Stocks slip as earnings flurry continues: Stock market news today
U.S. stocks moved lower Wednesday at the open as investors digested another flurry of corporate earnings, including Morgan Stanley (MS).
The S&P 500 (^GSPC) slid by 0.47%, while the Dow Jones Industrial Average (^DJI) edged down by 0.31%. The technology-heavy Nasdaq Composite (^IXIC) slipped by 0.73%.
Bonds yields were higher after Britain’s inflation rate slowed last month but remained above 10%. The yield on the 10-year note climbed to 3.6%, while rate-sensitive 2-year note yields rose to 4.24% Wednesday morning.
Stocks had closed flat on Tuesday amid an earnings parade that included results from Bank of America (BAC) and Goldman Sachs (GS).
On Wednesday, Morgan Stanley came into the mix, reporting that its first-quarter profit fell amid continued pressure on its investment banking unit. Shares were down more than 2% at the open.
One of the sore losers after the closing bell on Tuesday was Netflix (NFLX). The stock sank more than 10% after the streaming giant posted mixed results as it pulled back on its crackdown for password sharing. It pared losses, however, and was down 3% Wednesday morning.
The story was different for Western Alliance (WAL). The regional lender said that its deposits climbed by $2 billion at the end of the first quarter. The stock rallied 19%.
More earnings are on tap this week. On Wednesday, Zions (ZION), Tesla (TSLA), and International Business Machines Corporation (IBM) are due after the market closes.
Meanwhile, US Bancorp (USB) posted higher revenue for the first quarter on the back of rising interest rates and its acquisition of MUFG Union Bank. The stock edged up near 1% following the results.
With earnings season heating up this week, “82% of companies are beating and by a margin of 7.6%. The earnings recession wallop the bears are expecting has not materialized,” the team at Fundstrat Global Advisors wrote in a note to clients. “1Q23 earnings season will ultimately enable the S&P 500 to push to new highs for the year,”
Meanwhile, little volatility as of late has enabled a continued easing in financial conditions, which in turn has “helped cement investors’ conviction that the Fed [is] set to deliver another hike in just two weeks’ from now, which was supported by the latest round of FOMC speakers,” Jim Reid and colleagues at Deutsche Bank wrote in a note to clients.
St. Louis Fed President James Bullard said on Tuesday in an interview that “Wall Street’s very engaged in the idea there’s going to be a recession in six months or something, but that isn’t really the way you would read an expansion like this.” Bullard also didn’t rule out more interest rate hikes.
Separately, Atlanta Fed President Raphael Bostic said he favors another rate hike and then holding them above 5% for “quite some time.” While officials offer more signals of another rate hike, the Fed will be releasing its Beige Book, which will provide detailed information from the 12 Fed districts about economic conditions.
Chicago Federal Reserve President Austan Goolsbee is expected to speak on Wednesday ahead of Fed’s blackout period, which starts on Saturday.
Here are some other trending tickers on Yahoo Finance:
- United Airlines Holdings, Inc. (UAL): The airline giant reported a loss in the first quarter despite travel rebounding. United anticipates earnings of $3.50 to $4 a share in the second quarter, executives said on the earnings call.
- Intuitive Surgical, Inc. (ISRG): The company reported earnings on Tuesday that showed a massive resurgence in robotic surgery procedures during the March quarter.
- Abbott Laboratories (ABT): Abbott posted a quarterly profit above expectations despite a dramatic slowdown in sales of Covid tests.
Elsewhere, bitcoin (BTC) slid below $30,000 on Wednesday, which also led to a sell-off in the broader crypto market, with ether (ETH) dipping below $2,000.
Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv
Suncor to cut 1500 jobs by end of year, employees informed Thursday – CTV News Calgary
Suncor Energy Inc. says it will cut 1,500 jobs by the end of the year in an effort to reduce costs and improve the company’s lagging financial performance.
Spokeswoman Sneh Seetal confirmed the cuts, saying they will be spread across the organization and will affect both employees and contractors.
Seetal says employees were informed of the cuts in a companywide email from Suncor CEO Rich Kruger earlier this afternoon.
Suncor has been under pressure from shareholders – including activist investor Elliott Investment Management – to improve its financial and share price performance, which has lagged its peers.
Kruger, the former CEO of Imperial Oil Ltd., took the reins at Suncor earlier this spring and has been tasked with turning around the oilsands giant.
Suncor employs people across the country, in the U.S., and the U.K. Its corporate head office is located in Calgary.
This report by The Canadian Press was first published June 1, 2023.
Amazon ordered to pay more than $30M for privacy violations related to Alexa, Ring devices – CBC News
Amazon agreed Wednesday to pay a $25 million US civil penalty to settle Federal Trade Commission (FTC) allegations it violated a child privacy law and deceived parents by keeping for years kids’ voice and location data recorded by its popular Alexa voice assistant.
Separately, the company agreed to pay $5.8 million US in customer refunds for alleged privacy violations involving its doorbell camera, Ring.
The Alexa-related action orders Amazon to overhaul its data deletion practices and impose stricter, more transparent privacy measures. It also obliges the tech giant to delete certain data collected by its internet-connected digital assistant, which people use for everything from checking the weather to playing games and queueing up music.
“Amazon’s history of misleading parents, keeping children’s recordings indefinitely, and flouting parents’ deletion requests violated COPPA (the Child Online Privacy Protection Act) and sacrificed privacy for profits,” Samuel Levine, the FTC consumer protection chief, said in a statement. The 1998 law is designed to shield children from online harms.
