Stock Market News: Twitter’s new CEO, Tesla jumps, PacWest in limbo
Twitter’s new CEO comes from NBC, Elon Musk to re-focus on Tesla, regional bank shares, including PacWest remain volatile and debt ceiling wrangling continues with high level meetings pushed to next week. FOX Business is providing real-time updates on the markets, commodities and all the most active stocks on the move.
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Elon Musk made it official, Linda Yaccarino will be the next CEO of Twitter.
A smartphone with the Netflix logo lies in front of displayed "Streaming service" words in this illustration taken March 24, 2020. REUTERS/Dado Ruvic/Illustration/File Photo
| Symbol | Price | Change | %Change |
|---|---|---|---|
| NFLX | $339.91 | -4.85 | -1.41 |
Netflix Inc plans to cut its spending by $300 million this year, the Wall Street Journal reported on Friday, citing people familiar with the matter.
Company leaders urged staffers to be judicious with their spending, including in relation to hiring, but said there would be no hiring freeze or additional layoffs, according to the report.
As the streaming video pioneer faces signs of market saturation, it is exploring new ways to make money, such as password crackdown and a new ad-supported service.
Netflix in June also laid off 300 employees, or about 4% of its workforce, in the second round of job cuts aimed at lowering costs.
NBCUniversal said on Friday its advertising chief, Linda Yaccarino, will leave the company after reports that she is in talks to become the new CEO of Twitter. Twitter CEO Elon Musk said on Thursday that he had found a new chief executive for the social media site, but did not name the person.
Yaccarino, who modernized the Comcast Corp entertainment and media division's advertising business, was reportedly in talks for the job, a source with knowledge of the situation confirmed.
Advertising President Mark Marshall will step in as interim chairman of NBCUniversal's advertising and partnerships group.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| PACW | $4.76 | 0.07 | 1.49 |
| JPM | $135.88 | -0.17 | -0.12 |
| BAC | $27.36 | -0.03 | -0.11 |
| C | $45.84 | -0.20 | -0.42 |
PacWest and other regional bank shares are wrapping a volatile week after the California bank confirmed deposits are falling as it explores options to survive.
Meanwhile, the FDIC is proposing that bigger banks foot the bill for the collapse of Silicon Valley and Signature Bank as well as potentially others.
World Bank President David Malpass speaks during an interview with Reuters at the G7 Finance Ministers and Central Bank Governors' meeting, in Niigata, Japan, May 12, 2023. REUTERS/Issei Kato
The risk of a U.S. default is adding to problems facing the slowing global economy, with rising interest rates and high debt levels already choking back investments needed to fuel higher output, World Bank President David Malpass said on Friday.
Group of Seven (G7) finance officials meeting in Japan discussed the "very high importance" of raising the U.S. debt limit and averting the negative repercussions of a potential default on U.S. government debt for the first time ever.
"Clearly, distress in the world's biggest economy would be negative for everyone," he told Reuters on the sidelines of the G7 meeting. "The repercussions would be bad to not get it done."
Malpass said there had been discussion during the G7 meetings about the need to boost productivity and growth, and also deal with a high debt overhang facing a growing number of countries.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| TSLA | $172.08 | 3.54 | 2.10 |
Tesla investors appear to believe that Elon Musk will re-focus the bulk of his attention on the electric-vehicle maker after he announced Twitter will soon have a new CEO.
Analyst Dan Ives of Wedbush Securities, in a note to investors, said:
"We believe leaving earlier than originally thought by the end of the year is a positive development for Tesla as well as SpaceX with Musk needing to spend more and more time on these golden child platforms rather than Twitter."
Elon Musk confirmed he will step down as Twitter's CEO because he is ready to announce his replacement.
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