A specialist trader works on the floor of the New York Stock Exchange (NYSE) in New York City, October 17, 2022.
Brendan McDermid | Reuters
Here are the most important news items that investors need to start their trading day:
1. Let’s see if this holds
Stocks jumped again Tuesday, cementing a strong start to the week, although futures didn’t look too bright Wednesday morning. The tech-heavy Nasdaq looked set to be buoyed by Netflix and its strong earnings report (more on that below). Overall, even though its early in earnings season, companies’ reports have been pretty solid so far, even though fears of a Fed-driven recession linger. Investors will have more earnings to chew on Wednesday, with Procter & Gamble reporting before the bell and IBM and Tesla set for after the close. Read live market updates here.
2. Netflix changes things up
The Netflix logo is seen on a TV remote controller, in this illustration taken January 20, 2022.
Dado Ruvic | Reuters
Netflix came through with a strong earnings report Tuesday, easily beating expectations on its top and bottom lines. But its strongest metric was the number of subscribers it added in the third quarter. The stock surged in off-hours trading, as it appeared that Netflix had managed to turn things around after losing subscribers for consecutive quarters. There was a plot twist, though: Netflix said it would no longer provide quarterly forecasts for subscriber additions. Instead, as the company moves toward selling a new ad-supported tier, and its competitors bulk up, Netflix wants to put more emphasis on profit and revenue. “Focusing on subscribers in our early days was helpful, but now that we have such a wide range of price points and different partnerships all over the world, the economic impact of any given subscriber can be quite different,” Netflix executive Spencer Wang said during the company’s earnings call.
3. Turning back the clock
Seinfeld
Carin Baer | NBCU
You want to feel old? The last time mortgage demand was this low, according to the Mortgage Bankers Association, was 1997. “Seinfeld” was the top TV show, and Jewel dominated the music charts with “You Were Meant for Me.” Also that year, mortgage rates were consistently above 7%. This time, depending on which organization is keeping track, rates are now hovering near or above 7%. Affordability in the housing market was a concern even before rates started surging this year, but builders and sellers remained bullish since demand was so robust. Now sellers are getting a little warier, and homebuilder sentiment is well into negative territory, as buyers are in no rush to lock in a high mortgage age rate.
4. Flying high again
A United Airlines Boeing 777-200 lands at San Francisco International Airport, San Francisco, California.
Louis Nastro | Reuters
United Airlines is bullish on fourth quarter air travel, as people shake off two years of Covid restrictions and head out for the holidays. Even with inflation at four-decade highs and Wall Street warning of a recession. “Looking forward through the end of the year, the airline expects the strong Covid recovery trends to continue to overcome the recessionary pressures in the macroeconomic environment,” the company said in its earnings release Tuesday. United’s outlook follows a similar rosy report from rival Delta Air Lines, which projected a profit during the fourth quarter. American Airlines is set to report before the bell Thursday.
5. P&G’s forex warning
Daniel Acker | Bloomberg | Getty Images
Procter & Gamble, the consumer goods giant known for producing Tide detergent and Crest toothpaste, said it expects foreign exchange to weigh on its results during the fiscal year. The U.S. dollar has strengthened considerably against other nations’ currency in recent months as the Federal Reserve has jacked up interest rates to fight surging inflation. The company’s earnings and revenue, by the way, topped expectations in the most recent quarter, as price increases offset a decline in sales volumes.
– CNBC’s Tanaya Macheel, Sarah Whitten, Alex Sherman, Diana Olick, Leslie Josephs and Amelia Lucas contributed to this report.
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United Launch Alliance Atlas V rocket carrying the first two demonstration satellites for Amazon’s Project Kuiper broadband internet constellation stands ready for launch on pad 41 at Cape Canaveral Space Force Station on October 5, 2023 in Cape Canaveral, Florida, United States.
Paul Hennessey | Anadolu Agency | Getty Images
Amazon delayed the launch of its Kuiper internet satellites due to poor weather conditions on Wednesday night.
A United Launch Alliance rocket carrying 27 Kuiper satellites was set to lift off from a launchpad in Cape Canaveral, Florida, but ULA said it couldn’t continue countdown operations as “stubborn cumulus clouds” and heavy winds pushed the launch outside its planned window, according to a livestream.
“Weather is observed and forecast NO GO for liftoff within the remaining launch window at Cape Canaveral this evening,” ULA said. The company said it will provide a new launch date at a later point.
Six years ago Amazon unveiled its plans to build a constellation of internet satellites in low Earth orbit, a region of space that’s within 1,200 miles of Earth’s surface. The company aims to sell high-speed, low-latency internet to consumers, corporations and governments, offering connections through square-shaped terminals. Commercial service is expected to come online later this year.
Amazon is racing to compete with SpaceX’s Starlink, the dominant player in the market, with 8,000 satellites already up in the air. SpaceX CEO Elon Musk now has a central role in the White House as one of President Donald Trump’s top advisors, overseeing the Department of Government Efficiency, or DOGE. Since Musk took on the role, Starlink’s footprint has increased within the federal government.
