10 January 2020

1) HP’s board has rejected Xerox’s $33 billion dollar takeover bid, for the same reason as Xerox’s previous offer, that the proposal significantly undervalues HP. Xerox first moved to acquire HP in November, but was rejected because HP stock holders would lose much of their value in the company. HP is a 2015 spinoff of giant Hewlett-Packard who has a market value of $300 billion dollars that dwarfs Xerox’s value of 7.7 billion dollars.

2) Mack Trucks, the manufacturer of large commercial trucks, announced plans to layoff 305 employees, which is about 13% of their payroll. After two years of high volumes of production, marked demand has dropped so the company must adapt to the lower demand. There are expectations of the truck market in America being down 30% this next year.

3) The American consumer continues to shun the traditional big department stores. Despite the monster holiday shopping season, America’s biggest department stores still lost money. This is a trend that has been in progress for several years as typified by Sears’ decline. Department stores such as JCPenny, Kohl’s and Macy’s continue to decline with dropping sales and store closings. Consumers are now going to big box stores and the internet commerce to save money, signaling a fundamental change in American consumerism.

4) Stock market closings for – 9 SEP 20:

Dow              28,956.90    up    211.81
Nasdaq           9,203.43    up      74.18
S&P 500          3,274.70    up      21.65

10 Year Yield:    down   at    1.86%

Oil:    down   at    $59.59

30 October 2019

1) Humana, the health insurance giant, is laying off more than 800 people. These layoffs are from its operations in several states, their intent is to trim payroll by 2%, starting this week. Humana is taking a series of measures in 2020 aimed at improving productivity and position the company for long term sustainable success. This need to cut expenses is driven by the anticipated $1 billion dollar non-deductible health insurance fee or HIF, which Humana must pay in 2020.

2) The retail mammoth Amazon is making further inroads into the grocery retailing business by offering free delivery of groceries to its Prime members. These will include services like Amazon Fresh and Whole Foods Market using time portals of one and two hour delivery windows. Fresh grocery delivery service is expanding into new cities. This new delivery strategy is expected to circumvent other retailers such as Walmart.

3) The ride sharing company Lyft is introducing Lyft Pink, a monthly membership for riders that gives a 15% discount as well as other perks. Unlike previous discount programs which only applied for a certain number of rides, this discount will have no limits. While Lyft Pink will launch later this year, you can sign up for the service now.

4) Stock market closings for – 29 OCT 19:

Dow              27,071.42    down    19.30
Nasdaq           8,276.85    down    49.14
S&P 500          3,036.89    down      2.53

10 Year Yield:    down   at    1.84%

Oil:    down   at    $55.52