9 February – Disney, Google, & Chase

Rise and shine, folks! ??

This Thursday morning read brings you the freshest news from the stock market and some insights into the drivers behind it. Let’s get into it! Stocks ended the day lower on Wednesday as investors weighed the possible outcomes of future interest rate hikes. The Dow dropped 0.6%, the S&P 500 fell 1.1%, and NASDAQ erased 1.7%. Fed governor Christopher Waller claimed that the monetary policy may remain restrictive during a period of adjustment and “disinflation”.

Investors expect another quarter-point increase in interest rates following the one approved in January. The 10-year Treasury note yield slid to 3.652%, while the two-year yield declined to 4.452%. We eagerly await another round of earnings, with Uber (UBER) and CVS Health (CVS) shares up following promising quarterly financials.

Keep reading for all you need to know!

Disney set to downsize workforce by 7000 jobs; posts Q1 reports

? Walt Disney Co. (DIS) | $111.78?(0.13%) ??

On Wednesday, Walt Disney Co. (DIS) announced the upcoming layoffs of 3.6% of its global staff or 7000 employees. The company aims to streamline operations in three segments: entertainment, sports, and park and products. Still, Disney will focus on streaming after losing over $1 billion in its Disney+ segment. Disney reported adjusted earnings for the first quarter that topped estimates at 99 cents a share. Revenue - at $23.512 billion - beat predictions, but net income - standing at $1.279 billion - missed expectations. Shares rose on the news!

Google ad showing off Bard features blatant blunder; shares tumble

? Alphabet Inc Class A (GOOGL) | $99.37?(7.68%) ??

Since Microsoft’s (MSFT) AI chatbot Chat GPT shook the corporate world, Alphabet (GOOGL) is racing towards launching its own version – a bot called Bard. In an advert featured on Twitter, the bot was meant to interact with a child to answer its question about the discoveries from the James Webb Space Telescope. Bard responded that it was the first telescope to capture an image of a planet outside our solar system. Unfortunately, the bot provided an incorrect answer – quickly caught on by Twitter’s astronomers. Shares fell over 7%!

JP Morgan’s customer and commercial branch prepares to hire >500

? JPMorgan Chase & Co. (JPM) | $142.64?(0.70%) ??

On Wednesday, financial firm JPMorgan Chase & Co. (JPM) announced that it will hire over 500 bankers for its consumer and commercial branch - Chase. The boosted workforce will aim to assist small businesses in navigating the current economic uncertainty with access to credit, financial advice, and education. The move comes after recent surveys suggest that two-thirds of MSMEs in the U.S. expect the economy to tip into a recession this year. Hopefully, Chase can help with the rising cost pressures, consistent inflation, and supply chain issues!