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.
The New York Times and President Donald Trump are fighting again. The news outlet said Wednesday it won't be deterred by Trump's “false and inflammatory language” from writing about the 79-year-old president's health. The Times has done a handful of stories on that topic recently, including an opinion column that said Trump is “starting to give President Joe Biden vibes.” In a Truth Social post, Trump said it might be treasonous for outlets like the Times to do “FAKE” reports about his health and "we should do something about it.” The Republican president already has a pending lawsuit against the newspaper for its past reports on his finances.
OpenAI has appointed Slack CEO Denise Dresser as its first chief of revenue. Dresser will oversee global revenue strategy and help businesses integrate AI into daily operations. OpenAI CEO Sam Altman recently emphasized improving ChatGPT, which now has over 800 million weekly users. Despite its success, OpenAI faces competition from companies like Google and concerns about profitability. The company earns money from premium ChatGPT subscriptions but hasn't ventured into advertising. Altman had recently announced delays in developing new products like AI agents and a personal assistant.
President Donald Trump says he will allow Nvidia to sell its H200 computer chip used in the development of artificial intelligence to “approved customers” in China. Trump said Monday on his social media site that he had informed China’s leader Xi Jinping and “President Xi responded positively!” There had been concerns about allowing advanced computer chips into China as it could help them to compete against the U.S. in building out AI capabilities. But there has also been a desire to develop the AI ecosystem with American companies such as chipmaker Nvidia.
U.S. sports betting is booming as NFL and college football fuel massive activity. BetMGM CEO Adam Greenblatt breaks down trends, growth, and what’s next.
President Donald Trump says a deal struck by Netflix last week to buy Warner Bros. Discovery “could be a problem” because of the size of the combined market share. The Republican president says he will be involved in the decision about whether federal regulators should approve the deal. Trump commented Sunday when he was asked about the deal as he walked the red carpet at the Kennedy Center Honors. The $72 billion deal would bring together two of the biggest players in television and film and potentially reshape the entertainment industry.
Disney's changes to a program for disabled visitors are facing challenges in federal court and through a shareholder proposal. The Disability Access Service program, which allows disabled visitors to skip long lines, was overhauled last year. Disney now mostly limits the program to those with developmental disabilities like autism who have difficulty waiting in lines. The changes have sparked criticism from some disability advocates. A shareholder proposal submitted by disability advocates calls for an independent review of Disney's disability policies. Disney plans to block this proposal, claiming it's misleading. It's the latest struggle by Disney to accommodate disabled visitors while stopping past abuses by some theme park guests.
With a merger this big, creators, studios, and theaters all face uncertain futures. Here’s what experts are worried about and what good could come from it.
With disengagement rising and hybrid work shifting, 'Everybody Matters' author Bob Chapman explains why treating people well could define the future of work.
We sat down with Ali Furman, U.S. Consumer Markets Industry Leader at consulting firm PwC to ask what trends she garnered from the initial data this year.
