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.

RATE HIKE ANXIETY 

It was a rocky week on Wall Street to say the least. Despite a slew of impressive earnings reports, the major indices careened in and out the red but ended up for the week on a strong Friday upswing. Markets initially struggled to digest Federal Reserve Chair Jerome Powell's Wednesday speech signaling that a rate hike could be coming as soon as March, with more possibly on the horizon. This news caused jitters among investors concerned about what higher rates will mean for growth stocks, which played no small part in fueling the pandemic-era bull market.   

TESLA POSTS BIG PROFITS

Amid what's increasingly looking like an electric vehicle renaissance, Tesla turned in a strong fourth quarter earnings report showing $5.5 billion in annual profits, which is up from $720 million in 2020. But the beat didn't help Tesla's stock, which is already highly valued. Shares fell 11 percent on Thursday on the news that Tesla will not produce any new vehicle models in 2022, due to supply chain issues and chip shortages, and were down on the week.

RECORD SALES FOR APPLE

Apple posted its highest-ever quarterly earnings this week, defying Wall Street expectations that supply chain issues would cut into the iPhone maker's bottom line. Sales came in at $123.9 billion, up 11 percent from the last quarter. Every product category, except iPads, beat expectations with the 5G-capable iPhone 13 showing numbers. CEO Tim Cook also hinted that he expects supply chain woes would ease in the coming quarter. 

KOHL'S FOR SALE?

Kohl's saw its stock surge nearly 35 percent on Monday on the news that at least two buyers were interested in taking over the retailer. The two contenders, a hedge fund and a private equity firm are interested in taking the company private. One of them, the activist hedge fund Macellum Advisors, has been critical of the company's management during the pandemic and is now calling for a change of course. 

MATTEL WINS BACK DISNEY 

Shares of Mattel popped this week after the toymaker secured a deal with Walt Disney to put out a product line for the Disney princesses, including the popular Frozen franchise. The deal marks a comeback for the company, which lost the Disney license to Hasbro back in 2016. The loss back then spurred a string of leadership shake-ups, ending with current CEO Ynon Kreiz taking over. He has since tried to stabilize the company with $1 billion in cost cuts and efforts to revitalize legacy brands such as Barbie — which, if you haven't heard, is being developed as a movie starring Margot Robbie and directed by Greta Gerwig. This is on top of another of its brands, Masters of the Universe, getting a new live-action movie deal with Netflix after being stuck in development with Sony. The stock ended up almost five points for the week.

Share:
More In Business
Flights to LAX halted due to air traffic controller shortage
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing defense workers on strike in the Midwest turn down latest offer
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
FBI’s NBA probe puts sports betting businesses in the spotlight
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla’s profit fell in third quarter even as sales rose
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
Load More