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.
Pharmaceutical company Merck has announced that it will share the formula of its COVID-19 pill with poor countries free of charge. The company still intends to charge wealthier nations leaving the end cost at more than $700 per five-day treatment course.
Dems race for a deal on President Biden's economic agenda ahead of his big foreign trip. What to make of the latest threat assessment in Afghanistan. Plus, the meme cryptocurrency of the moment that's now worth more than many Fortune 500 companies.
Rent the Runway is making its trading debut on the NASDAQ. The fashion company has struggled since the onset of the pandemic, not having turned a profit since 2019. Crunchbase reporter Sophia Kunthara explains how Rent the Runway has had to make necessary changes to its business model in order to keep itself afloat.
As negotiations drag on in Washington, DC over President Biden's social spending bills, Senate Democrats have introduced a new idea to fund Biden's plans: taxing the unrealized capital gains held by billionaires. Barron's reporter Sabrina Escobar joins Cheddar News' Closing Bell, where she explains what's in the billionaire tax proposal, who it will impact, and why it's on the table.
GM exceeded earnings expectations, yet still felt the chip shortage squeeze. Baron's Senior Writer Al Root discussed GM's segue into the electric car car world despite its struggles.
Jay Jacobs, SVP and Head of Research & Strategy, at Global X ETFs, joins Cheddar News' Closing Bell, where he explains why the Dow and S&P fell from their recent records during Wednesday's session. Jacobs also broke down the numbers in Ford's Q3 earnings as the results rolled in.
Two recent studies by Conference Board, ESGauge, and Spencer Stuart find that the number of Black directors at S&P 500 companies is growing, but more needs to be done in order to see real gains in the boardroom. Jerusha Stewart, CEO of Take Your Seat joins Cheddar News to discuss what more needs to be done for a more inclusive workplace.
