Wall Street Breakfast Podcast: WMT Increases Stake, Flipkart

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Walmart (WMT) pays $1.4B to increase its stake in India’s Flipkart – report. (00:26) Yellow Corp. (YELL) reportedly shuts down operations. (01:15) U.S. proposes to boost fuel economy standards for new vehicles to 58 mpg by 2032. (01:44)

This is an abridged transcript of the podcast.

Walmart (NYSE:WMT) recently paid $1.4 billion to increase its stake in Indian e-commerce giant Flipkart (FPKT).

According to a WSJ report on Sunday, which cited a letter Tiger Global sent to investors, Walmart (WMT) has in recent days purchased the hedge fund ‘s stake in Flipkart.

According to the report, The purchase values Flipkart at about $35 billion, down from the $38 billion valuation it had in 2021 when it sold shares to Walmart (WMT), Japan’s Softbank (OTCPK:SFTBY), and Tiger Global.

Walmart (WMT) paid $16 billion for a 77% stake in Flipkart in 2018.

Reuters reported last April that Flipkart (FPKT) was said to have raised its initial public offering valuation to $60 billion to $70 billion internally.

Yellow Corp. (NASDAQ:YELL) has sent out notices to customers and employees saying it has ceased all operations.

The Wall Street Journal also reported Sunday that the Teamsters union said the company notified the union it intends to file for bankruptcy

Hundreds of Yellow’s (YELL) non-union employees were laid off Friday as the company stopped taking in new shipments from customers. Yellow has nearly 30K workers, including ~22K Teamsters members.

The Biden administration has issued a proposal directing automakers to raise the fuel economy of their vehicles to a fleet-wide average of 58 miles per gallon by 2032.

The proposed rule released by the National Highway Traffic Safety Administration would be applicable beginning in model year 2027 and ramp up through model year 2032.

Among the range of options on which the agency is taking public comment, the NHTSA’s preferred alternative would increase Corporate Average Fuel Economy requirements by 2%/year for passenger cars and 4%/year for light trucks.

The agency also proposes new fuel efficiency standards for heavy-duty pickup trucks and vans for 2030-35 rising 10% annually.

The NHTSA said it would try to align regulations with the Environmental Protection Agency’s proposed vehicle emissions reductions.

The agency’s previous proposal, published in April 2022, ordered automakers to boost their average fuel economy to 49 mpg by 2026.

Other headlines to look out for on Seeking Alpha:

Disaster-prone areas are becoming a haven for those seeking cheaper homes – Redfin

Credit card delinquencies tick up, net charge-offs fall in June

RSV treatment market to surge past $9B by 2029

On our catalyst watch for the day- Shareholders with Lithium Americas (LAC:CA) will vote on the planned separation of the North American and Argentine business units into two independent public companies.

And Polaris (PII) will hold its Capital Markets Day event. (Polaris analysis).

U.S. stocks ended solidly higher on Friday.

The Nasdaq (COMP.IND) advanced 1.90%. The S&P 500 (SP500) added 0.99%, while the Dow (DJI) gained 0.50%.

For the week, the Nasdaq rose 2.02%, the S&P rose 1.01% and the Dow rose 0.66%.

Of the 11 S&P sectors, nine ended trading in green. Communication Services topped the leaderboard, with the heavyweight sector ending the week with a 6.8% gain.

Treasury yields were lower. The 10-year yield (US10Y) was down 5 basis points to 3.96%, while the 2-year yield (US2Y) was down 6 basis points to 4.88%.

Now let’s take a look at the markets as of 6 am. Ahead of the opening bell today, Dow, S&P and Nasdaq futures are mixed. The Dow is up 0.1%, the S&P 500 is up 0.1% and the Nasdaq is down 0.02%. Crude oil is up 0.9% at more than $81 a barrel. Bitcoin is up 0.3%.

In the world markets, the FTSE 100 is down 0.06% and the DAX is up 0.2%.

And we’re following two big stock gainers ahead of the opening bell. SoFi Technologies’ (NASDAQ:SOFI) stock is up roughly 7% ahead of its Q2 earnings report, which will come before the bell. And Apellis Pharmaceuticals (NASDAQ:APLS) is up more than 15% after a drug study is released.

On today’s economic calendar, at 945 am Chicago PMI and at 1030am the Dallas Fed Manufacturing Survey.

Editor’s Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.

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