Here are the most important news, trends and analysis that investors need to start their trading day:
1. Wall Street looks higher after breaking multiday win streaks
Traders on the floor of the NYSE, March 18, 2022.
2. Ukraine retakes Kyiv suburb; Biden says Putin ‘against the wall’
Service members of the Ukrainian armed forces are seen atop of a tank at their positions outside the settlement of Makariv, amid the Russian invasion of Ukraine, near Zhytomyr, Ukraine March 4, 2022.
Maksim Levin | Reuters
Ukrainian forces said early Tuesday they retook a strategically important suburb of Kyiv. However, Russia continued to squeeze other areas near the capital and its attack on the embattled southern port of Mariupol raged on unabated.
- U.S. President Joe Biden, who’s heading to Europe later in the week to meet with allies, said Monday that Russian President Vladimir Putin’s “back is against the wall” and could resort to using chemical weapons.
- The White House also warned of potential cyberattacks, urging American companies to “immediately” harden their defenses.
3. Dow stocks: Nike earnings, Boeing crash probe, Disney walkouts
Dow stock Nike rose roughly 5% in Tuesday’s premarket, the morning after reporting fiscal third-quarter earnings and revenue that beat estimates. Nike cited robust demand in North America but opted not to provide forward guidance against a backdrop of uncertainties around inflation, Russia’s Ukraine war and clogged supply chains.
Boeing CEO Dave Calhoun told employees the aircraft maker offered the full support of its technical experts in the investigation of the crash of a China Eastern Airlines 737-800 with 132 people on board. The jet crashed in mountains in southern China early Monday. Boeing, a Dow stock, advanced modestly in premarket trading, one day after dropping 3.6%.
Dow stock Disney, down more than 6% in a month, was steady in the premarket ahead of a week of planned employee walkouts, starting Tuesday, in protest of CEO Bob Chapek’s delayed denunciation of Florida’s so-called Don’t Say Gay bill. Chapek said Monday that the company made a mistake by previously remaining silent on the legislation in the state home to Disney World.
4. Alibaba boosts its stock buyback program to $25 billion
The Alibaba Group logo is seen at Alibaba Xixi Campus on August 8, 2021 in Hangzhou, Zhejiang Province of China.
Shen Longquan | Visual China Group | Getty Images
Alibaba shares jumped more than 9% in U.S. premarket trading Tuesday after the Chinese e-commerce giant said it would increase the size of its share buyback program by 66% to $25 billion. Alibaba has repurchased about 56.2 million American depositary receipts, worth about $9.2 billion, under the previously announced buyback program. ADRs are shares listed in the U.S., and they act as proxies for foreign companies. Alibaba is looking to boost investor confidence as its stock has lost around two-thirds of its value since hitting an all-time high in October 2020.
5. Elon Musk to open Tesla’s long-delayed new Berlin factory
BERLIN, GERMANY – SEPTEMBER 02: Tesla head Elon Musk arrives at a retreat of the German Christian Democrats CDU/CSU Bundestag faction on September 02, 2020 in Berlin, Germany. Musk is currently in Germany where he met with vaccine maker CureVac, with which Tesla has a cooperation to build devices for producing RNA vaccines, yesterday. Today he is rumoured to also the site of the new Gigafactory under construction near Berlin.
Maja Hitij | Getty Images News | Getty Images
Tesla CEO Elon Musk on Tuesday is set to open the electric auto maker’s first manufacturing facility in Europe, cutting the ribbon at the Berlin factory. Tesla sees the plant producing up to 500,000 vehicles annually. A lengthy delay in licensing the facility meant Tesla had to service earlier European orders from its Shanghai factory, which increased logistics costs. Select clients on Tuesday will get Model Ys made in Berlin. Musk said new orders from the plant could be delivered as soon as next month.
Trump media company subpoenaed in federal criminal probe of SPAC deal
Former U.S. President Donald Trump gives the keynote address at the Faith & Freedom Coalition during their annual “Road To Majority Policy Conference” at the Gaylord Opryland Resort & Convention Center June 17, 2022 in Nashville, Tennessee.
