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.
OMICRON DOWNTURN
Another wave means another downturn as economists adjust their forecasts for GDP growth in 2022 over growing concerns that the omicron variant will be a drag on the recovery. Already over the holiday weekend, airlines canceled thousands of flights, and hospitals are feeling the strain as daily case counts hit record highs. The latest wave is expected to curb growth in the first quarter of 2022 and shift widely anticipated gains later into the year. Some economists have pointed out, however, that this wave is expected to cause less economic damage than prior ones, including the delta variant, with longer-term predictions currently a mixed bag.
SANTA CLAUS RALLY
Despite emerging omicron woes, the stock market pulled off a so-called "Santa Claus rally" this week, as stocks rose steadily from their December 20 low. The last week of the year often brings a slight rally, so markets aren't necessarily banking on continued gains. While the Dow and S&P 500 finished at all-time highs on Wednesday, analysts expect the rally to fade going into the new year, especially as the latest wave takes its toll on industries such as airlines and cruise ships. While markets were up big for 2021, they nonetheless saw slight losses on the last, thinly-traded day of the year.
CRUISE STOCKS DIVE
One sector that is taking omicron on the chin is the embattled cruise industry. After a disastrous 2020, the industry held up relatively well through 2021 and into December. That changed as familiar reports of outbreaks on cruise ships returned this week, and the CDC announced that even vaccinated people should stay away. Shares of Carnival, Royal Caribbean, and Norwegian were down 1 to 2 percent on Friday.
JETBLUE LEADS
Meanwhile, in the skies, shares of JetBlue Airways whipsawed this week amid uncertainty around omicron and new CDC guidelines on quarantining. The stock was up 7.5 percent earlier in the week, even as the airline industry canceled thousands of flights. The company announced that it plans to cancel flights through mid-January due to crew shortages, and shares eventually slid along with other airline stocks. However, JetBlue shares finished the week just slightly down as it leads the pack in laying out plans for 2022.
DIDI LOSSES
Chinese ride-hailing company Didi Global saw its shares tumble on Monday after a report from the Financial Times that current and former employees were banned from selling their stock, even as the company's 180-day, post-IPO lock-up period ended. The stock dropped more than 8 percent on the week. The scandal comes as Didi moves forward with plans to delist from U.S. exchanges amid a broader regulatory crackdown in both the U.S. and China.
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.
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.
Cracker Barrel is sticking with its new logo. For now. But the chain is also apologizing to fans who were angered when the change was announced last week.
Elon Musk on Monday targeted Apple and OpenAI in an antitrust lawsuit alleging that the iPhone maker and the ChatGPT maker are teaming up to thwart competition in artificial intelligence.
