The Week's Top Stories is a guided tour through the biggest market stories of the week, from winning stocks to brutal dips to the facts and forecasts generating buzz on Wall Street.
RATE HIKE READY
At the Jackson Hole Economic Symposium Friday, Federal Reserve Chairman Jerome Powell said the U.S. should prepare for more interest rate hikes. The Fed has implemented a pretty steady stream of increases since March 2022 when it was near zero to 5.4 percent, the highest it has been in 22 years. The inflation rate has dropped significantly during that period, from 9.1 percent to 3.2 percent, but it's still too far above the target rate of 2 percent for the Fed. Employment levels have remained strong throughout this period. The real estate seems to have taken the brunt of the impact, with mortgage rates hitting a new 22-year high average of 7.23 percent for a 30-year fixed-rate.
UPS AVOIDS STRIKE
There was good news for online shoppers this week: UPS struck a deal with workers that will avoid a strike. In the five-year deal, the shipping giant has agreed to increase and standardize pay, end forced overtime on drivers' days off, and add air conditioning to more trucks. The same cannot be said for the United Auto Workers union at the moment. This week autoworkers overwhelmingly voted to allow union leaders to call a strike if negotiations with General Motors, Ford and Stellantis don't start making some serious headway before the current contract expires on September 14.
DOLLAR TREE CHALLENGES
Dollar Tree has plenty of work on its hands. Its earnings report released this week beat Wall Street expectations, but the stock sunk as the company reported a difficult economy ahead. The discount store chain, which also owns Family Dollar, cited theft as a major issue. This week, Dollar Tree also received an order from the Labor Department giving it two years to turn around institutional failures that have created safety concerns in stores throughout the country. The company will have to figure out what is causing stores to do things like block emergency exits and stack boxes to dangerously tall heights - and then figure out how to fix it in all locations.
NVIDIA SOARS ON AI
Nvidia revealed an incredible quarter in this week's earnings report. The computer chip giant made nine times more revenue than it did a year ago, largely thanks to the AI companies that are relying on its technology, and it expects to triple sales this quarter. The news sent the stock up 6 percent - just another milestone for the stock which has tripled in value this year.
PELOTON PLUNGES
Peloton stock dropped more than 20 percent on Wednesday after the company admitted it is struggling to keep up with demand for replacement seat posts that were recalled over safety concerns. While riders are without functional bikes, 20,000 of them have paused their subscriptions, which is a critical part of the company's business plan. In a letter to shareholders, President and CEO Barry McCarthy also noted consumers seem to be turning more toward travel and experiences, which is tough for a stay-at-home bike company.
Meta announced its plans to join the Cannes Lions International Festival of Creativity. This is leaving businesses and customers wondering what the tech giant has in store for the event. Nicola Mendelsohn, the vice president of the global business group at Meta, joined Cheddar News to preview what the tech giant will discuss at this year's festival. "We're going to be showcasing more about reels. We're going to be talking about our commerce solutions, are messaging solutions, and of course, the method of us speaking of new ways to kind of connect with customers," she said.
On today's episode of On The Job: Cheddar gets a look at how the salon and beauty industry has pivoted throughout the pandemic; Mark Brim, President of Aquent's Recruiting Division Vitamin T, breaks down how remote work has transformed hiring and recruiting process across the board;
Julie Bauke, President & Chief Career Strategist at The Bauke Group, breaks down why companies are being 'ghosted' by new hires, and what repercussions can come from this.
Mark Brim, President of Aquent's Recruiting Division Vitamin T, joins On The Job to discuss how remote work has transformed hiring and recruiting process across the board, and the latest trends surrounding remote hiring across the globe.
Miami's real estate market has boomed since early 2020, thanks to an overall strong housing market, remote work, and no income tax as incentives. The city is preparing to welcome even more residents as people relocate to warmer climates to work from home. Garrett Derderian, director of market intelligence at SERHANT, joined Cheddar to discuss the Magic City's red hot market.
Actor, entertainer, and hip hop icon Queen Latifah is partnering with It's Bigger Than Me, an initiative with the goal of ending the stigma around obesity. She joined Cheddar News to discuss how she is working toward educating others and having important conversations about the social struggles that come with obesity. “We can’t let the Queen Latifah’s of the world not exist. We need people to care about other people," the "Hustle" star said.
Sarah Warbelow, legal director for Human Rights Campaign, joins Cheddar News to discuss why advocates want to overturn the FDA's rule restricting gay and bisexual men from donating blood.
Actor Jamie Chung joins Cheddar News to talk about her upcoming projects and her new partnership with Duracell helping parents learn more about hidden dangers in their home. But that's not all, she plays a fun game with us too!
Child care marketplace startup Kinside announced raising $12 million in a Series A round led by venture capitalists who are mothers themselves. The company aids parents searching for affordable child care easier by providing concierge support in a marketplace of verified professionals and helping them tap into flexible spending accounts (FSA) and other benefits. Founder and CEO Shadiah Sigala joined Cheddar News to talk about the fresh funds and the ongoing effects of the pandemic on the care of young children.
When it comes to diversity in children's toys, we have come a long way as a society but we still have a ways to go. One group of students decided to take matters into their own hands. Truly You! Character Creator is a fashion illustration activity set made for youth by youth. Lindsay Buckingham, one of the toy’s creators, sat down with Cheddar News to talk all about it.
