It was another profitable day for most major U.S. indices as crude oil fell 0.3% and defensive telecoms surged 1.1%. The S&P 500 Index and Nasdaq Composite wafted up 0.2% apiece, while the Dow Jones Industrial Average hiked 0.4% higher by day’s end.
Here’s what you should know:
Ford Motor Company (F)
Ford announced plans to cut costs aggressively late yesterday.
The automaker’s CEO Jim Hackett and the rest of the company’s executives are seeking to help boost its profits and revenue on its most valuable products, including trucks and SUVs.
Simultaneously, Ford will move away from cars, one of its weakest spots. The company will cost more on resources for electric and autonomous driving technology, but it will have to cut costs to do so.
“When you’re a long-lived company that has had success over multiple decades, the decision to change is not easy — culturally or operationally,” Hackett said. “Ultimately, though, we must accept the virtues that brought us success over the past century are really no guarantee of future success.”
Ford said it will reallocated roughly $7 billion to bolster the company’s development and production of trucks and SUVs, reducing expenses for less profitable cars and sedans.
F stock edged 0.4% higher after hours Tuesday.