Diamonds and Dogs
Good news, the CEO is getting fired. The second time in a month, a prominent CEO is getting fired and the stock is up. General Electric (GE) is jumping 10% after ousted Chief Executive Officer John Flannery will be replaced with outsider and board member Larry Culp. The news is not all good as GE will take a $23 billion charge to write off in goodwill for power division, primarily from a failed 2015 acquisition. With $115 billion in debt, larger than their market cap, GE has a lot of work ahead of them.
MGM Resorts (MGM) is down 2% on the one year anniversary of the Route 91 Harvest Festival shooting. The CEO for MGM put out a statement today saying, "One year ago, our community suffered an unforgettable act of terror. For MGM Resorts, October 1 will forever be a day of remembrance, reflection and mourning as we struggle to comprehend the incomprehensible – the senseless act of evil that caused such a tragic loss of life, along with the suffering that we know continues." The casinos in general have struggled year to date. Wynn Resorts is down 40% from the April and May highs after the founder and CEO, Steve Wynn stepped down due to allegations of inappropriate behavior.