WSJ What’s News: Market Highlights – Walmart Affirms Klarna, Tesla Politics, Consumer Angst

Episode Title: What’s News in Markets: Walmart Affirms Klarna, Tesla Politics, Consumer Angst
Host: Francesca Fontana, The Wall Street Journal
Release Date: March 22, 2025

Introduction

In this episode of WSJ What’s News, host Francesca Fontana delves into the major market movements of the past week, dissecting the influencing factors from global geopolitical tensions to shifts in consumer behavior. The discussion provides a comprehensive overview of stock performances, corporate strategies, and economic indicators that shaped the financial landscape.

Weekly Market Overview

Francesca opens the episode by providing a snapshot of the week's market performance, highlighting the resilience of major indexes despite a series of challenging news events.

“All in all, the major indexes managed to notch gains for the week, with the S&P 500 rising half a percent, the Dow gaining 1.2%, and the Nasdaq ending about 0.2% higher.”
— Francesca Fontana [00:55]

Despite the absence of significant White House trade drama—a departure from recent weeks—the markets navigated through a tumultuous mix of tech sell-offs, Middle East turmoil, and updates on the Ukraine conflict. The Federal Reserve’s decision to hold interest rates steady added another layer of complexity, with officials hinting at potential rate cuts later in the year.

Walmart’s Strategic Shift: Affirm to Klarna

A significant development this week was Walmart's strategic decision to transition its buy now, pay later services from Affirm to Klarna, a prominent Swedish fintech firm. This move underscores Walmart's efforts to optimize its financial partnerships and enhance customer payment flexibility.

“Walmart is rolling back its relationship with [Affirm] and replacing it with Swedish rival Klarna.”
— Francesca Fontana [02:30]

Klarna, which has recently filed for an IPO on the New York Stock Exchange, presents a robust alternative to Affirm, which commenced trading on NASDAQ in 2021. The market reacted swiftly to this announcement, with Affirm’s shares experiencing a significant decline.

“Affirm's shares fell 4.2% on Monday and extended their declines Tuesday, losing about 9%.”
— Francesca Fontana [03:10]

However, despite the mid-week fluctuations, Affirm managed to recover slightly, closing the week with a marginal gain of 0.4%. This shift not only reflects Walmart's evolving financial strategies but also highlights the competitive dynamics within the fintech industry.

Tesla: Navigating Political Storms and Market Pressures

Tesla’s journey this week was marked by a series of challenges that blend consumer sentiment, political affiliations, and operational hurdles. Under the leadership of Elon Musk, Tesla continues to be a focal point for both innovation and controversy.

“A swirl of consumer backlash, investor scrutiny and vandalism continues to surround Tesla.”
— Francesca Fontana [04:20]

The company faced backlash as its brand became increasingly politicized, particularly with Elon Musk's close ties to former President Trump. This association has led to incidents of vandalism, such as the arson of Tesla vehicles outside a service center in Las Vegas, contributing to a notable drop in Tesla's stock price.

“Several vehicles were set on fire outside a Tesla service center in Las Vegas and the stock ended up losing 5.3% that day.”
— Francesca Fontana [05:00]

Compounding these issues, Tesla issued its eighth recall of the Cybertruck due to a flaw that could cause exterior panels to detach—highlighting ongoing quality control challenges. Despite these setbacks, there was a silver lining as Cantor Fitzgerald upgraded Tesla’s rating, suggesting that the recent dip created an attractive entry point for investors.

In an unexpected twist, Commerce Secretary Howard Lutnick publicly endorsed Tesla stock on Fox News, urging viewers to buy, which sparked discussions regarding federal ethics rules.

“Commerce Secretary Howard Lutnick told Fox viewers to buy Tesla stock, saying it'll never be this cheap again.”
— Francesca Fontana [06:35]

Elon Musk’s recent directive to Tesla employees advising them not to sell their shares added further complexity to the stock’s performance, which concluded the week with a slight loss, extending Tesla's multi-week downturn.

“Tesla shares lost 5.3% on Tuesday. Then they rebounded 4.7% Wednesday. On a weekly basis, though, the stock ended up extending its eight week losing streak.”
— Francesca Fontana [07:10]

Consumer Spending and Economic Concerns

The episode also sheds light on broader economic trends, particularly shifts in consumer spending patterns and their impact on major corporations.

General Mills, a staple in the food industry known for brands like Lucky Charms and Yoplait, reported lower-than-expected sales in its fiscal third quarter and revised its annual outlook downward. The company attributed this to reduced inventory levels among North American retailers and a decline in consumer spending on snacks.

“General Mills reported lower than expected fiscal third quarter sales and cut its outlook for the year.”
— Francesca Fontana [08:00]

Consequently, General Mills’ stock experienced a decline of approximately 2% on Wednesday, although it managed a slight recovery to close the week with a 0.6% gain.

Similarly, Nike faced headwinds with its latest earnings report, revealing decreases in both profit and revenue for the third quarter. The sportswear giant forecasted a challenging fourth quarter, expecting sales to drop in the mid-teens, a projection that significantly impacted investor sentiment.

“Nike shares ended up losing 5.5% on Friday.”
— Francesca Fontana [09:15]

Conclusion

Francesca Fontana wraps up the episode by emphasizing the interconnectedness of global events, corporate strategies, and consumer behavior in shaping market dynamics. The week underscored the volatility inherent in the current economic climate, driven by geopolitical tensions, shifting consumer preferences, and strategic corporate maneuvers.

“Now you know what's news in markets this week.”
— Francesca Fontana [10:00]

For listeners seeking a deeper analysis of stock movements and market trends, Francesca directs them to her column in The Wall Street Journal's Exchange section.

Production Credits

Today's show was produced by Zoe Culkin and Anthony Fancy, with supervising producer Michael Kosmides.

Francesca Fontana thanks the audience and signs off, wishing everyone a great week ahead.

This comprehensive summary encapsulates the key discussions and insights from the "WSJ What’s News" podcast episode, providing listeners with an in-depth understanding of the week's market developments.