These are the most important news updates for investors to kickstart their day of trading:
1. Doing Well
On Monday, the stock market saw only small increases, but any gain is good. The Nasdaq has been performing well for seven days in a row, which is the longest such period since January. The S&P 500 and the Dow have also seen positive performance for six days in a row.
On Monday, stocks managed to have a good day after a strong week, especially fueled by the Federal Reserve’s decision to keep interest rates steady and a not-so-great monthly jobs report. This week, we can expect more updates from Fed Chair Jerome Powell and important earnings reports, including Disney’s report on Wednesday.
2. Didn’t Work
WeWork used to be worth a lot of money, $47 billion to be exact. But now, the company that provides office space is in the process of filing for bankruptcy, which it did on Monday. They have long-term leases that add up to about $16 billion, and they’ve been trying to renegotiate these agreements.
This is not just a big fall from grace for WeWork, it’s also a problem for commercial real estate landlords who were already struggling due to the unpredictable return-to-office trends caused by the COVID-19 pandemic.
This bankruptcy is the latest dark chapter in WeWork’s rapid decline, which has been so dramatic that it could be the plot for a TV series with Jared Leto playing the role of the founder, Adam Neumann. Speaking of Adam Neumann, he used to be the CEO but stepped down in 2019, and he got substantial payouts. He called the bankruptcy filing “disappointing.”
3. Still on Strike
The strike involving Hollywood actors is continuing, and it’s dragging on. Over the weekend, the studios presented what they called their “final and best” offer to SAG-AFTRA, the union that represents the actors.
However, the union didn’t think the offer was good enough, and they pointed to concerns about protecting artificial intelligence as one of the main reasons why they couldn’t agree on a deal to allow movie and TV productions to start again. This strike began in the middle of July and has had a negative impact on the economy related to the film industry.
It’s also causing some stress for media companies, which had seen their stocks perform well last week. Warner Bros. Discovery and Disney are expected to announce their earnings on Wednesday, which adds more pressure on both sides to come to an agreement. The actors and studios are expected to resume their negotiations on Tuesday.
4. Nintendo’s Big Success
Nintendo, the famous video game company from Japan, has increased its financial expectations for the fiscal year. This boost is due to the strong demand for two of their classic game series, Super Mario and the Legend of Zelda. Mario, in particular, is benefiting from the success of “The Super Mario Bros.” movie, which has made over $1.3 billion at the worldwide box office.
This newfound popularity of Mario has also led to higher sales of “Mario Kart 8 Deluxe” for the Switch this year, even though there are calls for Nintendo to release a new gaming console. (Similarly, Mattel reported increased sales of Barbie last month after the success of her blockbuster movie, which made more than $1.4 billion.)
5. The Green Monster looms
The plan to combine the business activities of the PGA Tour and LIV Golf, which is backed by Saudi Arabia, isn’t completely settled yet. This has created an opportunity for other potential investors to step in.
One prominent candidate, as per the latest rumors, is the Fenway Sports Group, which owns the Boston Red Sox and Liverpool FC. Fenway’s chairman, Tom Werner, acknowledged some of this speculation on Monday when he confirmed that the company had indeed held discussions with the tour. He didn’t share more details, leaving room for further speculation about what might happen with professional golf in the future.
Summary
These financial updates include market stability, WeWork’s bankruptcy, a persistent Hollywood actors’ strike, Nintendo’s success with Super Mario, and potential involvement of Fenway Sports Group in the PGA Tour and LIV Golf merger.
