A trader works at the New York Stock Exchange (NYSE) in New York, on February 17, 2023.
Brendan McDermid | Reuters
Here are the top news investors need to start their trading day:
1. Collection of some lumps
The market came back from a three-day weekend in bad shape. All three major indexes fell at least 2% on Tuesday, with the Nasdaq the biggest loser. The Dow is now in negative territory for a young year that initially looked so promising. Bond yields rose as investors considered what the Federal Reserve might do next, while digesting subdued outlooks for two leading retailers (see below). They should get some clues later on Wednesday, when the Fed releases the minutes of its previous policy-setting meeting. Follow current market updates.
2. Anger at Amazon
Amazon CEO Andy Jassy speaks during the New York Times DealBook Summit in the Appel Room at Jazz At Lincoln Center on November 30, 2022 in New York City.
Michael M. Santiago | Getty Images
Amazon staff anger over CEO Andy Jassy’s sudden return to office still growing. Starting May 1, people must be back in the office at least three days a week, Jassy and his leadership team announced a few days ago. Disgruntled workers spammed internal websites with messages condemning the decision. Some tech workers at the company started a Slack group, which had about 16,000 members as of Tuesday night, and put together an internal petition that pushes back on the rule. About 5,000 employees signed the petition.
3. “I Drink That Water”
Norfolk Southern CEO Alan Shaw sat down with CNBC’s Morgan Brennan to talk about his company’s response to the Ohio train derailment. released toxic chemicals. He said it was safe for families to return to East Palestine, Ohio, where the train derailed on Feb. 3, and pledged Norfolk Southern’s support to the city and its residents. Asked if it was safe for people to return, he told CNBC: “Yes, yes, I’ve been back several times. I’m drinking the water. I’ve been interacting with the families here.” South Norfolk came under heavy criticism for its response to the disaster and was ordered by the federal EPA to handle all cleanup and recovery efforts.
4. Caution ahead
Bloomberg | Bloomberg | Getty Images
Walmart and Home Depot started the retail earnings season with a whimper. Walmart, the nation’s largest retailer and grocer, offered a softer-than-expected forecast for this year as it expects inflation-weary shoppers to continue to shun discretionary purchases like electronics and focus more on essentials like are foods. Home Depot, meanwhile, reported revenue that missed estimates for the first time since November 2019. The home improvement giant also said it was seeing customers shop more carefully. “We’ve seen an increasing degree of price sensitivity over the course of the year, which is actually something we predicted in the face of persistent inflation,” Home Depot’s CFO told CNBC.
5. Cream, sugar … olive oil?
Howard Schultz may be leaving his third (and he says final) stint Starbucks The CEO is on bad terms with the baristas’ union, but he’s betting the new style of drinking he’s introducing will leave a tastier legacy when he leaves next month. Global coffee chain introduces Schultz’s latest brainchild, the ‘Oleato’ line coffee drinks with olive oil, Wednesday in Italy. It will debut in the US this spring in California before expanding to other markets. “This is a transformative moment in our company’s history, creating a new category, a new platform,” Schultz said CNBC’s Jim Cramer.
– CNBC’s Samantha Subin, Annie Palmer, Noah Sheidlower, Melissa Repko, Amelia Lucas and Rebecca Picciotto contributed to this report.
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