Here are the most important news items that investors need to start their trading day:
1. Mixed bag, more earnings
Stocks on Monday still didn’t quite shake off the stink of last week. While the Dow finished higher, the S&P 500 barely squeaked out a win, while the Nasdaq declined. Tuesday brings more major earnings reports, including General MotorsMcDonald’sMicrosoftAlphabetlive market updates.
2. General Motors boosts its outlook
General Motors on Tuesday morning raised its earnings outlook for the year after its results for the first quarter topped the company’s own expectations. The company also said it was feeling the impacts from its cost-cutting efforts more quickly than it had expected. Investors, meanwhile, are eager to hear more about GM’s electric vehicle push on the company’s earnings call Tuesday morning. For the moment, though, GM is feeling good, according to one key executive. “All-in-all we’re feeling confident about 2023,” CFO Paul Jacobson told reporters.
3. Jarring numbers from First Republic
First Republicreported first quarter earnings after the bell Monday, revealing that its deposits fell nearly 41% during the period – and that even reflects the $30 billion in deposits from 11 other banks during a rescue effort at the end of March. First Republic’s deposits would have fallen 50% last quarter were it not for that infusion. The bank also said Monday it would be cutting expenses while continuing to explore “strategic options.” Shares of First Republic were down more than 20% in off-hours trading.
4. Cable chaos
Tucker Carlson and Don Lemon, two of the most prominent personalities in cable TV for years, were fired Monday, practically within minutes of each other. First, word came down that Fox News had canned Carlson. Although the conservative channel didn’t give a reason, it came during the aftermath of Fox’s settlement of Dominion’s defamation lawsuit and as one of his former bookers alleges that he fostered a toxic work environment. Then, Lemon revealed he had been squeezed out at CNN. It came after a flap over sexist and ageist remarks he had made recently about GOP presidential candidate Nikki Haley, as well as revelations that Lemon allegedly for years mistreated colleagues. Meanwhile, CNBC parent NBCUniversal is facing several key decisions without a CEO after Jeff Shell was fired following a sexual harassment probe.
5. Moscow in New York
Russia’s foreign minister, Sergey Lavrov, is visiting New York this week to preside over the United Nations Security Council. While Ukraine, the United States and others have criticized his presence – and Russia’s presidency of the Security Council – he has some important items on his agenda while his country’s invasion of Ukraine grinds on. Namely, the Ukraine grain deal. The pact between the adversaries has allowed the world a measure of food security during a tumultuous time, but that may be upended soon unless the deal is extended. When a reporter asked Lavrov on Monday about whether the grain deal was dead, it sounded like he told her, “Nice dress.” Follow live war updates here.
And one more thing …
It’s official. President Joe Biden is running for re-election, as expected. In an announcement Tuesday morning, Biden framed his 2024 campaign as a continued battle for the soul of America as he gears up for a potential rematch with Donald Trump. This is not a time to be complacent. That’s why I’m running for re-election,” Biden says in a video posted Tuesday. The president, however, has to contend with an electorate that’s tired of high inflation and potentially headed for a recession, which could make his reelection bid even more complicated.
– CNBC’s Hakyung Kim, Michael Wayland, Jesse Pound, Lillian Rizzo, Annika Kim Constantino, Alex Sherman, Amanda Macias and Emma Kinery contributed to this report.
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