in a mild recessionary environment,” said Edward Jones’ Kourkafas but he believes the market has already priced in a weaker economy.

“We still have some headwinds ahead but maybe we don’t have to price in a recession twice. So far what we’ve seen this year has already priced in a mild recession.”

AMC Entertainment Holdings Inc (AMC.N) finished up 4.3% after the cinema-chain operator said it suspended talks to acquire certain assets of bankrupt Cineworld Group (CINE.L).

Advancing issues outnumbered declining ones on the NYSE by a 3.43-to-1 ratio; on Nasdaq, a 2.10-to-1 ratio favored advancers.

The S&P 500 posted 5 new 52-week highs and 3 new lows; the Nasdaq Composite recorded 69 new highs and 268 new lows.

On U.S. exchanges 9.81 billion shares changed hands, compared with the 11.16 billion average for the last 20 sessions.

Reporting by Sinéad Carew in New York, Shubham Batra, Amruta Khandekar, Ankika Biswas and Johann M Cherian in Bengaluru; Editing by Shounak Dasgupta, Maju Samuel and Aurora Ellis

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Business

Peloton to cut jobs, shut stores and raise prices in company-wide revamp

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Aug 12 (Reuters) – Peloton Interactive Inc (PTON.O) said on Friday it would cut jobs, shut stores and raise prices on its exercise equipment including treadmills and top-end bikes as it undertakes a company-wide revamp to shore up its revenue and improve cash flow.

Shares of the company surged about 11% in afternoon trade after the company said in a memo it would cut about 800 jobs and reduce its retail presence in North America.

Under Chief Executive Officer Barry McCarthy, Peloton has implemented a slew of measures including cost cuts to steady its business as a pandemic-driven demand for its treadmills and exercise bikes quickly fizzles.

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On Friday, the company outlined a plan to aggressively reduce its retail presence in the United States and eliminate a number of jobs in warehouses and customer support teams.

Shifting final mile delivery to third-party logistics providers will reduce per-product delivery costs by up to 50%, McCarthy said in the memo seen by Reuters.

The company is also raising prices of its Bike+ and Tread machines in five markets, including the United States and Canada. (https://bit.ly/3peZhNv)

The company, which lowered the prices for its products earlier this year, said it would now raise prices by $500 to $2,495 on Bike+ and by $800 to $3,495 on Tread in the United States.

McCarthy, a former Netflix Inc (NFLX.O) executive, said he was aiming to boost Peloton’s software engineering team, terming it as “right investments” to drive growth.

($1 = 1.2782 Canadian dollars)

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Reporting by Nathan Gomes and Kannaki Deka in Bengaluru; Additional reporting by Deborah Sophia; Editing by Krishna Chandra Eluri and Anil D’Silva

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Business

EXCLUSIVE Nike to make full exit from Russia

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PARIS/COPENHAGEN/LONDON, June 23 (Reuters) – Nike (NKE.N) is making a full exit from Russia three months after suspending its operations there, the U.S. sportswear maker told Reuters on Thursday, as the pace of Western companies leaving the country accelerates.

Nike said on March 3 it would temporarily suspend operations at all its Nike-owned and -operated stores in Russia in response to Moscow’s actions in Ukraine, adding that those still open were operated by independent partners.

On Thursday, it joined other major Western brands, like McDonald’s and Renault, in confirming it will leave the country completely.

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“Nike has made the decision to leave the Russian marketplace. Our priority is to ensure we are fully supporting our employees while we responsibly scale down our operations over the coming months,” Nike said in an emailed statement.

Foreign companies seeking to exit Russia over the war in Ukraine face the prospect of new laws being passed in the coming weeks allowing Moscow to seize assets and impose criminal penalties. That has encouraged some businesses to accelerate their departure.

“What was a trickle is becoming a torrent (of Western companies exiting Russia)”, said Paul Musgrave, a political science professor at the University of Massachusetts.

Other sportswear makers have also been pulling back.

People walk past a closed store of the sporting goods retailer Nike at a shopping mall in Saint Petersburg, Russia May 25, 2022. REUTERS/Anton Vaganov

Rival Adidas (ADSGn.DE) said in March it was shutting its Russian stores and pausing online sales. Puma (PUMG.DE) also suspended its operations in March. Reebok suspended sales in March and is in talks to sell more than 100 stores to Turkish shoe retailer FLO Magazacilik. read more

Adidas currently has no plans to resume business in Russia, the German sportswear company told Reuters on Thursday.

