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.
BUDGET DRAMA
House Speaker Kevin McCarthy has yet to secure the Republican votes for a bill that would raise the federal debt ceiling to avoid default until at least March 31, 2024. That means more uncertainty for the stock market next week, as the prospect of a default on the national debt hangs over the economy. The debt fight on Capitol Hill is also raising the cost of credit default swaps, which gauge the risk of a default on U.S. Treasury bills.
NETFLIX'S WILD RIDE
Shares of Netflix slipped on Tuesday after the company reported mixed earnings in the first quarter, including a lower-than-expected forecast for the coming quarter. The streaming giant also announced that it was ending its DVD mailing service. "We are growing, not as fast as we believe we can, not as fast as we would want to, but we are growing and we are profitable," co-CEO Ted Sarandos told investors during an earnings call. "We have a clear path to reaccelerate growth in both revenue and profit and we are executing on it."
AT&T DROPS
AT&T's stock saw its biggest sell-off since 2000 after reporting a miss on revenue and cash flow. The telecommunications company added 424,000 postpaid phone subscribers, but free cash flow was well below estimates. AT&T said it expects those factors to normalize next year. Rival companies Verizon and T-Mobile are set to report next week.
PROCTER & GAMBLE POPS
Finishing out the week, shares of Procter & Gamble popped nearly 4 percent after the company reported that it raised prices around 10 percent across its brands in the first quarter. P&G had raised prices roughly 10 percent the prior quarter as well, suggesting incredible pricing power, which investors rewarded
Shan Aggarwal, VP of Corporate and Business Development at Coinbase, discusses the company's acquisitio of Deribit as it heads into the S&P 500. Watch!
American businesses that rely on Chinese goods are reacting with muted relief after the U.S. and China agreed to pause their exorbitant tariffs on each other’s products for 90 days. Many companies delayed or canceled orders after President Donald Trump last month put a 145% tariff on items made in China. Importers still face relatively high tariffs, however, as well as uncertainty over what will happen in the coming weeks and months. The temporary truce was announced as retailers and their suppliers are looking to finalize their plans and orders for the holiday shopping season. They’re concerned a mad scramble to get goods onto ships will lead to bottlenecks and increased shipping costs.
Shopping expert Trae Bodge discusses how talks between the U.S. and China is good news for now, but uncertainty remains for back-to-school and the holidays.
Jake Traylor, White House reporter at Politico, joins Cheddar to discuss how Trump is aiming to lower drug prices and how it differs from Biden's approach.
DJ X, alongside Molly Holder, Senior Director of Product Personalization, takes us inside Spotify's A.I. DJ and how it's the best new way to listen to music.
Sheryl Palmer, CEO of Taylor Morrison, talks tariff uncertainty, being a female leader in a male dominated industry and what homebuyers need to know. Watch!
