By Francesca Fontana
The Score is a weekly review of the biggest stock moves and the news that drove them.
Tesla
President-elect Trump is deepening his ties to Tesla Chief Executive Elon Musk.
Trump on Tuesday said that the billionaire entrepreneur will co-lead what he called the Department of Government Efficiency, or DOGE.
The president-elect said the group -- also led by former Republican presidential candidate Vivek Ramaswamy -- would operate outside of the federal government and aim to cut spending and streamline bureaucracy.
Musk's relationship with Trump made Tesla's stock a big winner of the so-called "Trump trade" ahead of the 2024 election. However, traders are also weighing the Trump presidency's possible consequences for the broader electric-vehicle industry, including higher tariffs.
Tesla shares jumped 9% Monday and fell 6.1% Tuesday.
Honeywell International
Activist investor Elliott Management is calling for a breakup of one of the last industrial conglomerates: Honeywell.
Elliott disclosed a roughly $5 billion stake in Honeywell and said in a letter to its board that "uneven execution, inconsistent financial results and an underperforming share price" have reduced the company's ability to create value for shareholders.
The activist recommended it split up its aerospace and automation businesses. About 40% of the company's annual revenue comes from its aerospace business, which makes engines and cockpit systems for Boeing and others.
Honeywell shares ended 3.8% higher Tuesday, paring some gains after an early rally.
Spirit shares took a nosedive as the budget carrier moved toward bankruptcy.
The Wall Street Journal reported Tuesday that Spirit was preparing to file for bankruptcy in the coming weeks, as the company struggles with mounting losses and looming debt maturities.
The company's advanced discussions with bondholders follow the breakdown of merger talks with rival Frontier Airlines. Frontier had been exploring a new bid for Spirit after its 2022 agreement fell through, but the Journal reported that Frontier decided not to move forward.
Spirit said late Tuesday that it was in constructive discussions with a supermajority of bondholders to restructure debt due in 2025 and 2026. Frontier declined to comment.
Spirit shares tanked 59% Wednesday.
Spotify Technology
Spotify's third quarter financial results were music to investors' ears.
In its latest quarterly report, the streaming-audio giant posted its third consecutive quarterly profit and said it is on track to be in the black for the full year for the first time, as its efforts to control costs and prioritize profits pay off.
Spotify's EUR1.45 in earnings per share was below analysts estimates of EUR1.69 a share, according to FactSet.
Still, its gross margin of 31.1% topped the company's expectations. Spotify, at its 2022 investor day, set a goal of achieving 30% gross margins between 2025 and 2027.
Spotify shares soared 11% Wednesday.
Walt Disney
Disney's streaming momentum brought some magic to its latest earnings report.
The entertainment behemoth reported a jump in quarterly net income and higher revenue, and offered a bullish earnings outlook.
After years of investing heavily in its streaming business -- home to Disney+, ESPN+ and Hulu -- the company's direct-to-consumer unit notched its second consecutive quarterly profit. Disney added 4.4 million new core Disney+ subscribers, handily beating the 900,000 new customers that Wall Street predicted, according to FactSet.
Meanwhile, Disney's rapidly-declining cable-TV business continued to lose steam, and income from its theme-park and cruise unit fell for the second consecutive quarter.
Disney shares rallied 6.2% Thursday.
Moderna
Big pharma stocks needed a shot in the arm after Donald Trump chose vaccine skeptic Robert F. Kennedy Jr. as health secretary.
The President-elect Donald Trump's nomination of Kennedy prompted a selloff of the world's top vaccine makers, including Moderna and Pfizer.
RFK Jr, who has become best known for his vocal criticism around vaccines, has promised sweeping changes to food-and-drug regulation and government-funded scientific research. Scientists and public-health leaders have expressed concern over a Kennedy appointment in Trump's administration.
Pfizer shares fell 2.6% on Thursday -- erasing roughly $4 billion from its market value -- while Moderna shares dropped 5.6%.
Our weekly markets news roundup is now part of the WSJ's What's News podcast. Host Francesca Fontana discusses the biggest stock moves of the week and the news that drove them. Check out What's News in Markets at wsj.com/podcasts or wherever you listen.
Write to Francesca Fontana at francesca.fontana@wsj.com.
(END) Dow Jones Newswires
November 15, 2024 17:34 ET (22:34 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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