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.
The parent company for Toys "R" Us, Tru Kids, was acquired by WHP Global in March 2021, and it vowed a return to the physical retail experience. On Tuesday, the company opened its U.S. flagship location in American Dream, a megamall based in East Rutherford, N.J.
The Cowboy State has become one of the world's top tax havens, according to the Pandora Papers, a trove of more than 11.9 million documents obtained by the International Consortium of Investigative Journalists and The Washington Post. The papers reveal, among other things, how ultra-wealthy people from around the world move money into the U.S., invest, and spend it under a shroud of secrecy. Allison Tait, University of Richmond law professor, joined Cheddar to talk about Wyoming's laidback tax laws, their impact on the nation's economy, and provided some details on the financial arrangement known as the "cowboy cocktail."
Cheddar is looking back at the 12 biggest buzzwords of the year leading up to Christmas. The term for Day 9 is NFT. Definition: (noun) The abbreviation of non-fungible token, can be used as a unique and non-interchangeable unit of data stored on a digital ledger.
Barbara Doran, CEO and Chief Investment Officer at BD8 Capital Partners, joined Wake Up With Cheddar's Brad Smith to break down results from Nike and talk broader market movement, as major indexes look poised to rebound.
Despite the pandemic and the home workout revolution, many brick and mortar fitness companies have been able to stay afloat. Some even increased their membership during the pandemic, including Crunch Fitness. The Crunch franchise is celebrating 128% growth from pre-COVID membership levels as its 400th club enters pre-sale. Ben Midgley, CEO of Crunch Franchise, joined Cheddar to discuss how the company has been able to succeed during this time.
The pandemic prompted a shift toward personalized at-home workouts, and made health and wellness even more of a priority. In the early months of the pandemic, sales for fitness equipment, shoes and apparel skyrocketed as people adapted to working out in the solitude of their own homes. Even as gyms have reopened, some of these trends have stuck around. Jillian Michaels, personal trainer and creator of The Fitness App by Jillian Michaels, joined Cheddar to discuss the home workout revolution and give her advice on how to stick to your 2022 fitness goals.
