From Wall Street to Silicon Valley, these are the top stories that moved markets and had investors, business leaders, and entrepreneurs talking this week on Cheddar.
HONG KONG RATTLES MARKETS
Stocks ended the week lower, snapping a record-setting run in an abbreviated week of thin trading. Better-than-expected economic data, from durable goods orders to weekly jobless claims to GDP revisions, all helped fuel the pre-Thanksgiving gains. Those data points were replaced, post-holiday, by fresh trade concerns, which deepened after President Trump signed a bill Wednesday in support of pro-democracy protesters in Hong Kong. That legislation, which among things authorized sanctions on Chinese officials involved in human rights abuses in Hong Kong, infuriated Beijing. The Chinese government said the bill "seriously interfered with Hong Kong affairs, seriously interfered with China’s internal affairs, and seriously violated international law and basic norms of international relations.” It remains unclear whether the bill, largely symbolic, will interfere with the trade negotiations between the world's two biggest economies. Despite the jitters, the S&P 500 finished its best month since June.
TRILLION-DOLLAR HOLIDAY?
Retailers are hoping for a huge Black Friday/Cyber Monday showing, but for many the shopping extravaganza began earlier than ever. This was the first Thanksgiving ever to surpass $4 billion in online sales, with nearly half coming from mobile devices, according to data from Adobe Analytics. Total online sales are projected to reach $144 billion for the full season. Despite economic concerns related to the ongoing trade war, unemployment is near record lows, consumer confidence is high, and people are opening their wallets. The analytics firm eMarketer is estimating this could be the first-ever $1 trillion holiday shopping season when all is said and done.
BUZZKILL
A bad year for cannabis stocks got worse, with the FDA's release of its first-ever warning about the health risks of the hugely popular CBD cannabis component. CBD was taken off a list of banned substances last year and has grown to become a pillar of the fledgling U.S. cannabis industry, with claims that it can help anxiety, inflammation and insomnia, without the psychotropic effects of THC. But federal regulators pumped the brakes on those claims, saying CBD has the potential to cause liver damage, changes in mood and gastrointestinal problems. Investors are worried the report could signal the FDA plans a crackdown on the CBD market, and the report sent shares of publicly-traded cannabis firms like Tilray, Aurora and Cronos lower. Some of those stocks recovered later in the week on expectations that they will see a boost from increased holiday spending.
MERGER MANIA
Two huge, industry-shaking mergers were announced at the start of the shortened week. The country’s two largest discount brokerages made it official, with, Charles Schwab shelling out $26 billion in an all-stock deal to acquire TD Ameritrade. The retail brokerage industry has been shaken up, with upstarts like Robinhood taking market share from established firms, leading Schwab, Ameritrade and others to cut, or do away entirely, with commission-based trades. Meanwhile, in retail, LVMH, the European luxury giant behind fashion brands like Louis Vuitton and Fendi, is buying Tiffany in a $16 billion acquisition. The iconic jeweler has been suffering from weak sales in the U.S. and is betting on an expansion in China to fuel growth. LVMH is credited with becoming one of the most valuable companies in Europe due, in large part, to the success of its brands in the Chinese market.
SLOW GOING FOR BOEING
The chances of the 737 Max getting the stamp of approval from the FAA before the end of the year is getting smaller by the day. The smart money is now betting that it will be January, at the earliest, before the Max is re-certified to fly. Regulators are reportedly planning to inspect every single new 737 Max and, even then, it would take several more weeks for airlines to get their Max fleets back into service. Adding to the concerns for Boeing: Congress is said to be planning another hearing for December in which FAA officials would testify about the safety procedures involved in certifying the Max before the two crashes that killed nearly 350 people. Boeing, ending a year in the midst of its biggest corporate crisis ever, has seen its shares lose 15 percent of their value since March, when the second crash led to the worldwide grounding of the Max jet.
