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 has fired one of two Democratic members of the U.S. Surface Transportation Board to break a 2-2 tie ahead of the board considering the largest railroad merger ever proposed.
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.