“The operation of Adidas’ stores and Adidas’ online retail in Russia continues to be suspended until further notice, this also applies to the delivery of goods to Russia,” it said in an emailed statement.

Musgrave said companies that leave Russia may struggle to return.

“This presents opportunities for domestic firms in some markets but even more for brands from China and elsewhere to make inroads,” he said.

For Nike, which gets less than 1% of its revenue from Ukraine and Russia combined, the move is largely symbolic rather than material to its results.

The company has a history of taking a stand on social and political issues. It supported American football quarterback Colin Kaepernick in his decision to kneel during the U.S. national anthem as a protest against racism and dropped Brazilian soccer star Neymar last year because he refused to cooperate in an investigation into sexual assault allegations.

Russian media reported in May that Nike had not renewed agreements with its largest franchisee in Russia, Inventive Retail Group (IRG), which operates 37 Nike-branded stores in Russia through its subsidiary Up And Run.

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Reporting by Mimosa Spencer, Jacob Gronholt-Pedersen and Richa Naidu. Additional reporting by Praveen Paramasivam; editing by Matt Scuffham, Jason Neely, Bernadette Baum and Jane Merriman

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Business

Uniqlo owner stays put in Russia as Levi, AMEX and others sever ties

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  • Uniqlo’s Russian stores to stay open
  • Danone suspends investments in country
  • KPMG, PwC, EY, Deloitte all cut ties with local units
  • American Express calls Ukraine attack ‘unjustified’

March 7 (Reuters) – Uniqlo owner Fast Retailing (9983.T) will keep its stores in Russia open, joining a small group of international firms that are staying put even as dozens of big brands temporarily shutter operations or exit the country over its invasion of Ukraine.

Political pressure is building on companies to halt business in Russia, while operations have also been complicated by sweeping sanctions affecting everything from global payments systems to a range of high-tech products.

Large shippers have suspended container routes to and from Russia and many Western companies from Nike Inc and home furnishings giant Ikea to energy majors BP and Shell (SHEL.L) have closed shop or announced plans to exit the country.

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“Clothing is a necessity of life. The people of Russia have the same right to live as we do,” said Fast Retailing CEO Tadashi Yanai in remarks first reported by Nikkei, adding that every country should oppose war.

A spokesperson told Reuters the company had seen no noticeable impact on its supply chain or logistics in Russia, where Uniqlo has 49 stores.

In contrast, Levi Strauss & Co (LEVI.N) suspended its Russian operations, including any new investments.

The Big Four accounting firms KPMG, PwC, EY and Deloitte moved one by one to cut their ties with Russia, as did credit card company American Express (AXP.N).

Dairy cooperative Arla Foods, French yoghurt maker Danone (DANO.PA) and Belgian chemicals group Solvay (SOLB.BR) also suspended operations or investment in the country, while the RIA Novosti news agency cited carmaker Nissan as saying it would halt production at its factory in St Petersburg. read more

Nissan said last week it was suspending vehicle exports to Russia, joining peers like General Motors Co (GM.N) and Sweden’s Volvo Cars (VOLCARb.ST).

The sun sets behind the skyscrapers of the Moscow International Business Centre, also known as “Moskva-City”, in Moscow, Russia April 23, 2018. REUTERS/Anton Vaganov

Among companies continuing to operate in Russia were McDonald’s Corp (MCD.N) and PepsiCo Inc (PEP.O), prompting New York state’s pension fund – a shareholder in the pair – to urge them and others to consider pausing their operations there. read more

Russia announced new “humanitarian corridors” on Monday to transport Ukrainians trapped under its bombardment – to Russia itself and its ally Belarus, a move immediately denounced by Kyiv as an immoral stunt. read more

Russia calls the campaign it launched on Feb. 24 a “special military operation”. It denies attacking civilian areas and says it has no plans to occupy Ukraine.

