The Week's Top Stories is a guided tour through the biggest market stories of the week, from winning stocks to brutal dips to the facts and forecasts generating buzz on Wall Street.
APPLE POWER
The stock market rallied on Friday after Apple reported its quarterly earnings, which showed a decline in revenue but solid iPhone sales. The stock rose 5 percent, buoying the rest of the market, with some help from the latest job report as well. The U.S. economy added 253,000 jobs in April and the unemployment dropped to 3.4 percent, despite reports of layoffs across industries and continued fears of a recession. The rally comes just two days after the Federal Reserve announced a quarter-percent rate hike as expected, with many expecting the central bank to now ease up on tightening. Still, the labor market staying tight could change that.
BANK STOCKS RALLY
Regional bank shares also rebounded at the end of the week. Shares of struggling banks such as PacWest and Western Alliance jumped 81 and 49 percent respectively. Bank stocks had dropped precipitously in recent sessions, as investors braced for more bank failures. Data indicating strength in the economy helped temper those fears, and bank stocks rose accordingly. Shares of First Horizon were also up, despite its recent announcement that a planned merger with TD Bank was collapsing. Relatedly, JPMorgan earlier this week agreed to purchase the ailing First Republic bank.
FORD EARNINGS
Ford, meanwhile, benefitted from the rally, but nonetheless is down for the week due in part to a mixed earnings report. The automaker posted strong first-quarter revenue and profit, as demand for trucks and SUVs remains robust, but had a less optimistic outlook for the year in response to continued losses in its electric vehicle unit. This doesn't bode well for the ongoing EV transition, but Ford has warned previously that the division could see losses for the foreseeable future.
RIDESHARE FIRMS DIVERGE
Shares of Uber are up more than 17 percent for the week after the rideshare giant reported strong earnings and a 29 percent jump in revenue. At the same time, shares of Lyft tanked 16 percent, as investors responded to a dim outlook for the coming year.
McDonald's missed on both the top and bottom lines in its Q4 earnings, marking the fourth loss for the fast-food giant in the past eight quarters. It comes as higher costs from food to wages ate into the blue-chip company's profits. George Seay, CEO of investment advisor Annandale Capital, joined Wake Up with Cheddar to discuss the recent numbers and the better-than-expected success of the McPlant burger made with plant-based Beyond Meat. "They're changing with the times, and they have to," Seay noted. "You can just sell a Big Mac to everybody. There's a lot of people who don't want to eat a Big Mac anymore."
Moderna launched a clinical trial of a COVID-19 booster shot specifically targeting the omicron variant. The first participant has already received a dose, and Moderna expects to enroll about 600 adults total, split between two groups. In the first group, participants will have previously received two doses of the Moderna vaccine, and in the second, participants will have received its booster. Dr. Paul Burton, chief medical officer at Moderna, joined Cheddar’s Opening Bell to discuss the trial, yearly boosters, and what lies ahead for the company.
A growing number of workers at major produce companies, processing plants, and grocery stores are calling out sick.
These virus-related absences are resulting in product shortages, leaving supermarket shelves far from full. Jesse Newman, agriculture reporter at The Wall Street Journal, joins Cheddar News to discuss.
There may be some light at the end of the tunnel for struggling retailer Kohl's. Shares soared more than 35 percent on Monday on reports that a second takeover could potentially be in the works - just days after a group backed by activist investment firm Starboard Value proposed buying the company. Private equity firm Sycamore Partners has allegedly reached out to Kohl's, offering to pay at least $65 per share in cash for the company - giving it a valuation of close to $9 billion. Joel Bines, Global Head of Retail at AlixPartners, joined Cheddar Movers to discuss the potential takeover as well as the state of retail in the U.S.
Big Apple workers who deliver for food apps like Doordash and Grubhub will now receive a number of legal protections provided through a package of new regulations that have started going into effect. These updated rules include more control over their deliveries, pay and tip transparency, a higher minimum pay rate, and access to restaurant bathrooms during the workday. New York City Comptroller Brad Lander joined Cheddar to elaborate on the regulations and how the platform holders reacted. "I have to say it's a mixed bag," he said. "Grubhub actually welcomed the legislation and said they recognize they need to do better by their deliveristas, but DoorDash, unfortunately, has actually been pushing back against the legislation."
Stocks closed mixed Wednesday after the Federal Reserve's announcement about potential rate hikes this year, beginning as soon as March. That would be the central bank's first rate hike since 2018, and Chair Jerome Powell also didn't rule out a potential rate hike at every meeting in order to combat inflation. RC Peck, CIO of Fearless Wealth, joined Closing Bell to discuss today's close, the Fed's announcement, Tesla's Q4 2021 earnings results, and more.
Stocks closed lower Tuesday, but off session lows amid continued volatility as investors await this week's Federal Reserve meeting, where the central bank is expected to introduce tighter monetary policy. Microsoft also reported second quarter fiscal 2022 earnings after the bell. The tech giant beat on both top and bottom lines, but shares fell after hours. David Stryzewski, CEO of the Sound Planning Group, joins Cheddar News' Closing Bell to discuss today's close, predictions for this week's Fed meeting, Microsoft's earnings report, and more.
