- Goldman Sachs is laying off 3,200 employees.
- Bob Iger tells Disney employees to work at the office four days a week.
- Georgia Bulldogs repeat as college football champions.
Here are the most important news items that investors need to start their trading day:
1. A little momentum
The Nasdaq put together its second straight day of gains Monday, even as the Dow and the S&P 500 slipped. The tech-heavy Nasdaq struggled mightily last year, dragged down by large declines in stocks like Tesla. Could this year, however, bring a substantial turnaround? One classic indicator suggests that stocks, overall, are in for a good year. Simply, it’s that the S&P 500 has done well after the first five trading days of the year – up 1.1% so far – and that could portend a positive 2023. Tuesday could test the market’s momentum, though, with Fed Chairman Jerome Powell slated to speak. Read live markets updates here.
2. Goldman laying off 3,200
Goldman Sachs is set to lay off up to 3,200 employees this week, a warning sign that Wall Street is preparing for leaner times this year. There’s a slight silver lining, though: Those 3,200 jobs represent about 6.5% of the big bank’s workforce, while Goldman was expected to cut up to 8% of its employees. Still, that doesn’t mean Goldman and Wall Street in general are done with layoffs. Banking executives want to see what happens in the first quarter, particularly whether the economy enters a recession. So more cuts could be on the way in February or March.
3. Iger says get back to the office
The new year brought tougher return to office requirements for many companies and their employees, with bosses calling for hybrid schedules that include coming in two or three days a week. There is no exception at Disney, where CEO Bob Iger told corporate workers they must come to the office at least four days a week, starting March 1. Iger is also looking to set a new tone at Disney, about two months after he returned to the chief executive’s office following the sudden firing of his handpicked successor, Bob Chapek. “As you’ve heard me say many times, creativity is the heart and soul of who we are and what we do at Disney,” Iger wrote to employees. “And in a creative business like ours, nothing can replace the ability to connect, observe, and create with peers that comes from being physically together, nor the opportunity to grow professionally by learning from leaders and mentors.”
4. Bed Bath and bankruptcy?
Bed Bath & Beyond might not have much time left. Last week, just days before the beleaguered retailer was slated to report quarterly earnings, the company pre-announced many results while warning that it could soon seek bankruptcy protection. Bed Bath, which reported quarterly earnings Tuesday, has warned that it was running out of cash quickly as sales fell more than expected. Its losses grew, as did its issues with getting merchandise on shelves. Tuesday’s report could shed even more light on what’s going on at the company, including what’s next, as its turnaround strategy sputters out. Read more from CNBC’s Melissa Repko and Gabrielle Fonrouge here.
5. Russia makes advances, pounds Ukraine
Russian forces have made “tactical advances” in their push to seize territory in the Donbas region. Particularly, they’re aiming to take the town of Bakhmut, which appears to be Moscow’s “main immediate operational objective,” according to the UK Ministry of Defense. Meanwhile, four civilians died and about 30 people were injured in the latest round of Russian missile strikes on the northeastern, eastern and southern areas of Ukraine, a top official said. Read live war updates here.
And one more thing …
The college football season came to a close with a big thud. The Georgia Bulldogs repeated as national champions by mauling the underdog TCU Horned Frogs, 65-7, on Monday night. No team has ever scored more points in a national title game, dating to the Bowl Championship Series’ debut in 1998, according to the Associated Press.
– CNBC’s Tanaya Macheel, Hugh Son, Alex Sherman, Sarah Whitten, Melissa Repko, Gabrielle Fonrouge and Holly Ellyatt contributed to this report.
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