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.
BANKS REPORT EARNINGS
Some of the biggest U.S. banks released their quarterly earnings Friday morning, marking the unofficial start to earnings season. Overall, the banks, including Wells Fargo, Bank of America, and JPMorgan Chase, performed relatively well. JPMorgan Chase, Bank of America, and Wells Fargo all beat Wall Street estimates, while also signaling that 2023 could bring economic headwinds in the form of a recession and higher unemployment. Stock prices fluctuated after the release but are on track for a winning week.
DECEMBER DEFLATION
Consumers and investors alike rejoiced after the latest consumer price index showed prices falling 0.1 percent in December. While inflation has trended down for months, this is the first negative month-over-month read since prices started climbing in 2021. The report helped along the rally that began earlier in the week in anticipation of the data, which was roughly in line with Wall Street's estimates. For context, the year-over-year rate remains historically high at 6.5 percent, and the Federal Reserve is still expected to move forward with more rate hikes.
BED BATH & BUMPIN'
Looming bankruptcy? No problem, say gung-ho Bed Bath & Beyond investors. Shares of the embattled home goods retailer shot up as much as 300 percent this week, before losing some steam on Friday. The stock is still up over 200 percent in the last five days though, and it appears that retail investors are behind the rally. Just last week the company admitted that bankruptcy was on the table as cash flow was beginning to fall behind expenses. The retailer has struggled through the pandemic to keep shelves filled and draw in customers, while at the same time seeing successive retail investor-fueled rallies sparked by the meme stock craze.
COINBASE CLIMBS
Shares of Coinbase are up around 40 percent for the week, despite the dismal state of the crypto market. That's largely because Cathie Wood-led investment firm Ark Invest has spent $7.5 million on shares. Why the bullishness? It's one of the last major crypto exchanges left in the market, and it recently announced plans to expand into Europe.
Ty Young, CEO of Ty J. Young Wealth Management, joins Cheddar to discuss Trump's moves as he returns to Washington D.C. and how it may affect the U.S. economy.
Starbucks’ decision to restrict its restrooms to paying customers has flushed out a wider problem: a patchwork of restroom use policies that varies by state and city. Starbucks announced last week a new code of conduct that says people need to make a purchase if they want to hang out or use the restroom. The coffee chain's policy change for bathroom privileges has left Americans confused and divided over who gets to go and when. The American Restroom Association, a public toilet advocacy group, was among the critics. Rules about restroom access in restaurants vary by state, city and county. The National Retail Federation says private businesses have a right to limit restroom use.
President Donald Trump is talking up a joint venture investing up to $500 billion for infrastructure tied to artificial intelligence by a new partnership formed by OpenAI, Oracle and SoftBank. The new entity, Stargate, will start building out data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House. The initial investment is expected to be $100 billion and could reach five times that sum. While Trump has seized on similar announcements to show that his presidency is boosting the economy, there were already expectations of a massive buildout of data centers and electricity plants needed for the development of AI.
Chris Ruder, Spikeball Founder and CEO, explains how he and his friends put roundnet on the global map, plus, how Spikeball helps people "find their circle."
J.W. Roth, CEO of Venu Holding Corporation, discusses the company's IPO and plans to redefine live music entertainment with their fan founded, fan-owned model.
Variety's Clayton Davis discusses why more than just the 1% are struggling after the LA fires. Plus, how awards shows will pivot to help victims. Watch!
Emily Hosie, CEO of Rebelstork, explains the concept of Returns Recommerce, plus how her company raised $18M to address the industry-wide issue of returns.