What’s News in Markets: Walmart Affirms Klarna, Tesla Politics, Consumer Angst

Summary

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.

Transcript

[A]

I'm William Goudge, a Vuori collaborator and professional ultrarunner from the uk. I love to tackle endurance runs around the world, including a 55 day 3064 mile run across the US so I know a thing or two about performance wear. When it comes to relaxing, I look for something ultra versatile and comfy. The Ponto Performance Jogger from Burey is perfect for all of those things. It's the comfiest jogger I've ever worn and the Dream Knit fabric is why I'll always reach for them over other joggers. Check them out in the Dream Knit collection by going to vuorie.com william that's v U-O-R-I.com william where new customers can receive 20% off their first order, plus enjoy free shipping in the US on orders over $75 and free returns. Exclusions apply. Visit the website for full terms and conditions.

[B]

Hey listeners, it's Saturday, March20. Francesca Fontana for the Wall Street Journal, and this is what's news in markets. Our look at the biggest stock moves of the week and the news that drove them. Let's get to it. Well, it looks like we made it through the week without any big trade drama coming from the White House compared to recent weeks. But even with things relatively quiet on the tariff front, traders certainly had their fair share of news to digest. There was Tuesday's tech sell off, turmoil in the Middle east and developments around the war in Ukraine. The Federal Reserve held interest rates steady on Wednesday, with officials at the central bank still penciling in two rate cuts for the year and plenty of earnings reports along the way. 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. First up, let's talk about Affirm and Klarna, two of the fintech players in the buy now, pay later space. You've probably seen those options in your online shopping cart. They do what it says on the 10. You buy now and then you pay later in installments. Well, since 2019, Walmart, the US retail giant, had partnered with a firm to offer its customers those installment plans. But on Monday, we learned that Walmart is rolling back its relationship with the firm and replacing it with Swedish rival Klarna. Now, Klarna has recently filed for an IPO listing on the New York Stock Exchange, so be on the watch for that. But Affirm began trading on the NASDAQ back in 2021. So let's see, how did the stock react to this news? Well, Affirm's shares fell 4.2% on Monday and extended their declines Tuesday, losing about 9%. But the stock gained background in the following days and ended the week just 0.4%. Now let's check back in on Tesla, the EV maker led by Elon Musk. I know, I know we keep talking about this stock, but hey, there is just no shortage of moves lately. Long story short, a swirl of consumer backlash, investor scrutiny and vandalism continues to surround Tesla. And as we've seen, all of this has taken a sizable toll on the stock so far this year. So this week on Tuesday, analysts warn of lower overseas demand and said consumer backlash as the brand becomes, quote, increasingly politicized. I mean, it was just last week, right, we saw President Trump posing with Teslas on the White House lawn. And as Chief Executive Elon Musk has become a powerful senior advisor to Trump, we've also seen Tesla's vehicles becoming targets of vandalism. That same day Tuesday, several vehicles were set on fire outside a Tesla service center in Las Vegas and the stock ended up losing 5.3% that day. Then on Wednesday, Tesla recalled most cybertrucks. This is its eighth recall issued on the truck due to a flaw that can cause an exterior panel to fall off. But there was also good news for the stock. Cantor Fitzgerald raised its rating on Tesla, saying the recent sell off created an attractive entry point. And later that day, in an unusual move that certainly raised some eyebrows and some concerns reflected federal ethics rules, Commerce Secretary Howard Lutnick told Fox viewers to buy Tesla stock, saying it'll never be this cheap again. And just yesterday, Musk told Tesla workers not to sell their shares. So how did the stock do this week? Well, 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. Well, nine week losing losing streak now with a loss of 0.5%. Last but not least, consumer spending and economic concerns were front and center in earnings this week. For instance, General Mills, the food maker known for lucky charms, Yoplait, et cetera, reported lower than expected fiscal third quarter sales and cut its outlook for the year. It said that in the latest quarter, North American retailers reduced inventory and consumers spent less on snacks. And we saw General Mills Shares fall roughly 2% on Wednesday, although the stock did end up notching a weekly gain of about 0.6%. We saw similar concerns coming from Nike later in the week. The sportswear company late Thursday posted lower third quarter profit and revenue. And Nike said its sales in the current fourth quarter are expected to drop at a rate in the mid teens. And Nike shares ended up losing 5.5% on Friday. And now you know what's news in markets this week. You can read about more stocks that moved on. The week's news in the Score, my column in the Wall Street Journal's exchange section. Today's show was produced by Zoe Culkin and Anthony Fancy with supervising producer Michael Kosmides. I'm Francesca Fontana. Have a great week.