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.
The New York Times and President Donald Trump are fighting again. The news outlet said Wednesday it won't be deterred by Trump's “false and inflammatory language” from writing about the 79-year-old president's health. The Times has done a handful of stories on that topic recently, including an opinion column that said Trump is “starting to give President Joe Biden vibes.” In a Truth Social post, Trump said it might be treasonous for outlets like the Times to do “FAKE” reports about his health and "we should do something about it.” The Republican president already has a pending lawsuit against the newspaper for its past reports on his finances.
OpenAI has appointed Slack CEO Denise Dresser as its first chief of revenue. Dresser will oversee global revenue strategy and help businesses integrate AI into daily operations. OpenAI CEO Sam Altman recently emphasized improving ChatGPT, which now has over 800 million weekly users. Despite its success, OpenAI faces competition from companies like Google and concerns about profitability. The company earns money from premium ChatGPT subscriptions but hasn't ventured into advertising. Altman had recently announced delays in developing new products like AI agents and a personal assistant.
President Donald Trump says he will allow Nvidia to sell its H200 computer chip used in the development of artificial intelligence to “approved customers” in China. Trump said Monday on his social media site that he had informed China’s leader Xi Jinping and “President Xi responded positively!” There had been concerns about allowing advanced computer chips into China as it could help them to compete against the U.S. in building out AI capabilities. But there has also been a desire to develop the AI ecosystem with American companies such as chipmaker Nvidia.
U.S. sports betting is booming as NFL and college football fuel massive activity. BetMGM CEO Adam Greenblatt breaks down trends, growth, and what’s next.
President Donald Trump says a deal struck by Netflix last week to buy Warner Bros. Discovery “could be a problem” because of the size of the combined market share. The Republican president says he will be involved in the decision about whether federal regulators should approve the deal. Trump commented Sunday when he was asked about the deal as he walked the red carpet at the Kennedy Center Honors. The $72 billion deal would bring together two of the biggest players in television and film and potentially reshape the entertainment industry.
Disney's changes to a program for disabled visitors are facing challenges in federal court and through a shareholder proposal. The Disability Access Service program, which allows disabled visitors to skip long lines, was overhauled last year. Disney now mostly limits the program to those with developmental disabilities like autism who have difficulty waiting in lines. The changes have sparked criticism from some disability advocates. A shareholder proposal submitted by disability advocates calls for an independent review of Disney's disability policies. Disney plans to block this proposal, claiming it's misleading. It's the latest struggle by Disney to accommodate disabled visitors while stopping past abuses by some theme park guests.
With a merger this big, creators, studios, and theaters all face uncertain futures. Here’s what experts are worried about and what good could come from it.
With disengagement rising and hybrid work shifting, 'Everybody Matters' author Bob Chapman explains why treating people well could define the future of work.
We sat down with Ali Furman, U.S. Consumer Markets Industry Leader at consulting firm PwC to ask what trends she garnered from the initial data this year.
