Today we are watching…
1. Tyson Foods (#tyson)
There’s a meat supply crisis gripping America, and even the president has invoked the wartime Defense Production Act to secure processing can take place. It’s being caused by shuttered plants affected by coronavirus infection, and Tyson Foods is at the heart of this. Unfortunately, years of consolidation with Tyson Foods buying smaller processing plants to grow means many processors are jam-packed into the same facilities. The shutdown on one meat plant results in ten million fewer beef servings per day, but there’s sharp criticism from unions who don’t want workers in danger in cramped factories. The situation unfolds!
2. Apple (#aapl)
Apple has beaten its revenue and profit expectations for the quarter, which is something, but investors are still more interested to hear CEO Tim Cook’s forecasts for the rest of the year. Chinese sales are “headed in the right direction,” and the shock supply constraints of February have now abated with production back at typical levels. For all the confidence Cook showed, he still refused to set profit guidance for investors this year, and that caused some panic. The Invstr community was waiting for a dip!