After Russian President Vladimir Putin signed a new media law on Friday, Chinese-owned video app TikTok said it would suspend live-streaming and the uploading of videos to its platform in Russia. read more

“We have no choice but to suspend livestreaming and new content to our video service while we review the safety implications of this law,” it said in a series of Twitter posts on Sunday.

‘UNJUSTIFIED ATTACK’

Many companies have strongly condemned Russia’s actions as they suspended services in the country.

“In light of Russia’s ongoing, unjustified attack on the people of Ukraine, American Express is suspending all operations in Russia,” AMEX said on its website. read more

Netflix , which had already temporarily stopped future projects and acquisitions in Russia, suspended its service “given the situation on the ground”, a spokesperson said. read more

KPMG, PwC, EY and Deloitte all said they would sever links with their Russian operations, affecting thousands of staff. read more

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Reporting by Akriti Sharma in Bengaluru, Chris Gallagher in Washington, DC, Rocky Swift in Tokyo; Writing by Anna Driver and Sayantani Ghosh; editing by Diane Craft, Kirsten Donovan, Bernadette Baum and Susan Fenton

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Business

Nike, IKEA close Russian stores as sanctions, trade restrictions bite

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March 3 (Reuters) – Sneaker maker Nike and home furnishings firm IKEA shut down stores in Russia on Thursday, as trade restrictions and supply shutdowns added to political pressure for companies to stop business in Russia because of its invasion of Ukraine.

French bank Societe Generale (SOGN.PA) said it was working to cut its risks in Russia, fearing a tit-for-tat response by Moscow to Western sanctions, as more companies from vodka maker Diageo (DGE.L) to IKEA suspended business in the country.

Globally known companies including Apple, Ford and Shell have condemned Russia’s attack, but some of the announcements on Thursday were more practical, focused on supplies and sanctions as shipping routes closes and governments banned exports to Russia.

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Boeing Chief Executive David Calhoun, in a note to staff, acknowledged the violence in Ukraine but avoided politics.

“Moving forward, Boeing will continue to follow the lead of the U.S. government and strictly adhere to the export controls and restrictions that have been announced governing work in Russia,” he said in the note seen by Reuters, which described suspension of work in Russia and Ukraine.

Brazilian plane-maker Embraer (EMBR3.SA) joined Airbus and Boeing in halting parts supplies to Russian airlines.

Home furnishings retailer IKEA (IKEA.UL) said it would close outlets in Russia and Russian ally Belarus, affecting 15,000 workers, and described its shutdowns in non-political terms.

“The war has both a huge human impact and is resulting in serious disruptions to supply chain and trading conditions, which is why the company groups have decided to temporarily pause IKEA operations in Russia,” IKEA said in a statement. read more

Nike Inc said it was “deeply troubled by the devastating crisis in Ukraine” and described its closing of stores in this way: “Given the rapidly evolving situation, and the increasing challenges of operating our business, Nike will be pausing operations in Russia.”

Some companies and investors added up the costs of their actions.

Norway’s $1.3 trillion wealth fund said its Russian assets, worth around $3 billion before the invasion, have now become effectively worthless. read more “They are pretty much written off,” CEO Nicolai Tangen told Reuters.

TJX Cos Inc (TJX.N) said on Thursday it would sell its 25% stake in Russian low-cost apparel retailer Familia, which cost it $225 million in 2019. Because of a decline in the rouble and TJX said it may take an impairment charge due to the sale.

SANCTIONS RISKS

A man wearing a protective face mask amid the outbreak of the coronavirus disease (COVID-19) walks past a Nike brand store in central Kyiv, Ukraine December 10, 2020. REUTERS/Valentyn Ogirenko

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Underscoring the challenges global companies are facing as they comply with sanctions against Russia, Societe Generale said on Thursday it could see an “extreme scenario” where Russia strips the bank of its local operations. The lender has a $20 billion exposure to Russia. read more

Citigroup Inc (C.N) said on Wednesday it could face billions of dollars in losses on its exposure to Russia and was looking to exit Russian assets. Bank shares have taken a drubbing in recent days amid fears of possible writedowns and weaker economies. read more

Western sanctions, including shutting out some Russian banks from the SWIFT global financial network, new export controls, and closure of air space, have led dozens of global companies to pause operations in the country, hammered the rouble and forced the central bank to jack up interest rates. read more

