“Trade wars are good, and easy to win,” Donald Trump says. Harley-Davidson might beg to differ. Hit by retaliatory tariffs from the European Union that will raise duties on U.S.-made motorcycles to 31 per cent from 6 per cent, the maker of the iconic bikes said it will begin shifting some production overseas, prompting a Twitter tirade in which Mr. Trump threatened to tax the company “like never before.” If this is winning, what does losing look like?
HOG - NYSE, US$42.08, down US$2.13 or 4.82% over week.
General Electric (STAR)
Things that surprised just about everyone this week: 1) South Korea knocked defending champ Germany out of the World Cup; 2) Joseph Crowley, the No. 4 Democrat in the U.S. House, was defeated in the New York primary by 28-year-old political newbie Alexandria Ocasio-Cortez; 3) GE’s moribund stock posted its biggest one-day gain in more than three years after the conglomerate announced plans to spin off its healthcare business and sell its controlling stake in oil-services company Baker Hughes Inc.
GE - NYSE, US$13.61, up US$0.56 or 4.29% over week.
Corus Entertainment (DOG)
Things that should have surprised no one this week: 1) Brazil, one of the favourites to win the World Cup, defeated Serbia to advance to the knockout round; 2) Donald Trump and Vladimir Putin agreed to a summit; 3) Corus Entertainment slashed its dividend, which had been yielding an over-the-top 18 per cent. Still, the size of the cut – nearly 80 per cent – apparently caught some investors by surprise, as did the 4.6-per-cent drop in TV revenues, which helps to explain why the stock got crushed.
CJR.B - TSX, $4.96, down $1.34 or 21.27% over week.
Campbell Soup (STAR)
Should Campbell sell itself? What a Souper idea. The long-struggling shares of Campbell Soup – hit by sluggish sales and intense competition from other packaged foods – rose sharply on a report that Kraft Heinz may be preparing to make a bid for the company, which is in the midst of a strategic review. But the share price cooled off considerably as the week wore on, suggesting that Kraft Heinz had already canned the idea or might be chickening out.
CPB - NYSE, US$40.55, up $US1.95 or 5.05% over week.
Investors are just doing it. No, not exercising – buying Nike stock. Boosted by a 3-per-cent sales rise in North America – the first gain in four quarters in Nike’s home market – the athletic footwear and apparel giant posted fiscal fourth-quarter results above estimates, sending its stock to a record high. With sales surging 35 per cent in China and 24 per cent in Europe, the Middle East and Africa thanks to the popularity of new products, Nike investors can pay someone else to work out for them.
NKE - NYSE, US$79.72, up $US6.29 or 8.57% over week.