Today’s Stocks to Watch: Alphabet, Boeing, and Rio Tinto

Key points:

• Worker strikes cost Boeing $1 billion per month, affecting its stock.
• Alphabet faces possible dismantling by the Department of Justice due to allegations of monopoly.
• Rio Tinto expands in the lithium market with the acquisition of Arcadium, while shares of Chinese companies fall in the United States.

DOJ Considers Action Against Alphabet

Alphabet (GOOGL) faces potential government intervention as the U.S. Department of Justice considers breaking up Google to end what it describes as an illegal monopoly in search. The move, which is detailed in a court document filed Tuesday, may also include restrictions on how the company operates its platforms. Shares of parent company Alphabet were down 1% in premarket trading as investors reacted to the news.

Boeing Faces Billion-Dollar Costs from Worker Strikes

Boeing (BA) is facing substantial financial losses due to ongoing worker strikes. The aircraft manufacturer withdrew its wage increase offer to striking workers, claiming that the machinists’ union presented “unreasonable demands.” Ratings firm S&P estimates that the strikes could cost Boeing $1 billion per month. Shares of Boeing were down 1.5% in premarket trading as concerns over the financial impact mounted.

Rio Tinto Expands in the Lithium Market with Arcadia Acquisition 

Rio Tinto (RIO) has entered into an agreement to acquire Arcadia Lithium (ALTM) for US$6.7 billion. This strategic acquisition allows Rio Tinto to solidify its position as a major player in the lithium market, a crucial resource for electric vehicle batteries. In response to the news, Rio Tinto’s U.S. shares dipped slightly in premarket trading, while Arcadia’s shares jumped 30%.

Chinese Market Slump Impacts Alibaba, JD.com, and NIO 

Alibaba (BABA), JD.com (JD), and NIO (NIO) saw their U.S.-listed shares decline in premarket trading following steep losses on Tuesday. Investors are becoming increasingly skeptical of Beijing’s stimulus plans, which have so far failed to reverse the slowdown in the Chinese economy. This pessimism continues to weigh heavily on Chinese stocks traded in the United States.