Here is a rundown of Cheddar News' top market stories of the day.
TECH LAYOFFS
Multiple outlets are reporting that Microsoft will begin a series of planned layoffs on Wednesday that could cut around 5 percent of its workforce, or 10,000 employees. CEO Satya Nadella warned the cuts were coming, and said the next couple of years were likely to be challenging, as the tech sector contracts after a decade plus of rapid growth. Amazon is also set to move ahead with plans to cut 6 percent of its 350,000 corporate employees.
ADOBE'S DATA DEBACLE
Adobe is facing backlash from customers who are concerned the software company is using personal images and video to train artificial intelligence models such as OpenAI’s Dall-E. Chief Product Officer Scott Belsky denied the accusations in an interview with Bloomberg, saying: "We have never, ever used anything in our storage to train a generative AI model."
UNITED AIRLINES EARNINGS
United Airlines' fourth quarter earnings beat Wall Street estimates on the heels of a rebound in travel demand. The company reported a 31 percent increase from the same period before the pandemic. The gains were made despite the airline flying 9 percent fewer trips and a litany of other challenges, from winter storms to labor shortages to supply chain disruptions.
UNIVERSITY BANS TIKTOK
The University of Texas at Austin is blocking access to TikTok on its Wi-Fi and wired networks. The move is a response to Gov. Greg Abbott's requirement that all state agencies delete the app from government-issued devices. The administration said it is also seeking to eliminate risks to information on the university's networks. University of Texas at Dallas and Texas A&M University System have since implemented similar restrictions.
Citi recently began collaborating with fitness entrepreneur Tracy Anderson to promote its Custom Cash Credit card. Pam Habner, CEO of U.S. Branded Cards for Citi, along with Tracy Anderson, creator of The Tracy Anderson Method, joined Cheddar to discuss how health and fitness matched up with a cash back credit card. "The fact that Citi is going 'hey if you lead a healthy lifestyle, we're going to help you out. We understand that it's more expensive and we're going to give you cash back for living your best life,'" Anderson said about the partnership, which also includes a custom promotional Spotify playlist.
Stocks closed lower Thursday amid continued volatility. The S&P 500 was down 10% from its record high, the Dow was down 7%, and the Nasdaq was 4% away from bear market territory as it closed 16% below its record high. Investors are still processing this week's Federal Reserve announcement about a potential first rate hike in March. Chris Gaffney, President of World Markets at TIAA Bank, joins Cheddar News' Closing Bell to discuss today's close, the Fed's announcement, predictions about interest rate hikes, and more.
Low-code app development platform Crowdbotics raised $22 million in a Series A funding round led by Jackson Square Ventures. Crowdbotics has helped more than 14,000 customers launch apps without having to learn how to code. The company can offer a team of expert developers to help companies launch custom apps, or provide the means for companies to develop apps themselves. Crowdbotics CEO Anand Kulkarni joined Cheddar News' Closing Bell to discuss.
Comcast announced that the company has beaten its projected earnings for Q4. However, the telecommunications giant fell short of its predictions for customer growth.
Kim Kardashian’s shapewear brand Skims has doubled its valuation to $3.2 billion. Investors have taken a bet on the success of this brand in the form of fresh funds for the two-year-old company.
McDonald's missed on both the top and bottom lines in its Q4 earnings, marking the fourth loss for the fast-food giant in the past eight quarters. It comes as higher costs from food to wages ate into the blue-chip company's profits. George Seay, CEO of investment advisor Annandale Capital, joined Wake Up with Cheddar to discuss the recent numbers and the better-than-expected success of the McPlant burger made with plant-based Beyond Meat. "They're changing with the times, and they have to," Seay noted. "You can just sell a Big Mac to everybody. There's a lot of people who don't want to eat a Big Mac anymore."
