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.
SHORT MARKET WEEK
Stocks ended down for the most part this holiday-shortened week, despite an uptick on Thursday and data showing the labor market somewhat cooling (which could encourage the Fed not to continue raising interest rates at a fast clip). The S&P fell 0.1 percent, the Nasdaq dropped 1.1 percent, while the Dow Jones ended up slightly with 0.6 percent. On Good Friday, while U.S. stock markets were closed, the bond market saw a jump following the anticipated March jobs report from the Labor Department which also indicated a slowdown in employment.
GOOGLE RALLIES
Shares of Google popped after the company announced that it planned to integrate conversational artificial intelligence (AI) features into its flagship search engine. CEO Sundar Pichai said the technology should make Google answer queries faster. He also noted that Google also plans to eventually add AI features to its work-related products such as Gmail. In addition, the company earlier in the week said it's making cuts to employee services such as office equipment, like laptops and staplers, and employee benefits, like fitness classes. The stock was up about 5 percent for the week.
FEDEX GETS A BOOST
FedEx's stock got a bump this week following the announcement of a $4 billion cost-cutting plan. The so-called DRIVE program will restructure the company by combining its division to operate as a full air-ground service provider. It will also implement a number of other efficiencies designed to create $2 billion of savings. The stock was up around 2 percent for the week.
WWE HYPED
World Wrestling Entertainment stock soared this week to its highest price in about four years following news it would be merging with Ultimate Fighting Championship's parent company. "Together, we will be a $21+ billion live sports and entertainment powerhouse with a collective fanbase of more than a billion people and an exciting growth opportunity,” said Vince McMahon, executive chairman of WWE, in a statement. The professional wrestling giant saw its share price surge 15 percent during the shortened trading week. Ari Emanuel, CEO of UFC parent company Endeavor Group Holdings, will be the chief executive for the newly merged company, while McMahon will stay on in his role as WWE executive chairman, and the presidents of WWE and UFC, Nick Khan and Dana White respectively, will continue on as well.
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Spain's government has fined Airbnb 64 million euros or $75 million for advertising unlicensed tourist rentals. The consumer rights ministry announced the fine on Monday. The ministry stated that many listings lacked proper license numbers or included incorrect information. The move is part of Spain's ongoing efforts to regulate short-term rental companies amid a housing affordability crisis especially in popular urban areas. The ministry ordered Airbnb in May to remove around 65,000 listings for similar violations. The government's consumer rights minister emphasized the impact on families struggling with housing. Airbnb said it plans to challenge the fine in court.
Roomba maker iRobot has filed for Chapter 11 bankruptcy protection, but says that it doesn’t expect any disruptions to devices as the more than 30-year-old company is taken private under a restructuring process. iRobot said that it is being acquired by Picea through a court-supervised process. Picea is the company's primary contract manufacturer. The Bedford, Massachusetts-based anticipates completing the prepackaged chapter 11 process by February.
Serbia’s prosecutor for organized crime has charged a government minister and three others with abuse of position and falsifying of documents related to a luxury real estate project linked to U.S. President Donald Trump’s son-in-law Jared Kushner. The charges came on Monday. The investigation centers on a controversy over a a bombed-out military complex in central Belgrade that was a protected cultural heritage zone but that is facing redevelopment as a luxury compound by a company linked to Kushner. The $500 million proposal to build a high-rise hotel, offices and shops at the site has met fierce opposition from experts at home and abroad. Selakovic and others allegedly illegally lifted the protection status for the site by falsifying documentation.
