Tech stocks are listed on NASDAQ.
Peter Kramer | CNBC
Here are the top stories investors need to start their trading day:
1. The Nasdaq stock market is warming up
There are still plenty of data dumps and reports that could upset stocks. But for now, the US stock markets are doing just fine in the early days of 2023. The Nasdaq, in particular, is generating some enthusiasm, posting three consecutive winning sessions. The tech-heavy index is emerging from a bad 2022, falling far more than the broader S&P 500 and the Dow, as rising interest rates soured many investors’ risk appetite. However, interest rates aren’t going down anytime soon, and the Fed is already expected to raise them further, so this rally may not have much steam. Read live markets updates here.
2. Wells Fargo Scores Mortgage Business
People walk past a Wells Fargo branch on January 10, 2023 in New York City.
Leonardo Munoz | Watch press | Corbis News | Getty Images
Wells Fargo It was the nation’s largest mortgage lender as of 2019. Now, as the big bank faces tougher regulatory scrutiny and higher interest rates, it’s falling back heavily on the housing market. That would bring it more in line with rivals such as JPMorgan Chase and Bank of America, which slashed their share of the mortgage market in the aftermath of the 2008 financial crisis. “We’re very aware,” Wells Fargo’s head of consumer lending, Clipper Santos, told CNBC’s Hugh Son. We’ve been around Wells Fargo since 2016 and the work we need to do to win back the public’s trust.” “As part of this review, we determined that our home lending business was very large, in terms of overall size and scope.”
3. Powell is getting rid of political pressure
The Federal Reserve hears it from all sides as its policymakers try to tame inflation by raising interest rates. Critics of the central bank said it took too long to address the problem, as prices jumped by the highest level in four decades. Now they say the Fed is doing too much to fix it, which could put the economy at risk of recession. That’s why, Chairman Jerome Powell said, it’s a good thing that the Fed is politically independent. “The absence of direct political control over our decisions allows us to take these necessary measures without taking into account short-term political factors,” he said Tuesday in prepared remarks for Sweden’s Riksbank. The Fed’s next rate-setting meeting is scheduled for January 31 and February 1.
4. World Bank warning
The World Bank has become more pessimistic about the global economy, and has significantly lowered its growth forecasts. “Global growth has slowed to such an extent that the global economy is dangerously close to recession,” the foundation said on Tuesday. Overall, it said it now expects global economic growth to reach 1.7% this year, down from a previous demand of 3%. The World Bank has significantly lowered its forecast for economic growth in the US as well: it fell to 0.5% from its previous forecast of 2.4%. If realized, the World Bank said, it would mark the third slowest pace of growth in about 30 years, trailing only a slowdown caused by the financial crisis and the Covid pandemic.
5. High drama in WWE
The Chairman of the Board of Directors of World Wrestling Entertainment Inc. was introduced. Vince McMahon during WWE Monday Night Raw at the Thomas & Mack Center on August 24, 2009 in Las Vegas, Nevada.
Ethan Miller | Getty Images
Corporate drama you play in World Wrestling Entertainment It could be a pro wrestling story in and of itself. Vince McMahon, the company’s controlling shareholder and frequent participant in its soap opera-style novels, retired over the summer after company investigations revealed he paid millions of dollars in hush money to women who came forward with allegations of sexual misconduct against him. His daughter, Stephanie, took over as co-CEO alongside former chairman Nick Kahn. But Vince McMahon didn’t go quietly. He made his way back into the company last week, effectively crowning himself as CEO while WWE explores a potential sale. In turn, Stephanie McMahon resigned as co-CEO on Tuesday, and rumors of a sale swirled. After defying broader media stock trends by actually rallying last year, WWE shares are already up a whopping 31% so far this year to Tuesday’s close.
— CNBC’s Heo Soon, Jeff Cox, Jee Lee, and Alex Sherman contributed to this report.
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