From Wall Street to Silicon Valley, these are the top stories that moved markets and had investors, business leaders, and entrepreneurs talking this week on Cheddar.
TECH SELL-OFF
It was a tough week for tech stocks — those trusty workhorses of the pandemic-era bull market. News from the Federal Reserve that it's considering tightening its monetary policy sooner than many expected drove up Treasury yields, which led to a sell-off among rate-sensitive growth stocks. The bad vibes didn't end there though. Hedge funds like Cathie Wood's ARK Innovation were especially hard-hit, performing well below the major indexes. Crypto, likewise, is having a tough start to the year, dropping to one-month lows amid the broader market sell-off. Analysts have been predicting for a while that 2022 might bring a shift in the stock market away from high-flying tech stocks, but the New Year hangover has been rougher than expected. In the meantime, Apple became the first U.S. company to reach a $3 trillion market cap.
MIXED JOBS REPORT
A strong jobs report on Friday might have helped steady the market, but the latest reading from the U.S. Labor Department was decidedly mixed. Job gains came in at nearly half of estimates, even as unemployment dropped down to 3.9 percent and workers made sizable wage gains. The disappointing report fueled a further rise in 10-year Treasury bonds, which has contributed to mortgage rates hitting their highest levels since 2020. So, it's been a funky week for markets, and added uncertainty around the economic impact of the omicron variant hasn't helped.
EV RACE HEATS UP
Not all is woe on Wall Street. Automakers, for instance, are beginning the year on better footing. Following news of a rebound in sales in 2021 from its pandemic lows, there was a slew of major announcements from carmakers about their electric vehicle roll-outs. GM unveiled its electric Chevy Silverado, pitching it as a rival to Ford's forthcoming F-150 Lightning. Mercedes-Benz also announced its luxury EV model, and Vietnam's first global automaker, VinFast, unveiled its full EV line-up at the annual CES trade show. If all this EV talk wasn't enough to signal that a new era is beginning, Toyota this week officially overtook GM as the top car seller in the U.S., after a 90-year run from the Michigan-based manufacturer.
BED BATH & BEYOND (EXPECTATIONS)
Meanwhile, Bed Bath & Beyond delivered less than stellar third-quarter results, but that didn't stop the sometimes meme-stock from rising 8 percent on Thursday. The stock remains heavily shorted, and heavily traded, and by the end of the week it was down more than 5 percent on the week. Regardless, the company is moving forward with a plan to shut down up to 200 of its stores over the next two years, as supply chain pressures cost the company nearly $100 million and it faces increasing competition from online retailers.
DAVE'S BIG DEBUT
Billionaire Mark Cuban is wading into the fintech boom with the public debut of a new banking app called Dave. The company went public via a SPAC and started trading Thursday. Cuban is pitching the app as a solution to excessive fees in retail banking. Despite the positive buzz, the company nonetheless had a rocky debut, sinking around 25 percent from its offering price.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
Starbucks’ AI barista aims to speed service and improve experience. Nick Lichtenberg, Fortune Business Editor, explains its impact on workers and customers.
As Big Tech reports Q3 earnings, investors await proof that massive AI and cloud investments from Meta, Apple, Microsoft, and Alphabet are driving real growth.
Eric Trump joins us to discuss American Bitcoin’s mission, market strategy, and why he believes the U.S. must lead the next era of digital currency innovation.
