Stocks mixed as Wall Street pares losses

Live6 updates

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  Tue, January 9, 2024 at 11:00 AM MST

  Unity Software tumbles 7% after major layoff announcement

  Unity Software (U) is the latest company to announce major layoffs. But Wall Street doesn’t appear confident in the corporate restructuring plan.

  Shares of the video game developer fell almost 7% after the company announced plans to lay off about 1,800 employees, or 25% of its workforce.

  While other major staff cuts that have taken place during the Fed’s tightening cycle have prompted boosts in a company’s share price, on expectations of lower costs and plans for greater efficiency, Unity’s announcement has triggered investor jitters.

  Shares sank 7% in afternoon trading

  The layoffs come at a challenging moment for the company. In September, Unity announced a new pricing scheme that would charge developers in a pay-per-download model. The scheme prompted an outcry from customers, forcing the company to swiftly backtrack. Soon after Chief Executive John Riccitiello said he would retire.

  Unity then missed earnings expectations during its most recent quarterly report in November, and refrained from issuing fourth quarter guidance. While the stock has rebounded from its recent lows in the fall, it’s still trading roughly 25% lower from its summer peak.

  The latest round of cuts comes after Unity laid off more than 1,000 employees in several rounds of layoffs last year.

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  Tue, January 9, 2024 at 10:34 AM MST

  Stocks mixed in afternoon trading

  Tech stocks rebounded in afternoon trading Monday, as the major indexes clawed back earlier losses but remained in mixed territory.

  The Dow Jones Industrial Average (^DJI) slipped 0.4% or about 150 points. The benchmark S&P 500 (^GSPC) fell just below the flatline, while the tech-heavy Nasdaq Composite (^IXIC) turned barely positive, reversing negative movement from the morning session.

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  Tue, January 9, 2024 at 10:00 AM MST

  HPE in talks to acquire Juniper Networks: Report

  Hewlett Packard Enterprise (HPE) is moving to acquire Juniper Networks (JNPR) in a deal that could be valued at $13 billion, according to a report by the Wall Street Journal published Tuesday.

  The proposed acquisition could bolster HPE’s AI product rollout. In recent months Wall Street has cheered on Big Tech’s AI developments, rewarding software companies and AI suppliers like Nvidia (NVDA) with robust gains, outpacing the broader market on the promise of a massive business and consumer shift toward AI-powered tools and services.

  Juniper, based in Sunnyvale, Calif., is best known for selling communications hardware, including routers and switches. But the company also runs a growing AI business, called Mist AI. Juniper says the AI business allows its customers to run their networks more efficiently. Juniper’s CEO Rami Rahim recently told Yahoo Finance Live that the company’s AI segment has achieved 100% growth over its last two quarters, year over year.

  Shares of Juniper rose more than 20% Tuesday afternoon, while HPE sank 7%.

  A deal could be announced as soon as this week, according to the report.

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  Tue, January 9, 2024 at 9:02 AM MST

  Oil rebounds on signs Russia is adhering to promised export cuts

  Crude futures rebounded on Tuesday on signs that Russia is adhering to its promised export cuts and protests in Libya continue limiting the country’s production.

  West Texas Intermediate (CL=F) rose more than 1.5% during the session before paring back some of those gains. Brent (BZ=F) futures also increased more than 1%, a reversal from steep losses during the prior session.

  The latest crude export data tracked by Bloomberg shows Russia started 2024 in line with cuts promised by the OPEC+ member.

  Meanwhile protests in Libya are keeping roughly 300,000 barrels per day off the market following the shutdown of a major oil field last week.

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  Tue, January 9, 2024 at 8:20 AM MST

  Stocks trending in morning trading

  Here are some of the stocks leading Yahoo Finance’s trending tickers page during trading on Tuesday:

  Juniper Networks (JNPR): Shares of the networking supplier rose more than 20% Tuesday morning following a report in the Wall Street Journal that revealed Hewlett Packard Enterprise (HPE) is eyeing the company for acquisition in a deal that could be valued at $13 billion. HPE shares fell more than 8%.

  JetBlue (JBLU): The airline sank more than 6% following an announcement that Robin Hayes will step down as CEO after about nine years of leading the company. His departure carries significance because the company is waiting to hear whether a federal judge will block its proposed merge with Spirit Airlines, a deal he backed.

  Unity Software (U): Shares of the video game developer fell almost 7% after the company announced plans to lay off about 1,800 employees, or 25% of its workforce.

  Nvidia (NVDA): Shares of the AI software and hardware supplier continued their run on Tuesday morning as shares rose 0.3% following a report that the AI supplier plans to begin mass production of an AI chip it designed for the Chinese market that complies with US export regulations. Reuters reports that the sale of the chip, along with two others, is designed preserve the company’s market share in China amid tightening export restrictions out of Washington.

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  Tue, January 9, 2024 at 7:33 AM MST

  Stocks open lower as tech rally loses steam

  The market opened in the red to start the Tuesday session on Wall Street as tech stocks gave up ground.

  The Dow Jones Industrial Average (^DJI) slipped 0.5% or about 200 points. The benchmark S&P 500 (^GSPC) shed nearly 0.6% while the tech-heavy Nasdaq Composite (^IXIC) retreated about 0.7%.