The daily business briefing: July 24, 2018
Alphabet reports strong profit despite EU fine, Tronc cuts the Daily News staff in half, and more
Google profits high despite record EU antitrust fine
Google's parent company, Alphabet, reported Monday that it had already absorbed a record $5.1 billion European Union antitrust fine and still made $3.2 billion in profits over the latest quarter. The news sent its stock rising by 3.5 percent in after-hours trading. With the regulatory conflict resolved, Google now can focus on selling more internet ads, analysts said. "It's like a delivery company having to pay for a parking ticket," Brian Wieser, a Pivotal Research analyst, said of the penalty. "It's not a meaningful fine in the context of the size of this company."
Tronc cuts more than half of Daily News newsroom staff
Tronc announced Monday that it had laid off half the staff of the New York Daily News, and said it was cutting staff at some of its other newspapers "today and tomorrow." CEO Justin Dearborn said fewer reporters and editors would lose their jobs at the newspaper publisher's other papers. "The Daily News is unique in that local leadership determined a complete redesign of its structure was needed post-acquisition," he wrote in a Monday memo. "We do not expect reductions of this scale in any of our other newsrooms." Despite the assurances, the news provoked uncertainty at other Tronc papers, such as The Baltimore Sun and Chicago Tribune.
Trump showcases American-made goods and touts strong economy
President Trump showed off American-made goods, including snowboards from Colorado and cowboy boots from Texas, at an event staged to tout his economic policies. At his second annual "Made in America" event, Trump said his policies, tax cuts, and deregulation had created a "great economic revival" in the country. The Trump administration says it has created 8.7 million jobs, and Trump credited the gains for what he said was historically low unemployment for African Americans, Asian Americans, and Hispanics. Trump said his policies have boosted manufacturing jobs, although some industry leaders warn his trade wars with Europe, China, and other trade partners threaten recent progress.
Dow poised to rise as strong earnings lift mood
U.S. stock futures gained early Tuesday after getting a lift from several strong corporate earnings reports. Futures for the Dow Jones Industrial Average jumped by 100 points or 0.4 percent, while those of the S&P 500 and the Nasdaq-100 were up by 0.2 percent. U.S. stocks were mixed on Monday, with the Dow inching down by 14 points to 25,044, while the S&P 500 and Nasdaq Composite rose by 0.2 percent and 0.3 percent, respectively. Earnings are expected to remain in focus as the busiest week of the season continues. Google-parent Alphabet beat expectations late Monday, and Facebook, Amazon, and Twitter report later in the week. Shares of Eli Lilly and Lockheed Martin gained in pre-market trading after both companies reported better-than-expected quarterly earnings.
Nike to give 7,000 workers raises after outcry
Nike said in a memo to staff on Monday that more than 7,000 Nike employees would get raises. The move came after an internal pay review sparked by claims of workplace misconduct and discrimination against women. The controversy resulted in the departure of several top executives at the sports footwear and apparel company. In the memo, Nike said the changes were part of an effort to foster a corporate culture "in which employees feel included and empowered." The raises will go to about 10 percent of the company's 74,000 employees around the world. At a company-wide meeting two months ago, Nike CEO Mark Parker apologized for missing signals of worker discontent and promised changes.