The daily business briefing: April 2, 2020

1. T-Mobile completes purchase of Sprint to form new wireless giant

T-Mobile has completed its acquisition of smaller rival Sprint in a deal valued at $31.6 billion at T-Mobile's Tuesday closing stock price. The merger creates a third wireless giant rivaling AT&T and Verizon. The two companies announced plans to merge two years ago, but state and federal authorities objected. The Federal Communications Commission and the Department of Justice approved the deal last year, but as a condition the DOJ insisted the companies set up satellite TV company Dish as a new wireless carrier to boost competition. State attorneys general sued to block the deal, saying it would reduce competition and drive up prices for consumers. A federal judge ruled in favor of the companies earlier this year. T-Mobile says joining forces with Sprint will result in a better network and lower prices.

The Associated Press

2. FDA calls for removal of Zantac due to possible cancer-causing contaminant

The Food and Drug Administration announced Wednesday that it has asked manufacturers to stop selling all versions of the heartburn drug ranitidine, sold under the brand name Zantac, due to a potentially cancer-causing contaminant that can build up when the medicine is stored for a long time. The agency also recommended that consumers who have the drug, in tablets or liquid, stop taking them and throw them away. The FDA has been investigating levels of the contaminant, N-nitrosodimethylamine or NDMA, since 2019. Sanofi, the manufacturer of the brand-name version of Zantac, said in a statement that it recalled the product in October, and urged retailers and consumers to return or destroy it.

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CNN The New York Times

3. Macy's shares tumble after struggling retailer dumped by S&P 500

Macy's shares dropped to an all-time low on Wednesday after the company was dropped from the S&P 500. S&P Dow Jones Indices said the iconic department store chain, which has lost more than 70 percent of its value this year, would be added to a small-cap index starting April 6, and HVAC equipment maker Carrier Global would replace it in the S&P 500. Macy's is now worth about $1.5 billion, so it "has a market capitalization more representative of the small-cap market space," S&P Dow Jones Indices said. Earlier in the week, Macy's announced that it was furloughing around 130,000 employees nationwide and slashing top executives' compensation as measures to curb the coronavirus outbreak kept its stores closed.

The Street Fox Business

4. Business slows at Walmart, Costco, Target after rush to stock up

Walmart, Costco, and Target have seen their first weekly drop in traffic since the coronavirus began spreading across the U.S., according to Placer.ai. Traffic at Walmart fell by 6.7 percent in the third week of March compared to the same week in 2019, after rising by 18.4 percent year over year in the previous week. The figure at Costco dropped by 8.7 percent in the third week of the month after rising by 18.4 percent the week before. "There is a downside to stocking up for the long haul," Ethan Chernofsky, vice president of marketing for Placer.ai, wrote on the retail intelligence company's blog. "Once you have all the things you need, there is little need for more visits."

MarketWatch

5. Stocks struggle to rebound after 2nd quarter starts with rough day

U.S. stock index futures gained early Thursday, pointing to a higher opening after Wall Street started the second quarter with losses on Wednesday. Futures for the Dow Jones Industrial Average, the S&P 500, and the Nasdaq all were up by about 1 percent at 6 a.m. All three of the main U.S. indexes fell by 4.4 percent on Wednesday as the coronavirus pandemic continued to drag down global markets. Bleakley Advisory Group chief investment officer Peter Boockvar said Wednesday that volatility will continue through April, as stocks fluctuate with coronavirus news. "What is not priced in I believe because it's obviously hugely unknown is what is on the other end come May," he said. "How contained will this virus spread be by then?"

CNBC