Walgreens Stock Plummets 7% as CEO Announces Departure, Dow Rises on Positive Unemployment Report
Walgreens, one of the leading pharmacy chains in the United States, was hit hard in the stock market as its CEO, Rosalind Brewer, announced her departure. The company’s stock plummeted by 7% in response to the news, making it the worst performing Dow stock this year. This comes as a blow to Walgreens, which has already experienced a 36% decline in its stock value over the course of the year, and a staggering 50% decline over the past two years.
Despite Walgreens’ struggles, the Dow Jones Industrial Average had a more positive outcome, gaining 0.3% or approximately 115 points. This makes it the best performing stock index of the day. The increase in the unemployment rate, as indicated by the latest employment report, has raised optimism among investors. Many are hopeful that the Federal Reserve will end rate hikes in light of this development.
In other news, Intel shares saw a notable 4% increase following positive results from PC maker Dell Technologies. Dell’s strong performance, driven by demand for artificial intelligence, bodes well for Intel as they supply chips for some of Dell’s models.
Chevron shares also made a move upwards, rising by 2%. This came after reports revealed analysts’ expectations of an increase in oil prices in 2023. The predictions are based on reassurances from some oil-producing countries in OPEC+ that they will slow production.
Visa, Mastercard, and American Express all had gains in their stock values, each increasing by 1%. This followed reports that Visa and Mastercard plan to raise their fees for merchants. The news had a positive impact on Mastercard shares, rising by 0.7%. Similarly, American Express saw a modest increase of 1%.
Amgen shares experienced a slight uptick of 0.1% after the Federal Trade Commission announced it would end its legal challenge regarding Amgen’s proposed acquisition of Horizon Therapeutics. In response, shares of Horizon Therapeutics rose by 2.2%.
Meanwhile, Walt Disney Co. faced a setback as its shares fell by 2.5% due to a dispute with the Charter Spectrum cable system. As a result of this disagreement over costs, Walt Disney Co. pulled its programming from Charter Spectrum, leading to ESPN going off the air on those systems just as football coverage started. Charter’s shares also took a hit, dropping by more than 3%.
These developments in the stock market highlight the volatile nature of investments and the impact of leadership changes on a company’s value. While some stocks experienced positive gains, others, like Walgreens, faced significant losses. The overall performance of the Dow Jones Industrial Average provides some reassurance to investors, but uncertainties in various sectors continue to have an impact on the market.