5 things to know before the stock market opens on Friday, February 10
Traders work on the floor of the New York Stock Exchange (NYSE) during morning trading on February 1, 2023 in New York.
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Here are the most important news investors need to start their trading day:
1. Tripping over the weekend
Stocks are on track for a losing week as we head into Friday’s session. Thursday was particularly weak for bulls as all three major indexes fell, led by a 1% drop in the high-tech Nasdaq. For the week, the Nasdaq lost 1.8%, while the S&P 500 was also down more than 1%. Low incomes continue to appear. Lyft, for example, has fallen more than 30% after business hours. Investors will learn more about the Federal Reserve’s strategy later on Friday with Fed Chair Christopher Waller and Philadelphia Fed President Patrick Harker speaking this afternoon. Read live market updates.
2. Disney’s dilemma with Hulu
Bob Iger just kept making the news this week. After promulgation broad restructuring Disneyincluding cutting billions of dollars in spending and laying off 7,000 people, the CEO outlined his vision in an exclusive interview with CNBC’s David Faber. While Disney shares fell more than 1% on Thursday during a broader market sell-off, Iger’s message resonated with Wall Street. Activist investor Nelson Peltz even called CNBC after the Faber-Eiger interview to say he was dropping his fight against Disney by proxy. But the most surprising part of the interview had to be when Iger, who wants to focus less on shared entertainment, signaled he was open to a potential sale of Disney’s remaining stake in popular streaming service Hulu. Disney owns two-thirds and Comcast another third. Disney has long been expected to buy the rest in 2024, but Iger’s comments marked a huge shift in strategy, according to CNBC’s Alex Sherman and Lillian Rizzo.
3. Russia will cut oil production
Russia announced it would cut its oil production by 500,000 barrels per day in March after the West imposed ceiling prices on Russian oil and petroleum products.
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Russia will cut oil production by 500,000 bpd in March, according to a senior government official. The move follows Western countries’ bans on Russian oil and oil products as Vladimir Putin’s troops continue their invasion of Ukraine. The cut in production is about 5% of Russia’s most recent crude oil production. Oil prices jumped on the news. Meanwhile, Russia continues air attacks on Ukraine, and Moldova said a Russian missile violated its airspace. Read live war updates.
4. Adidas Yeezy Hangover
“The numbers speak for themselves. We are currently not operating as we should,” Adidas CEO Bjorn Gulden said in a press release.
Jeremy Moeller / Contributor / Getty Images
The ghost of Ye continues to haunt Adidas. The company said it could lose about $1.3 billion in revenue this year if he can’t sell the rest of his inventory of Yeezy products. The German company ended its partnership with the rapper and fashion designer formerly known as Kanye West in October after he made several racist and anti-Semitic comments. Adidas said it is still trying to figure out what to do with all of Yeezy’s products, saying it has already experienced “significant negative impact” for not selling it. The company can also write it off. Adidas shares fell more than 10%.
5. PayPal CEO Pays Up
Dan Shulman, President and CEO of PayPal Holdings Inc., arrives for the morning session of Allen & Co. Media and Technology Conference in Sun Valley, Idaho, USA on Wednesday, July 10, 2019. The 36th annual event brings together many of America’s richest and most powerful people in media, technology and sports.
Patrick T. Fallon | Bloomberg | Getty Images
PayPal CEO Dan Shulman will leave the company at the end of this year. He became the head of the company after it split from eBay in 2015. He will remain on the board of directors after he steps down as CEO. Meanwhile, the board hires a search firm to find his successor. The announcement comes just weeks after the company announced it was laying off about 7% of its workforce, or about 2,000 employees. Activist investor Elliott Management has amassed an undisclosed stake in PayPal. Activist investor Elliott Manaagement bought a stake in PayPal last summer, but Schulman told CNBC’s Keith Rooney that he was not pressured by the firm to resign.
– CNBC representatives Hakyung Kim, Alex Sherman, Lilian Rizzo, Ruxandra Yordach, Karen Gilchrist, Hannah Ward-Glenton and Jonathan Vanian contributed to this report.
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