- Microsoft CEO Satya Nadella addresses the OpenAI controversy.
- Retailers including Lowe’s and Best Buy report profits.
- Nvidia will release its results after the closing bell.
Here are the most important news investors need to start their trading day:
Stocks continue to fluctuate in what has been a solid month so far. The Dow closed up about 200 points on Monday, while the S&P 500 and Nasdaq are on a five-day winning streak. Treasury yields fell slightly on hopes that the Federal Reserve will ease its rate-hike initiative to combat inflation. We’ll learn more about the Fed’s thoughts on inflation and the state of the economy as the central bank prepares to release the minutes of its latest monetary policy meeting. Follow live market updates.
Microsoft CEO Satya Nadella wants changes at OpenAI, the red-hot startup that plunged itself into turmoil over the weekend by firing co-founder and CEO Sam Altman. “At this point, I think it’s very clear that something needs to change when it comes to governance,” Nadella told CNBC’s Jon Fortt. Microsoft invested around $13 billion in OpenAI, resulting in the popular ChatGPT app that has changed the course of technology over the past year. Microsoft quickly recruited Altman to lead a new AI team, while hundreds of OpenAI employees threatened to follow him if he was not reinstated as head of the startup (of which Microsoft owns 49%). Nadella said it was up to them whether to stay or jump. “I’m open to both options,” he said.
LoweÍs store entrance with logo above main entry doors, Spokane Valley, Washington with stores in the United States and Canada, headquartered in Mooresville North Carolina.
UCG | Universal Images Group | Getty Images
A slew of retailers released earnings schedules Tuesday, giving investors a final taste of company expectations for the holiday quarter before Thanksgiving. So far they’ve been rubbish. The day after Thanksgiving, known as Black Friday, isn’t what it once was, with discounts starting earlier and e-commerce bringing in more and more money. But this is the start of the home stretch. Tuesday morning we hear from Best Buy, Lowe’s, Dick’s Sporting Goods and mall clothing salesmen American Eagle Outfitters and Abercrombie and Fitch. Nordstrom will report after the closing bell.
NVIDIA President Jensen Huang holding the Grace Hopper superchip processor used for generative AI during Supermicro’s keynote presentation at COMPUTEX 2023.
Walid Berrazeg | Light flare | Getty Images
Tuesday isn’t just about retailer profits. Nvidia, one of the darlings of the artificial intelligence boom, is expected to report after the bell. Wall Street is also in fashion. The stock closed at a record high Monday ahead of the quarterly report, after surging 245% this year, setting the pace for the S&P 500. Analysts expect the company to post revenue growth of 170%. . Beyond the numbers, investors will be eager to know what Nvidia executives think of OpenAI’s fallout following Sam Altman’s ouster.
A nozzle is replaced on a fuel dispenser at a gas station in La Puente, California, September 7, 2023.
Frederick J. Brown | AFP | Getty Images
Gasoline prices are on track to be the cheapest they have been on Thanksgiving since 2020, when Covid restrictions curbed travel. In general, gas prices have been falling for more than two months. The average cost of a gallon Monday was $3.31, 25 cents less than a month ago. It’s less than $3 in 11 states in the South and Midwest, according to AAA. However, these declines could be short-lived. OPEC could cut production at its meeting next week, sending crude oil prices higher.
– CNBC’s Brian Evans, Jordan Novet, Ari Levy and Spencer Kimball contributed to this report.
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