The clock is ticking for Amazon to meet a deadline set by the Federal Communications Commission, which requires the company to have half of its total constellation, or 1,618 satellites, up in the air by July 2026.
Once it completes its first launch, Amazon expects to ramp up its production, processing and deployment rates. It’s begun prepping satellites for its next mission, which will also hitch a ride on one of ULA’s Atlas V rockets.
Alphabet CEO Sundar Pichai meets with Polish Prime Minister Donald Tusk in Warsaw, Poland, on February 13, 2025.
Klaudia Radecka | Nurphoto | Getty Images
Google has reversed a policy forbidding employees from discussing its antitrust woes following a settlement with workers.
The company sent a notice to U.S. employees last week saying it rescinded “the rule requesting that workers refrain from commenting internally or externally about the on-going antitrust lawsuit filed against Google by the U.S. Department of Justice,” according to correspondence viewed by CNBC.
Google settled with the Alphabet Workers Union, which represents company employees and contractors, according to the U.S. National Labor Relations Board, or NLRB. The settlement and policy reversal mark a major victory for Google staffers, who have seen increased censorship on subjects such as politics, litigation and defense contracts by the search giant since 2019.
The U.S. Department of Justice filed an antitrust lawsuit against Google in 2020, alleging that the company has kept its share of the general search market by creating strong barriers to entry and a feedback loop that sustained its dominance.
Google said it “will not announce or maintain overbroad rules or policies that restrict your right to comment, internally or externally, about whether and/or how the on-going antitrust lawsuit filed against Google by the U.S. Department of Justice may impact your terms and conditions of employment,” according to last week’s notice.
The reversal comes as Google and the DOJ prepare to return to the courtroom for their scheduled remedies trial on April 21. The DOJ has said it is considering structural remedies, including breaking up Google’s Chrome web browser, which it argues gives Google an unfair advantage in the search market.
A U.S. District Court judge ruled in August that Google illegally held a monopoly in the search market. Google said it would appeal the decision. The DOJ doubled down on its calls for a breakup in a March filing.
Following the August ruling, Kent Walker, Google’s president of global affairs, sent a companywide email directing employees to “refrain from commenting on this case, both internally and externally.”
Shortly after, the Alphabet Workers Union filed an unfair labor practice charge against Google with the NLRB. The union alleged that Walker’s message was an “overly broad directive” and said that a breakup could impact workers’ roles. The NLRB in March ruled that Google must allow workers to speak on such topics.
Google’s settlement states that the National Labor Relations Act gives employees the right to form, join or assist a union. It notes that Google is not rescinding its prior clarification that states employees may not speak on behalf of Google on this matter without approval from the company. The settlement also adds that Google will not interfere with, restrain or coerce workers in the exercise of their rights.
Despite the settlement, spokesperson Courtenay Mencini said Google did not agree with the NLRB’s ruling.
“To avoid lengthy litigation, we agreed to remind employees that they have the right to talk about their employment, as they’ve always been free to and regularly do,” Mencini said in a statement to CNBC.
The settlement by Google comes at a “crucial moment” ahead of the remedies trial, the Alphabet Worker’s Union said Monday.
“We think the potential remedies from this trial could have impact on our wages, working conditions and terms of employment,” said Stephen McMurtry, communications chair of the Alphabet Workers Union-CWA, told CNBC.
Apple CEO Tim Cook inspects the new iPhone 16 during an Apple special event at Apple headquarters on September 09, 2024 in Cupertino, California.
Justin Sullivan | Getty Images
Apple shares skyrocketed 15% on Wednesday after President Donald Trump announced a 90-day pause on his administration’s “reciprocal tariffs,” which would have affected the company’s production locations in Vietnam, India, and Thailand.
The rally added over $400 billion to Apple’s market cap, which now stands just under $3 trillion. It was Apple’s best day since January 1998, when late founder Steve Jobs was the interim CEO and three years before the company unveiled the first iPod. At the time, Apple’s market cap was close to $3 billion.
Apple has been the most prominent name to get whacked by Trump’s tariffs. Before Wednesday, it was on its worst four-day trading stretch since 2000. Investors worried about Apple’s outlook because the company still makes the majority of its revenue from selling physical devices, which need to be imported into the U.S.
Most of Apple’s iPhones and other hardware products are still made in China, which was not exempted from tariffs on Wednesday. In fact, Trump increased tariffs on China to 125% on Wednesday, up from 54%.
China issued an 84% tariff on U.S. goods this week, raising the possibility that Apple could get caught up in a trade war and lose ground in China, its third-largest market by sales.
Apple has worked to diversify its supply chain to lessen reliance on China in recent years.
On Wednesday, tariffs on Vietnam were reduced from 46% to 10%, and tariffs on India were cut 26% to 10%, which raises the possibility that Apple will be able to serve a large percentage of its U.S. customers from factories outside of China with lower tariffs.
Stocks skyrocketed across the board on Wednesday after Trump announced the tariff pause. The Nasdaq Composite climbed over 12%, its second-best day ever.
Apple hasn’t commented publicly on Trump’s tariffs, but CEO Tim Cook will likely address the topic on an earnings call on May 1.