- The tech profits are rolling in.
- 42 state attorneys general are suing Meta.
- The UAW is expanding its strikes again.
Here are the key news investors need to start the trading day:
Markets turned positive on Tuesday, with the Dow breaking a four-day losing streak and rising 200 points. The S&P 500 and the Nasdaq Composite also recorded a daily increase. Investors were focused on the latest earnings reports, which are coming in quickly. Around 150 S&P 500 companies are expected to report this week. They continue to closely monitor government bond yields. In the meantime there were some standout performances. Verizon shares closed up more than 9%, marking the company’s best day in nearly 15 years, while Spotify rose 10%. Follow live market updates.
Alphabet CEO Sundar Pichai during the Google I/O Developers Conference in Mountain View, Calif., May 10, 2023.
David Paul Morris | Bloomberg | Getty Images
Tech companies are in full profit mode. Alphabet reported an 11% increase in third-quarter revenue, but its cloud business missed analysts’ estimates by more than $20 million. As a result, the stock fell almost 7% in after-hours trading. Meanwhile, Microsoft saw its shares rise 6% in extended trading after the company said its net profit rose 27%. Microsoft’s revenue rose nearly 13% year-over-year this quarter, beating analyst estimates for both revenue and earnings per share. And Snap stock did the rest, rising as much as 20% in after-hours trading, but sentiment turned negative as investors digested news that some advertisers were halting spending following the outbreak of the Israel-Hamas war .
Jaap Arriens | Photo only | Getty Images
Maybe there’s a reason we can’t stop doomscrolling. A bipartisan group of 42 state attorneys general is suing Meta, claiming that its social media platforms are addictive — and that they target children and teens. The lawyers say Facebook and Instagram are designed to keep young users engaged. They also say the company was aware of the negative impact that things like notifications and so-called infinite scrolling could have on young people. States are seeking an end to what they see as Meta’s harmful practices, as well as penalties and compensation. Such widespread support for the legislation could pose a threat to the company.
Members of the United Auto Workers strike at General Motors’ Lansing Delta Assembly Plant in Lansing, Michigan, on September 29, 2023.
Bill Pugliano | Getty Images
The United Auto Workers union quickly responded to GM’s third-quarter earnings report on Tuesday morning. Just hours after the automaker said it had strong profits and posted record third-quarter sales, the UAW announced that about 5,000 of its members would be leaving a highly profitable full-size SUV plant in Texas. “Another record quarter, another record year. As we have said for months, record profits mean record contracts,” UAW President Shawn Fain said in a statement. “It’s time for GM workers and the entire working class to get their fair share.” GM also said Tuesday that UAW strikes have already cost $800 million in lost production.
Smoke rises after Israeli attacks on the border with Egypt as the conflict between Israel and the Palestinian Islamist group Hamas continues, seen from Rafah in the southern Gaza Strip, October 22, 2023.
Ibraheem Abu Mustafa | Portal
Gaza is running low on fuel and hospitals have warned they may have to close without supplies. Water, medicine, food and other supplies are also running low. UN Secretary-General Antonio Guterres warned overnight that the situation was getting “worse by the hour”. The United Nations Relief and Works Agency for Palestine Refugees said it would no longer be able to carry out relief operations after Wednesday night without obtaining the fuel supplies it needs to operate transportation, necessary water desalination and run medical equipment. Israel Defense Forces said fuel was available in Gaza but was monopolized by Hamas. Meanwhile, Israel’s UN representative has called for Guterres’ resignation following his comments on the Israel-Hamas conflict.
U.S. House Majority Leader Tom Emmer (R-MN) speaks to reporters as he leaves a House Republican Candidates Forum featuring members of Congress running for Speaker of the House on October 23, 2023 at the U.S. House Office Building Longworth House on Capitol Hill presented their programs in Washington, DC
Win McNamee | Getty Images
Here’s a sixth bonus: Essentially nothing has changed: There is still no Speaker of the House. Majority Whip Tom Emmer of Minnesota had an unforgettable few hours. He beat a crowded field of eight GOP candidates to secure the nomination for speaker after several rounds of closed-door voting Tuesday morning. But in a now-familiar cycle, he dropped his bid for speaker just hours later when it became clear he didn’t have enough votes to secure the spot. In the late-night vote a few hours later, Republicans nominated Mike Johnson, a relatively little-known congressman from Louisiana, for the spot. His path to victory doesn’t seem any safer.
— CNBC’s Alex Harring, Jennifer Elias, Jordan Novet, Jonathan Vanian, Lauren Feiner, Michael Wayland, Ruxandra Iordache, Matt Clinch, Spencer Kimball and NBC News contributed to this report.
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