The Score: Brown Forman, Tesla, Southwest Airlines and More Stocks That Defined the Week -- WSJ

Dow Jones
15 Mar

By Francesca Fontana

The Score is a weekly review of the biggest stock moves and the news that drove them.

Brown-Forman

The alcohol industry is one of the latest sectors caught in the crossfire of the growing global trade war.

The European Union announced retaliatory tariffs against the U.S. on Wednesday, in response to the Trump administration's steel and aluminum levies. The EU said it plans 50% tariffs on imports of American whiskey, motorcycles and motorboats starting April 1.

On Thursday, President Trump escalated, threatening to impose 200% tariffs on all alcohol imports from the bloc, prompting a selloff among European drink makers.

The levy on American whiskey would be a blow to Jack Daniel's maker Brown-Forman and other U.S. distillers, which are already contending with a drop in demand as American drinkers cut back.

Brown-Forman shares fell 5.1% Wednesday.

Tesla

A shoutout from EV-hater President Trump brought Tesla some relief from its latest rout.

Elon Musk's electric-vehicle maker lost 15% Monday -- its worst trading day since 2020 -- taking its year-to-date losses to 45%. Disappointing sales data and concerns over Musk's role in Trump's administration have weighed on the stock.

Just after midnight Tuesday morning, Trump posted on his Truth Social platform that he was going to buy a brand new Tesla "as a show of confidence and support" for Musk.

Trump campaigned extensively against Joe Biden's EV mandates, and recently halted federal funding for new charging stations.

Later that day, the president held a photo-op with several Tesla models outside the White House.

Tesla shares rebounded 3.8% Tuesday.

Redfin

Redfin rocketed higher Monday, thanks to its deal to sell itself to Rocket.

The mortgage giant Rocket agreed to buy online-real estate brokerage Redfin in an all-stock deal valued at $1.75 billion, the companies said Monday. The deal is expected to close later this year, subject to shareholder approval.

The owner of Rocket Mortgage said the deal values Redfin shares at $12.50 apiece and connects Redfin's nearly 50 million monthly visitors with Rocket's suite of mortgage products.

The deal intensifies competition in the industry, as companies look to offer home buyers one-stop shopping, from searching for a home and securing a mortgage to closing the deal.

Redfin shares surged 68% Monday, while Rocket shares fell 15%.

Southwest Airlines

U.S. airlines lost some air on Tuesday, but some carriers managed to buck the trend.

Delta Air Lines, American Airlines and JetBlue lowered guidance, as executives and investors digest signs of slowing air travel and shaky consumer confidence.

Delta shares fell more than 7% Tuesday, while American shares lost 8.3%. But JetBlue shares gained 4.2% -- the airline's outlook cut was smaller than those of its peers, and the company had already warned of first-quarter weakness back in January.

Meanwhile, Southwest unveiled a range of moves to lift revenue -- including charging for checked bags, ending a popular long-held policy.

Southwest shares jumped 8.3% Tuesday.

Kohl's

Kohl's joined the chorus of retailers warning of slowing consumer spending this year, as recession fears mount.

The department-store operator on Tuesday cut its dividend and projected a larger-than-expected sales decline for fiscal 2025.

Kohl's was already facing a decline in traffic after a disappointing back-to-school season led the retailer to cut its guidance ahead of the holidays. Chief Executive Ashley Buchanan took the helm in January, as the chain aims to lure back its core customers.

Buchanan said Tuesday that consumers are tightening their wallets across income brackets when it comes to discretionary spending.

Kohl's stock plunged 24% Tuesday.

Intel

Investors welcomed Intel's new leader with a stock rally.

The beleaguered chip maker named former board member Lip-Bu Tan as its new chief executive. Tan's predecessor, Pat Gelsinger, retired abruptly in December, less than four years into the job, after struggling to reboot the company.

Tan was previously the CEO of chip-industry player Cadence Design Systems and a widely known venture capitalist. He founded Walden International in 1987, focusing on Asian startups.

Tan's extensive ties to China have drawn scrutiny from Washington. A 2021 Wall Street Journal report found that Walden investments accounted for more than 40% of Chinese chip deals involving U.S. venture investors from 2017 through 2020.

Intel shares surged 15% Thursday.

Our weekly markets news roundup is now part of the WSJ's What's News podcast. Host Francesca Fontana discusses the biggest stock moves of the week and the news that drove them. Check out What's News in Markets at wsj.com/podcasts or wherever you listen.

Write to Francesca Fontana at francesca.fontana@wsj.com.

 

(END) Dow Jones Newswires

March 14, 2025 17:32 ET (21:32 GMT)

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