Walmart, Spirit Airlines, Netflix: the actions that defined the week


walmart Inc.

WMT 0.11%

Inflation weighs on big-box retailers. Walmart said on Tuesday that rising product, supply chain and employee costs were eating away at its quarterly profit. The next day rival Target Corp.

TGT 1.26%

released weaker-than-expected quarterly results and said it would rather absorb higher costs than raise prices for buyers. Investors dumped shares of the retail giants after disappointing results, as inflation holds near its highest level in four decades. Walmart shares fell 11% on Tuesday.

Spirit Airlines Inc.

TO SAFEGUARD -0.52%

A hostile takeover of Spirit Airlines takes off. Jet Blue Airways Corp.

JBLU -0.59%

said on Monday it was appealing directly to shareholders of the discount carrier by launching a takeover bid for their shares, after Spirit rejected JetBlue’s $3.6 billion bid in favor of a existing agreement with Frontier Group Holdings Inc.

ULCC -2.95%

Spirit Airlines Inc.’s board of directors on Thursday urged shareholders to reject the bid, fearing a deal with JetBlue could be blocked by antitrust regulators. Spirit shareholders are due to vote on June 10 on whether to accept the Frontier deal, which would create America’s fifth-largest airline. Spirit Airlines jumped 13% on Monday.

Pfizer Inc.

DFP 3.59%

More children are now eligible for the Pfizer booster shot. The Food and Drug Administration on Tuesday cleared Pfizer and BioNTech SEit is

BNTX -2.90%

Covid-19 booster for ages 5-11, expanding access to the additional vaccine to around 28 million children. The decision authorizes a third dose of the vaccine at least five months after the second dose. On Thursday, the Centers for Disease Control and Prevention recommended that children in the age group receive the booster, clearing the way for pharmacies, doctors and other vaccination sites to begin making vaccines available. Pfizer shares gained 1.3% on Tuesday.

McDonald’s Corp.

MCD 2.14%

The Golden Arks leave Russia. McDonald’s said on Monday it would sell its business there, ending more than three decades in the country following its invasion of Ukraine. The fast food giant joins a group of Western companies to leave Russia. McDonald’s announced in March that it would temporarily close its 847 restaurants in Russia while continuing to pay the 62,000 people it employs there. On Thursday, the company announced that it had agreed to sell its Russian operations to existing licensee Alexander Govor, which operates 25 restaurants in Siberia. Mr. Govor will now operate the entire portfolio of McDonald’s Russian restaurants under a new brand. Shares of McDonald’s slid 0.4% on Monday.

netflix Inc.

NFLX 1.56%

More bad news for Netflix. The streaming giant said it is cutting around 150 employees in a new round of layoffs as it grapples with slowing revenue growth and a shrinking subscriber base. The job cuts represent about 2% of Netflix’s total workforce. A company spokeswoman said most of the terminated employees are based in the United States and the layoffs were primarily based on business needs rather than individual performance. The announcement follows the company’s first loss of subscribers on a quarterly basis in more than a decade. Shares of Netflix fell 7% on Wednesday.

Apple Inc.

AAPL 0.17%

Covid cases and worker complaints have undermined Apple’s return-to-work plans. On Tuesday, the iPhone maker suspended plans to start bringing employees back to the office an extra day a week, sticking to two days a week for now. Apple had gradually increased the number of days in the office as it rolled out its hybrid work plans. The pause comes amid a rise in Covid-19 cases in the San Francisco area and complaints from some workers about the proposed increase. Some employees left the company over its determination to gather more in person. Apple shares fell 5.6% on Wednesday.

Ford engine Co.

F -2.72%

Ford has recalled thousands of SUVs because their engines could catch fire. The automaker on Thursday recalled about 39,000 of the vehicles at risk of fire, including its 2021 Ford Expedition and Lincoln Navigator SUVs built between late 2020 and early 2021. The company advised owners to park outside and away from structures after receiving multiple reports of under-hood fires while vehicles were parked and turned off. The auto industry is facing a flurry of reports of fires in parked vehicles, including many in electric models where the fire is suspected to be from battery faults. Ford shares rose 0.6% on Thursday.

Write to Francesca Fontana at francesca.fontana@wsj.com

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