IMPORTANT POINTS:
- Worker strikes cost Boeing $1 billion a month, hurting its stock.
- Alphabet faces possible takedown by the Department of Justice over monopoly allegations.
- Rio Tinto expands in the lithium market with the acquisition of Arcadium, while shares of Chinese companies fall in the US
Justice analyzes actions against Alphabet
Alphabet (GOOGL): The Justice Department considers breaking up Google, among other restrictions, to end what it calls an illegal monopoly in the search, according to a court document filed Tuesday. Shares of parent company Alphabet fell 1% before the market opened.
Boeing faces strikes and million-dollar costs
Boeing (BA): Aircraft maker withdrew pay raise offer for striking workersnoting that the machinists union did “demands far above what can be accepted”. Ratings firm S&P estimated Tuesday that the strikes could cost Boeing $1 billion a month. Shares fell about 1.5% in premarket trading.
Rio Tinto expands its reach in the lithium market
Rio Tinto (RIO) y Arcadium Lithium (ALTM): The Anglo-Australian mining company agreed to buy Arcadium for $6.7 billion. This agreement will make Rio Tinto one of the main producers of a key resource used in batteries for electric vehicles. Rio Tinto’s US shares were down slightly in pre-market trading, while Arcadium’s shares soared 30%.
Declining Chinese market impacts Alibaba, JD.com and NIO
Alibaba (BABA), JD.com (JD), NIO (NIO): Shares of Chinese companies listed in the US fell in the pre-open, after sharp declines on Tuesday, due to waning enthusiasm for Beijing’s stimulus planswhich have continued to affect the Chinese markets.