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.
Nvidia on Wednesday became the first public company to reach a market capitalization of $5 trillion. The ravenous appetite for the Silicon Valley company’s chips is the main reason that the company’s stock price has increased so rapidly since early 2023.
Chris Williamson, Chief Business Economist at S&P Global, breaks down September’s CPI print and inflation trends, explaining what it means for markets.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
