Scholastic, the largest publisher and distributor of children's books, has faced backlash for placing books with LGBTQ themes and discussions of race in a special collection for book fairs. The collection, called "Share Every Story, Celebrate Every Voice," was created to navigate laws and policies that prohibit certain books in schools. However, some authors and librarians are dismayed by the decision, with one librarian canceling her book fair in protest. Critics argue that Scholastic is accommodating book banning extremists and risking being complicit in government censorship. Scholastic maintains that it provides diverse titles to every book fair and that the controversy stems from misconceptions.
Scholastic, the children's book publisher, has announced that it will separate books on race, gender, and sexuality for its elementary school book fairs, allowing school districts to include or exclude the titles. This decision comes in response to the numerous state laws restricting discussions on these topics in schools. Scholastic's new catalog, called Share Every Story, Celebrate Every Voice, includes diverse titles such as biographies, memoirs, and disability-positive books. The publisher stated that it created the separate catalog to continue offering diverse books in a hostile legislative environment. However, this move highlights the challenges faced by publishers in states with restrictions on diverse titles. Scholastic's decision has drawn criticism from PEN America, which called on the publisher to explore alternative solutions.
Scholastic, the children's book publisher, has announced that its elementary-school book fairs will now have a separate section for titles that deal with race, gender, and sexuality in response to state laws that restrict discussions on these subjects in schools. The "Share Every Story, Celebrate Every Voice" catalog includes 64 titles, such as biographies of Supreme Court Justice Ketanji Brown Jackson and civil rights leader John Lewis. Schools can choose to include or exclude these books, and some schools in all 50 states have already ordered titles from the catalog. Scholastic opposes the state laws but acknowledges the difficulty of navigating the legal environment.
Scholastic, the popular children's book publisher, is facing criticism for facilitating the exclusion of books featuring people of color and LGBTQ characters from its book fairs. The company has created a collection called "Share Every Story, Celebrate Every Voice," which allows schools to exclude these titles. Scholastic claims it is responding to pending legislation that could expose schools to liability, but critics argue that the company is going beyond the scope of these laws. In response, a publisher called Brave Books has emerged, offering alternative book fairs that promote "age-appropriate" and "anti-Biblical" ideas. Scholastic's shift in stance has raised concerns about censorship and the company's commitment to marginalized communities.
Ford's stock rose 3% as negotiations between the company and the United Auto Workers union progressed amidst the ongoing strike, while website builder Squarespace saw a 5% increase after UBS initiated coverage with a buy rating. Scholastic's stock plummeted over 14% following an earnings miss, and chip design stock Arm Holdings lost 2.3% after receiving a neutral rating from Susquehanna. Biotech firm Seagen's shares rose 3.5% after positive results from a clinical trial for bladder cancer treatment. Additionally, Deere's stock fell over 2% after being downgraded by Canaccord Genuity, and Chinese e-commerce stocks, including PDD, Alibaba, and JD.com, saw gains after reports of potential loosening of foreign investment cap rules by the Chinese government. Activision Blizzard's stock also rose 2% after a new deal proposal from Microsoft cleared major antitrust worries in the UK.
Activision Blizzard's stock rose nearly 2% in premarket trading after U.K. regulators indicated they might approve Microsoft's proposed acquisition of the video game developer. The Competition & Markets Authority (CMA) found that the amendment to the original deal, which divested certain streaming rights to Ubisoft Entertainment, addressed potential anticompetitive impacts. Meanwhile, Scholastic's stock plunged 16% in premarket trading after the publisher's fiscal first-quarter financial results fell short of expectations, with revenue down 13% YoY and losses widening by roughly 70%. Despite CEO Peter Warwick's optimism for the fall season, shareholders remain concerned about Scholastic's future performance.
Scholastic's shares jumped 11.5% after announcing a $100 million increase in its share repurchase amount and posting positive quarterly results. American Express shares slipped 3.9% as the company fell short of revenue expectations but beat earnings per share estimates. Herc dropped 6.5% after being double-downgraded by Bank of America due to the ongoing writers and actors strike in Hollywood. AutoNation tumbled 12.3% despite exceeding expectations in its second-quarter results. Knight-Swift Transportation gained 0.8% despite weaker-than-expected earnings and revenue, while PPG Industries rose nearly 0.3% after posting strong second-quarter results.
American Express slides 3% after reporting smaller-than-expected revenue for Q2, while AutoNation beats expectations but sees a 3% drop in shares. Sunnova Energy sheds 2% after being downgraded by BMO, CSX falls 4% as it misses revenue expectations, and Capital One Financial rises slightly after posting better-than-expected earnings but missing revenue expectations. PPG Industries declines 2% despite strong Q2 results, and Intuitive Surgical falls 4% due to weaker-than-expected systems revenue. Knight-Swift Transportation drops over 2% after reporting lower-than-expected earnings and issuing weak guidance, while Scholastic rises 6% after beating earnings-per-share expectations and announcing an increase in share repurchase amount.
Scholastic offered to license Maggie Tokuda-Hall's children's book, Love in the Library, but only if she removed a section referencing "the deeply American tradition of racism" from the author's note. The author rejected the offer, calling it a "horrific demand for censorship." Scholastic later apologized for its editing approach and hopes to restart the conversation with Tokuda-Hall with the aim of sharing the book with the author's note unchanged. The author believes publishers are silencing marginalized voices and fears that other creators will be asked to make similar choices in the future.
Stocks fluctuated on Friday due to concerns about banks and rising interest rates. Deutsche Bank, Activision, Block, Scholastic, and Ouster were among the companies making moves.
Shares of Deutsche Bank fell 13% due to concerns over the health of the European banking industry. Payment company Block slid 1.9% after being downgraded to hold by Atlantic Equities on the lack of clarity on its Cash App. Cryptocurrency exchange Coinbase's stock ticked down 2.3% after disclosing it received a Wells notice from the SEC. Energy stocks fell in the premarket as oil prices slid, with Marathon Oil and Devon Energy falling about 3%. Children's book publisher Scholastic's shares fell 13% after reporting a decline in revenue for its fiscal third quarter from the previous year and lowering its financial guidance for the full year.
