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.
Stocks fell on Friday after a turbulent week on Wall Street amid continued fears that a series of banking collapses could lead to a wider financial crisis. The situation is rapidly developing, but here's a rundown of the biggest developments so far this week.
BANKER BAILOUT
On Thursday, 11 of the biggest U.S. banks announced they were teaming up to deliver a $30 billion rescue package to First Republic Bank, which is the latest bank to nearly collapse due to fleeing depositors. The bank served a similar clientele as Silicon Valley Bank, which went into receivership last weekend following a massive bank run. Many see the package as a vote of confidence for First Republic and the banking sector overall.
FED THROWS A LIFELINE
The Federal Reserve has loaned a total of $300 billion to struggling banks over the past week. About half of that chunk, $143 billion, went to the newly formed holding companies behind Silicon Valley Bank and Signature Bank, both of which saw bank runs. The Fed hasn't revealed where the other half went, leading to speculation about the extent of the crisis. The money went toward shoring up a bank's balance sheets.
CREDIT SUISSE TUMBLES
Swiss bank Credit Suisse on Wednesday saw its shares plunge more than 30 percent after the Saudi National Bank, its biggest shareholder, said it would no longer provide funding. The news sowed fear that the U.S. banking crisis was going global. However, the troubles at Credit Suisse started long before the collapse of Silicon Valley Bank. Depositors have been pulling out of the bank since last year, when the bank admitted that it had misjudged its financial risks.
INFLATION SLOWS
Meanwhile, inflation continues to slow. The consumer price index jumped 0.4 percent month-over-month in February, which is down from 0.5 percent in January, while the annual inflation is up 6 percent, down from 6.4 percent. The trend is notable development considering many of the issues afflicting the banking sector originate, in part, from the Fed's quest to tamp down prices with higher rates.
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.
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