CPI NUMBERS ARE IN

Earnings Season: Walgreens Misses

On Thursday, Walgreens provided a modest profit outlook. They disclosed fiscal fourth-quarter results that did not meet expectations, due to declining demand for Covid vaccines and tests in the U.S.

The company reported 67 cents per share vs. 69 cents expected. Their revenue came in at $35.42 billion vs. $34.78 billion expected. The firm announced a net deficit of $180 million, equivalent to 21 cents per share, for the fiscal fourth quarter. This is in contrast to the previous year's fourth quarter when they posted a net loss of $415 million, translating to 48 cents per share. Walgreens has officially named Tim Wentworth as their new CEO.

GRIT TAKE: Walgreens lowered its forecast due to multiple challenges the company faces. They have faced multiple walkouts by its pharmacy staff, a global demand for cheaper prescription drugs, and a company shift towards integrated health services.

Walgreens has invested a plethora of resources into its evolution from a prominent drugstore chain to a vast healthcare entity. However, as it undergoes this transformation, the pharmacy brand encounters various hurdles, such as reduced profitability from weak consumer spending and a drop in demand for Covid-related items as individuals move past the pandemic.

CPI: Prices rose 0.4% in September

In September, consumer prices for a broad range of products and services rose a bit more than anticipated, maintaining inflation as a central concern for policymakers.

The consumer price index, a widely monitored measure of inflation, rose 0.4% monthly and 3.7% annually, as per Thursday's report from the Labor Department. This is in contrast to multiple analyst projections of 0.3% and 3.6%, respectively.

When setting aside the fluctuating food and energy costs, the core CPI saw a 0.3% increase for the month and a 4.1% rise over a year, aligning precisely with forecasts.

UAW: Extends Strike to Kentucky

The United Auto Workers union unexpectedly initiated a strike against Ford Motor at their essential SUV and pickup truck facility in Kentucky. This took effect at 6:30 p.m. ET on Wednesday at the Kentucky Truck Plant, where Ford manufactures its Super Duty pickups, Ford Expedition, and Lincoln Navigator SUVs. The plant has 8,700 UAW-affiliated employees.

The strike at Ford's largest plant, in terms of workforce and revenue, signifies a significant intensification of the UAW’s specific "stand-up" strikes. This move, now in its fourth week of broader strikes, indicates a change in tactics. Unlike past strikes, UAW President Shawn Fain had typically revealed the targeted locations before any halts in work.

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This Man was Laughed Out of a Ford Motor Boardroom  

This man was laughed out of a Ford Motor boardroom meeting in 1999. Nine years later, he’ll get his revenge. He should be one of the richest people in the world but he gives over 65% of his money to charity. Ratan Tata was born in India in 1937 to one of the most prosperous Indian families. His grandfather was the founder of the Tata Group.

Despite being the future chairman of the company, he started his career at the lowest level working alongside blue-collar employees in Tata Steel Division. In 1990, he took over as chairman and CEO of the Tata Group and issued new reforms. In 1999, the automotive branch of the Tata group was on the verge of bankruptcy and Tata flew to America to meet with Ford. Ford humiliated and bullied him out of the board room, but he left more motivated than ever and returned to India. Tata turned their car business into the number 1 car company in India by making cars that were affordable for everyone. They started making tons of money. 9 years later, Ford Motor Company was on the verge of bankruptcy and Tata swooped in to buy one of Ford’s prized positions, Jaguar Land Rover for $2.4 billion. Today the Tata Group is worth over $300 billion dollars.

Tata turned their car business into the number 1 car company in India by making cars that were affordable for everyone. They started making tons of money. 9 years later, Ford Motor Company was on the verge of bankruptcy and Tata swooped in to buy one of Ford’s prized positions, Jaguar Land Rover for $2.4 billion. Today the Tata Group is worth over $300 billion dollars.

Chart of the Day

📊 American Savings Rate

Savings data was lower than in previous decades.

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