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.
Noel Kinder, chief sustainability officer at Nike, joined Cheddar to talk about the company's role at the COP26 climate summit from Glasgow, Scotland, and the commitment to reducing its own carbon footprint. Kinder also talked about partnering with the company's supply chain to only use products that are sustainable and meet Nike's goal of being a climate-conscious brand. "We've doubled down on that commitment. We know that our foundation that we've created over those decades is really important, and our consumers really care about this," he said.
A Freitag pod with Carlo and Baker, talking about the upcoming federal vax-or-test deadline, the most shocking upset of this week's elections, an incredible story of selflessness and Love, Hate, Ate.
The Chinese government causing quite a stir after urging families to stock up on essentials ahead of winter months amid a global energy crisis and supply chain woes disruptions. Keith Krach, the former Under Secretary of State and former DocuSign Chairman and CEO, joined Cheddar News to discuss.
It's earnings season for the hospitality industry, with Marriott, MGM, Booking Holdings, and Hyatt all set to report on November 3. The stakes are high as investors look for signs that travel is returning after months of pandemic-related disruptions. Hilary Kramer, chief investment officer for Kramer Capital Research, joined Cheddar to explain why the industry still has a long way to go when it comes to recovering from the pandemic.
The Federal Reserve announced it would begin tapering asset purchases in mid-November and that it would keep interest rates low. Stocks hit a record high on the announcement. Dan Eye, Head of Asset Allocation & Equity Research at Fort Pitt Capital Group, joins Cheddar News' Closing Bell to discuss the Fed news, as well as Q3 earnings season.
Both the S&P 500 and Nasdaq hit new highs Thursday, with investors keeping an eye on strong economic data, and tech stocks boosting the Nasdaq. The Dow closed lower, but hovered near a record. Brandon Pizzurro, Director of Public Investments at GuideStone Capital Management, joins Cheddar News' Closing Bell to discuss today's close, Q3 earnings season so far, and 2022 outlook amid Fed announcements.
