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.
Chipmaker Nvidia is poised to release a quarterly report that could provide a better sense of whether the stock market has been riding an overhyped artificial intelligence bubble or is being propelled by a technological boom that’s still gathering momentum.
Cracker Barrel said late Tuesday it’s returning to its old logo after critics — including President Donald Trump — protested the company’s plan to modernize.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
Cracker Barrel is sticking with its new logo. For now. But the chain is also apologizing to fans who were angered when the change was announced last week.
Elon Musk on Monday targeted Apple and OpenAI in an antitrust lawsuit alleging that the iPhone maker and the ChatGPT maker are teaming up to thwart competition in artificial intelligence.
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