In this March 16, 2020, file photo, a pharmacist gives Jennifer Haller, left, the first shot in the first-stage safety study clinical trial of a potential vaccine for COVID-19, the disease caused by the new coronavirus, at the Kaiser Permanente Washington Health Research Institute in Seattle. The vaccine by Cambridge, Massachusetts-based Moderna Inc., generated antibodies similar to those seen in people who have recovered from COVID-19 in a study volunteers who were given either a low or medium dose. (AP Photo/Ted S. Warren, File)
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 SEE-SAW
Stocks ended the week broadly higher on Friday after the Dow snapped a four-day run on Thursday when the weekly unemployment claims data showed a larger than expected gain for the week prior, and the S&P 500 gained for a third straight week. Economic data is all over the place: housing starts and building permits are up — an encouraging sign for the housing market. Consumer sentiment showed a surprise drop for the first half of July, as the increase in new coronavirus cases nationwide is once again leading people to pull back on the optimism for a "V" shaped recovery. That followed lagging data on June retail sales that showed a sharp uptick in spending as more businesses reopened.
PROMISING VACCINE TRIALS
Encouraging news on the COVID-19 vaccine front helped prop up markets, at least for the front half of the week. Moderna announced that Phase 3 trials for its coronavirus vaccine candidate will start later this month. It's the first biotech company to give a date for the critical trials, a sign that the drug appears to be working in early testing. Phase 3 will include 30,000 volunteers; it's the final phase before FDA approval, though it can take years in normal circumstances. However, a growing body of evidence suggests that coronavirus antibodies may not be permanent; that would jeopardize the distribution and implementation plan for any of the potential candidates: if patients need a second "booster" shot, that immediately doubles the amount of the drug that would need to be produced.
TWITTER HACK EXPOSES VULNERABILITIES
The FBI is now leading the investigation into the Twitter hack that compromised the accounts of more than 100 V.I.P. Twitter users, including Barack Obama, Elon Musk, and Jeff Bezos, and sent the service into chaos for several hours Wednesday and into Thursday. All that's known for sure is that someone got access to a Twitter employee's credentials, which allowed them to control most Twitter accounts for a period of some hours. It's still not known whether any Twitter employees were complicit, or if they were tricked into handing over their information (Twitter says it appeared to be a victim of a "social engineering" hack). Twitter shares sunk on the news but had mostly recovered by week's end.
NETFLIX DISAPPOINTS THE STREET
Netflix reported an astonishing 10 million new subscribers were added in the second quarter — and its stock sank 12 percent (other tech stocks have also begun to steady after seeing huge runs in recent weeks). On Wall Street, where it's all about what's next, Netflix investors reacted negatively to the streaming giant's guidance for Q3: 2.5 million new subs expected, or less than half of what analysts had predicted. With film and TV production essentially shut down, Netflix saw an incredible 92 percent increase in operating income on 25 percent revenue growth. But the company missed on earnings-per-share and warned that growth could slow as more facets of the economy reopen. It also acknowledged a new competitor in the marketplace: TikTok, the Chinese-owned social media phenomenon that's been the focus of renewed privacy and national security concerns from the government. Netflix's programming whiz Ted Sarandos has been promoted to co-CEO alongside Reed Hastings.
FREE BIRD
Netflix has another new competitor, too. NBCUniversal's Peacock launched wide with a catalog of 20,000 hours of content, including binge-favorites like 30 Rock, Parks & Recreation, and Everybody Loves Raymond. Comcast's NBCU is zigging while other media giants zag with their streaming offerings. Peacock is mostly free and ad-supported, though a premium tier is available for $5 a month (free for some Xfinity cable subscribers).
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
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 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.
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, 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.
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