President Donald Trump and first lady Melania Trump step off Air Force One at Palm Beach International Airport, Wednesday, Dec. 23, 2020, in Palm Beach, Fla. Trump is visiting his Mar-a-Lago resort. (AP Photo/Patrick Semansky)
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.
STIMULUS WHIPSAW
The S&P 500 ended down for the week with the Dow and Nasdaq slightly higher as the Street wrapped up early Thursday for the Christmas holiday. A stimulus package from Congress looked like it was going to emerge as a gift early in the week, but the president threw that plan into turmoil Wednesday when he demanded payments to Americans be jacked up from $600 to $2,000, a plan GOP House members officially derided Thursday. Still, the need for major economic relief became even more apparent in the data this week. Another 800,000 Americans joined the ranks of the unemployed last week. If the stimulus bill is not signed into law soon, federal unemployment benefits expire in a week, leaving millions of people without any income. Consumer spending dropped in November for the first time since the pandemic started, consumer confidence is at a four-month low, and even the resilient housing market is faltering with sales of new single-family homes dropping sharply in November.
SHIPAGEDDON
The U.S. Postal Service is buckling under the weight of an absolute deluge of mail and package volume that is causing widespread delivery delays across the country. On-time performance was 86 percent last week, and perhaps even lower now. Foot traffic at retail stores was down 40 percent last weekend compared to last year. Everyone is doing their shopping online, and it has created a logjam that is cresting at the worst possible time. FedEx and UPS have instituted limits on their networks, leaving the USPS as the shipper of last resort. Best Buy is even experimenting with sending its own employees out to deliver items. As one meme going around puts it: "Stop trying to track that package. It's in God's hands now."
APPLE V. TESLA
Apple is reportedly jump-starting its plans to build a self-driving car from scratch. The iPhone maker is said to be targeting 2024 for the launch of an autonomous vehicle that will include a supposed breakthrough in battery technology. Apple's self-driving car strategy, codenamed Project Titan, has gone through fits and starts over the past several years, but the company is reinvigorating the project thanks to a "radical" new battery design. If those plans materialize, Apple would be going head-to-head with Tesla. CEO Elon Musk said this week that he had offered to sell Tesla to Apple three years ago as the company was faltering with the Model 3, but Apple boss Tim Cook "refused to take the meeting." Tesla shares closed the week down slightly after its first week as a member of the S&P 500.
FITNESS MERGER
Peloton closed at another all-time high this week after the fitness bike maker announced it was buying Precor, the commercial fitness equipment manufacturer, for $420 million. The deal gives Peloton access to 625,000 square feet of new manufacturing space in the U.S. that it desperately needs to keep up with the demand for its at-home products. Peloton will end 2020 as one of the top "stay-at-home" stocks of the pandemic, up an astonishing 470 percent on the year.
WALMART OPIOID LAWSUIT
Walmart will have to answer for its purported role in the opioid epidemic that has ravaged the U.S. The Justice Department filed suit against the superstore this week alleging that its pharmacies filled thousands of suspicious prescriptions that it "knew were invalid." Walmart already began fighting back, saying the DOJ's investigation has been "tainted by historical ethics violations." Walmart's stock dipped after the suit was announced.
Black entrepreneurs lead the way in the creation of new businesses, but they often cannot get the necessary funding to get their business off the ground. The Fearless Fund is on a mission to change that, and help Black business owners get venture capital. The fund also offers a unique grant program meant to help entrepreneurs with growth, peer coaching, and more, including grants between $10,000 and $20,000. Arian Simone, Co-Founder and General Partner of Fearless Fund, joins Closing Bell to discuss the Fund's mission, how it helps Black entrepreneurs, and more.
Multinational food company Kellogg’s reported an earnings beat amid supply chain issues and an extended labor strike. Kellogg’s Chairman and CEO c joined Cheddar News to discuss overcoming the obstacles and what's to come for the company. "The first half of the year is really going to be one about rebuilding inventory, and into the second quarter, starting to reestablish promotional activity for our customers and our consumers," Cahillane said. "And then the back half of the year, obviously, we're really much more back in business, and we expect to exit the year with our business in cereal being just as strong as it's ever been."
Sting has sold his catalog of more than 600 songs for $300 million to Universal Music. The deal gives the label the rights to all of his work, including “Every Breath You Take," as well as all future royalties.
Miller Lite is opening the first branded bar in the metaverse, by way of Decentraland, as a way to advertise during the Super Bowl this year without buying an expensive TV commercial slot. Sofia Colucci, global vice president of Miller Family of Brands, joined Cheddar to talk about the new marketing concept. "We have a lot of great partnerships with NFL teams throughout the year but were shut out of advertising during the Super Bowl game, so this pushes us to think creatively and also think of what feels really relevant right now," Colucci said. "There's no question that there's a lot of excitement with the metaverse, and we wanted to participate but in a way that felt right for Miller Lite."
Plans to add affordable housing to a development in Yellow Springs, Ohio, were squashed after comedian Dave Chappelle and other community members spoke out against the project. Chappelle threatened to pull the plug on his local comedy club and restaurant projects if the development had been approved.
Jason Moser, Senior Analyst at The Motley Fool, joined Wake Up With Cheddar to talk about the big takeaways from Disney's Q1 report, which showed the company nearing 130 million Disney+ subscribers as parks revenue ticks up.
The airline industry is seeing a major consolidation as Frontier and Spirit Airlines have agreed to merge in a deal valued at $6.6 billion dollars. Frontier will control just over 51% of the company, and Spirit will control the other 48%, creating what would become the fifth-largest airline in the U.S. The deal was approved over the weekend, with Spirit CEO Ted Christie saying that the merger aims to create an aggressive, low-fare competitor focused on consumer-friendly pricing. John Grant, Senior Analyst at OAG explains the gravity of the merger, and the wider impact it could have on competition and the airline industry as a whole.
Cheeze, Inc. is a media platform that hopes to help photographers to tell stories through the use of NFT’s. Simon Hudson, founder and CEO of Cheeze, Inc. joined Cheddar News to explain the process as well as teasing its "Women of Authenticity" display for Women’s History Month. "We've made it very simple and focused very hard on reducing all of the friction to bring their items to the blockchain." Hudson explained. He also addressed reports that cloud software giant Salesforce could be getting into the NFT marketplace.
