The Week's Top Stories: Mad Markets, and Shutdown Showdown
*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.*
* **Markets Whipsaw:**
The week between Christmas and New Year’s is usually a languorous time of slow news days, long lunches, and early clock-outs. Someone should have told that to the traders on Wall Street. The markets this week behaved much like a roller coaster ー continuing a slide after Christmas, then reversing course for the Dow’s largest point gain in history, then slipping and rallying again. Finally on Friday, the Dow traded in a more settled range, the first day it gained or lost less than a percentage point since Dec. 18. With one more trading day left in the year, the S&P is on track for its biggest annual percentage decline since the peak of the financial crisis in 2008.
* **Happy Holiday:**
The market volatility did not stop shoppers from going out (and online) in droves to finish off the holiday season on a strong note. All told, U.S. consumers spent a cool $850 billion this holiday with retail sales up more than 5 percent over a year ago ー the biggest increase in six years. E-commerce sales were up nearly 20 percent year-over-year, with department stores showing the only signs of weakness, due mostly to store closings. A shopping trend known as BOPIS (buy online, pick up in store) came into its own this year; those types of sales were up 46 percent, and 86 percent of retailers surveyed called the trend the future of the delivery model. [Read more](https://www.cheddar.com/videos/not-dead-yet-malls-show-signs-of-life-amid-strong-holiday-spending).
* **Shutdown Showdown:**
Meanwhile, Washington ended the year in a stalemate over funding for President Trump’s border wall. The federal government has been partially shut down for a week due to the budget impasse, which is affecting 800,000 federal workers. Trump has said he won’t reopen the government until he secures the $5 billion he has requested to build more of the wall and said he would consider closing the southern border if the funding doesn't materialize. Trump repeatedly told his supporters during his campaign that the wall would be paid for by Mexico, though that narrative has largely been replaced by a taxpayer-funded barrier that two-thirds of Americans don’t deem necessary. [Read more](https://www.cheddar.com/videos/congress-meets-and-adjourns-with-no-solution-to-shutdown).
* **Tesla:**
If you’re in the market for a new Tesla ($TSLA) but haven’t pulled the trigger, you might want to do so before Tuesday. That’s when the federal tax credit will be slashed in half, from $7,500 to $3,750. Tesla CEO Elon Musk has said the company will reimburse customers who bought new cars, but encountered delays that caused them to miss out on the subsidy. Meanwhile, as part of Musk’s settlement with the SEC ー remember that “funding secured” tweet? ー two new members were added to the electric carmaker’s board: Larry Ellison, the former CEO of Oracle ($ORCL), and Kathleen Wilson-Thompson of Walgreens ($WBA). In China, the company’s largest overseas market, Tesla has seen demand plummet due to tariffs, prompting it to cut prices for the third time in two months. Tesla is at work on a Shanghai factory that would cushion the blow from trade war tariffs on U.S.-produced vehicles. [Read more](https://www.cheddar.com/videos/tesla-appoints-new-board-members).
* **Tax Changes:**
With the first year of the new tax law almost in the books, it’s a good time for a primer on how the law will affect individual filers when tax season comes, which is always sooner than you think. Your 1040 will look different, for starters: the personal deduction has been eliminated, but standard deductions have roughly doubled for single filers, heads of household, and those with dependents. Filers will also no longer be able to deduct costs associated with job searches and working from home, which will negatively impact freelancers and anyone who spent more than 2 percent of their adjusted gross income on job-related expenses. The new law also makes it harder for people to deduct mortgage interest and property taxes. [Read more](https://www.cheddar.com/videos/the-tax-changes-that-are-about-to-sneak-up-on-you).
*-Carlo Versano*
Rainmaker Games bills itself as a blockchain-based organization founded in the metaverse, built on a new type of gaming ecosystem called play-to-earn. The company announced a $6.5 million seed round after it was founded just this year. Rainmaker Games CEO and founder Will Deane joins Cheddar News' Closing Bell to discuss.
Analysts are all-in on tech giant Apple, issuing bullish ratings this week and calling it a 'safety blanket' and one of the best assets for investors in 2022. This comes as Apple edges closer to a $3 trillion market cap. Mario Stefanidis, Vice President at Roundhill Investments, joins Cheddar News' Closing Bell to discuss why analysts are bullish on the tech giant, how close the company is to hitting a $3 trillion market cap, and more.
Planet made its public debut on December 8, ringing the opening bell at the NYSE in honor of the occasion. With more than 200 satellites in orbit, the company operates the world's largest constellation of satellites, providing daily scans of the entire earth. This helps with everything from agriculture companies monitoring fields and crop health, to FEMA's disaster response, to marine protection programs. Will Marshall, co-founder and CEO of Planet, explains how this milestone will allow the company fulfill its mission of using space to help life here on Earth.
North Carolina is transitioning into an electric vehicle manufacturing hub, as Toyota plans to build its first North American lithium-ion battery plant. Machelle Baker Sanders, secretary of commerce for North Carolina, joined Cheddar to discuss the influx of tech-heavy businesses and what Toyota's 1,750 jobs mean for North Carolina's economy. Sanders said the carmaking giant's $1.29 billion project was contingent on it committing to align with the state's own climate goals for a greener future.
Just weeks after launching its IPO, Embark Trucks is looking to take trucking to the next level by establishing an autonomous truck lane between Houston and San Antonio, Texas. CEO Alex Rodrigues joined Cheddar's "Closing Bell" to talk about the company's expansion into the Lone Star State and the efforts taken to make the driverless vehicles safe for the shipping corridor. "I think the biggest thing you'll notice as a person driving on the road is that they're going to be a little bit more patient, a little bit more law-abiding because they don't have to get there under the same kind of time pressure," he said. "They don't have the hours of service limitations." He also explained that the lane itself isn't a segregated road but a digital route on an existing roadway for the vehicles to follow.
As the saying goes, one man's trash is another man's treasure. That's exactly what artist David Anasagasti, also known as Ahol Sniffs Glue, was thinking when he created his scavenger hunt during Art Basel. Nearly 100 winners who followed the clues were able to get their piece of art signed, plus an NFT minted artwork. Artist Ahol Sniffs Glue joins Cheddar News to discuss the event and his exhibit.
Instagram CEO Adam Mosseri faced a bipartisan Congressional grilling this week as the Senate inquired about safety practices for protecting the mental wellbeing of young people on the platform. Sen. Marsha Blackburn (R-Tenn.) joined Cheddar to talk about the hearing and how she was disappointed in Instagram coming unprepared with relevant information or documents. Blackburn also offered concern that the platform could continue with building a kids-only version despite having drawn significant opposition from the public.
If you were wondering what the most popular trends on Google were after a rollercoaster 2021, the search giant has released its annual trending list. Sports, politics, and "Squid Game" dominated the U.S. and global trends this year.
Ford Pro has teamed up with Salesforce to launch 'VIIZR.' a new software service designed to help small businesses and tradespeople succeed. The newly launched tool will help small businesses simplify commercial activities including invoicing, scheduling and managing requests, from one integrated, cloud-based platform. Ted Cannis, CEO, Ford Pro, joined Cheddar to discuss.
a new study by The Buy Safe America Coalition shows retail theft has ballooned to over $68 billion per year. Most of these thefts are the result of something called organized retail crime. Those stolen goods are resold to unsuspecting consumers, often on popular online marketplaces like Facebook marketplace, eBay, OfferUp, and letgo. Mike Combs, Director of Organized Retail Crime Investigations at The Home Depot, joined Cheddar to discuss organized retail crime, how to identify it, and what can be done to stop it.
