What’s News in Markets: Streaming Price, Spending Slumps, Meme Mania
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What is the main topic discussed in this episode?
and how they may affect your finances and portfolio. Listen at schwab.com slash Washington Wise.
Hey, listeners, it's Saturday, June 8th. I'm Francesca Fontana for The Wall Street Journal, and this is What's News in Markets, our look at the biggest stock moves of the week and the news that drove them. Let's get to it. Why don't we kick things off with a big hand for Nvidia, which became the third US company to enter the $3 trillion market value club and helped propel tech stocks higher during the week.
How did Nvidia's milestone and jobs data shape markets this week?
The maker of prized AI chips on Wednesday crossed that threshold after ending the day about 5% higher, as some of its peers also followed suit. And thanks to all those tech advances, the NASDAQ ended that day with a new record close, the 13th one of 2024, for those of you playing along at home. Then on Friday, we had the stronger than expected jobs report suggesting the economy is faring better and prompting traders to push back their expectations for when the Fed will cut interest rates. And this is to say nothing of all the wild moves GameStop is making. More on that in a little bit.
Why is Spotify raising premium prices and how did the stock react?
All in all, the major indexes ended the week higher. One bright spot in stocks this week was Spotify, the audio streaming platform that some of you may be using to tune in right now. Perhaps you Spotify premium members were not so enthused, but investors cheered the company's Monday announcement that it would raise prices for the second time in a year. Starting next month, premium subscribers will have to pay $11.99 a month, a buck more than the old price of $10.99. This hike is aimed at helping cover the cost of the platform's push into audiobooks. And despite being the most popular music streamer by subscriber count, the company has been struggling to post consistent profits. So how'd the stock do?
Spotify shares ended up with a gain of nearly 6% on Monday, adding another 4-ish percent Tuesday before notching declines the rest of the week. Still, Spotify ended with a weekly gain of almost 4%. We also got some better than expected results from two consumer companies, Jam Smucker and Lululemon.
How are J.M. Smucker and Lululemon navigating consumer spending slowdowns?
That's pretty much the only thing they have in common. Huh, I guess it's peanut butter and jelly, not peanut butter and yoga pants. Actually, they also have in common the fact that they are trying to weather spending slumps as American consumers cut back spending in the face of inflation and higher price tags. Smucker, which makes things like Folgers Coffee and Jif Peanut Butter, beat earnings expectations and the company's sales got a boost from strong growth for its frozen Uncrustable sandwiches. Still, CEO Mark Smucker says he sees shoppers seeking value, especially in products like coffee and peanut butter. Smucker shares added 4.6% Thursday and held on to most of those gains on Friday. And then Lululemon, along with announcing a $1 billion increase to its share buyback program, said its revenue rose last quarter, boosted by its presence in China.
What triggered GameStop's wild meme-stock rally and sudden drop?
Before this latest earnings report, Lululemon shares had been weighed down by fears of slowing growth in its core America's market. Lululemon shares gained nearly 5% Thursday and ended the week up almost 2%. And last but not least, GameStop. Meme stock mania is back in full swing, as evidenced by the totally bonkers moves that GameStop shares made this week. A quick recap. This revival is thanks to Roaring Kitty, quote unquote, aka Keith Gill, aka headband-wearing meme stock influencer reemerging online recently, which reignited interest in the stock, which has been highly volatile.
Where can you read more market moves and who hosts this episode?
The highlights. The stock ended higher on three days this week, all double-digit moves. 21% on Monday, 19% Wednesday, and let's call it 48% on Thursday. Huge moves. And then there was Friday. GameStop unexpectedly publishing earnings and announcing this big stock sale, a live stream from Roaring Kitty himself, multiple trading halts, a wild ride ending with the stock dropping down 39%. So who knows what's coming next? I mean, just hold on to your hats. No, no, headbands.
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Chapters
6 chapters
1
What is the main topic discussed in this episode?
0:01–0:52
2
How did Nvidia's milestone and jobs data shape markets this week?
0:52–1:26
3
Why is Spotify raising premium prices and how did the stock react?
1:26–2:37
4
How are J.M. Smucker and Lululemon navigating consumer spending slowdowns?
2:37–3:27
5
What triggered GameStop's wild meme-stock rally and sudden drop?
3:27–4:10
6
Where can you read more market moves and who hosts this episode?
4:10–5:26
Speakers
2 identifiedMore from WSJ Your Money Briefing
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