The most important stories from the week impacting your portfolio.
US Fed pushes interest rates up again: The central bank raised its key short-term interest rate for the ninth consecutive time yesterday bringing the federal funds rate to a range of 4.75% to 5%. There were murmurs that recent banking woes could motivate the US Fed to pause rate hikes, but Fed chair Jerome Powell insisted “the U.S. banking system is sound and resilient.”
Tumult for TD’s acquisition: Regulatory woes and the continued fallout of the SVB failure have put a wrench in TD’s plan to strengthen its presence in US markets and buy Tennessee-based First Horizon Corp after the regional bank’s stock prices fell to US$16.13 on Tuesday. A TD executive said it is “fully committed to the transaction,” and the two parties are negotiating.
Almost a billion for BlackBerry: The smartphone-turned-software and cybersecurity company just penned a deal with Malikie Innovations Ltd. to sell off its portfolio of 32,000 non-core mobile devices and wireless networking patents in a deal that could be worth US$900 million, mostly paid out in royalties. It still needs regulatory approval.
Gamestop’s stock surprises: The meme-stock saw profitability for the first time in two years, causing shares to rise 53% after a quarterly earnings report showed US$48.2 million in net income. The company is prioritizing its collectibles business, which saw a 12% rise in sales.
Nike’s inventory woes: Been seeing a lot of swooshes on the street? That’s because Nike’s done a great job working through its overstock, beating sales expectations. Unfortunately, the company has had to lower prices to move the excess inventory, cutting into profitability. Shares fell 1.7% yesterday morning, but Adidas and Puma also traded lower.