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5 Things to Know Before the Stock Market Opens on Thursday, January 26

January 26, 2023
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Traders work on the trading floor of the New York Stock Exchange (NYSE) in New York, USA on January 25, 2023.

Andrew Kelly | Reuters

Here are the most important news investors need to start their trading day:

1. The revenue march continues

We are getting closer to the reporting season, so investors get more and more data to study every day. Tesla, IBM and Levi Strauss made headlines Wednesday after the earnings call, while several more hit Thursday, including Comcast before the call and Intel after market close. Meanwhile, US stock markets are having a mixed day. The Dow Jones gained the upper hand after dropping over 400 points early in the session. The S&P 500 and Nasdaq fell slightly. Read live market updates here.

2. GDP time

Investors will also be locked in fourth quarter gross domestic product report. GDP was 2.9% year-on-year, compared to 3.2% in the third quarter. Economists polled by Dow Jones, GDP grew by 2.8%. Market watchers and economists are looking for clues about what will happen to the economy this year. Talk of a recession is on the rise, although some believe the US will be able to avoid such a slowdown in 2023. strong.

3. Good pop music for Tesla

A worker checks Tesla Model Y electric vehicles loaded onto a cargo trailer at a Tesla Inc. plant. Gigafactory in Grünheide, Germany on Saturday 21 January 2023. Tesla CEO Elon Musk downplays the impact of his tweets on the company’s stock price. when he defended himself in a federal court trial in San Francisco on Friday over his 2018 tweet about the shutdown of an electric car maker. Photographer: Lisa Johannessen/Bloomberg via Getty Images

Bloomberg | Bloomberg | Getty Images

Tesla shares jumped after the electric vehicle leader posted quarterly results that beat Wall Street’s expectations. Earnings, meanwhile, fell to their lowest level in five quarters as the company slashed prices and managed rising costs. However, the big issue for Tesla has been whether it can weather the drop in demand for its vehicles, especially as competitors bring more of their own electric vehicles to market. Tesla cut prices on several of its vehicles late last year and earlier this month to meet demand. While it seems to be working. “So far in January, we have seen the highest bookings since the beginning of the year than at any time in our history. We are currently seeing orders nearly double the rate of production,” said CEO Elon Musk.

4. Slow smartphone shipments

Apple maintained its position as the world’s largest smartphone maker by shipments in the fourth quarter of 2022, according to IDC. However, iPhone shipments were down 14.9% year on year.

Stanislav Kogiku | SOPA images | Light rocket | Getty Images

According to IDC, a research firm, shipments of smartphones worldwide declined during the holiday shopping quarter. Overall, companies shipped 18.3% fewer smartphones than in the same quarter of 2021, representing the biggest decline ever. For the full year, companies shipped 1.21 billion smartphones, the lowest annual figure since 2013. “We have never seen holiday quarter deliveries lower than the previous quarter. However, weakening demand and high inventories have forced suppliers to cut costs. has had a dramatic impact on supply,” said Nabila Popal, director of research at IDC. An Apple remained the leading smartphone maker, although its shipments also declined.

5. Toyota CEO to step down

Akio Toyoda with the new Toyota Supra

Paul Eisenstein | CNBC

Akio Toyoda, grandson of the founder of Toyota, On April 1, he will step down as CEO of the company. He will become chairman, and Koji Sato, director of branding for the company, will take over as executive director. Toyoda has spent most of his last years at the helm of the auto giant, defending his decision not to go all-electric, saying that moving the car market to all-electric vehicles won’t be as easy as some of Toyota’s competitors expect. In announcing his resignation, Toyoda spoke out harshly about his tenure. “Looking back, those 13 years were a period of struggle for survival day by day, and this is my sincere feeling,” he said.

– Alex Harring of CNBC, Patti Domm, Laura Kolodny, Arjun Harpal and Ruxandra Yordache contributed to this report.

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January 26, 2023
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