A Tesla vehicle is plugged into a Tesla charging station in a parking lot on September 22, 2022, in Santa Monica, California. (Photo by Allison Dinner/Getty Images)
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.
JOBS REPORT
The stock market had its eyes trained on the job market this week, as multiple bullish employment reports clashed narratively with a series of layoff announcements from large tech firms such as Amazon and Salesforce. The Labor Department on Friday reported that the U.S. economy added 223,000 jobs in December, and unemployment ticked down to 3.5 percent. The news might have sparked a sell-off — given investors' expectations that the Federal Reserve will continue raising interest rates until job and wage growth slows — but the opposite happened. The Dow Jones jumped 700 points following the news. That's because wage growth slowed in December, even as unemployment fell, suggesting that inflation in services could start coming down, or at least slowing, without a large spike in unemployment. That's the hope anyway.
BED BATH & BANKRUPT
Bed Bath & Beyond warned earlier this week that it's weighing a possible bankruptcy after reporting lower-than-expected sales in the third quarter. The former meme stock had quite the year, rising stratospherically over the summer and then crashing just as quickly after GameStop board chair Ryan Cohen sold his 10 percent stake. The retailer has struggled in recent months to keep shelves stocked, and customer traffic has fallen as a result. Now expenses are beginning to outpace cash flow, and something has to give for the embattled big box chain. The company said other financial options such as restructuring debt or selling assets are on the table, but some industry experts are now predicting a bankruptcy filing could come as early as next week.
TESLA DISAPPOINTS
Tesla is having a tough time easing into the new year. The company on Monday reported that it missed its delivery goal for the year, and the stock plunged around 12 percent. Things didn't improve much from there. The stock is down more than 5 percent for the week, and got dinged again on Friday after reports that Tesla was cutting prices again in China and other Asian markets. The big concern now for investors is whether demand for Tesla cars is flagging and what this could mean for the company's bottom line. CEO Elon Musk's preoccupation with his Twitter purchase hasn't helped either, especially with some critics saying that Tesla is losing momentum.
GE SPLITS
In 2021, General Electric announced that it was spinning off into three different companies. On Wednesday, the first of those new companies debuted on the stock market. GE HealthCare, which comprises the conglomerate's medical technology and pharmaceutical departments, started trading at around $54 per share, and is now up more than 8 percent for the week. The next spin-off is set for 2024 and will encompass GE's renewable energy and power units. The remaining company will focus on aviation.
A Michigan judge is putting sponges in the hands of shoplifters and ordering them to wash cars in a Walmart parking lot when spring weather arrives. Genesee County Judge Jeffrey Clothier hopes the unusual form of community service discourages people from stealing from Walmart. The judge also wants to reward shoppers with free car washes. Clothier says he began ordering “Walmart wash” sentences this week for shoplifting at the store in Grand Blanc Township. He believes 75 to 100 people eventually will be ordered to wash cars this spring. Clothier says he will be washing cars alongside them when the time comes.
The State Department had been in talks with Elon Musk’s Tesla company to buy armored electric vehicles, but the plans have been put on hold by the Trump administration after reports emerged about a potential $400 million purchase. A State Department spokesperson said the electric car company owned by Musk was the only one that expressed interest back in May 2024. The deal with Tesla was only in its planning phases but it was forecast to be the largest contract of the year. It shows how some of his wealth has come and was still expected to come from taxpayers.
At 100 years old, the Goodyear Blimp is an ageless star in the sky. The 246-foot-long airship will be in the background of the Daytona 500 — flying roughly 1,500 feet above Daytona International Speedway, actually — to celebrate its greatest anniversary tour. Even though remote camera technologies are improving regularly and changing the landscape of aerial footage, the blimp continues to carve out a niche. At Daytona, with the usual 40-car field racing around a 2½-mile superspeedway, views from the blimp aptly provide the scope of the event.
You'll just have to wait for interest rates (and prices) to go down. Plus, this deal's a steel, the big carmaker wedding is off, and bribery is back, baby!
It’s a chicken-and-egg problem: Restaurants are struggling with record-high U.S. egg prices, but their omelets, scrambles and huevos rancheros may be part of the problem. Breakfast is booming at U.S. eateries. First Watch, a restaurant chain that serves breakfast, brunch and lunch, nearly quadrupled its locations over the past decade to 570. Fast-food chains like Starbucks and Wendy's added more egg-filled breakfast items. In normal times, egg producers could meet the demand. But a bird flu outbreak that has forced them to slaughter their flocks is making supplies scarcer and pushing up prices. Some restaurants like Waffle House have added a surcharge to offset their costs.
William Falcon, CEO and Founder of Lightning AI, discusses the ongoing feud between Elon Musk and Sam Altman, and how everyday people can use AI in their lives.
U.S. tariffs on steel and aluminum “will not go unanswered,” European Union chief Ursula von der Leyen vowed on Tuesday, adding that they will trigger toug