Spanish fashion retailer Mango said on Thursday that it was temporarily closing its shops and its online sale website in Russia, and Spirits company Diageo (DGE.L), the maker of Smirnoff vodka and Guinness, said it had paused exports to Ukraine and Russia. read more

Accenture said it was discontinuing its Russian business, which had nearly 2,300 employees. read more

Britain said on Thursday it will ban Russian companies from the London insurance market, the world’s largest commercial and specialty insurance centre. read more

Hundreds of Russian soldiers and Ukrainian civilians have been killed and more than one million people have fled Ukraine in the week since President Vladimir Putin ordered the attack. read more

Russia calls its actions in Ukraine a “special operation” that it says is not designed to occupy territory but to destroy its southern neighbour’s military capabilities and capture what it regards as dangerous nationalists.

SCRAMBLED SUPPLIES

With a shortage of components, more carmakers are halting production at their factories in Russia, including Russia’s biggest carmaker, Avtovaz (AVAZI_p.MM) – controlled by France’s Renault (RENA.PA) – which said it would close two plants on Saturday and from March 9 to 10 due to shortage of electronic components. read more

Nissan Motor Co <7201.T > said on Thursday it has suspended vehicle exports to Russia, while Japanese peer Toyota (7203.T) said it would halt production at its Russian factory from Friday and indefinitely stop vehicle exports to the country.

The world’s biggest shipping lines, MSC and Maersk (MAERSKb.CO) have suspended container shipping to and from Russia, with Maersk saying food and medical supplies to Russia risk being damaged or spoiled due to delays at ports and customs. read more

Japan Airlines (9201.T) and ANA Holdings (9202.T), which normally use Russian airspace for their Europe flights, said they would cancel all flights to and from Europe on Thursday, joining other carriers that have canceled or rerouted flights between Europe and north Asia. read more

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Reporting by Tassilo Hummel in Paris, Jamie Freed in Sydney, Gwladys Fouche in Oslo, Illona Wissenbach in Frankfurt, Anna Ringstrom in Stockholm, Richa Naidu in London
Additional reporting by Tim Hepher in Paris, Satoshi Sugiyama in Tokyo, Mehr Bedi, Chavi Mehta, Praveen Paramasivam, Uday Sampath in Bengaluru, Megan Davies in New York, and in Madrid by Emma Pinedo
Writing by Peter Henderson, Sayantani Ghosh and John Revill
Editing by Lincoln Feast, Simon Cameron-Moore, Tomasz Janowski, Frances Kerry and Nick Zieminski

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Business

Boeing, Exxon, Apple join Western firms spurning Russia over Ukraine

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  • Ford suspends operations in Russia
  • Apple stops iPhone sales in Russian market
  • ESG investors press Western firms to act

March 2 (Reuters) – Boeing (BA.N) suspended maintenance and technical support for Russian airlines and U.S. energy firm Exxon Mobil (XOM.N) said it would exit Russia, joining a growing list of Western companies spurning Moscow over its invasion of Ukraine.

U.S. tech giant Apple (AAPL.O) said it had stopped sales of iPhones and other products in Russia, while Ford Motor (F.N) joined other automakers by suspending operations in the country.

Western nations have steadily ratcheted up sanctions on Russia since it invaded Ukraine last week, including shutting out some Russian banks from the SWIFT global financial network.

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The measures have hammered the rouble and forced the central bank to jack up interest rates, while Moscow has responded to the growing exodus of Western investors by temporarily restricting Russian asset sales by foreigners.

Russian firms, meanwhile, have felt increasingly squeezed. Sberbank (SBER.MM), Russia’s largest lender, said on Wednesday it was leaving the European market because its subsidiaries faced large cash outflows. It also said the safety of its employees and property was threatened. read more

Signalling there would be no let up from the West, U.S. President Joe Biden said in his State of the Union address on Tuesday that his Russian counterpart Vladimir Putin “has no idea what’s coming” as he joined European states and Canada in closing U.S. airspace to Russian planes. read more

With international shippers such as Maersk (MAERSKb.CO), Hapag Lloyd (HLAG.DE) and MSC suspending bookings to and from Russia, the country has become increasingly shut out of world commerce. Sanctions are also squeezing Russia’s aviation sector.

