Kohl’s Down on Wall Street After Takeover Talks Break Down
Kohl’s fell nearly 20 percent on the New York stock exchanges on Friday. The American department store chain confirmed that it had broken off talks about a takeover by Franchise Group.
The company said the deterioration in market conditions was an obstacle to reaching an agreement. Kohl’s also lowered its expectations as consumers have become more cautious about spending due to high inflation.
The mood on Wall Street was hesitant at the start of the new month on the stock market after the significant losses in recent months. Investors are also getting ready for a long weekend. U.S. markets are closed Monday for the United States’ Independence Day celebrations.
Shortly after opening, the Dow-Jones index recorded 0.2 percent at 30,822 points. The broad S&P 500 also rose 0.2 percent to 3,795 points and tech gauge Nasdaq fell a fraction to 11,019 points.
Micron Technology fell 3.8 percent. The chip manufacturer posted more revenue and profit last quarter but released a disappointing outlook for the current quarter.
Meta Platforms lost 2.9 percent. Facebook’s parent company is slashing its hiring plans by at least 30 percent and is bracing itself for an economic downturn. According to the Reuters news agency, CEO Mark Zuckerberg said in a question-and-answer session with employees that it could be “one of the worst downturns we’ve seen in recent history”.
Boeing won 1.2 percent. The aircraft manufacturer threatens to lose significant market share in China, where rival Airbus has secured billions in orders from Chinese airlines.
Apple rose 0.2 percent after a positive analyst report. JPMorgan’s market experts maintained their buy recommendation for the stock and said they were not too concerned about the iPhone maker’s prospects. Parcel deliverer FedEx fell 1.5 percent after a piece of advice cut by Berenberg.