Seth Herald | Getty Images
Donald Trump’s media company was subpoenaed by a federal grand jury in connection with a criminal probe, according to the company with which the former president’s firm plans to merge.
Digital World Acquisition Corp. said in a filing Friday that Trump Media and Technology Group received a subpoena from the grand jury in Manhattan on Thursday. The Trump company also received a subpoena from the Securities and Exchange Commission regarding a civil probe on Monday, DWAC said.
DWAC also said some current and former TMTG employees have also recently received grand jury subpoenas.
The filing came days after DWAC said the government investigations could delay or even prevent its merger with Trump’s newly formed company, which includes Truth Social, a social media app intended to be an alternative to Twitter.
Neither TMTG nor a spokeswoman for Trump immediately responded to CNBC’s requests for comment.
The Justice Department and the SEC, which regulates the stock market, are investigating the deal between DWAC and Trump Media. By merging with DWAC, which is a kind of shell company called a special purpose acquisition company, or SPAC, Trump’s firm would gain access to potentially billions of dollars on public equities markets.
Trump established Truth Social months after Twitter banned him for his tweets on Jan. 6, 2021, when hundreds of his supporters stormed the U.S. Capitol in a bid to overturn Joe Biden’s victory in the presidential election. Trump Media’s CEO is former Rep. Devin Nunes, one of the former president’s most ardent loyalists in the Republican Party. Trump is also considering whether to run for president in the 2024 election.
Trump has continued to spread the lie that the election was stolen from him. His alleged involvement in the Jan. 6 insurrection is being probed by a House select committee that has accused the former president of being at the center of a multipronged conspiracy to block the peaceful transfer of power to Biden.
Early criticism of the Trump-DWAC deal came from Sen. Elizabeth Warren, D-Mass. In calling for an investigation, she wrote to SEC Chair Gary Gensler in November, telling him that DWAC “may have committed securities violations by holding private and undisclosed discussions about the merger as early as May 2021, while omitting this information in [SEC] filing and other public statements.”
DWAC shares are far off their highs, closing Friday at $24.20. The stock had surged above $90 in October, after the deal with Trump’s group was announced.
DWAC on Monday revealed in a securities filing that it learned June 16 that each member of its board of directors received subpoenas from the same federal grand jury.
The grand jury sought documents similar to those the SEC already requested as part of its civil probe, DWAC said. The company itself was served with a subpoena a week ago with similar requests, along with other requests relating to communications, individuals and information involving Rocket One Capital.
DWAC also revealed Monday that a board member, Bruce J. Garelick, had told management that he would quit the board during the previous week. Garelick said his resignation “was not the result of any disagreement with Digital World’s operations, policies or practices,” according to the company filing.
— CNBC’s Kevin Breuninger and Thomas Franck contributed to this story.
This is breaking news. Please check back for updates.
Walmart is working on a response to the Supreme Court’s abortion decision, CEO says in memo
Walmart CEO Doug McMillon speaks at the CNBC Evolve conference November 19th in Los Angeles.
Jesse Grant | CNBC
Walmart CEO Doug McMillon told employees on Friday that the company is weighing how to respond to a Supreme Court decision that ended the federal right to an abortion.
“We are working thoughtfully and diligently to figure out the best path forward, guided by our desire to support our associates, all of our associates,” he said in a memo sent to employees on Friday. “We will share details on our actions as soon as possible, recognizing that time is of the essence.”
He did not say what changes the company is considering, such as if it may cover travel expenses for workers who must travel to another state where abortion is available.
The memo was previously reported by The Wall Street Journal.
Arkansas, home to Walmart’s headquarters, is one of several states with severe limits or bans on abortions that went into affect after the high court’s ruling.
Walmart is also the country’s largest private employer. It has about 1.6 million employees across the country, including many who live and work in states across the Sunbelt with abortion restrictions such as Texas, Oklahoma and Florida.