Boeing’s said on Tuesday it was suspending operations as other aviation companies face growing European and U.S. restrictions on dealings with Russia clients, affecting leasing planes, exporting new aircraft and providing parts.

CHORUS OF CONDEMNATION

Exxon said it would not invest in new developments in Russia and was taking steps to exit the Sakhalin-1 oil and gas venture, after similar moves to dump assets by Britain’s BP , Russia’s biggest foreign investor, and Shell Plc (SHEL.L).

However, French firm TotalEnergies (TTEF.PA) stopped short of saying it would exit Russia, only saying it would not put in new cash. read more

Logo at an Apple store in Washington, U.S., January 27, 2022. REUTERS/Joshua Roberts

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Apple, which halted sales in Russia, said it was making changes to its Maps app to protect civilians in Ukraine.

It also joined a growing chorus of Western companies openly condemning Russian actions.

“We are deeply concerned about the Russian invasion of Ukraine and stand with all of the people who are suffering as a result of the violence,” Apple said.

“We deplore Russia’s military action that violates the territorial integrity of Ukraine and endangers its people,” Exxon said, while Ford said in its condemnation: “The situation has compelled us to reassess our operations in Russia.”

Motor cycle maker Harley-Davidson Inc suspended shipments of its bikes to Russia.

The increasing focus of investors in environmental, social and governance (ESG) issues has added pressure on companies to act swiftly in ending ties with Russia and Russian entities.

“The only course of action for many is simply divestment,” said TJ Kistner, vice president at Segal Marco Advisors, a large U.S. pension consultant.

Big Western technology companies said they were continuing efforts to stop Russia from taking advantage of their products.

Apple said it had blocked app downloads of some state-backed news services outside of Russia.

Google, owned by Alphabet Inc (GOOGL.O), said it had blocked mobile apps connected to Russian state-funded publisher RT from its news-related features, including the Google News search.

Google also barred RT and other Russian channels from receiving money for ads on websites, apps and YouTube videos, mirroring a move made by Facebook (FB.O).

Microsoft (MSFT.O) said it would remove RT’s mobile apps from its Windows App store and ban ads on Russian state-sponsored media.

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Reporting by Paresh Dave in Oakland, Ross Kerber in New York, Dawn Chmielewski in Los Angeles; Writing by Peter Henderson and Sayantani Ghosh; Editing by Lincoln Feast and Edmund Blair

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Business

Amazon is exploring offer for Peloton, source says; report says Nike also weighing bid

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A Peloton exercise bike is seen after the ringing of the opening bell for the company’s IPO at the Nasdaq Market site in New York City, New York, U.S., September 26, 2019. REUTERS/Shannon Stapleton

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Feb 4 (Reuters) – Peloton Interactive Inc (PTON.O) has drawn interest from potential buyers including e-commerce giant Amazon.com Inc , according to a person familiar with the matter, as the exercise bike maker struggles to maintain pandemic-fueled growth.

Shares of Peloton surged 30% in extended trading on the news, which comes days after activist investor Blackwells Capital urged the company’s board to put it up for sale.

Amazon is exploring an offer for Peloton and is speaking with advisers about whether and how to proceed, a source said. Peloton has not yet decided whether it will explore a sale, according to the source.

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Meanwhile, the Financial Times reported late on Friday that sportswear company NikeInc is also evaluating a bid for Peloton, citing people briefed on the matter, who said the considerations are preliminary and Nike has not held talks with Peloton.

Peloton and Nike did not immediately respond to a Reuters request for comment, while Amazon declined to comment.

Peloton’s sales boomed during COVID-19 lockdowns, with many snapping up home fitness equipment. But its fortunes began to fade as vaccinations increased, gyms reopened and rivals offered competitive products.

In November, it hinted that demand for its exercise bikes and treadmills was slowing faster than expected, and its market capitalization since then has shrunk to about $8 billion from a peak of nearly $52 billion in early 2021.

If the stock’s gains hold on Monday, Peloton could reach the $10 billion market-capitalization threshold.

