Big Business This Week 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.
BINANCE BITCOIN FALLOUT
Binance, the world's largest crypto exchange, agreed to a nearly $4 billion settlement over violations of the Bank Secrecy Act and apparent sanctions programs violations. On top of that, founder Changpeng Zhao stepped down as CEO after he pleaded guilty to failing to prevent money laundering. The fallout was immediate for Bitcoin, which fell 5 percent on Tuesday. It clawed back the losses by the end of the week, ending the week up nearly 1 percent. Bitcoin is up nearly 128 percent from where it was a year ago.
BIG EGG SCRAMBLED
A jury found this week that some of the biggest U.S. egg producers were engaged in price-fixing that drove up costs for years. While the price of eggs has made headlines since the pandemic, the complaint was actually filed by manufacturers back in 2011 and the jury found the price-fixing was happening from 2004-2008. Companies like Kraft Foods Global and The Kellogg Company had accused the egg companies of limiting supply in order to drive prices up. Damages will be determined next week. While several of the named organizations are not publicly traded, Cal-Maine Foods' stock dropped on the news, ending the week down 4 percent.
BEST BUY
Even though Black Friday sales have been going on for weeks, the holiday shopping season began in earnest on Friday. Shoppers often head to Best Buy to purchase popular electronics for their loved ones, but this year the retailer doesn't expect a banner season. During its earnings call on Monday, it announced shoppers are pulling back, a trend seen in a number of retailers. The stock dropped off on the news, but came back strong, ending the week up 3 percent.
WHAT'S NEXT FOR THE BIG 3
While the deals struck for autoworkers after a six-week strike will change the lives of thousands of workers, we're beginning to see the repercussions for the companies. GM announced that for the first time in four years it will not advertise during the Super Bowl as it tries to rein in fixed expenses. This week Ford announced it will scale back plans for an electric battery vehicle plant in Michigan due to a change in market conditions. Building was put on hold during the strike.
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.
At the core of the ongoing government shutdown is a fight over the decision to end subsidies that let some 12 million Americans get health coverage.
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.
