What's News in Markets: Wall Street Parties, Hasbro’s Troubles, Pfizer Tumbles
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What is the main topic discussed in this episode?
Hey, your money briefing listeners. I'm Francesca Fontana for The Wall Street Journal. Every week, I write a column for the journal called The Score. It's a look at the biggest stock moves of the week and the news that drove them. We've heard that a lot of you can't get enough of our markets coverage. So we're trying something new and bringing you what's news in markets on Saturdays all this month. Take a listen and let us know what you think. This week's rally was an everything rally.
What market rally drove stocks, bonds and crypto higher this week?
That's what investors have been calling this broad run-up we've been seeing lately. It's being fueled by bonds, which are also helping propel other assets higher. We'll get to bonds, the Federal Reserve, all that good stuff in a bit.
Which record milestones did the S&P 500 and Dow reach this week?
So while investors spent most of this year worrying about inflation and interest rates, now they're snapping up everything. Stocks, bonds, oil, gold, even crypto. And this investor euphoria is clear when we look at the US stock market this week. On Tuesday, the S&P 500 reached its highest level since January 2022. And on Wednesday, the Dow closed above 37,000 for the first time ever. So we'll see how long Wall Street can keep this party going. The countdown to Christmas is on, and that means toy companies are heading into their busiest time of the year.
Why did Hasbro announce large job cuts ahead of the holiday shopping season?
One toy maker that had some not-so-jolly news to kick off the season was Hasbro, the maker of Monopoly, various action figures, and Dungeons & Dragons. On Monday, Hasbro's CEO told employees that the company is cutting nearly 20% of its workforce, or about 1,100 jobs. It also said that it cut 800 jobs earlier this year. So why is Hasbro slashing its workforce?
How did Mattel avoid Hasbro’s slump and benefit from the Barbie movie?
Well, after a surge in sales earlier in the pandemic, toy makers are now struggling with a drop in demand, with shoppers pulling back their spending across the board. Thanks, inflation. And these issues aren't going away anytime soon, and certainly not in time for the holidays. As you might imagine, the Christmas shopping season is a make-or-break time for these companies. According to analysts, about half of toy makers' yearly sales come in the weeks leading up to December 25th. So investors will be keeping a close eye on how toy sales fare this month. Hasbro's stock pulled back slightly in response to the news of the job cuts, and it lost about 1% on Tuesday. But some cheer returned later on, and shares bounced back over the following couple days.
Meanwhile, Mattel has been the exception to the rule here, thanks in no small part to Barbie, the blockbuster starring Margot Robbie. The film's release fueled an increase in sales of Barbie dolls, their accessories, and, of course, Barbie dream houses.
Why did Pfizer’s stock tumble after pandemic-era gains?
And Barbie mania has kept Mattel's stock from following Hasbro's down. While Hasbro shares have lost about 20% this year, Mattel is up around 5%. Another stock that's having a rough transition after the pandemic is Pfizer. Now, Pfizer was a pandemic-era darling thanks to its groundbreaking vaccine. Obviously, when it first came out in the deadliest days of COVID, demand surged as people raced to get it. But now, the frenzy is no longer there. As a result, investors seem to have lost some of their love for the stock. Pfizer's shares lost more than 6% on Wednesday after the company said its revenue could fall next year.
How did the Federal Reserve’s decision affect bank stocks and Wall Street’s reaction?
That made it the day's worst performer in the S&P, and it didn't recover all of the losses later in the week.
Now let's circle back to the Fed. As you regular What's News listeners out there already know, Federal Reserve officials voted unanimously on Wednesday to hold interest rates steady. They even indicated they might cut rates a few times next year. It's a relief for businesses and investors across the board, but one group that was really celebrating was bank stocks. When rates are high, they hit banks in two ways. One, they have to pay depositors more. And, two, their bond holdings lose value, and that creates billions of dollars in paper losses. So it's no wonder that Thursday was a party for Wall Street. Banks moved higher, and the Dow's best performer was Goldman Sachs.
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Chapters
7 chapters
1
What is the main topic discussed in this episode?
0:03–0:31
2
What market rally drove stocks, bonds and crypto higher this week?
0:31–0:43
3
Which record milestones did the S&P 500 and Dow reach this week?
0:43–1:17
4
Why did Hasbro announce large job cuts ahead of the holiday shopping season?
1:17–1:42
5
How did Mattel avoid Hasbro’s slump and benefit from the Barbie movie?
1:42–2:37
6
Why did Pfizer’s stock tumble after pandemic-era gains?
2:37–3:16
7
How did the Federal Reserve’s decision affect bank stocks and Wall Street’s reaction?
3:16–4:43
Speakers
1 identifiedMore from WSJ Your Money Briefing
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