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.
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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