ECONOMIC SILUET: 5 things to know before the stock market opens Tuesday

Selasa, 28 Maret 2023

5 things to know before the stock market opens Tuesday

TUE, MAR 28, 2023

MORNING SQUAWK

1. Rolling along

The three major U.S. stock indices finished mostly higher Monday. The Dow jumped more than 190 points, and the S&P 500 increased slightly. Indeed, eight of the 11 S&P sectors finished the day higher. Regional bank stocks surged after weeks of turmoil and losses, as prospects for further government help, if needed, looked stronger. Tech dragged on things, though, as the Nasdaq finished down 0.47%. On Wednesday, investors will hear from Michael Barr, the Federal Reserve's vice chairman for supervision, who will discuss the recent bank sector volatility, including the failure of Silicon Valley Bank, in a Senate hearing. Follow live markets updates.

2. Disney layoffs begin

Disney CEO Bob Iger told employees Monday that the company's planned layoffs would begin this week. Overall, the company aims to cut 7,000 jobs across its operations as it looks to shed more than $5 billion in costs. This week brings the first of three rounds of layoffs. The second round of layoffs in April, Iger said in a memo, will be bigger. The company hopes to wrap up the job cuts with a third round before summer, he added. Since Iger returned in November, he has reorganized Disney into three segments, including designating ESPN as its own unit, and suggested he's open to selling the company's majority stake in Hulu as part of a push to focus more on Disney's core, family-oriented brands.

3. It isn't easy being CZ

Federal regulators on Monday accused mega crypto exchange Binance and its CEO of violating rules designed to crack down on money laundering and financing for terrorists. The complaint, from the Commodity Futures and Trading Commission, is the latest blow to the overall crypto industry following the scandal-ridden collapse of FTX late last year. Binance CEO Changpeng Zhao, also known as CZ, disputed the CFTC's accusations, saying his company has complied with U.S. authorities. On Twitter, he called on Binance's clients and followers to disregard the development as "fake news."

4. Alibaba splits up

Chinese tech giant Alibaba said Tuesday it plans to split into six distinct businesses, each of which will have the ability to raise funding and explore initial public offerings. It's the most dramatic change for Alibaba in its history, and it triggered a jump in the company's stock. The reorganization comes amid signs that the Chinese government is again warming up to the country's technology industry, as it faces increasingly heated rhetoric and competition from the U.S. The six units, which will each have their own executive leadership, will be: Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics, Global Digital Commerce Group, and Digital Media and Entertainment Group.

5. The tanks are arriving

Ukraine started receiving shipments of tanks from Germany and the United Kingdom, just as President Volodymyr Zelenskyy's forces prepare for a large counteroffensive. The country's military has been fighting a bloody battle of attrition in certain pockets of eastern Ukraine, holding Russian forces and mercenaries at bay. Elsewhere, Belarus' leadership explained why it agreed to host Russian tactical nuclear weapons, accusing NATO of "coercive" economic and political measures surrounding the Ukraine war. Follow live war updates.

— CNBC's Mike Calia wrote this newsletter. Samantha Subin, Alex Sherman, Rohan Goswami, Arjun Kharpal and Holly Ellyatt contributed.

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