Big Business This Week 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.
OPEN AI SHAKEUP
The big news that broke late in the trading day Friday was the ouster of Open AI CEO and co-founder Sam Altman. In a statement, the board said Altman had not been "consistently candid" in his communications with them. They have replaced him for the time being with CTO Mira Murati. Open AI does not trade on the exchanges, but they've been working very closely with Microsoft to move artificial intelligence forward. The news came as a surprise to many; earlier this month, Altman headlined the company's first developer conference and took the stage with Microsoft CEO Satya Nadella. Microsoft stock did see the impact of the news, with the stock dipping at the very end of the day. It ultimately closed for the week, but just barely.
BIG BOX MIXED BAG
While Target and Walmart both announced choppy waters in the retail space right now, with shoppers cutting back on unnecessary spending, Wall Street was more willing to embrace the story from one of them. Target shares jumped after its earnings call on Tuesday after it announced a big earnings beat, even though its revenue dropped. Investors were relieved to see the company has stabilized after holding on to too much inventory last year, requiring significant price cuts to move items off of shelves. Walmart reported positive financial results in its earnings report, but its shares dropped. At the end of the week, Target shares were up a whopping 20 percent at the end of the week. Walmart shares were down nearly 7 percent.
BUYING HYUNDAIS VIA AMAZON
Want to order your car on Amazon (along with everything else you need)? The online retailer is trying something new with Hyundai: you'll be able to start buying cars from local dealerships through the platform next year. Amazon won't be selling the cars via their own warehouses; many states have laws requiring purchasers to buy vehicles through dealerships. The news was great for Hyundai which saw its stock jump nearly 12 percent this week. Amazon was up 2 percent for the week.
MACY'S ON PARADE
While Macy's iconic Thanksgiving Day Parade will be televised for all to see next Thursday, the company already drew plenty of eyes on Wall Street this week with its Q3 earnings report. Sales dipped last quarter, but not as much as expected. Even better, they adjusted their guidance up for the rest of the year, causing investors to buy in; the stock was up 33 percent this week. Up next, the department store will be trying to open 30 small locations, which the company hopes will make it easier to put stores closer to more customers.
BIG BOEING BUY
The Dubai Air Show opened this week with a big order for Boeing. Emirates Airlines signed a deal to purchase $52 billion of aircraft from the U.S.-based maker. The stock jumped 4 percent on the news. FlyDubai, Emirates' budget sister-carrier, also signed on for an $11 billion order of its own. Boeing stock ended the week up 2 percent
Ford is recalling more than 355,000 of its pickup trucks across the U.S. because of an instrument panel display failure that’s resulted in critical information, like warning lights and vehicle speed, not showing up on the dashboard.
Nvidia reported a 56% increase in second-quarter revenue and a 59% rise in net income compared to a year ago.
The Rev. Al Sharpton is set to lead a protest march on Wall Street to urge corporate America to resist the Trump administration’s campaign to roll back diversity, equity and inclusion initiatives. The New York civil rights leader will join clergy, labor and community leaders Thursday in a demonstration through Manhattan’s Financial District that’s timed with the anniversary of the Civil Rights-era March on Washington in 1963. Sharpton called DEI the “civil rights fight of our generation." He and other Black leaders have called for boycotting American retailers that scaled backed policies and programs aimed at bolstering diversity and reducing discrimination in their ranks.
President Donald Trump's administration last month awarded a $1.2 billion contract to build and operate what's expected to become the nation’s largest immigration detention complex to a tiny Virginia firm with no experience running correction facilities.
Netflix CEO Ted Sarandos claims audiences don't want to watch Netflix movies in theaters, but that seems not to be the case recently.
Chipmaker Nvidia is poised to release a quarterly report that could provide a better sense of whether the stock market has been riding an overhyped artificial intelligence bubble or is being propelled by a technological boom that’s still gathering momentum.
Cracker Barrel said late Tuesday it’s returning to its old logo after critics — including President Donald Trump — protested the company’s plan to modernize.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
Cracker Barrel is sticking with its new logo. For now. But the chain is also apologizing to fans who were angered when the change was announced last week.
