A news summary, focused on 10 big employers; updated 4:16 p.m.
Those 10 companies tracked by Boulevard joined U.S. stocks clawing their way back from two consecutive days of steep losses, following Britain’s stunning vote last week to quit the European Union. The Dow Jones Industrial Average closed moments ago at 17,410 — up 1.6%; the broader S&P 500 index jumped 1.8% to 2,036 points, and the Nasdaq climbed 2.1% to 4692.
“This is going to take a long time to play out and I think the initial shock is being a little reversed right now,” Doug Cote, chief market strategist at Voya Investment Management told CNBC. “This is not 2008. It’s more like 2011.” (Read the latest Brexit developments in Britain’s Guardian.)
In Louisville, virtually all of Boulevard’s top 10 rose by the time markets closed at 4 p.m. They included Kindred, which got pounded yesterday, falling 7%. The closing prices:
- Amazon: up 2.4%, to $707.95
- Brown-Forman: class A, down 0.1% to $101.84; and B shares, 0.3% to $94.28
- Ford: 1.9% to $12.39
- GE: 2% to $29.94
- Humana: 3.3% to $182.95
- Kindred: 3.9% to $10.90
- Papa John’s: 0.2% to $65.98
- Texas Roadhouse: 1% to $44.82
- UPS: 0.9% to $104.69
- Yum: 2.3% to $81.20
Those gains came even as Ford said it expects the double-whammy of any softer post-Brexit industry and a weaker British sterling “would have an adverse impact on our operations in the long term,” a Ford spokesman told financial news site The Street. Ford also said it would issue revised 2016 guidance during its second-quarter earnings call July 28 (The Street). Ford shares have now tumbled nearly 8% since Britain’s surprise vote to leave the European Union — nearly twice as much as the broader S&P 500 index.
In its most recent annual report, in February, Ford warned about the impact of a possible Brexit, saying it “could cause financial and capital markets within and outside Europe to constrict, thereby negatively impacting our ability to finance our business, and also could cause a substantial dip in consumer confidence and spending that could negatively impact sales of vehicles.”
Last year, the U.K. was Ford’s single-biggest market after the U.S., accounting for 8% of the automaker’s $149.6 billion in sales:
Ford employs nearly 10,000 workers at an auto assembly and a truck factory in Louisville.
In non-Brexit business news: At YUM, potential bidders for the fast-food giant’s mammoth China division missed a deadline earlier this month to submit offers for a minority stake, Bloomberg News is now reporting. Citing unidentified sources, Bloomberg says the suitors held off after the Louisville-based company sought to impose new terms. The investors also disagreed with Yum’s proposed $10 billion valuation for the China unit, which accounts for more than half of company revenue (Bloomberg). Yum has been planning to spin off China by Oct. 31. Yum employs 1,000 in Louisville, and another 500,000 worldwide.
KINDRED announced today that it swapped two more acute-care hospitals operated by Select Medical Holdings. In the deal, Kindred acquired Select’s leased 44-bed hospital in San Antonio and sold a 72-bed leased hospital in Atlanta to Select. The swap was part of a previously announced June 1 agreement where the Louisville hospital and nursing giant bought four leased hospitals from Select and sold two of its own to Select (press release). Kindred employs 2,200 workers at its Louisville headquarters and elsewhere in the city, plus another 100,000 more employees nationwide.
TACO BELL: In Milwaukee, police are looking for a man who fired shots early yesterday at a bullet-proof Taco Bell drive-through window and an employee’s car over a sour cream mix-up in his order, according to the restaurant’s management (WTMJ). “Problem is,” one reader said in a comment on WTMJ’s story, “that Taco Bell takes so long for one taco. Thirty-minute wait. When you get it, it’s not what you ordered. And cold.” Said another reader: “Wow. That’s insane! Buy some sour cream; it’s like 99 cents!”
PAPA JOHN’S announced a cross-marketing deal yesterday with Sony Pictures tied to the studio’s new, all-female “Ghostbusters” reboot. In the movie, to be released July 15, a Papa John’s pizza makes a cameo appearance at a vacant Chinese restaurant serving as Ghostbusters headquarters. Meanwhile, the pizza company is offering an XL Dual Layer Pepperoni for $12, delivered in a Ghostbusters-themed pizza box (press release). Plus, in a TV commercial, founder John Schnatter himself appears as a ghostbuster; here’s a still image from the spot . . .
. . . and here’s a trailer for the movie itself:
In other news, Quills Coffee says it’s moving its roasting operations from New Albany to a former NuLu firehouse at 802 E. Main St. by early fall (Quills).
And finally, the consolidation of Kentucky’s newspaper industry continues. The Lexington Herald-Leader is moving its printing and packaging to Courier-Journal parent Gannett’s print operations in Louisville starting Aug. 1; 25 employees will be laid off. The paper also said it’s putting its downtown Lexington building on the market (Herald-Leader).