3 Consumer Stock Stories to Kick Off the New Trading Week
General Motors Co. (NYSE:GM): Closing price $36.38
General Motors Co. and Ford Motor Co. are enhancing their pension plans in a way that should free up cash to develop future hits. The iconic automakers are burdened with some of the heftiest pension obligations among all domestic companies, and said last week that they see meaningful improvement in their plans due to increasing interest rates used to calculate the cost of future payments to retirees. As rates rise, the current cost of those promises falls, allowing pension shortfalls to shrink without ever-larger payments by the firms. Over the long term, this will permit additional spending on the core business, and less on retirees.
The Goodyear Tire & Rubber Co. (NASDAQ: GT): Closing price $17.04
Goodyear and the United Steelworkers have made a tentative agreement on a new master contract, which covers some 8,000 employees at six plants in the United States. The tentative accord was reached on Saturday evening. Vice President, Global Labor Relations Jim Allen and USW Vice President of Administration, Tom Conway, said that the tentative agreement needs to first be approved by a majority of the six local unions representing a majority of the membership. Votes will be scheduled at the facilities in the near-term.
Amazon.com Inc. (NASDAQ:AMZN): Closing price $306.10
The huge Web retailer is boosting staff in 17 domestic warehouses, adding over 5,000 full-time jobs to meet strong demand for products sold by the firm. The new hires will join over 20,000 employees working at more than three dozen of Amazon fulfillment centers, according to a Monday statement. The company is also hiring 2,000 customer service staff, which will include part-time and seasonal workers. Warehouse expenses have more than doubled in the past three years, and Chief Executive Jeff Bezos is launching centers closer to consumers in order to reduce shipping costs and speed up delivery.
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