Nov 17th, 2023 – It was a positive day for the US stock market: Nasdaq closed at 15837.99 (+0,03%), S&P 500 at 4514,02 (+0,13%) and Dow Jones at 34947,28 (+0,0052%).
One of the biggest news today is that union workers at General Motors (GM) have agreed to the deal proposed by the United Auto Workers (UAW), according to results posted by the union, by a fine margin (54.7% yes). The deal was about the strike of GM workers that started in September after unsuccessful negotiations with the company for the contract renewal. Workers demanded higher salaries and improvements to working conditions. The final days were contentious, with several major plants refusing the contracts. This strike will now cease, providing GM stability and a chance to recover its prior production levels. GM has also confirmed it will build Formula One engines from 2028, if the Andretti-Cadillac team will be on the grid, giving them a better chance to become a Formula One team, given they are being opposed by the majority of the Formula One teams. Based on 17 analysts, GM is a moderate buy with a target price of $44.71.
Volvo (VOLCAR-B.ST) shares dropped around 10% after Zhejiang Geely Holding Group began a sale of around 100 million shares of the company for a total return of $350 million. Geely said that this move was designed to increase Volvo’s liquidity by offering more opportunities to generate sustainable long-term value for institutional and retail investors. Geely is still the majority shareholder and, as its CEO said, they remain steadfast in their commitment to continue the transformation of Volvo into a fully electric car maker.
Amazon (AMZN) is cutting “several hundred” jobs in its Alexa division to maximize their efforts and resources in Generative AI, since Alexa’s latest updates are not keeping pace and competitiveness with AI chatbots like ChatGPT.
Author: Filippo Ferrero