Traders on the floor of the New York Stock Exchange, January. 18, 2023.
Here are the top stories investors need to start their trading day:
1. Momentum has stalled
It was a rough Wednesday all around for stocks. The Dow had its worst day since mid-December, while the Nasdaq had its seven-day winning streak. Bank stocks weighed on the markets, as did weak economic data: holiday retail sales disappointed, and the producer price index, a measure of wholesale inflation, was weaker than expected. On Thursday, investors will hear from Fed speakers, including Vice President Lyle Brainard, and analyze the recent wave of big earnings, including Procter and Gamble (before the bell) f Netflix (after closing). Read live market updates here.
2. Why does Apple avoid layoffs?
The world’s largest iPhone factory, located in China and operated by Foxconn, faced disruptions in 2022. That is likely to spill over into Apple’s December quarter results. Meanwhile, analysts questioned the demand for the iPhone 14 from Chinese consumers.
Nick Corey | bloomberg | Getty Images
Technology companies have cut tens of thousands of jobs over the past year. Amazon Meanwhile, it is about to lay off about 18,000 employees Microsoft This week it said it would cut about 10,000 jobs. Google’s parent the alphabet And the owner of Facebook meta They also laid off workers. butt an Apple contrary to this trend. Unlike other Silicon Valley companies, iPhone has not ramped up hiring during the pandemic, and so far has avoided announcing major layoffs. CNBC’s Kif Leswing and Gabriel Cortes break down the phenomenon in a series of infographics here.
3. Tech Talk in Switzerland
US Treasury Secretary Janet Yellen (3rd place) and Chinese Vice Premier Liu He (3rd place) and their delegations wait before their meeting in Zurich on January 18, 2023.
Sebastien Bozon | AFP | Getty Images
Treasury Secretary Janet Yellen and Chinese Vice Premier Liu He met in Zurich for high-level economic talks. “During their candid, substantive, and constructive conversation, they exchanged views on macroeconomic and financial developments,” said a statement from the Treasury Department. The Chinese government’s summary of the meeting made a more specific point, saying Yellen and Liu discussed US technology policy. The Biden administration has banned US companies from doing business with Chinese entities on high-quality semiconductors, while also pursuing Trump-era tariffs on China. The Chinese statement said that the Chinese government “hopes the US side will pay attention to the impact of policies on both sides.”
4. AmazonSmile is coming to an end
The Amazon logo is seen at the company’s logistics center in Lauwin-Planque, northern France, November 15, 2022.
Pascal Rossignol | Reuters
Amazon isn’t just cutting jobs these days. The electronic retail and cloud computing giant said it will shut down its AmazonSmile charitable donation program next month as part of its broader plan to cut costs. Additionally, Amazon said the program, which donates a percentage of eligible purchases to a shopper’s favorite charity, has proven to be a disappointment, with the average donation being just $230. “Nearly a decade later, the software has not evolved to have the impact we originally hoped,” Amazon said. “With so many eligible organizations – more than a million globally – our ability to make an impact has often been very weak.”
5. Mile high hopes for electric cars
Tesla Model 3 electric cars on site at Hertz Airport.
Photo by ER Davidson
Giant car rental Hertz It has become one of the major players pushing for the expansion of electric vehicles. The company announced Thursday a broad partnership with Denver that will add about 5,000 electric vehicles to its fleet in the city, while also installing EV charging stations at the airport and around Denver, with a focus on underserved communities. “I’ve always worried about equity and how communities are being left behind,” Denver Mayor Michael Hancock told CNBC. “Electrification is, I think, one advance in the move toward sustainability that will move faster.” Hertz hopes to expand the program to other cities as well.
— CNBC’s Carmen Renick, Kev Leswing, Gabriel Curtis, Evelyn Cheng, Annie Palmer and John Rosevear contributed to this report.
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