Wall Street Today | Stocks rocket back to finish higher after deep slump
Stocks rocket back to finish higher after deep slump
Major U.S. stock indexes registered a comeback for the ages on Monday, storming to a higher close after the $Dow Jones Industrial Average(.DJI.US$ were down more than 1,100 points at midday.
Just after noon, the Dow was off 3.25% and the $Nasdaq Composite Index(.IXIC.US$ had dropped 4.9%. The declines extended the losses that have hammered a once-buoyant market this month, battering the shares of technology firms, smaller companies and once-highflying sectors such as cryptocurrencies. At their lows Monday, shares of vaccine developer $Moderna(MRNA.US$ were down more than 40% for the year, while bitcoin had lost more than half its value at its November high.
Fed steps up deliberations on shrinking its $9 trillion asset portfolio
Federal Reserve officials are set to resume discussions this week over how fast they will shrink their nearly $9 trillion bond portfolio when the time comes, which would serve as a tool for tightening monetary policy as they try to curb high inflation.
Officials are on track at their meeting Tuesday and Wednesday to approve a final tranche of bond purchases, allowing them to end the stimulus program by March—when they are likely to raise interest rates to cool the economy, according to their recent public comments.
Allowing the asset purchases to end in March "seems like the right sequence," New York Fed President John Williams told reporters Jan. 14. "From my point of view, the asset purchase program is essentially already coming to an end."
Bitcoin bounces back after falling below $33,000
Bitcoin rallied on Monday afternoon, trading above $37,000, after falling to a seven-month low in the morning, as the cryptocurrency moved in lockstep with a swift rally in risk assets.
Bitcoin was trading at $36,800 at 5 p.m., up, 4.7% on the day, according to CoinDesk. In the morning, it traded below $33,000 for the first time since July. That extended its selloff to a more than 50% loss from its record high of $68,990.90, set on Nov. 10.
Sony's videogame strategy challenged by Microsoft's deal for activision
TOKYO— $Sony(SONY.US$ finds itself in a position many gamers could appreciate, having climbed to the highest level only to discover that an old foe is still lurking around—and getting stronger.
$Microsoft(MSFT.US$ proposed $75 billion acquisition of videogame publisher $Activision Blizzard(ATVI.US$ would give it control over some of the world's most popular games. Sony faces decisions on how to beef up its own software lineup, whether to continue stressing hardware and what to do about the metaverse, which is made of three-dimensional virtual worlds that draw inspiration from realistic videogames.
IBM shares jump after company reports 6% revenue growth in fourth quarter
$IBM Corp(IBM.US$ shares jumped as much as 7% in extended trading but later lost most of their gains Monday after the software and services company said revenue climbed 6% in the fourth quarter, surpassing expectations.
IBM executives have been telling investors of late to look for mid-single digit revenue growth. In the prior quarter, IBM's revenue from continuing operations increased by 2%. The company showed its fastest revenue growth since the third quarter of 2011.
Google sued by D.C., states over tracking despite opt-outs
A group of state attorneys general, including Texas, Indiana and Washington D.C., said Monday they were suing Alphabet Inc.'s $Alphabet-A(GOOGL.US$ over what they allege are deceptive tactics designed to trick consumers into disclosing location data to more accurately target advertising.
Even when consumers turn off location tracking on their phones, Google continues to track their movements using a separate function called "Web & App activity," the attorneys general said. They cited a 2018 Associated Press report as the basis for the assertion and said the company has since removed a consumer notice claiming that "the places you go are no longer stored." Portions of the lawsuits were redacted, and the copy of the Washington D.C. complaint said it was filed under seal.
Oil tumbles as rate-hike fears pressure financial markets
Oil in New York slid as risk-off sentiment prevailed for much of the day across financial markets driven by concerns about tighter monetary policy.
West Texas Intermediate futures closed 2.2% lower on Monday with the $S&P 500 Index(.SPX.US$ tumbling as much 4% before buyers swept in late in the day. Additionally, gains in the dollar made commodities priced in the currency less attractive.
Facebook promised poor countries free internet. People got charged anyway.
$Meta Platforms(FB.US$ says it's helping millions of the world's poorest people get online through apps and services that allow them to use internet data free. Internal company documents show that many of these people end up being charged in amounts that collectively add up to an estimated millions of dollars a month.
To attract new users, $Meta Platforms(FB.US$ made deals with cellular carriers in countries including Pakistan, Indonesia and the Philippines to let low-income people use a limited version of Facebook and browse some other websites without data charges. Many of the users have inexpensive cellphone plans that cost just a few dollars a month, often prepaid, for phone service and a small amount of internet data.
Because of software problems at Facebook which it has known about and failed to correct for months, people using the apps in free mode are getting unexpectedly charged by local cellular carriers for using data. In many cases they only discover this when their prepaid plans are drained of funds.
Source: Bloomberg, CNBC, WSJ
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