A general view of a Chipotle restaurant on September 15, 2022, in Levittown, New York, United States. (Photo by Bruce Bennett/Getty Images)
Here is a rundown of Cheddar News' top trending market stories of the day.
GDP STILL RISING
U.S. gross domestic product (GDP) increased a healthy 2.9 percent in the fourth quarter. That is slightly slower than the third quarter, but still nothing to scoff at, especially considering rising interest rates, recession fears, and thousands of layoffs in the tech sector (read below).
SMARTPHONE SALES SLUMP
Smartphone sales have been sliding for years, but in 2022 they hit a new low. Global smartphone shipments were down 18.3 percent year-over-year, which is their biggest-ever single decline, according to data from the International Data Corporation (IDC). While Apple had previously bucked the industry trend, its sales were down 14.9 percent last year.
CHIPOTLE HIRING SPREE
Maybe you've never heard of "burrito season" — the period between March and Cinco de Mayo — but Chipotle sure has. The Mexican fast casual chain is hiring 15,000 workers to prepare for its busiest time of year, and it plans to launch a recruitment campaign to attract applicants.
IBM LAYOFFS
Meanwhile, in the tech sector, heavy layoffs continue. IBM is cutting 3,900 jobs on the heels of a quarterly earnings report that missed its own cash flow targets. The legacy computer company is nonetheless anticipating modest but steady growth in 2023.
TESLA EARNINGS
Tesla reported record net income in the last quarter of 2022, and now it's predicting that it will keep its profit margins higher than any other automaker in the coming year — despite the fact that it recently announced a series of steep price cuts on its most popular models.
SOUTHWEST INVESTIGATION
The U.S. Transportation Department is investigating whether Southwest Airlines knowingly scheduled more flights in late December than it could handle amid systemwide delays and cancellations. “DOT is in the initial phase of a rigorous and comprehensive investigation into Southwest Airlines’ holiday debacle that stranded millions,” the department said in a statement.
Walmart, which became the nation’s largest retailer by making low prices a priority, has found itself in a place it’s rarely been: Warning customers that prices will rise for goods ranging from bananas to car seats.
Chris Beauchamp, Chief Market Analyst at IG International, joins J.D. Durkin to give analysis on the recent trade truce between the U.S. and China. Watch!
Shan Aggarwal, VP of Corporate and Business Development at Coinbase, discusses the company's acquisitio of Deribit as it heads into the S&P 500. Watch!
American businesses that rely on Chinese goods are reacting with muted relief after the U.S. and China agreed to pause their exorbitant tariffs on each other’s products for 90 days. Many companies delayed or canceled orders after President Donald Trump last month put a 145% tariff on items made in China. Importers still face relatively high tariffs, however, as well as uncertainty over what will happen in the coming weeks and months. The temporary truce was announced as retailers and their suppliers are looking to finalize their plans and orders for the holiday shopping season. They’re concerned a mad scramble to get goods onto ships will lead to bottlenecks and increased shipping costs.
Shopping expert Trae Bodge discusses how talks between the U.S. and China is good news for now, but uncertainty remains for back-to-school and the holidays.
Jake Traylor, White House reporter at Politico, joins Cheddar to discuss how Trump is aiming to lower drug prices and how it differs from Biden's approach.
