Business and Finance News - 2.13.25

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Chevron plans to lay off 15% to 20% of its global workforce by 2026 as part of a $3 billion cost-cutting strategy amid industry challenges and a pending Hess acquisition. The company faces declining reserves, production delays, and refining sector weakness, prompting organizational restructuring and leadership changes. (Reuters)

Key Insight → Chevron's decision to lay off up to 20% of its workforce signals a broader shift in the oil industry, where companies are prioritizing cost-cutting and operational efficiency over aggressive expansion. This move reflects both internal challenges, such as cost overruns and declining reserves, and external pressures, including volatile oil prices and heightened competition from rivals like ExxonMobil. For the larger market, it underscores the ongoing consolidation trend in the energy sector, as major players streamline operations to maintain profitability in an uncertain economic and geopolitical landscape.

CVS Health reported higher-than-expected fourth-quarter revenue and profit, despite rising medical costs in its insurance segment. The company maintained its 2025 earnings outlook, implemented cost-cutting measures, and expects to improve margins by reducing Medicare Advantage membership, while shares rose 16% following the announcement. (CNBC)

Key Insight → CVS Health’s strong revenue and profit performance, despite higher medical costs in its insurance segment, highlights the growing financial pressures on healthcare companies as Medicare Advantage costs rise. The company’s restructuring efforts, including cost cuts and strategic shifts in its insurance business, indicate an industry-wide focus on improving profitability amid increasing medical expenses and reimbursement challenges. For the larger market, this underscores ongoing volatility in the healthcare sector, where insurers and pharmacy chains must navigate shifting consumer behaviors, regulatory changes, and evolving cost structures to maintain growth.

General Motors plans to offset up to 50% of potential tariffs on Canadian and Mexican imports without additional capital investment, while Ford warns that such tariffs are disrupting the U.S. auto industry. Ford CEO Jim Farley described the proposed trade policies as costly and chaotic, raising concerns about long-term industry stability. (CNBC)

Key Insight → General Motors’ ability to mitigate up to 50% of potential tariffs highlights the strategic planning automakers are employing to counter trade policy uncertainty, which is creating volatility in the industry. Ford’s warning about the “chaos” caused by tariff threats underscores broader concerns that such policies could significantly increase costs, disrupt supply chains, and impact U.S. manufacturing competitiveness. For the larger market, this situation reflects how trade policies can shape corporate strategies, influence stock performance, and potentially drive shifts in global production and sourcing decisions.

The consumer price index rose 3% in January, exceeding expectations and complicating the Federal Reserve's inflation control efforts. Meanwhile, impending tariffs on imports from Canada and Mexico, along with broader trade policy uncertainty, add economic risks that could further impact markets and business costs. (Quartz)

Key Insight → Rising inflation in January, combined with the looming threat of new tariffs, adds uncertainty to the U.S. economy by complicating the Federal Reserve’s path toward potential interest rate cuts. Higher prices, particularly in core inflation, could slow consumer spending and impact market confidence, as seen in the stock market’s immediate drop following the CPI report. For the larger market, the combination of persistent inflation and trade policy disruptions could lead to higher costs for businesses and consumers, further delaying economic stability and increasing volatility in financial markets.

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Here’s how the major indexes did yesterday:

• Dow Jones Industrial Average: 44,368.56 -225.09 (-0.50%)

• S&P 500: 6,051.97 -16.53 (-0.27%)

• Nasdaq Composite: 19,649.95 +6.09 (+0.03%)

• Russell 2000: 2,255.89 -19.81 (-0.87%)

Here’s how The Magnificent Seven did yesterday:

• Apple (AAPL) [3.562T]: 236.87 +4.25 (+1.83%)

• Nvidia (NVDA) [3.212T]: 131.14 -1.66 (-1.25%)

• Microsoft (MSFT) [3.041T]: 409.04 -2.40 (-0.58%)

• Amazon (AMZN) [2.426T]: 228.93 -3.83 (-1.65%)

• Alphabet (GOOGL) [2.242T]: 183.61 -1.71 (-0.92%)

• Meta Platforms (META) [1.838T]: 725.38 +5.58 (+0.78%)

• Tesla (TSLA) [1.082T]: 336.51 +8.01 (+2.44%)

Here’s how Bitcoin and Ethereum did yesterday:

• Bitcoin (BTC): $96,857.19 (9:00PM PST on 2/12/25)

• Ethereum (ETH): $2,718.66 (9:00PM PST on 2/12/25)