Traders on the floor of the NYSE, January 5, 2023.
Here are the key news investors need to start their trading day:
1. A little speed
The Nasdaq put together its second straight day of gains on Monday, even as the Dow and S&P 500 fell. The technology-heavy Nasdaq struggled mightily last year, dragged down by major declines in shares such as Tesla. However, could this year bring a significant turnaround? A classic indicator suggests that stocks are in for a good year overall. Quite simply, the S&P 500 has done well after the first five trading days of the year — up 1.1% so far — and that could portend a positive 2023. Tuesday, however, could test the market’s momentum, with Fed Chairman Jerome Powell scheduled to to talk. Read live market updates here.
2. Goldman lays off 3,200
Goldman Sachs is set to lay off up to 3,200 employees this week, a warning sign that Wall Street is bracing for leaner times this year. There is a silver lining, however: Those 3,200 jobs represent about 6.5% of the big bank’s workforce, while Goldman was expected to cut up to 8% of its workforce. That does not mean, however, that Goldman and Wall Street in general are finished with layoffs. Bank managers want to see what happens in the first quarter, especially if the economy goes into recession. So more cuts could be on the way in February or March.
3. Iger says come back to the office
Bob Iger, former CEO, The Walt Disney Company
Scott Mill | CNBC
The new year brought tougher return-to-the-office demands for many businesses and their employees, with bosses calling for hybrid plans that include coming in two or three days a week. There is no exception at Disney, in which CEO Bob Iger told company workers they must come to the office at least four days a week, starting March 1. Iger also wants to set a new tone at Disney, about two months after returning to the CEO’s office following the sudden firing of his handpicked successor, Bob Chapek. “As you’ve heard me say many times, creativity is the heart and soul of who we are and what we do at Disney,” Iger wrote to employees. “And in a creative business like ours, nothing can replace the ability to connect, observe and create with peers that comes from being physically together, nor the opportunity to grow professionally by learning from leaders and mentors.”
4. Bed bath and bankruptcy?
A “Store Closing” banner at a Bed Bath & Beyond store in Farmingdale, New York, on Friday, June 6. January 2023.
Johnny Milano | Bloomberg | Getty Images
Bed Bath & Beyond may not have much time left. Last week, just days before the beleaguered retailer was due to report quarterly results, the company pre-announced a slew of results while warning it could soon seek bankruptcy protection. Bed Bath, which is set to report earnings on Tuesday morning, warned that it was running out of cash quickly as sales fell more than expected. Losses grew, and so did the problems of getting goods on the shelves. Tuesday’s report could shed even more light on what’s happening at the company, including what’s next, as the turnaround strategy plays out. Read more from CNBC’s Melissa Repko and Gabrielle Fonrouge here.
5. Russia makes progress, knocks Ukraine
Ukrainian rescuers work at a site after a Russian missile attack on a local market in the village of Shevchenkove, Kharkiv region, on January 9, 2023.
Sergey Bobok | Afp | Getty Images
Russian forces have made “tactical progress” in their efforts to capture territory in the Donbas region. In particular, they aim to take the town of Bakhmut, which appears to be Moscow’s “primary immediate objective”, according to the British Ministry of Defence. Meanwhile, four civilians died and around 30 people were injured in the latest round of Russian rocket attacks on the northeastern, eastern and southern regions of Ukraine, a top official said. Read live war updates here.
And one more thing…
Inglewood, CA – January 09: Quarterback Stetson Bennett #13 of the Georgia Bulldogs reacts after a touchdown against the TCU Horned Frogs in the first half of the CFP National Championship Football game at SoFi Stadium in Inglewood on Monday, January 9, 2023. ( Photo by Keith Birmingham /MediaNews Group/Pasadena Star-News via Getty Images)
Medianews Group/pasadena Star-news Via Getty Images | Medianews Group | Getty Images
The college football season ended with a big bang. The Georgia Bulldogs repeated as national champions by beating the underdog TCU Horned Frogs, 65-7, on Monday night. No team has ever scored more points in a national title game dating to the Bowl Championship Series’ debut in 1998, according to the Associated Press.
– CNBC’s Tanaya Macheel, Hugh Son, Alex Sherman, Sarah Whitten, Melissa Repko, Gabrielle Fonrouge and Holly Ellyatt contributed to this report.
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