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.
AdTheorent just the latest company to go public via a SPAC. The company specializes in digital advertising, using AI and machine learning as a tool to move marketing forward. AdTheorent to close its SPAC merger with MCAP Acquisition today and will trade on the Nasdaq under the ticker symbol ADTH. CEO Jim Lawson spoke with Cheddar ahead of the move.
Although still early in development, blockchain technology, Web3, also known as Web 3.0 has been getting a lot of attention from some top tech names lately. Web3 is based on blockchain technology, which powers NFT’s and cryptocurrencies such as bitcoin. With Web3, users would ideally control their own data, rather than have it be controlled by a few large companies. But, Tesla CEO Elon musk isn't buying into Web3 just yet, tweeting over the weekend that the decentralized iteration of the internet seems more like a marketing "buzzword" right now than reality. Twitter co-founder Jack Dorsey also chiming in to the conversation, expressing doubt over whether or not Web3 would actually be decentralized if ownership still belonged to venture capital firms. Parker McCurley, co-founder & CEO of Decent Labs explains the significance of Web3 catching the eye of the tech giants, and what Web3 could mean for the future of the internet.
The FDA has granted emergency use authorization to Pfizer's pill to treat covid-19. The treatment, called Paxlovid, is the first antiviral covid-19 pill that people can take at home.
Pfizer says the pill can reduce the risk of severe illness by 90 percent and is intended for people at high risk for severe disease, including those over 65, people with obesity, diabetes, or a weakened immune system. Professor Peter Pitts, Founder, Center for Medicine in the Public Interest & Former FDA Associate joined Wake Up with Cheddar to discuss.
On December 20th, the TSA reported that for the fourth day in a row, it had screened more than 2 million people through its airports as the Omicron variant continues to rage and spread rapidly throughout the country. The CDC now reporting that roughly 73% of all covid cases are caused by the Omicron variant ahead of President Biden’s remarks aimed towards curbing the virus and helping hospitals battle rises in hospitalizations. Dr. Nasia Safdar breaks down the latest on traveling during the pandemic.
Ahead of a four day week for the markets due to the upcoming Christmas holiday, investors hoping for a quiet end to the year, or even a Santa Claus rally, may not be in luck. Investors are still digesting the latest from the Fed regarding a quicker than expected taper, as well as ever increasing blow back as the Omicron variant spreads. Octavio Marenzi, CEO of Opimas LLC, explains why the markets have been so volatile ever since the emergence of the latest variant and what to expect going forward into 2022.
Carlo and Baker cover the heartening news on the Covid front ahead of the holiday, plus President Biden punting student loan repayments again, a new space telescope and Love, Hate, Ate: Christmas Eve Eve Edition!
Stocks closed lower Monday as investors continued to price in COVID-19 omicron variant fears. Reopening stocks like airlines, financial companies, restaurants and hotels, and more, dragged on the major indexes as businesses and events took a pause over the weekend amid rising case numbers in metropolitan areas. This comes a week after the Federal Reserve announced it plans to speed up its asset tapering timeline in January and institute three rate hikes next year. Is that plan aging well? Robert Conzo, CEO of The Wealth Alliance, joins Cheddar News' Closing Bell to discuss market movement, how stocks could close out the year, what the Fed could do in 2022, and more.
