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.
FALL OF FIRST REPUBLIC
First Republic's stock tanked on Friday after reports that the embattled bank was likely being taken into receivership by the Federal Deposit Insurance Corporation — along the lines of what happened to Silicon Valley Bank and Signature Bank earlier this year. Shares plunged around 20 percent before trading was halted due to volatility. U.S. officials are reportedly in talks to come up with an alternative rescue plan, but it's still unclear if it will come together in time.
EXXON'S OIL PROFITS
Shares of Exxon Mobil got a bump on Friday after the oil giant reported a doubling of profits in the first quarter from the year before. Wall Street analysts were anticipating some pullback based on softening oil and gas prices, but Exxon said the higher-than-expected earnings stemmed from new offshore drilling and refining facilities increasing overall production.
AMAZON SHARES SLIP
Amazon's stock slipped this week despite stronger-than-expected earnings in the first quarter. Shares initially shot up in after-hours trading on the beat, but took a plunge as investors responded to the fact that Amazon's cloud computing division continues to see a slowdown in profits. The unit, called Amazon Web Services, grew 16 percent in the quarter, which was above estimates but well below the 37 percent growth it saw in the same quarter last year.
INTEL'S RECORD LOSSES
Intel just reported its worst quarterly loss ever amid falling sales and painful restructuring. Earnings per share were down a whopping 133 percent from a year ago, and revenue dropped just under 36 percent. The company has struggled in recent years due to a weak PC market and difficulty keeping pace with more advanced competitors such as Taiwan's TSCM.
BED BATH & BEYOND BANKRUPTCY
After months of uncertainty and several last-ditch efforts to stay solvent, Bed Bath & Beyond has officially declared bankruptcy. The news broke last Sunday and already "Closing Soon" signs are appearing on many locations as the home retailer pursues a dual-track strategy that could involve a combination of liquidation and restructuring. This suggests that the brand could continue in some form but not until it shrinks significantly.
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.
