Stocks could be on the decline as world trade slows down, as new trade agreements may hamper corporate profits, putting a damper on markets around the globe. U.S. stocks gained slightly on Friday following a frantic week.
U.S. equity prices have been supported for the past three decades by an acceleration of global trade and a freer flow of capital. Those lifted economic growth and allowed companies to take advantage of new markets and economies of scale. The S&P 500 is up nearly ninefold since October 1986, according to FactSet.
Several companies were in the news over the weekend, including Deutsche Bank AG (USA) (NYSE:DB), Take-Two Interactive Software, Inc. (NASDAQ:TTWO) and Wal-Mart Stores, Inc. (NYSE:WMT).
Here’s how they did:
Deutsche Bank AG (USA) (DB)
Deutsche Bank announced Saturday the possibility of the company shrinking its U.S. operations.
The bank is looking to make such a move due to increasing legal expenses that could cut into the company’s capital, according to two sources close to the matter. On Friday, the firm announced plans to stop hiring workers in the U.S. for this reason.
Earlier in the week, Deutsche Bank also revealed plans to cut more jobs, which could bring the total number of workers laid off up to 10,000. This figure would be about twice as large as what the bank originally planned.
Now, the company will likely shrink operations stateside, which is a topic it has discussed with U.S. authorities.
DB shares are down 44.4% YTD.
Take-Two Interactive Software, Inc. (TTWO)
Rockstar Games, Inc. — owned by Take-Two Interactive Software, Inc. — teased Red Dead Redemption 2 on its social media sites yesterday.
Sunday morning began with an image on social media that shows the studio’s logo in black on red. An announcement surrounding the new title in the series may follow soon.
However, not all fans are optimistic due to the fact that Rockstar Games could simply be promoting the re-release of the original game. In April 2016, an image was unveiled that allegedly showed a map from the new game Red Dead Redemption 2.
The first game in the franchise was released in 2010.
TTWO shares are up 19.4% over the last six months.
Wal-Mart Stores, Inc. (WMT)
WMT has removed a Halloween item that has stirred controversy in its stores.
The Tupac Shakur “Thug Life” outfit has been deemed as offensive by the black community as the image portrays a black man as a thug — a violent criminal — and there are no versions of that mask with a white man.
Several customers went on social media to express their displeasure with Walmart over the inclusion of such an item. The company did not explain the reason behind pulling the item, which retailed for $12.99.
In other news, Walmart’s wage hike is now bearing fruits as customer satisfaction has gone up since the company increased its starting wage to $10 an hour. However, profits and stock prices have declined since this move.
Additionally, the company celebrated Walmart Wellness Day on Saturday, offering free health care services including blood pressure check-ups, flu shots and insurance information.
WMT stock has declined 7.1% over the last three months.
As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.
