Key Takeaways
- Starbucks (SBUX) shares fell 3.1% amidst a volume spike, following mixed earnings that included a sixth consecutive quarterly decline in U.S. same-store sales.
- Boeing Defense (BA) has submitted a new contract offer to its St. Louis Machinists Union, aiming to avert a strike after an initial offer was rejected.
- Meta Platforms (META) is actively exploring AI video deals, including discussions with startup Pika and a possible acquisition, signaling an expanded focus on AI-generated content.
- Albemarle (ALB) is implementing cost-cutting measures in response to the ongoing slump in lithium prices, which have fallen 90% since late 2022.
- Unifor has secured a more than 16% wage hike in a new four-year contract with Rio Tinto (RIO), ending a 69-day picket line at an aluminum smelter.
Starbucks (SBUX) experienced a 3.1% decline in its stock price on Wednesday, accompanied by a significant volume spike. The drop follows the company's report of a sixth consecutive quarterly decrease in U.S. same-store sales, which fell by 2%. Despite this, CEO Brian Niccol expressed confidence in stabilizing operations and outlined a "Back to Starbucks" strategy focused on enhancing in-store experiences and investing $500 million in U.S. labor over the next year.
Meanwhile, Boeing Defense (BA) is working to resolve a labor dispute with its St. Louis Machinists Union. The company has presented a new contract offer to the International Association of Machinists and Aerospace Workers District 837, which represents over 3,200 factory workers. This comes after the union overwhelmingly rejected an initial offer and voted to strike. The proposed contract includes a 20% general wage increase over four years and a $5,000 ratification bonus.
In the tech sector, Meta Platforms (META) is aggressively pursuing opportunities in AI video. The company has held discussions with Pika, a startup specializing in realistic AI video generation, exploring potential acquisition or licensing agreements. Meta's interest extends to other AI startups, demonstrating its commitment to expanding its artificial intelligence capabilities, particularly in the burgeoning field of AI-generated video content.
Lithium producer Albemarle (ALB) is taking steps to mitigate the impact of declining lithium prices, which have seen a sharp 90% plunge since late 2022. The company is implementing cost-cutting measures, including a target of $350 million in savings through 2025 and a 50% reduction in capital expenditures to between $700 million and $800 million. Despite the challenging market, Albemarle maintains its full-year outlook, relying on its global footprint and operational discipline.
In labor news, the Unifor union has successfully negotiated a new four-year contract with mining giant Rio Tinto (RIO), securing a 16%+ wage hike for its members. This agreement follows a 69-day picket line at the Kitimat/Kemano aluminum smelter and includes improved pension plans, enhanced job security, and better benefits for active and retired members.
Finally, diplomatic efforts continue in the Middle East as the United States and Egypt held talks aimed at strengthening peace and security in the region. U.S. Secretary of State Marco Rubio met with Egyptian Foreign Minister Badr Abdelatty to discuss regional stability, including efforts to de-escalate tensions and facilitate humanitarian aid in Gaza.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.