The daily business briefing: July 13, 2020

Harold Maass
Redskins hats
Drew Angerer/Getty Images

1.

Redskins to change NFL team's name after pressure from sponsors

The Washington Redskins on Monday will announce plans to change their 87-year-old team name, The Washington Post reported late Sunday, citing three people familiar with the matter. The decision came after the football team faced pressure from corporate sponsors, including FedEx and Nike, to change the name, which is considered a slur against Native Americans. Owner Daniel Snyder, who said in 2013 he would "NEVER" change team's name, and coach Ron Rivera have been working together to select a new name. They plan to discuss possible replacements with Native American and military organizations. It's unlikely the new name will be revealed on Monday, the Post reports; two people familiar with the matter said the name Snyder and Rivera prefer is the subject of a trademark battle. [The Washington Post, USA Today]

2.

Hedge fund wins bankruptcy auction for newspaper publisher McClatchy

New Jersey hedge fund Chatham Asset Management has won a bankruptcy auction to buy the McClatchy Company, the long-struggling newspaper chain announced Sunday. The deal would end 163 years of family ownership of the company, which publishes newspapers that include The Miami Herald, The Kansas City Star, The Charlotte Observer, and The Sacramento Bee, its flagship. McClatchy filed for Chapter 11 bankruptcy protection in February after years of declining revenue and print circulation. Chatham, which manages about $4 billion in assets, is expected to take over as majority owner in the third quarter of 2020, McClatchy said. The company is expected to remain intact, with all 30 of its news outlets. [The New York Times]

3.

Tesla cuts Model Y price by $3,000

Tesla has slashed the price of its Model Y electric sport utility vehicle by $3,000 in a bid to boost sales despite the economic fallout from the coronavirus pandemic. The vehicle will now start at $49,990. The move came just four months after the Model Y's launch. Tesla earlier reduced prices for its Model 3, Model X, and Model S vehicles. The electric-car maker this month reported that its vehicle deliveries dropped less than expected during the second quarter despite the pandemic. In April, just a month after the Model Y's release, Tesla announced that the vehicle was already profitable, the first time in the company's 17 years that it has made money on a vehicle in its first quarter. [Reuters]

4.

U.S. stocks poised to start week on positive note

U.S. stock index futures rose early Monday despite ongoing concerns about the economy as coronavirus cases continue to surge, with Florida reporting the highest daily rise yet for any state on Sunday. Futures for the Dow Jones Industrial Average, the S&P 500, and the Nasdaq all were up by about 0.5 percent several hours before the opening bell. The Dow and the S&P 500 have posted two straight weeks of gains, and surging tech stocks have lifted the Nasdaq to record highs. "COVID remains a huge problem w/cases, hospitalizations, and fatalities all climbing," Vital Knowledge founder Adam Crisafulli said in a note on Sunday. "The market continues to absorb all this information relatively well" thanks to vaccine hopes, the avoidance of new lockdowns, and other factors. [CNBC]

5.

PepsiCo loses less than expected, boosted by lockdown snack sales

PepsiCo reported early Monday that its second-quarter profit and revenue dropped by less than expected thanks largely to strong in-home consumption of such snacks as Fritos and Cheetos during coronavirus lockdowns. The company reported net income of $1.65 billion, down from $2.04 billion in the same period last year. Excluding non-recurring items, that amounted to $1.32 per share, beating the FactSet consensus estimate of $1.25 per share. Revenue dropped to $15.95 billion, exceeding the FactSet estimate of $15.37 billion. Frito-Lay North America revenue increased by 6.6 percent to $4.27 billion, and Quaker Foods North America revenue jumped by 23.0 percent to $664 million. The company said it would return $7.5 billion to shareholders in dividends and stock repurchases. [MarketWatch, Reuters]