Thursday’s Headlines: Ford Counts Its Chips

Thursday’s Headlines: Ford Counts Its Chips

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Duluth Trading (DLTH) +10.8%

Roku Inc. (ROKU) +4.3%

Texas Roadhouse (TXRH) +1.6%

Etsy (ETSY) +1.6%

Chuy's (CHUY) +1.6%

Moving Down ⬇️

Baozun (BZUN) -4.7%

PagerDuty (PD) -4.6%

Sea Limited (SE) -4.4%

Stitch Fix (SFIX) -3.3%

The Trade Desk (TTD) -3.3%

1. Ford Motors (F) has been forced to cut back its production in North America as it struggles with semiconductor chip shortages. Due to a lack of parts and chips, which is impacting the global automotive industry, the automaker said it will have to pause or reduce production at eight plants for the next two months. The issue will have a massive impact on the company, with Ford explaining that it will lose around 50% of its vehicle production in Q2 resulting in a loss of $2.5 billion in earnings. According to reports, the semiconductor chip shortage is predicted to cost the global auto industry around $110 billion in revenue this year. More here.

2. Slack (WORK) is staying ahead of the game by dropping a new feature called Huddles yesterday. The new addition allows users to start quick audio-only calls in a channel or direct message. The communication app maker is fleshing out its products to boost its offerings for companies that have not told their employees to return to the office in an effort to keep on clients who signed up during the pandemic. It’s very important for Slack to keep growing, especially as Salesforce (CRM) is completing its $28 billion acquisition of the firm at the end of July. Another positive, Slack’s competitor Microsoft (MSFT) does not currently offer something like Huddles yet. Read more here

3. As Wall Street gears up for the second half of 2021, the S&P 500 (VOO) reached a fresh record by posting its fourth consecutive winning close yesterday. Meanwhile, the Dow Jones Industrial Average (DIA) jumped 210 points, boosted by a 2.7% pop in Walmart shares, while the Nasdaq Composite (QQQ) dipped 0.2%. For the first half of the year, U.S. stocks enjoyed double-digit percentage gains, with the S&P 500 jumping 14.4%, the Nasdaq Composite gaining 12.5%, and the Dow Jones rising 12.4%. This strong first half has been propelled by a robust economic recovery which, historically, bodes well for the remainder of the year. Read more on the story here


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