In the wake of Robinhood announcing it will be letting go of 9 percent of its staff, Caleb Silver, Investopedia editor-in-chief, joined Cheddar News to talk about the growing pains that the trading platform is going through, how it is affecting its user experience, and where it goes from here. “I think you're gonna see a little bit more automation, but that's how Robinhood was built," he said. "I think what you'll see is less marketing." Silver also noted that the steep drop in the stock price leaves it potentially open to being acquired. "I'm not saying that I know anything about this, but they're looking awful cheap. And when you think about what's going on with Twitter and some of these other platforms, you can see a buyer coming for Robinhood any minute now."
Stocks closed slightly higher Wednesday as the Nasdaq closed flat after a failed attempt to close higher. Investors are keeping an eye on earnings, which so far have been shaky for big tech giants and companies that typically drive the market. Garrett Phillips, Managing Partner at 3Summit Investment Management, joins Closing Bell to discuss today's close, our current volatile environment, where to invest in the current environment, and more.
Ron Carson, CEO and Founder of Carson Wealth, sits down with Cheddar's Hena Doba to share how he achieved 'work-life harmony' by investing time and money into businesses he's passionate about.
Jan Lee, co-founder of Neighbors United Below Canal, joins Cheddar News to discuss how the new mega jail in NYC's Chinatown will negatively impact the community.
Melissa Eamer, founder and CEO of aging wellness brand Modern Age, joins Cheddar News to discuss the recent launch of its digital experience and flagship in New York City.
Danny Trejo is teaming up with Tostitos the once again for Cinco de Mayo. The actor and restaurateur is starring in the tortilla chip brand's commercial with Sofia Reyes to inspire others on how to celebrate the holiday. The "Machete" star joined Cheddar News to talk about the campaign. "I only do things I like, and I like Tostitos," he said. "You know, I love their Scoops. They don't break in the guacamole."
With National Infertility Awareness Week underway, the fertility and family-building benefits provider for employers, Kindbody, is looking to make a full suite of treatments and care accessible — including for LGBTQ+ patients. Founder and chairwoman Gina Bartasi joined Cheddar's Opening Bell to talk about the importance of infertility awareness, what role employers play in offering benefits, and how to remove the stigma around the fertility conversation. "We have to talk about the patient holistically, not just fertility services, but what can we do from a mental health standpoint to support patients," she said. "Most patients talk about fertility being more stressful than divorce, infertility being more prevalent than cancer or diabetes. So it is our mission, remains our mission, to elevate awareness around infertility, not just [during] National Infertility Awareness Week."
With a constrained supply of housing in the most desirable markets, home prices have risen nearly 20 percent year-over-year in February. David O’Reilly, CEO of Howard Hughes Corporation, joined Cheddar News to talk about where people are migrating to, and away from, leading to red hot real estate. "We see clearly the most demand is going into those states that I would define as warmer and less expensive, those secondary cities like Houston, Phoenix, and Las Vegas, where individuals are trading in higher traffic and lower quality of life for more affordability," he said. O'Reilly pointed to urban centers in the Northeast and West Coast as seeing the most losses in residents.
Social media giants including Twitter, Meta, Alphabet, and Pinterest all report earnings this week, and there's plenty to keep an eye on. One big earnings report to watch will be Twitter's, after the company today accepted Tesla CEO Elon Musk's $44 billion bid to take the company private. Investors will also be keeping an eye on ad revenue, user numbers, and more when it comes to Meta's social media networks like Facebook and Instagram. Ted Mortonson, technology strategist at Baird, joins Closing Bell to discuss Musk's Twitter takeover, how Apple's iOS privacy change could continue to impact ad revenue, and more.
Brian Moody, Executive Editor at Autotrader, joined Closing Bell's Ken Buffa to look ahead at what to expect from legacy automakers GM and Ford, as the auto industry attempts to navigate a combination of issues, including supply chain constraints and rising interest rates.