Last week, Blackwells Capital called on the board of Peloton to remove CEO John Foley immediately, accusing him of deals that set high fixed costs and for holding on to excessive inventory, while misleading investors about the need to raise capital. read more

Blackwells criticized Foley for hiring his wife as a key executive and committing to a 300,000-square-foot, 20-year lease for office space in New York, among other things.

The investment firm, run by Jason Aintabi, has also urged the board to put the company up for sale to a buyer like Walt Disney Co (DIS.N), Apple Inc (AAPL.O), Sony Group (6758.T) or Nike Inc , Reuters reported on Sunday. read more

Peloton has tried to cushion the blow to its growth by cutting the price of its popular bike and ramping up its ad spending, but growth remains stagnant.

Last month, Peloton said the company was reviewing the size of its workforce and “resetting” production levels, following a report that it was temporarily halting production of connected fitness bikes and treadmills after a significant drop in demand. read more

While many investors have become frustrated with Peloton due to a steep drop in its share price, analysts also note that the company may be a difficult acquisition target because of its two classes of stock, effectively allowing insiders to control it.

The news was first reported by the Wall Street Journal. (https://on.wsj.com/3AVMIf7)

The growth in the fitness band market has prompted tech giants such as Apple Inc (AAPL.O) and Samsung (005930.KS) to introduce features for health tracking, including electrocardiogram and blood pressure sensor. Alphabet Inc-owned Google (GOOGL.O) closed its acquisition of fitness tracking company Fitbit Inc in January.

Tech giants including Amazon and Alphabet have also seen a rise in their valuation after blockbuster results this week. A day after Facebook owner Meta Platforms (FB.O) suffered the deepest loss of stock market value in history for a U.S. company, Amazon logged the greatest ever one-day increase in value. read more

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Reporting by Rithika Krishna, Tiyashi Datta, Nivedita Balu and Shivam Patel in Bengaluru and Greg Roumeliotis in New York; Editing by Devika Syamnath, Peter Henderson, Anil D’Silva and Kim Coghill

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US

Biden visits Pittsburgh bridge collapse, vows more U.S. investment

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PITTSBURGH, Jan 28 (Reuters) – President Joe Biden stopped to look at a Pittsburgh bridge that collapsed just hours before he arrived for a scheduled visit to the city on Friday, dramatically underscoring the urgency of his drive to rebuild the United States’ creaky infrastructure.

Visibly moved, Biden gazed across a ravine over the buckled sections of the half-century-old Fern Hollow Bridge, flanked by Pennsylvania and local officials and emergency workers as he surveyed the damage.

(Don’t Miss: Collapsed bridge is one of 44,000 in poor condition in U.S.)

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“The idea that we have been so far behind on infrastructure, for so many years — it’s just mind-boggling,” the president told them.

One emergency worker described the scene after the collapse as loud as a jet engine. Biden praised the work of rescuers, noting a natural gas leak that was not stopped until some 30 minutes after first responders arrived at the scene.

Rescuers rappelled at least 150 feet (46 meters) into Fern Hollow, and used ropes to pull people to safety after the snow-covered span over the ravine collapsed around 6 a.m. (1100 GMT), Pittsburgh Fire Chief Darryl Jones said.

“They helped the firefighters that were here initially on scene, also did like a daisy chain, with hands just grabbing people and pulling them up,” Jones said.

Ten people suffered minor injuries, including four who were taken to the hospital, city officials said. Jones added that crews would search under the bridge for any victims.

The incident was a high-profile example of the need to rebuild the nation’s aging bridges, highways and other infrastructure with money from $1 trillion spending bill that was a signature achievement of Biden’s first year in office.

Images of the collapse showed the four-lane span buckled into three large sections, with several vehicles piled in the rubble of the collapsed roadway at the bottom of the ravine. The tail end of a long, red city bus appeared trapped by the rubble.

The massive gas leak caused by the collapse forced the evacuation of several families from their homes before being brought under control, Jones said.

Damaged vehicles are seen at the site of a collapsed bridge in Pittsburgh, Pennsylvania, U.S., January 28, 2022. Picture taken with a drone. REUTERS/Drone Base

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The U.S. National Transportation Safety Board said it was sending a team to the site.

Pennsylvania has 3,198 bridges rated as being in poor condition, according to the U.S. Department of Transportation.

