Sam Altman, left, CEO of OpenAI, appears onstage with Microsoft CEO Satya Nadella at OpenAI DevDay, OpenAI's first developer conference, on Monday, Nov. 6, 2023 in San Francisco. (AP Photo/Barbara Ortutay)
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
Nvidia on Wednesday became the first public company to reach a market capitalization of $5 trillion. The ravenous appetite for the Silicon Valley company’s chips is the main reason that the company’s stock price has increased so rapidly since early 2023.
Chris Williamson, Chief Business Economist at S&P Global, breaks down September’s CPI print and inflation trends, explaining what it means for markets.
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.
