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.
POWELL ON INFLATION
Hot off a blockbuster jobs report, Federal Reserve Chair Jerome Powell said during a public appearance this week that inflation still had a long way to go. The comments helped temper hopes that easing inflation might lead the Fed to pull back on rate hikes sooner rather than later, which likely fueled some of the bearish sentiment over the past five days. With that hot jobs report hanging over markets, the next inflation report will be eagerly anticipated to see if the deflationary trend accelerates or prices pick back up, giving credence to the Fed's caution.
UBER PULLS AHEAD
It was a week of contrasts for the two biggest ridesharing companies. Shares of Lyft melted down around 30 percent after an earnings report showed it falling behind rival Uber. Lyft's first quarter outlook showed that it would have to lower profits to keep pace with Uber's fare prices. “This is obviously not the level of growth, profitability we are aiming for or capable of,” Lyft CEO Logan Green told investors. “And we are laser-focused on driving additional growth and managing costs.” Uber, meanwhile, boasted surpassing two billion rides globally.
Shares of Disney rose and then fell this week after the entertainment giant announced plans to lay off 7,000 workers, cut $5.5 billion in costs, and reorganize the company into three business units, all in a bid to increase profitability. The initial rally came after CEO Bob Iger said Disney was trying to reinstate its dividend, which was suspended during the pandemic. But other headwinds helped knock the share back down into the red. In addition to macroeconomic challenges, the company's Disney+ streaming service lost 2.4 million subscribers — its first-ever drop.
Robinhood's stock is down around 6 percent this week after missing Wall Street estimates on its latest earnings report, even as it showed a 5 percent jump in net revenue. The board also approved the purchase of 55 million shares, or 7.6 percent of the company, from disgraced crypto executive Sam Bankman-Fried, who bought them in 2022. The company is working closely with the Department of Justice, which seized the shares earlier this year, on the transaction.