BUSINESS NEWS MAY 11TH, 2016
After posting its biggest one-day point gain since March 1, the Dow's upward march didn't last long after a rare profit miss from Walt Disney and a warning of lower 2016 profits from department store giant Macy's brought stocks back down to earth. Another negative for the market was Staples (SPLS) decision to scrap its $6.3 billion acquisition of rival office supply superstore Office Depot (ODP) after a federal judge blocked the planned merger, siding with regulators that a marriage of the two companies would "substantially impair competition." Staples shares fell more than 17% and Office Depot stock plunged a whopping 39%.
YAHOO MYSTERY INVESTMENT BUSTS
No one knew the company Yahoo bought a year ago for $23 million. No one knew what it did, what it was called or where it was. According to a statement from the tech giant, $22 million of the purchase was “goodwill”, or the idea that the company may be worth more than it appears on paper. However, it turns out that Yahoo had written down the entire goodwill value, essentially making the company worthless.
MACY’S ON A DOWNWARD SLOPE
Macy’s has been facing troubles recently. The clothing retailer reported a 7% drop in sales from forecasts last year. Same store sales have also been plunging consistently for the last 5 quarters. Macy’s stock has dropped 9%, wiping out the gains that it had made in last year. Republican nominee Donald Trump called Macy’s a “disloyal retailer”, adding that his backers should boycott the place.
GOOGLE PUSHES FEMINIST AGENDA
The Silicon Valley based search engine has unveiled a set of 13 new emojis meant to drive diversity in the workplace. The current board of emoji is considered sexist, due to the large number of men doing physical activities while women cut hair and dance. Google’s emojis depict women in a number of professions, including healthcare, agriculture and construction. While Google’s addition of these new emojis is a nice gesture, it does not account for the fact that women earn only 79 cents to every dollar that a man makes.