Wal-Mart is raising minimum wage to $11 and dishing out a one-time bonus for employees, citing the Trump Tax Reform plan. Karen Short, Managing Director at Barclays, was with us to discuss the ramifications of the decision.
Short estimates that Wal-Mart could generate $4 billion in incremental free cash flow due to the tax reform, and adds that the wage hike is just of portion of the allocation. The analyst says that the "strong will get stronger" and other retailers will have to follow Wal-Mart's lead.
Tax reform narrows the advantage Amazon has over traditional retailers such as Wal-Mart, says Short. She says Wal-Mart has an advantage over Amazon because it is the largest grocer with low prices. Short also adds that the stigma surrounding Wal-Mart products has dissipated and is no longer a "turnoff" to millennials because the products have gotten better.
David Wright, President and owner of Wright Financial Group, shares his thoughts on why the Federal Reserve seems hesitant to cut rates, and why regional bank stocks could help move the needle.
Disney and Fortnite-maker Epic Games will collab on making new video games with Disney characters. Hopefully it will be more than Mickey Mouse hitting the Griddy.
Hershey is cautioning on its 2024 profit growth as the company contends with rising cocoa costs, leading to increased prices for chocolate. The company anticipates its full-year earnings per share being relatively flat, partly due to higher cocoa and sugar costs.
Prince Harry has reached an out-of-court settlement with a tabloid newspaper publisher that invaded his privacy with phone hacking and other illegal snooping. Attorney David Sherborne said that Mirror Group Newspapers had agreed to pay Harry’ “substantial” costs and damages.
An attorney representing passengers of an Alaska Airlines flight that lost a door plug in midair says a “whistling sound” was heard on a previous flight of the same Boeing 737 Max 9.
What do Arnold Schwarzenegger, Aubrey Plaza, and Tom Brady all have in common? You'll see them on Super Bowl Sunday, but not on the field. If you only watch the Super Bowl for the ads, here's a sneak peek.
