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.
Greenwood, a digital banking platform aimed at supporting Black and Latino businesses and clients, is launching its very own GreenBook. Named after the historic publication for Black travelers during the era of Jim Crow, the online guide will provide a directory of Black- and Latino-owned businesses across the country. Ryan Glover, the founder and chairman of Greenwood, joined Cheddar to provide additional details about the listings.
Apple is reversing course on its in-house repair policy amid the ongoing pressure from right-to-repair advocates and will roll out a self-service option allowing customers to repair and replace some parts on some iPhones themselves.
Greg Martin, the co-founder of Rainmaker Securities, joined Cheddar to talk about fast-casual restaurant chain Sweetgreen's IPO launch on the New York Stock Exchange. Martin said he is not confident the market will react positively to the launch and expects volatility ahead because "when you look at their metrics, they're good but not great." He also noted that it might take investors a while to figure out exactly what the brand is as it balances between being a traditional restaurant and a tech-enabled food platform.
The major indexes closed lower Wednesday even as major retailers reported better-than-expected quarterly earnings. Melissa Brown, Managing Director of Applied Research at Contigo, joined Cheddar News' Closing Bell to discuss today's market close.
President Biden's infrastructure plan will be pumping billions of dollars into the EV sector. David Shepardson, Correspondent at Thomson Reuters, joined Cheddar News' Closing Bell to break down all of the details.
Luke Oliver, Managing Director and Head of Strategy at KraneShares, joined Wake Up With Cheddar to talk about why it's the right time to invest in clean energy, as the U.S. continues its transition away from carbon-emitting fossil fuels.
Home improvement has seen an 82 percent increase since the start of the pandemic and from the looks of third quarter earnings from Lowe’s and Home Depot, it doesn't look like the home repairs will be stopping any time soon. As some industries have struggled to stay afloat, the home improvement competitors both beat out revenue estimates for the past quarter. Ken Leon, Director of Research at CFRA Research, spoke to Cheddar about why we should get used to the uptick in home improvement.
Al Root, Senior Writer at Barron's, joined Wake Up With Cheddar's Jill Wagner to break down who qualifies for the proposed EV tax credits and why some automakers aren't too pleased about extra incentives for vehicles made at union plants.
