January 29, 2023

5 things to know before the stock market opens on Friday, December 16th

5 things to know before the stock market opens on Friday, December 16th

Traders work on the trading floor of the New York Stock Exchange (NYSE) in New York City, US, December 14, 2022.

Andrew Kelly | Reuters

Here are the top stories investors need to start their trading day:

1. Desperately seeking Santa

ho ho ho? More like la la la. It was a bad week for stocks Hopes for a Santa Claus rally are fading. US stocks are about to enter a second straight week of losses. Markets fell sharply on Thursday as investors digested Federal Reserve Chairman Jerome Powell’s hawkish comments and forecasts the day before. Retail sales slowdown Heading into the holidays didn’t help either, though they did indicate a slowing economy, which is what the Fed wants as it tries to beat inflation. Instead, it is shaping up to be an environment in which the Fed maintains higher rates for a longer period of time, regardless of what happens in the next few months. Read live markets updates over here.

2. Twitter targets journalists

STR | Norphoto | Getty Images

Twitter suspended The accounts of several journalists and commentators reporting on the company and its billionaire owner Tesla CEO Elon Musk. As of Thursday night, the social media platform has suspended the accounts of Ryan Mac of New York times, CNN’s Donnie O’Sullivan, The Washington Post’s Drew Harwell, Mashable’s Matt Bender, The Intercept’s Micah Lee, Voice of America’s Steve Herrmann, as well as freelancers Aaron Robar, Keith Olbermann and Tony Webster. Musk, who described himself as a “freedom of speech,” noted on Twitter that the journalists’ suspension was in the same vein of discipline against accounts that track flights, including those that track the whereabouts of the CEO’s private jet.

3. The US is putting pressure on the Chinese chip maker

Semiconductor chips are seen on a computer circuit board in this illustration image taken on February 25, 2022.

Florence Low | Reuters

The Biden administration unveiled Thursday Restrictions imposed on many entities, mostly from China, including the chip maker, over national security concerns. The chip company, Yangtze Memory Technologies Corporation, or YMTC, was already on the US trade blacklist. The measure is intended to impede China’s ability to use “artificial intelligence, advanced computing, and other powerful, commercially available technologies for military modernization and human rights abuses,” according to a Commerce Department official. The move also comes as the administration is trying to Promote semiconductor manufacturing on US soil.

4. Adobe delivers

A low-angle view of a sign with a logo on the facade at the office of computer software company Adobe in the South of Market (SoMA) neighborhood of San Francisco, California, June 10, 2019.

Smith Collection / Gedo | photo archive | Getty Images

Adobe Published quarterly earnings Thursday that It topped analyst expectations, while the design software maker stuck to its forecasts for the full fiscal year. The stock rose on the positive news, though it’s down more than 40% over the year, sharper than the drop in the broad S&P 500. “We delivered record operating cash flow with a focus on profitability,” Adobe CEO Shantanu Narayen said on the earnings call. However, he also warned that a slowing economy could hurt the company, and that Adobe would tread carefully.

5. Flipped

Not surprisingly, it has been a victim of the rapid cooling in the housing market The home flipping part. Profit from volatility, which is defined when a home is bought and sold within a 12-month period, fell 18.4% in the third quarter from the second quarter. This is the largest quarterly decline in more than a decade, according to real estate data provider ATTOM. It’s a double whammy for house flippers: house prices are still high, but they’re falling fast, while renovation costs have also gone up. “With buyer demand subdued, prices trending lower over the past few months, and financing rates much higher than they were at the start of the year, fins face a more challenging environment today, and possibly in 2023 as well,” said Sharga, EVP of Market Intelligence at ATTOM. , in a statement.

— CNBC’s Alex Haring, Kevin Breuninger, Jordan Novette and Diana Olick contributed to this report.

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