Oil settled slightly higher on Friday but is still down 4% for the week after a sell-off on concerns that the global economy is on the verge of a slowdown that will hit demand.
Brent crude contracts for January rose $1.42, or 1.77%, to settle at $81.43 a barrel, while West Texas Intermediate gained $1.43, or 1.89%, to settle at $77.71 a barrel.
Oil sold off earlier in the week as traders grew confident that the Israel-Hamas war would not spread in the near term to disrupt supply. Instead, markets began to worry that troubling economic data out of Europe and China signaled a global slowdown is on the horizon.
Tech stocks lift Dow this week
The Dow finished the week on a high note thanks partly to strong rallies from technology stocks.
Intel (INTC:NASDAQ) , Microsoft (MSFT:NASDAQ) and Apple (APPL:NASDAQ) led the blue-chip index high after posting the biggest gains this week. Strong performances from others like Salesforce (CRM:NYSE) and Disney (DIS:NYSE) also gave the index momentum.
Uber and Lyft ride to profit
Uber (UBER:NYSE) and Lyft’s (LYFT:NASDAQ) latest earnings told a tale of two ride-share apps that are riding their way to profits – at least in the case of Uber.
Uber on Tuesday beat earnings expectations, officially reporting enough positive earnings to qualify the company to join the S&P 500. Uber said both its ride-hailing and food-delivery businesses grew in the third quarter.
Meanwhile, rival Lyft on Wednesday said it grew its third-quarter revenue and trimmed its loss as new Chief Executive David Risher cut costs. But the company reported slower growth in rides booked on its platform than at Uber.
Uber shares rose 8% for the week, while Lyft shares lost 3.7%.
Warner Bros sees gloomy quarter ahead
Warner Bros. Discovery (WBD:NASDAQ) had a gloomier quarter than its rivals.
The studio and streaming company posted a wider-than-expected third-quarter loss, warning that it wouldn’t meet debt-repayment targets if the TV ad market fails to revive. The company turned a profit in its streaming business, but lost subscribers in the third quarter.
Walt Disney on Wednesday beat earnings expectations and said it expects its combined streaming business to reach profitability in the fourth quarter.
Warner Bros. shares slid 14% for the week.
Last-minute deal prevents walkout from Vegas strip workers
Las Vegas Strip workers are the latest group to ride this year’s wave of labor organizing.
The Culinary and Bartenders unions reached deals for about 35,000 hospitality workers at Wynn Resorts (WYNN:NASDAQ), MGM Resorts (MGM:NYSE), and Caesars Entertainment (CZR:NASDAQ) ahead of a Friday strike deadline.
The unions narrowly avoided a walkout ahead of a crucial Formula One race weekend by reaching a tentative agreement with Caesars on Wednesday, MGM on Thursday, and Wynn three hours before the deadline.
Unprecedented labor union actions this year have included strikes by Hollywood writers and actors, auto workers, and healthcare professionals.
Wynn Resorts shares ended the week 7% lower, while Caesars finished 2.4% lower. MGM posted a gain of 1.2% for the week.
Plug Power shares lose nearly a third in value
Plug Power (PLUG:NASDAQ) shares tumbled 44% Friday, and 46% for the week, to hit a new 52-week low. The sell-off came after the company warned that it needed additional capital to finance its operations following a disappointing third-quarter result.
The RBC Capital Markets downgraded the clean energy company to sector perform from outperform, citing “unprecedented challenges” and a lower revenue forecast for 2023.
2U plummets to an all-time low
Educational technology stock 2U (TWOU:NASDAQ0 plunged nearly 60% on Friday, pulling the share price to an all-time low around the $1 mark.
The dramatic slide came after 2U, which helps companies bring digital programming to students, warned of a tough road ahead as some universities terminated contracts.
Shares were trading at an all-time low Friday afternoon. 2U stock has plummeted nearly 57% for the week.