McDonald’s (MCD), which is an American fast food company with over 36,000 restaurants in more than 100 countries around the world, was the S&P 500’s third-best performer on June 7. After regaining strength on Wednesday, McDonald’s opened higher on Thursday and surged to nine-week high price levels.
Layoffs to streamline management structure
The buying pressure in McDonald’s increased on Thursday amid the company’s efforts to streamline the management structure. On June 7, Chris Kempczinski, McDonald’s president in the United States, announced an unspecified number of job cuts as part of the company’s plan to cut spending by $500 million by 2019. More information regarding the job cuts will be outlined in a town hall meeting scheduled for June 12. The progress towards cutting costs boosted investors’ sentiment and sent McDonald’s stock higher on Thursday.
On June 7, McDonald’s gained 4.4% and closed the day at $169.48. McDonald’s is part of the consumer discretionary sector, which gained 0.18% on Thursday.
Fortive (FTV), which is a diversified industrial conglomerate company, was among the S&P 500’s top performers on June 7. After declining for two consecutive trading weeks, Fortive started this week on a stronger note and gained in the first three trading days. Carrying forward the strength, Fortive opened higher on Thursday and surged to ten-week high price levels.
The buying pressure in the stock increased after Fortive offered to buy Ethicon’s Advanced Sterilization Products business. Ethicon is a subsidiary of Johnson & Johnson (JNJ). According to a note released by Johnson & Johnson, the deal is worth $2.8 billion and includes $2.7 billion of cash and $0.1 billion of retained net receivables. Advanced Sterilization Products provides innovative infection prevention solutions. The company’s net revenue was $775 million in 2017.
Fortive’s management thinks that the deal will help the company enter into the medical sterilization and disinfection market. On June 7, Fortive gained 4.0% and closed the day at $77.98. Fortive is part of the S&P 500 industrials sector, which gained 0.21% on Thursday.
Next, we’ll discuss the S&P 500’s top losses on June 7.