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Here are the most important news items that investors need to start their trading day:
1. Welcome back
Stocks rebounded Monday following a week of losses to kick off the year. The broad S&P 500 finished about 1.4% higher, while the tech-laden Nasdaq jumped a stellar 2.2%. The Dow only improved by about half a percentage point as component Boeing’s slide weighed on the blue chip index. (More on Boeing below.) This week, investors have their mind on inflation, with the consumer price index and the producer price index due Thursday and Friday, respectively. Earnings season is kicking off this week, too: JPMorgan, Citigroup, Wells Fargo, Bank of America, Delta Air Lines and UnitedHealth all report Friday. Follow live market updates.
2. Bad time for Boeing
In this photo released by the National Transportation Safety Board, NTSB Investigator-in-Charge John Lovell examines the fuselage plug area of Alaska Airlines Flight 1282 on Sunday, Jan. 7, 2024, in Portland, Ore.
National Transportation Safety Board via AP
Shares of aircraft manufacturer Boeing fell 8% on Monday, days after a panel blew out on an Alaska Airlines plane midflight. After the incident, which didn’t cause any deaths or major injuries, the Federal Aviation Administration grounded dozens of Boeing 737 Max 9 planes across various airlines and called for inspections. Indeed, United Airlines said Monday that it had found loose bolts in door plugs on several of their Max 9s while performing such checkups. Alaska also said it found “loose hardware” during examinations. Boeing, meanwhile, finds itself under even more scrutiny following the latest problems with its aircraft.
3. ‘Rare bug’
Sam Altman, chief executive officer of OpenAI, at the Hope Global Forums annual meeting in Atlanta, Georgia, US, on Monday, Dec. 11, 2023.
Dustin Chambers | Bloomberg | Getty Images
The New York Times has sued ChatGPT maker OpenAI for copyright infringement over the use of the publication’s material in training the artificial intelligence tech. ChatGPT’s response: Nothing to see here. “Training is fair use, but we provide an opt-out because it’s the right thing to do,” the Microsoft-backed startup said, adding that the so-called “regurgitation” of specific content “is a rare bug that we are working to drive to zero.” But the Times isn’t the only one claiming that ChatGPT, which exploded in popularity since its debut just over a year ago, has cribbed from work. Nonfiction and fiction authors alike have sued OpenAI for allegedly using their work to train the tech without their consent.
4. JetBlue shakeup
Robin Hayes, CEO of Jet Blue Airways, is interviewed by Reuters at the International Air Transport Association’s (IATA) Annual General Meeting in Boston, Massachusetts, October 5, 2021.
Brian Snyder | Reuters
As it awaits a federal judge’s decision on its proposed purchase of discount airline Spirit, JetBlue is shuffling its top ranks. CEO Robin Hayes will step down in February, the company said Monday, and operating chief Joanna Geraghty will replace him. Hayes, an industry veteran of more than 30 years, cited the pressures of the job in his announcement. “The extraordinary challenges and pressure of this job have taken their toll, and on the advice of my doctor and after talking to my wife, it’s time I put more focus on my health and well-being,” he said. Meanwhile, JetBlue expects a ruling on the Spirit deal – which the Justice Department challenged on competition concerns – within the coming weeks.
5. CEO scoops Shein
Jaap Arriens | Nurphoto | Getty Images
Shein, the fast-fashion e-commerce company with roots in China, has come under a great deal of scrutiny over environmental and forced labor concerns. Now, with the retail giant pursuing a public share offering in the U.S., focus will intensify on its financials. Reporting and speculation pegged Shein’s annual revenue level at about $30 billion, but the CEO of one of its partners disputes that figure. In fact, he says it’s much more. “There’s talks that they do 30 billion, do they do 40 billion? Do they do 35 billion? I’m not going to tell you exactly what they do, but I can tell you they do a lot more than $30 billion,” Jamie Salter, CEO of privately owned brand management firm Authentic Brands Group, said at a retail conference in Orlando. Shein didn’t immediately respond to CNBC’s request for comment.
– CNBC’s Sarah Min, Leslie Josephs, Hayden Field, Sara Salinas and Gabrielle Fonrouge contributed to this report.
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