The daily business briefing: August 21, 2023

1. Walmart, Centric investigate Cambodia supply chains

Walmart and Centric Brands have launched investigations into their Cambodia supply chains following questions from a U.S. industry group about "credible reports" of inmates at a women's prison being illegally employed to produce garments for export, Reuters reported Monday. The American Apparel and Footwear Association (AAFA) wrote about the allegations in a letter to Cambodia's ambassador to Washington, Keo Chhea, in November. Reuters reviewed the initial AAFA letter and another one pressing the issue with Cambodian authorities in February. The export of goods made by convicts is prohibited in the United States and Cambodia, according to Reuters, although the International Labor Organization, which Cambodia belongs to, allows unforced prison labor.

Reuters

2. Old Dominion tops Estes bid for bankrupt Yellow's trucking terminals

Old Dominion Freight Line outbid rival Estes Express Lines with a $1.5 billion offer for bankrupt trucker Yellow's extensive North American real-estate holdings, The Wall Street Journal reported Sunday. Estes had bid $1.3 billion. The strong interest from multiple parties indicated that there could be a hot bankruptcy court–supervised auction for Yellow's network of 169 truck terminals, likely giving Yellow more money than it needs to cover its debts. Yellow closed this summer after 99 years in business, but its terminals close to major cities have tremendous value to trucking and logistics companies competing to speed up delivers to U.S. homes.

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The Wall Street Journal

3. Stock futures rise after losing week

U.S. stock futures rose slightly early Monday as Wall Street struggled to bounce back after its latest losing week. Futures tied to the Dow Jones Industrial Average and the S&P 500 were up 0.3% and 0.5%, respectively, at 6:30 a.m. ET. Nasdaq futures were up 0.6%. The Dow and the S&P 500 continued a late-summer slump last week, falling 2.2% and 2.1%, respectively. The tech-heavy Nasdaq fell 2.6%, extending its first three-week losing streak since December. Investors are showing concern about rising bond yields and data showing China's economy, the world's second largest, is weakening.

CNBC

4. 'Blue Beetle' knocks 'Barbie' out of top spot at domestic box office

"Blue Beetle" ousted "Barbie" from the top spot at the domestic box office despite a weaker-than-expected debut. The new DC superhero adventure brought in $25.4 million in North America and another $18 million in 63 markets overseas, one of the lowest-grossing openings for a DC film. "After a dozen nearly flawless years, the [comic book] genre has performed unevenly during the last three and a half years," said David A. Gross of movie consulting firm Franchise Entertainment Research. The Greta Gerwig fantasy-comedy "Barbie" was No. 2 after four straight weeks at No. 1, with $21.5 million in domestic ticket sales, putting it a few million away from surpassing Universal's animated "The Super Mario Bros. Movie" ($574 million) as the biggest domestic release of 2023.

Variety

5. Adobe co-founder John Warnock dies at 82

John Warnock, co-founder of Photoshop maker Adobe, has died, Adobe said Sunday. He was 82. Warnock started the company with Charles Geschke in 1982, retiring as CEO in 2000. He served as chief technical officer until he retired a year later in 2001. He stayed on as chair of Adobe's board of directors until 2017, sharing the job with Geschke. "It is a sad day for the Adobe community and the industry for which he has been an inspiration for decades," Adobe CEO Shantanu Narayen said in an email to employees. No cause death was immediately released. Geschke died in 2021, at age 81.

Reuters Bloomberg