AIG Units Lose Appeal on Walmart Opioid Epidemic Defense Costs

Walmart de México (Walmex) reported a 6.1% drop in Q3 profit to MXN 11,027 million (US$590 million), despite a 3.0% revenue increase. Higher taxes and expenses contributed to the decline, though management expects tax rates to normalize. Walmex reaffirmed its 2026 sales growth guidance of 3.5% to 4.5%.

AIG units requested a rehearing after an Arkansas court ruled they must cover Walmart's defense costs in 2,400 opioid lawsuits. AIG claims the decision was based on errors, arguing Walmart's alleged actions were not accidental. The case could impact AIG's financial obligations.

State Street's XLP ETF reported $521.1M in sales on Friday, including $58.2M in Walmart (WMT), $48.4M in Costco (COST), and $40.7M in Procter & Gamble (PG). The fund reduced all 33 holdings, with no new positions added. XLP has a 0.08% expense ratio and a 15.41% YTD return.

DoorDash is reportedly in advanced talks to acquire Instacart, valuing it at $17 billion. Analysts suggest the potential deal aims to compete with Walmart and Amazon in the grocery delivery market. The deal could be finalized this week, but talks may still collapse.

Walmart (WMT) announced three holiday shopping events, with shares up 1.42% to $121.59, nearing a $1 trillion market value. Investors hope for a strong holiday season to drive growth, as the stock's rally is attributed to higher valuation multiples. Walmart's holiday sales include Early Black Friday, Black Friday, and Cyber Monday, with Walmart+ members getting early access. The company's focus on lower prices aims to boost market share but may squeeze profits.

Walmart is being sued for allegedly misleading consumers about the ingredients in its Great Value stevia sweeteners. The plaintiff claims the products are primarily sweetened with erythritol, not stevia extract, and that independent lab tests support this. The lawsuit seeks to represent California residents who purchased these products in the past four years.