5 issues to know earlier than the inventory market opens on Tuesday, January 24th
Traders work on the floor of the New York Stock Exchange.
Here is the key news investors need to start their trading day:
1. Stay green
Lack of income? Economic indicators point to recession? No problem. At least not so far. US stock markets are green so far in this short-lived year and have picked up some momentum over the past few days. The Nasdaq, in particular, has shown strength, although it has bounced back after a dismal 2022 that also hurt many big tech stocks. Multiple technology companies including Dow Component Microsoft (which reports earnings on Tuesday) is shedding thousands of jobs after a pandemic-related hiring wave to show investors they’re serious about cutting costs. Other companies on Tuesday’s winning list: verizon, Lockheed Martin, General Electric and Johnson&Johnson. Read live market updates here.
2. Microsoft strengthens the bond with OpenAI
OpenAI logo displayed on a phone screen and ChatGPT website displayed on a laptop screen can be seen in this illustrative photo taken on December 5, 2022 in Krakow, Poland.
Jakub Porzycki | Nurphoto | Getty Images
Speaking of Microsoft, the legacy tech giant isn’t all in the news for job cuts and revenue. On Monday, it confirmed that it had indeed agreed to a multi-billion dollar investment in OpenAI, the lab behind ChatGPT, the viral artificial intelligence program. Microsoft has previously invested in OpenAI in 2019 and 2021, and OpenAI is working closely with the company on its Azure cloud system. ChatGPT’s popularity has exploded in recent months as its near-automatic ability to generate text based on prompts has gotten people excited – and unsettled – about the prospects of an AI-driven future, leading the utopia-versus- Gives more fuel to the dystopian debate.
3. Google employees are pushing for answers
Google and Alphabet CFO Ruth Porat answered some employee questions surrounding the recent layoff at City Hall on Monday.
Alphabet’Google faces numerous headaches, including whether OpenAI’s ChatGPT has outperformed the company’s own AI initiatives. Google is also going through its biggest wave of layoffs to date. CEO Sundar Pichai took a lot of energy from employees during a company-wide town hall meeting Monday to discuss the challenges. Employees pushed for details on how Google executives decided who to fire and how. Pichai, CFO Ruth Porat and other executives also discussed executive bonus cuts and the company’s hiring goals, among other topics. Read more from CNBC’s Jennifer Elias here.
4. The way forward for Covid vaccines
A woman receives a booster dose of moderna coronavirus disease (COVID-19) vaccine at a vaccination center in Antwerp, Belgium, February 1, 2022.
Johanna Geron | Reuters
Covid vaccines will likely need to be updated once a year, and most people will also likely only need one shot a year, according to a proposed roadmap released by the Food and Drug Administration. The FDA’s recommendation is similar to their process for annual flu shot selection. According to the briefing document released Monday, the FDA would select the Covid strain for the vaccine in the spring, in time for the release of updated footage in September, when the kids are back and at school and ahead of the vacation and virus-friendly winter months. Some, including the elderly and those with compromised immune systems, may need two shots a year, the FDA said.
5. Wait and see for now
A person walks in front of the US Supreme Court building in rainy weather in Washington, the United States, on January 17, 2023.
Jonathan Ernest | Reuters
The Supreme Court delayed deciding whether to take on two cases that could lead to how social networks monitor content on their platforms. Eligible are laws in Florida and Texas, which have been spearheaded by Republican lawmakers who have accused social media companies of censoring conservatives. Two tech industry groups are challenging the laws, saying they are violating companies’ First Amendment right to determine what type of speech they allow on their platforms. The relevant laws will be held up in court, and it will be up to the nation’s highest court to decide how the debate proceeds.
– CNBC’s Jesse Pound, Ashley Capoot, Jennifer Elias, Spencer Kimball and Lauren Feiner contributed to this report.
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