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.
Something funny happened on the way to the kitchen this week. Stock for legacy brand Tupperware, which had been struggling mightily to remain on the New York Stock Exchange as it dipped below a dollar, started to rise. And up it went, climbing more than 260% in the last month. It seems memestock investors have made it the new golden child. Even with the meteoric rise from where it had been, the stock is still down 33 percent since the beginning of the year.
One of these things is not like the other…Meta and Alphabet stocks shot up after the companies released their earning reports this week. Ad dollars are flowing once again to the biggest tech companies and it's showing in their profits. On the other hand, Microsoft tumbled despite a strong quarter as investors were concerned about a slower ramp-up in artificial intelligence than expected. Next week, we'll round out the Big 4 tech giants when Apple releases its report. At the end of the week Meta was up 10 percent, Alphabet was up 9 percent, and Microsoft was down 2 percent.
HIGH SEAS, LOW SKIES
The dichotomy was also seen in the travel industry. Royal Caribbean stock shot up after crushing expections in its earnings report; investors were expecting earnings of $1.58 per share but the actual number was $1.70 ($1.82 adjusted). The cruise liner says people are turning their spending from goods to experiences, and that has helped the vacation company immensely. Up in the air, worries about domestic air travel hit Alaska Airlines and Southwest with both reporting that travel is slowing, especially within the U.S. Royal Caribbean stock ended the week up 6 percent, but Alaska Air and Southwest were both down almost 9 percent.
FORD SLOWS DOWN
One of the big announcements coming out of Ford's earnings report is that the auto giant is pulling back on plans to crank out 600,000 electric vehicles this year. Now it says 2024 is when it expects to hit that annual number, but that also changes its plan to hit 2 million EVs by the end of 2026. Investors took note, sending the stock 4 percent for the week.
LOWER WAGE INCREASES = GOOD NEWS
A true Catch-22: a new report shows wage growth is slowing, which isn't great if you were hoping for a big raise this year, but is very good news for the economy because it could curb inflation. There was other good news on the inflation front this week (despite the Fed raising rates a quarter of a percent). In June, consumer prices rose at the slowest rate that we've seen in two years. During his press conference on Wednesday, Federal Reserve Chair Jerome Powell said experts at the central bank are no longer forecasting a recession.