FTC Commissioner Alvaro Bedoya said in a statement that “when parents asked Amazon to delete their kids’ Alexa voice data, the company did not delete all of it.”
The Current22:19Amazon losing billions on Alexa voice assistant
The agency ordered the company to delete inactive child accounts as well as certain voice and geolocation data. That order will apply to Canadian customers, as well, the company confirmed in an email to CBC News.
Amazon kept the kids’ data to refine its voice recognition algorithm, the artificial intelligence behind Alexa, which powers Echo and other smart speakers, Bedoya said.
The FTC complaint sends a message to all tech companies who are “sprinting to do the same” amid fierce competition in developing AI datasets, he said.
Amazon said last month that it has sold more than a half-billion Alexa-enabled devices globally and that use of the service increased 35 per cent last year.
Hackers able to access Ring accounts
In the Ring case, the FTC says Amazon’s home security camera subsidiary let employees and contractors access consumers’ private videos and provided lax security practices that enabled hackers to take control of some accounts.
Amazon bought California-based Ring in 2018, and many of the violations alleged by the FTC predate the acquisition. Under the FTC’s order, Ring is required to pay $5.8 million US that would be used for consumer refunds.
Amazon said it disagreed with the FTC’s claims on both Alexa and Ring and denied violating the law. But it said the settlements “put these matters behind us.”
“Our devices and services are built to protect customers’ privacy, and to provide customers with control over their experience,” the Seattle-based company said.
In addition to the fine in the Alexa case, the proposed order prohibits Amazon from using deleted geolocation and voice information to create or improve any data product. The order also requires Amazon to create a privacy program for its use of geolocation information.
The proposed orders must be approved by federal judges.
FTC commissioners had unanimously voted to file the charges against Amazon in both cases.
Stocks slide as debt ceiling vote looms, jobs data stays hot : Stock market news today
US stocks closed lower Wednesday as investors kept a watchful eye on the prospects for the debt-limit deal in an expected House floor vote. Meanwhile, strong US jobs data and China’s economic woes pressured global markets.
The S&P 500 (^GSPC) fell 0.60% while the Dow Jones Industrial Average (^DJI) dipped 0.40% or more than 130 points. The technology-heavy Nasdaq Composite (^IXIC) slipped 0.63%.
US bond yields weakened as investors fretted over the potential impact of the debt-limit deal and reviewed the release of fresh jobs data. The yield on the benchmark 10-year Treasury dropped to 3.62%. The two-year note yields, which are more rate sensitive, slipped to 4.3%, while that on the 30-year bond dropped to 3.84%.
Equities lost steam as the Labor Department reported the number of job openings rose to over 10.1 million, up from economists’ expectations of 9.4 million openings.
The figures underscores “the tightness in the labor market is unlikely to fall off a cliff but rather continue downward on a bumpy path,” Oxford Economics wrote in a note on Wednesday. “While there are some concerns over the veracity of the JOLTS survey due to historically low response rates, the upshot remains that labor market strength remains robust.”
In light of recent economic data, markets are pricing in an increase of 25 basis points in interest rates from the Fed at policymakers’ meeting on June 13-14. On the commodities side, the dollar index rose, while crude oil slid below $70 a barrel.
Still, investors are still very keen on the latest developments in Washington. The debt ceiling agreement negotiated by President Joe Biden and House Speaker Kevin McCarthy passed its first key test on Tuesday when it gained approval from the Republican-led House Rules Committee despite opposition from hard-liners. That cleared the way for the deal to go before the House on Wednesday.
The clock is ticking down, as Congress must race to pass the deal to avoid a catastrophic default by June 5. That so-called X-Date is when the US will run out of money to pay its bills, Treasury Secretary Janet Yellen has warned.
Meanwhile, both Federal Reserve Governor Philip Jefferson and Philadelphia Federal Reserve President Patrick Harker signaled Wednesday that the central bank could pause rate hikes at its next policy meeting. Separately, the economy showed signs of cooling as hiring and inflation slowing, the Federal Reserve said in its Beige Book survey of regional business contacts.
Elsewhere, China’s factory activity slumped to its weakest level for a second straight month, another sign its post-pandemic economic recovery is losing steam. Asian markets tumbled after the release of the data.
On the housing front, mortgage demand dropped to its lowest level since March, while refinancing activity also dampened to another low, the MBA data showed Wednesday.
Meanwhile, in corporate news, Hewlett Packard Enterprise Company (HPE) sank more than 7% after the company posted a revenue miss in its second quarter earnings and slashed its full-year sales guidance.
Still, the run-up in stocks linked to AI was losing momentum, after the buzz around the technology helped boosted the Nasdaq 100 Index (^NDX) on Tuesday. Shares of ChargePoint Holdings, Inc. (CHPT) was flat, while C3.ai, Inc. (AI) dipped more than 8% Wednesday.
In single-stock moves, SoFi Technologies, Inc. (SOFI) shares rallied more than 15% in the wake of the debt ceiling deal. The bill would reinstate government student loan repayments, benefiting the online personal finance company.
Shares of HP Inc. (HPQ) sank more than 5% after the computing giant posted better-than-expected quarterly earnings on Tuesday, but reported sales that fell more than analysts estimated.
Intel Corporation (INTC) shares rose more than 4% after the chipmaker said current quarter revenue is on track to be at the high end of its guidance.
Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv
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