Traders work on the floor of the New York Stock Exchange on January 10, 2025 in New York.
Spencer Platt | Getty Images
This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors the latest news wherever they are. Like what you see? You can subscribe Here.
What you need to know today
The Nasdaq continues to trail the other major indexes
The S&P500 AND Dow Jones Industrial Average increased on Tuesday, but Nasdaq Composite he withdrew in doing so on the second day the results are weaker. Europe Stoxx600 Index decreased by 0.08%, giving up previous gains. BP fell 2.5% after the oil giant he said fourth-quarter profit will increase by $300 million due to weaker refining margins.
Meta cuts jobs, and Microsoft freezes hiring
Meta will be by laying off about 5% of the lowest-performing employees– CNBC confirmed on Tuesday. CEO Mark Zuckerberg informed employees of the decision in a memo posted on the company's internal forum on Tuesday. Separately, Microsoft planning stop hiring in part of its consulting business in the USA – according to an internal memo.
SEC sues Musk over Twitter shares
SEC filed a lawsuit against Elon Musk on Tuesday, accusing the billionaire of committing securities fraud in 2022 by failing to disclose his ownership on Twitter and purchasing shares at “artificially low prices.” Before Musk acquired Twitter in 2022, he had a position in the company of more than 5%, which would require that information about his shares be made public within 10 calendar days of reaching that threshold.
Slower growth in producer prices
US producer prices in December increased by 0.2% per monthaccording to A Report from the Bureau of Labor Statistics Tuesday. This is lower than November's increase of 0.4% and the Dow Jones consensus estimate of 0.4%. On an annual basis, the headline producer price index increased by 3.3% in 2024, compared with an increase of 1.1% in 2023.
Winners and Losers of US Dollar Strength
The US dollar index – measuring the greenback against a basket of rivals – hit its highest level in more than two years on Monday following last week's stronger-than-expected US jobs report. Here Europe's biggest winners and losers According to analysts, due to the increase in the value of the dollar.
(PRO) Nasdaq selloff a minor correction?
The Nasdaq Composite fell for the fifth day in a row on Tuesday. But some wealth managers say it may be a minor market correction rather than the beginning of a downturn. They explain why this is so I don't care much about sales.
The most important thing
The technological breakdown on the market is not over yet.
The Nasdaq Composite lost 0.23%, lagging the S&P 500 and Dow Jones Industrial Average, which gained 0.11% and 0.52%, respectively, for the second day in a row. The shares of all the Magnificent Seven dropped, and Meta Tesla AND Nvidia recording the biggest losses, in that order.
The decline in technology stocks was accompanied by news of layoffs and hiring freezes.
An internal memo shows that in an effort to reduce expenses, Microsoft will stop hiring part of its consulting department, reduce travel costs and lower marketing expenses.
Meanwhile, Meta announced in an internal memo on Tuesday that “approximately 5% of the bottom-performing companies will exit.” (I assume that's when someone “exits” fact-checking or “enters” free speech.) Zuckerberg also warned employees that 2025 would be an “intense year.”
Zuckerberg's warning was obviously aimed at Meta, but it could also apply to tech companies struggling with heavy investments in AI without necessarily having the revenues to justify such high capital expenditures.
However, as we head into fourth-quarter earnings season, there are signs of optimism in the business environment for this year.
“We really think yields will be higher,” said Jay Hatfield, founder of Infrastructure Capital Advisors.
“The economy is strong in the fourth quarter. Typically, by then, companies will know if they have a problem and will likely be quite optimistic about the future because the Trump administration is pro-business. So we think most CEOs are quite optimistic about the forecast for 2025.”
Perhaps optimistic CEOs are leading other sectors, as suggested by the moves of investors who moved from technology to utilities, financials and materials on Tuesday.
Whether this sectoral rotation continues will depend on the consumer price index, which declines today.
— CNBC's Lisa Kailai Han, Hakyung Kim and Brian Evans contributed to this report.