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.
Developers for the video game "Call of Duty: Warzone" staged a walkout in protest of 12 quality assurance testers being laid off by parent company Activision Blizzard. This marks the latest work stoppage for the embattled game publishing giant.
Troubled Chinese real estate giant Evergrande is once again nearing the brink of collapse. Shares of Evergrande sunk to a new record low on Monday, closing down 20 percent, as debt default fears resurfaced. Drew Bernstein, co-chairman at consultancy MarcumBP, joined Cheddar's Opening Bell to discuss. He said U.S. investors have to understand that "there is no company in China that's too big to fail, that's for sure," and that the Chinese government will be prioritizing the social welfare of the populace. Bernstein did note that it would be a managed collapse in some form.
Earlier this year, JetBlue flew its inaugural flight into the United Kingdom. It was a game changer — not only did the airline enter the transatlantic market, but the plane that completed the flight was a single-aisle jet. For decades, flying the distance was synonymous with jumbo jets, but today narrow-body aircraft are now proving they are up for the task — and maybe even the best option. In this episode, Cheddar examines why airlines are betting on narrow-body aircraft.
Carlo and Baker discuss the sweeping new vaccine mandate in NYC that will target all private businesses. Plus, Trump's media venture gets its CEO and more.
Rebecca Walser, President of Walser Wealth Management, joins Cheddar News' Closing Bell, where she discusses the factors behind Monday's surge on Wall Street and explains why investors will likely experience volatility in the market throughout the month of December.
PNC Asset Management Group Chief Investment Officer Amanda Agati joined Cheddar News "Closing Bell" to discuss the financial institution's 38th annual Christmas Price Index. The holiday measure of consumer prices cheekily follows the theme of the carol "The Twelve Days of Christmas." Agati also explains what takeaways shoppers should have during the season, including the role of e-commerce.
