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.
AI is reshaping investigations. Longeye CEO Guillaume Delepine shares how their AI workspace empowers law enforcement to uncover insights faster and smarter.
Stephen Kates, Financial Analyst at Bankrate, joins to discuss the Fed’s 25-basis-point rate cut, inflation risks, and what it all means for consumers and marke
Big tech earnings take center stage as investors digest results from Alphabet, Meta, Microsoft, Amazon, and Apple, with insights from Gil Luria of D.A. Davidson
Disney content has gone dark on YouTube TV, leaving subscribers of the Google-owned live streaming platform without access to major networks like ESPN and ABC. That’s because the companies have failed to reach a new licensing deal to keep Disney channels on YouTube TV. Depending on how long it lasts, the dispute could particularly impact coverage of U.S. college football matchups over the weekend — on top of other news and entertainment disruptions that have already arrived. In the meantime, YouTube TV subscribers who want to watch Disney channels could have little choice other than turning to the company’s own platforms, which come with their own price tags.
President Donald Trump said he has decided to lower his combined tariff rates on imports of Chinese goods to 47% after talks with Chinese leader Xi Jinping on curbing fentanyl trafficking.
Universal Music Group and AI platform Udio have settled a copyright lawsuit and will collaborate on a new music creation and streaming platform. The companies announced on Wednesday that they reached a compensatory legal settlement and new licensing agreements. These agreements aim to provide more revenue opportunities for Universal's artists and songwriters. The rise of AI song generation tools like Udio has disrupted the music streaming industry, leading to accusations from record labels. This deal marks the first since Universal and others sued Udio and Suno last year. Financial terms of the settlement weren't disclosed.
