A Boeing 737 MAX jet heads to a landing at Boeing Field following a test flight Monday, June 29, 2020, in Seattle. The jet took off from Boeing Field earlier in the day, the start of three days of re-certification test flights that mark a step toward returning the aircraft to passenger service. The Federal Aviation Administration test flights over the next three days will evaluate Boeing's proposed changes to the automated flight control system on the MAX, a system that activated erroneously on two flights that crashed, killing 346 people. (AP Photo/Elaine Thompson)
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.
U.S.-CHINA TENSION HITS MARKETS
Stocks broadly fell on Wall Street Friday amid increased tensions between the United States and China, in addition to a mixed batch of earnings reports. The U.S. and China went back and forth with orders to close consulates, drawing concerns from investors also dealing with the surging cases of coronavirus in the American South and the uptick in filings for unemployment benefits last week. The uncertainty in the markets, as technology and health care companies accounted for much of the selling, led to a record rise in the price of gold.
TECH TUMBLES
Tech companies did their part dragging down markets by the end of this week, despite a series of impressive earnings reports. Tesla beats made it eligible for the S&P, but the stock price still dropped as investors wonder where the EV-maker can go from here. Social media giants Twitter and Snap both saw their user bases grow, but a dearth of advertising dollars in the industry are raising questions about how they're going to make money in Q3. Intel stock also plummeted after indicating the storied manufacturer may move away from producing its own chips.
VACCINES AND TREATMENTS
Even as the number of coronavirus cases in the U.S. surpassed 4 million this week, some glimmers of hope came in the form of potential vaccines. Pharma companies Pfizer and BioNTech made a nearly $2 billion deal with the federal government to deliver a working vaccine. The deal pushed stocks higher on Wednesday. Sorrento Therapeutics also received a big boost on the news that the FDA approved their COVID-19 treatment Abivertinib for a Phase 2 trial on hospitalized patients.
BOEING MAX UPDATE
Don't expect the Boeing 737 MAX to hit the skies in 2020, according to a report this week from The Wall Street Journal. But for investors, some news was better than no news: stock ticked up on the report. Boeing got another ding on Friday, though, as the FAA warned airlines to inspect older models of the 737 NG and Classic that haven't flown for a week over corrosion that could possibly lead to engine failure.
MICROSOFT'S HARD KNOCKS
Tech giant Microsoft reported some stellar earnings news on Wednesday, beating analyst expectations on revenue by nearly $1.5 billion, as the coronavirus drove demand for the company's tools for remote work. But, the stock still fell nearly 2.5 percent on news of slowing growth for its Azure business. On top of that, the messaging app company Slack filed a complaint against Microsoft with the European Commission, citing anti-competitive behavior. Slack accused Microsoft of having "illegally tied" its Teams product to Office. Microsoft, however, added some positivity to the week announcing its part in a coalition of large companies called Transform to Net Zero with the goal of achieving carbon negativity by the year 2030.
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