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.
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.
