5 things to know before the stock market opens on Tuesday, February 7
US Federal Reserve Chairman Jerome Powell addresses reporters after the Fed raised its interest rate target by a quarter of a percentage point, during a press conference at the Federal Reserve Building in Washington, USA, February 1, 2023.
Jonathan Ernst | Reuters
Here are the most important news investors need to start their trading day:
1. Moving on
session on Monday ended lower across the board as bond yields and the dollar rose, although the Dow suffered only a modest decline after falling 240 points. Tuesday brings a new challenge: Federal Reserve Chairman Jerome Powell is due to speak. Investors found Powell’s statement after last week’s rate hike to be somewhat dovish, pushing the stock higher. Though this time it might be different. “I think you are likely to see an attempt to soften the reaction to the press conference statements a bit,” said Sinead Colton Grant, global head of investor solutions at BNY Mellon Wealth Management. Read live market updates.
2. Welcome to AI Wars
Warner Bros. | Getty Images
It is now. Forced to respond to AI chatbot ChatGPT, Google announces its own conversational AI product, Bard. Alphabet the company will deploy Bard in the next few weeks, and this is a situation in which all hands are on deck. In an internal memo sent shortly after Bard’s announcement, CEO Sundar Pichai called on all Google employees to help test the product. “We look forward to your feedback – in the spirit of an internal hackathon – with more details coming soon,” Pichai wrote. Meanwhile, Microsoft It looks like the company is going to make an AI-related announcement on Tuesday. The company that invested in the creator of ChatGPT, OpenAI. Indeed, OpenAI CEO Sam Altman tweeted a photo of himself and Microsoft CEO Satya Nadella in Microsoft’s hometown of Redmond, Washington, saying he was “thrilled” by the event.
3. Union Time
U.S. President Joe Biden delivers his State of the Union Address to lawmakers at the U.S. Capitol in Washington, DC, U.S. March 1, 2022.
Jim Lo Scalzo | Reuters
When he delivers In an address to the US Congress on Tuesday evening, President Joe Biden will have a big stage to protect the economy under his watch. He will have something to brag about. Unemployment is historically low, wages have risen, and recession fears have so far been contained. But as CNBC’s Emma Kinery points out, it’s much more complicated than that. Inflation is still high, the Fed is raising interest rates, and while a recession may not come soon, there is still a chance for a hard landing. There is also the pressing issue of the debt limit. The United States recently violated it, but took emergency measures to delay the default by several months. Biden will need to explain how the government can avoid this economic disaster by fighting the Republican-led House of Representatives.
4. What is the future of television?
Illustration by Elham Atayazar
It is clear what is happening with television. Cord cutting is accelerating and streaming services are trying to figure out how to turn a profit. What is less clear, however, is how these dynamics will affect the TV landscape in the long term. CNBC’s Alex Sherman and Lillian Rizzo spoke to more than a dozen media industry insiders about what the future holds for this medium, and there’s no consensus on what television will look like even three years from now. Find out what Barry Diller, Bela Bajaria, Jeff Zucker, Bill Simmons, Byron Allen and more are saying. the future of television, which streaming services will dominate and what else can we expect.
5. Bet on experience
Avatar: Path of Water
Credit: Disney Co.
America’s largest movie theater chain is launching a new tiered seating plan. AMS said on Monday it would start charging extra for seats with so-called “preferred” sight lines, i.e. in the middle of movie theaters. It will also have low-cost seats in less-demanded parts of the auditorium. The move comes as the theater industry gears up for a bigger release schedule this year as Hollywood catches up on time lost in the early days of the pandemic. Studios and theater chains strive to offer audiences a variety of experiences, whether it’s luxurious seating or better sound and visuals. The success of Avatar: The Way of Water is a role model. The film is one of the top five highest-grossing films of all time, thanks in large part to more expensive 3D and premium tickets.
– Samantha Subin, Jennifer Elias, Ashley Caputh, Emma Keenery, Sarah Witten, Nicholas Vega, Alex Sherman and Lillian Rizzo of CNBC contributed to this report.
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