The collapse came just two weeks after Pennsylvania got $327 million from the U.S. Department of Transportation for bridge repair as part of the Biden administration’s new infrastructure law. Pennsylvania’s share of the bridge-repair money is the third-largest state allocation, behind only California and New York.

Biden said he was astonished to learn Pittsburgh had more bridges than any city in the world. “And we’re going to fix them all,” he said before leaving the site.

ECONOMIC GROWTH JUMPS

Biden, whose approval ratings have fallen in recent months amid a surge in the COVID-19 pandemic and inflation, got a boost on Thursday when the Commerce Department reported the U.S. economy grew the fastest in nearly four decades in 2021.

Economists say Biden-backed fiscal stimulus, including the $1.9 trillion American Rescue Plan that pumped money into states for COVID relief and into households in the form of stimulus payments, played a big role.

In Pittsburgh, the president toured Mill 19, a former steel mill building now serving as a research and development hub, and said he was taking stock of what he had accomplished so far.

“Making it in America is what built this city, the steel city,” he said. Pittsburgh understands the consequences of what happens “when we ignore the backbone and fail to invest in ourselves.”

The Democratic president was returning to the site of his first major campaign event in 2019 and his first stop after he was inaugurated. The state is a crucial battleground for Democrats to retain control of the Senate in the 2022 midterms.

He touted the creation of 6.4 million jobs and 367,000 manufacturing jobs since he took office a year ago, and the passage of the infrastructure bill — a rare bipartisan victory in a deeply divided Congress.

“It takes a federal government that doesn’t just give lip service” to buying American, he said. “Now we’re beginning to see the results.”

In recent days, General Motors Co (GM.N) has said it would invest $7 billion in Michigan to expand electric vehicle production and Intel Corp has said it would invest $100 billion to build a chip-making complex in Ohio.

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Reporting by Andrea Shalal, Katharine Jackson, Steve Holland, Doina Chiacu, Andy Sullivan, Heather Timmons; Editing by Howard Goller, Jonathan Oatis and Cynthia Osterman

Our Standards: The Thomson Reuters Trust Principles.

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Business

Peloton plans workforce size review, production changes

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Jan 20 (Reuters) – Peloton Interactive Inc’s (PTON.O) chief executive said on Thursday the company was reviewing the size of its workforce and “resetting” production levels, following a report earlier in the day that it was temporarily halting production of connected fitness bikes and treadmills after a significant drop in demand.

Shares in the exercise bike maker, once a pandemic darling, closed down 24% at about $24, wiping off nearly $2.5 billion in market value.

“We now need to evaluate our organization structure and size of our team,” CEO John Foley said. “And we are still in the process of considering all options … to make our business more flexible.”

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According to the CNBC report, Peloton, in a confidential presentation dated Jan. 10, said it had seen a “significant reduction” in demand and that it planned to pause bike production in February and March. It also won’t manufacture the Tread treadmill machine for six weeks, beginning next month.

A Peloton exercise bike is seen after the ringing of the opening bell for the company’s IPO at the Nasdaq Market site in New York City, New York, U.S., September 26, 2019. REUTERS/Shannon Stapleton/File Photo

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“Rumors that we are halting all production of bikes and Treads are false,” Foley said.

Peloton earlier in the day said it was taking “significant corrective actions” to improve its profitability and estimated second-quarter revenue to be about $1.14 billion, compared with its previous forecast of $1.1 billion to $1.2 billion.

The company has seen a slump in demand for its fitness classes and equipment as people venture out of their houses to hit gyms again following gradual easing of pandemic-related curbs. read more

“During the pandemic, there was too little supply to meet the growing demand. Unfortunately, the company took those cues to bulk up supply just as demand began to falter,” BMO Capital Markets analyst Simeon Siegel said.

Peloton has been working with consulting firm McKinsey & Co for a review of its cost structure and could cut jobs, CNBC reported earlier this week. read more

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Reporting by Kannaki Deka and Akanksha Khushi in Bengaluru; Additional reporting by Nathan Gomes, Aishwarya Nair and Akriti Sharma; Editing by Vinay Dwivedi, Sriraj Kalluvila and Shounak Dasgupta

Our Standards: The Thomson Reuters Trust Principles.

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