- Microsoft CEO Satya Nadella addresses the OpenAI controversy.
- Retailers like Lowe’s and Best Buy are reporting profits.
- Nvidia will report its earnings after the closing bell.
Here are the key news investors need to start the trading day:
Even in this strong month so far, share prices are still on the rise. The Dow closed about 200 points higher on Monday, while the S&P 500 and Nasdaq snapped a five-day winning streak. Treasury yields have fallen somewhat and there are hopes that the Federal Reserve will ease its initiative to increase the inflation rate to combat inflation. We’ll learn more about what the Fed thinks about inflation and the state of the economy as the central bank is set to release minutes from its latest policy meeting. Follow live market updates.
Microsoft CEO Satya Nadella wants changes at OpenAI, the red-hot startup that plunged into turmoil over the weekend by firing co-founder and CEO Sam Altman. “At this point I think it’s very clear that something needs to change in terms of governance,” Nadella told CNBC’s Jon Fortt. Microsoft has invested around $13 billion in OpenAI, creating the popular ChatGPT app that changed the course of technology last year. Microsoft quickly hired Altman to lead a new AI team, while hundreds of OpenAI employees threatened to follow him unless he was reinstated to lead the startup (of which Microsoft owns 49%). Nadella said it’s their decision whether they stay or jump over. “I’m open to both options,” he said.
LoweÍs store entrance with logo sign above main entrance doors, Spokane Valley, Washington with stores in the US and Canada, headquarters in Mooresville, North Carolina.
Ucg | Universal Images Group | Getty Images
A slew of retailers are unveiling earnings schedules on Tuesday, giving investors a final glimpse of companies’ expectations for the holiday quarter before Thanksgiving. So far they have been vocal. The day after Thanksgiving, commonly known as Black Friday, isn’t what it used to be: discounts start earlier and e-commerce pulls in more and more dollars. But it is the beginning of the home stretch. On Tuesday morning, we hear from Best Buy, Lowe’s, Dick’s Sporting Goods and mall clothing sellers American Eagle Outfitters and Abercrombie and Fitch. Nordstrom will report after the closing bell.
Jensen Huang, President of NVIDIA, holds the Grace Hopper superchip CPU for generative AI at the Supermicro keynote presentation during COMPUTEX 2023.
Walid Berrazeg | Light rocket | Getty Images
Tuesday isn’t just about retail profits. Nvidia, one of the darlings of the artificial intelligence boom, will report after the market closes. Wall Street is also hyped. The stock closed at an all-time high on Monday ahead of the quarterly report release, after rising 245% this year, setting the pace and then some for the S&P 500. Analysts expect the company to post 170% revenue growth. Beyond the numbers, investors will be interested to see what Nvidia executives think about the fallout surrounding OpenAI following the ouster of Sam Altman.
A fuel nozzle is replaced at a gas station in La Puente, California, on September 7, 2023.
Frederic J. Brown | AFP | Getty Images
Gas prices are on track to be the lowest on Thanksgiving since 2020, when Covid restrictions slowed travel. In general, gas prices have already been declining for over two months at this point. The average price of a gallon was $3.31 on Monday, down 25 cents from a month ago. According to AAA, the price is less than $3 in 11 states in the South and Midwest. However, the declines could be short-lived. OPEC could cut production at its meeting next week, which would give a boost to crude oil prices.
—CNBC’s Brian Evans, Jordan Novet, Ari Levy and Spencer Kimball contributed to this report.
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