Ford's Highly-Profitable Plant

And, Victoria's Secret gives a financial update.

Today is Thursday, October 12, 2023.

The Early Bird Index today is 54.44.

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Ford's Highly-Profitable Plant

Ford (NYSE: F) dropped by 1.80% in after-hours trading on Wednesday as the UAW strike expanded to Ford’s most profitable plant.

Details: Thousands of UAW workers at Ford’s Kentucky truck plant walked off the job on Wednesday at 6:30 p.m. ET to join the broader labor fight at other auto plants. The decision for this particular plant to go on strike caught Ford by surprise.

Response: In a statement shortly after the strike was called, Ford said that the decision to have the strike at the Kentucky plant “is grossly irresponsible but unsurprising given the union leadership’s stated strategy of keeping the Detroit 3 wounded for months.”

Background: Last month, the United Auto Workers launched a strike aimed at improving pay for its members. The strike has impacted Ford as well as General Motors (NYSE: GM) and Stellantis (NYSE: STLA). Negotiations between the companies and the UAW are ongoing.

Powering the Story: Of all the plants to go on strike so far, this truck plant in Kentucky could hurt Ford the most. As Ford’s largest plant, it generates $25 billion a year in revenue.

Stock Price: Ford is up about 4% this year, but down nearly 2% in the past 30 days.

Final Thoughts: This new plant on strike could really hurt Ford’s bottom line. The company better reach an agreement with its workers soon.

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Notable Earnings Today: Delta Air Lines (NYSE: DAL), SMART Global (Nasdaq: SGH), Walgreens Boots Alliance (Nasdaq: WBA), Comtech Telecommunications (Nasdaq: CMTL), Commercial Metals Company (NYSE: CMC), Domino's Pizza (NYSE: DPZ), Fastenal (Nasdaq: FAST), Byrna Technologies (Nasdaq: BYRN), Infosys (NYSE: INFY), Sono-Tek (Nasdaq: SOTK).

Notable IPOs Today: N/A.

Notable Equity Crowdfunding Campaigns Ending Today: Inrive (Honeycomb), NextPower360 (Netcapital), Legion M (StartEngine).

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Consumer Price Index / Core Consumer Price Index (8:30 a.m. ET), Crude Oil Inventories (11:00 a.m. ET), WASDE Report (12:00 p.m. ET), Fed's Balance Sheet (2:00 p.m. ET).

Victoria's Secret Gives Financial Update

Shares of Victoria’s Secret (NYSE: VSCO) grew by 2.48% in after-hours trading on Wednesday after the retailer delivered a positive financial update.

Details: The company said that its sales growth internationally is ahead of schedule and its sales in North America are improving. Victoria’s Secret still expects an adjusted operating loss for the current quarter, but the loss won’t be as bad as it projected months ago. The company also reaffirmed its full-year guidance.

Background: It’s been a rough year for Victoria’s Secret. The company’s most recent financial results during the summer were disappointing.

Stock Price: Victoria’s Secret is down 54% this year, including a 12% decline in the last 30 days.

Final Thoughts: The positive financial update was good news for investors. Can the company continue to turn things around?

Bitcoin’s October Lows

The price of Bitcoin dropped below $27,000 on Wednesday for its lowest level this month.

Final Thoughts: Bitcoin, still positive for the year, is now struggling to grow. Could this be the start of another cryptocurrency winter?

Trends to Watch

Fossil Fuel Deal: Exxon Mobil Strikes $60 Billion Deal for Shale Giant (The New York Times)

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