The following news items are the most crucial for investors to know as they begin their trading day:
1. Bonds increase
After the Federal Reserve said it might raise rates one more time this year, the three major averages are expected to have a down week on Wall Street. This week, the S&P 500 and the heavily weighted Nasdaq Composite in terms of technology are down 2.7% and 3.5%, respectively, and are on pace to have their worst weekly performance since March. Additionally, it would be both indices’ third consecutive week of losses. The Dow Jones industrial average is down just 1.6%. On the news, bond yields increased.
2. The rule of Rupert
Rupert Murdoch, a global media billionaire, announced his resignation as chairman of Fox Corp. and News Corp. on Thursday. He isn’t quite out of the game, though. The 92-year-old said he will continue to be “involved daily with news and ideas” and that he will be named chairman emeritus of each company, according to the companies. His son Lachlan Murdoch will take over as News Corporation’s only chairman and remain the executive chairman and CEO of Fox Corporation.
3. New tech from Microsoft
At an event in New York on Thursday, Microsoft showcased new Surface devices and information on Windows 11. The business added that it would release an additional artificial intelligence capability for essential programmes like Word and Excel. The new operating system will also include improved snipping tools that let users extract text directly from screenshots and redact private data like phone numbers, among other things. The more expensive form of the new Surface laptops, the Surface Laptop Studio 2, includes a new CPU, a 14.4-inch screen, and can also be used as a tablet; it costs $1,999. The $799 entry-level Surface Laptop Go 3 is lighter than prior models and features a 12.4-inch touch screen.
4. Cisco and security
On Thursday, Cisco completed its largest-ever acquisition. In a cash transaction valued at roughly $28 billion, it is acquiring cybersecurity software provider Splunk for $157 per share. The transaction, which will probably finalise in the third quarter of 2024, will cost around 13% of Cisco’s market capitalization. Cisco, the biggest producer of computer networking hardware in the world, has been expanding its cybersecurity division. While this is going on, Splunk offers technology that enables companies to monitor and analyse their data in order to lower the risk of hackers and address technical difficulties more quickly. Splunk shares rocketed to close 21% higher on Thursday, while Cisco shares fell 4%.
5. More McDollars
For the first time in close to 30 years, McDonald’s is boosting the royalty payments it charges its franchisees. Franchisees who open new restaurants will now be required to pay 5% in fees, up from 4%. For those who keep their current restaurant footprint, there is no increase. 95% of McDonald’s 13,400 locations in the United States are operated by franchisees, who also cover rent, monthly royalties, and other costs. In previous years, the company’s relationship with its U.S. franchisees has been strained, but this year, domestic sales are growing.