Since the Supreme Court reversed Roe v. Wade, companies across the country have had a mix of reactions. Some, including JPMorgan Chase, Dick’s Sporting Goods and Target, have announced new plans to cover employee travel to other states for abortions. Others, such as Kroger and Apple, said they already cover travel for medical treatments and reproductive health care. And still others have remained quiet.
Amazon, the second-largest private employer in the country, said in May that it would pay up to $4,000 in travel expenses each year for non-life-threatening medical treatments, including abortions.
Walmart already covers employee travel for some medical procedures, such as certain heart surgeries, cancer treatments and organ transplants.
Walmart health benefits cover only some abortions. According to the company’s employee handbook, charges for “procedures, services, drugs and supplies related to abortions or termination of pregnancy are not covered, except when the health of the mother would be in danger if the fetus were carried to term, the fetus could not survive the birthing process, or death would be imminent after birth.”
Plan B, an over-the-counter form of contraception, is covered only if the person gets a prescription. The pill, often called the “morning after pill,” works by preventing ovulation or preventing a fertilized egg from attaching to the womb. It can be taken after unprotected sex or when contraception fails.
Other forms of contraception are also covered with a prescription, including birth control pills, injections and intrauterine devices, or IUDs. Some anti-abortion activists also oppose IUDs because they can stop a fertilized egg from implanting in the uterus.
In Friday’s memo, McMillon said Walmart has gathered input from employees as it decides what to do. He also alluded to the size and diversity of both the company and its customer base.
“We know our associates and customers hold a variety of views on the issue, and this is a sensitive topic about which many of us feel strongly,” he said. “We want you to know that we see you, all of you. No matter what your position on this topic is, we want you to feel respected, valued and supported.”
FCC authorizes SpaceX to provide mobile Starlink internet service to boats, planes and trucks
The Starlink logo is seen in the background of a silhouetted woman holding a mobile phone.
Sopa Images | Lightrocket | Getty Images
The Federal Communications Commission authorized SpaceX to provide Starlink satellite internet to vehicles in motion, a key step for Elon Musk’s company to further expand the service.
“Authorizing a new class of [customer] terminals for SpaceX’s satellite system will expand the range of broadband capabilities to meet the growing user demands that now require connectivity while on the move, whether driving an RV across the country, moving a freighter from Europe to a U.S. port, or while on a domestic or international flight,” FCC international bureau chief Tom Sullivan wrote in the authorization posted Thursday.
SpaceX did not immediately respond to CNBC’s request for comment on the FCC decision.
Starlink is SpaceX’s network of satellites in low Earth orbit, designed to deliver high-speed internet anywhere on the globe. SpaceX has launched about 2,700 satellites to support the global network, with the base price of the service costing users $110 a month. As of May, SpaceX told the FCC that Starlink had more than 400,000 subscribers.
SpaceX has signed early deals with commercial air carriers in preparation for this decision: It has pacts with Hawaiian Airlines and semi-private charter provider JSX to provide Wi-Fi on planes. Up until now SpaceX has been approved to conduct a limited amount of inflight testing, seeing the aviation Wi-Fi market as “ripe for an overhaul.”
The FCC’s authorization also includes connecting to ships and vehicles like semi-trucks and RVs, with SpaceX having last year requested to expand from servicing stationary customers. SpaceX had already deployed a version of its service called “Starlink for RVs,” with an additional “portability” fee. But portability is not the same as mobility, which the FCC’s decision now allows.
The FCC imposed conditions on in-motion Starlink service. SpaceX is required to “accept any interference received from both current and future services authorized,” and further investment in Starlink will “assume the risk that operations may be subject to additional conditions or requirements” from the FCC.
The ruling did not resolve a broader SpaceX regulatory dispute with Dish Network and RS Access, an entity backed by billionaire Michael Dell, over the use of 12-gigahertz band – a range of frequency used for broadband communications. The FCC continues to analyze whether the band can support both ground-based and space-based services, with SpaceX pushing for the regulator to make a ruling.
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