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.
Stocks closed lower Thursday with all three major indexes on track to end the week lower. The tech-heavy Nasdaq is on track for its worst week since March 2020, and is down 12% from its record high. Meanwhile, the Dow closed below its 200-day moving average for the first time since December 2021. The S&P 500 didn't fare much better, falling 1.1%. Christopher Wolfe, Chief Investment Officer at First Republic Private Wealth Management, joins Cheddar News' Closing Bell to discuss today's close, this week's market volatility, and more.
Eric Marshall, portfolio manager, Hodges Funds, joins Cheddar News' Closing Bell, where he says the airlines are still not out of the woods when it comes to their COVID-19 recovery, and also addresses the impact of Omicron and inflation weighing on companies at the start of 2022.
Connected cars software development platform Smartcar announced this week it has raised $24 million in a Series B round led by Energize Ventures. Smartcar's software can be integrated into mobile and web apps from mobility businesses. It allows users to do things like locate and unlock a vehicle, as well as check its mileage, fuel level, and battery if the vehicle is electric. Smartcar's technology is compatible with 22 different vehicle brands in 31 different countries. Smartcar co-founder and CEO Sahas Katta joined Cheddar News' Closing Bell to discuss.
Google currently does not accept cryptocurrency as a form of payment in contrast with other big businesses that have taken advantage of the new crypto wealth that's accrued. The tech giant recently hired former PayPal executive Arnold Goldberg to lead its payment division, likely more firmly entering digital currency usage. "I think the real question is, why given the size of the industry, has Google not done this before or been actively accepting and using cryptocurrency, and it's really a lack of regulatory clarity," Halsey Minor, executive chairman of Public Mint, told Cheddar.
The drama surrounding tennis star Novak Djokovic continues after he was deported from Australia over the weekend due to the nation's COVID-19 vaccine requirements. Djokovic was forced to leave the country on the eve of what was to be his first match in defense of his Australian Open title after three judges ruled in favor of his removal and revealed their reasoning for doing so. Adding to his woes, a law recently passed in France is putting his chances of defending his French Open title in jeopardy. The director of Marist's Center for Sports Communication, Jane McManus, joined Cheddar to discuss the ongoing fallout.
