US stock indexes are declining as investors are getting wary about the prospects of fiscal stimulus and as they await the outcome of the first presidential debate later today.
The Dow Jones Industrial Average is leading the drop among US indexes, falling 0.4%. The Nasdaq Composite Index is slipping 0.1% led by American Airlines and United Airlines. The S&P 500 Index is down 0.3%.
That’s despite the US consumer confidence index rising to a reading of 101.8 this month from 86.3 in August, according to data published by the US Conference Board. Economists polled by Reuters had forecast for the index to increase to a reading of 89.5 in September.
Deal, or no deal: General Motors said it has not yet finalized its partnership with Nikola to build electric pickup trucks and fuel cell commercial vehicles. GM is down 2.7%, while Nikola shares are plunging another 6.6%.
“Our transaction with Nikola has not closed. We are continuing our discussions with Nikola and will provide further updates when appropriate or required,” GM said in a statement.
Bring on the alcohol: Coca-Cola has entered into an exclusive agreement with Molson Coors Beverage Co. to manufacture and market Topo Chico Hard Seltzer in the US. Topo Chico Hard Seltzer blends purified sparkling water, a gluten-free alcohol base and natural flavors, with minerals added for taste. Molson Coors is up about 1%.
And in food related news: Beyond Meat is spiking over 9% after the plant-based meat pioneer expanded its distribution deal with Walmart. The world’s largest retailer plans to triple availability of the Beyond Burger from about 800 locations to more than 2,400 stores in the US beginning next week. The move comes is part of Beyond Meat’s target to boost worldwide accessibility to simple, plant-based meat products made without GMOs. Beyond Meat products are currently available at about 112,000 retail and foodservice outlets in 85 countries.
Walmart is making more headlines today: The retailer is in talks with India’s Tata group for a $20B- $25B stake in its upcoming retail app, according to a Mint report. The proposed ‘super app’, which is expected to be launched in December or January, aims to create a digital services behemoth offering a wide range of products – with an estimated $50B- $60B valuation.
“Walmart is keen to get a strong brand backing its e-commerce business, while Tata group wants a global name and an established player in the online space to boost sales of products currently sold through Tata group’s retail subsidiaries and online platforms to be able to compete against Reliance Industries’ Jio Platforms and Amazon,” a source told Mint.
Meanwhile,McCormick’s better-than-expected results for the third quarter of fiscal 2020, which ended Aug. 31, don’t appear to have convinced investors as the shares are trading down 3.7%. The spices and flavoring products company also announced a 2-for-1 stock split, which will take effect in Nov.
Here comes another stock which is in the red despite posting strong 4Q results: United Natural Foods is sinking 12% even as the food wholesaler reported that adjusted EPS increased to $1.06 from $0.35 in the year-ago quarter, surpassing analysts’ expectations of $0.74. However, what appears to be pushing down the stock is the announcement that its CEO Steven L. Spinner is retiring. Spinner will leave once a successor is appointed or his term ends on July 31, 2021. He will remain on the Board as Executive Chairman following his retirement.
In more health-related news: Blueprint Medicines is advancing 3.5% after the European Commission (EC) granted conditional marketing authorization to AYVAKYT (avapritinib) as a monotherapy to treat adults with unresectable or metastatic gastrointestinal stromal tumors (GIST) harboring the platelet-derived growth factor receptor alpha (PDGFRA) D842V mutation.
