Apr 11, 2023
The Weekly Scan April 11, 2023
Find out what’s happening in the world of business this week
Welcome to the Weekly Scan. Here’s what we’re following for the week of April 11, 2023.
The dust may be settling. Johnson & Johnson proposed an $8.9 billion settlement over claims that its baby powder and talc products cause cancer. The settlement received support from more than 60,000 claimants, but it would still need to be approved by bankruptcy court. Shares in the pharmaceutical company rose 4.5% last Wednesday. A subsidiary of Johnson & Johnson, LTL Management, has also refiled for Chapter 11 bankruptcy after facing legal challenges. LTL is expected to shoulder some of the losses from the settlement.
Soup’s out. Campbell’s, which is known mostly for its soups, is seeing its snack sales grow at a faster rate than meals and beverages. Snack sales increased 15% year-over-year compared to 11% growth in meals and beverages, according to the company’s March earnings report. And the increase in snack sales can reportedly be connected to a jump in sales volumes, as opposed to just higher prices. In 2018, Campbell’s acquired Snyder’s-Lance, which brought Kettle and Cape Cod potato chips, Late July corn chips, and Snyder’s pretzels into the fold. Campbell’s also owns Pepperidge Farms.
Investing made easy
Start today with any dollar amount
The March jobs report. For the first time in 12 months, the U.S. jobs report came in below expectations, with the U.S. adding 236,000 jobs in March, below the predicted 239,000 new jobs. This is the smallest monthly gain in jobs since March 2020. Leisure, hospitality, health care, and government are still seeing the highest increase in jobs. Meanwhile, the unemployment rate is 3.5%, which is lower than the projected 3.6% unemployment rate. This latest jobs report could mean that the labor market is cooling as the Federal Reserve (the Fed) continues to increase interest rates as a way to combat inflation.
Tupperware getting shelved? Shares in Tupperware fell in response to news that the storage company is struggling to stay in business. Tupperware is reportedly looking for additional sources of cash and is exploring potential layoffs in an effort to keep its doors open. Last year, Tupperware reached a deal with Target to sell Tupperware products at their locations. However, Tupperware has still struggled to keep up with its competitors and get business from younger consumers. Over the last year, shares in Tupperware have fallen 90%.