Stocks close mixed as tech pares losses

Live12 updates

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  Tue, January 9, 2024 at 2:03 PM MST

  Stocks finish mixed in wobbly trading day

  Wall Street finished the day in mixed territory after stocks failed to find clear direction.

  The Dow Jones Industrial Average (^DJI) slipped 0.4% or about 150 points. The benchmark S&P 500 (^GSPC) fell by nearly 0.2%, while the tech-heavy Nasdaq Composite (^IXIC) crawled above the flatline, in a reversal of earlier losses.

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  Tue, January 9, 2024 at 1:30 PM MST

  World Bank predicts a global soft landing is ‘increasingly possible’ in 2024

  A soft landing for the global economy is ‘increasingly possible’ in 2024, according to a new report from the World Bank.

  Global economic growth is set to slow for the third straight year, but avoid a recession, decreasing this year to 2.4% from an estimated 2.6% last year, according to the World Bank’s latest Global Economic Prospects report. In 2025, growth is expected to tick back up to 2.7%, Yahoo Finance’s Jennifer Schonberger reports.

  The forecast for this year’s slowdown is tied to to weak global trade and the effects of elevated interest rates that central banks set in motion to cool inflation, according to the World Bank. Many countries, including the US Federal Reserve, are expected to cut rates this year.

  “It’s rare for countries to bring inflation rates down without triggering a downturn. But this time, a soft landing seems increasingly possible,” read the World Bank’s report.

  The risk of a global recession has receded largely because of the strength of the US economy, which showed surprising resilience in 2023.

  But there remain downside risks to growth, according to the World Bank, including an escalation of the recent conflict in the Middle East and the potential for spikes in commodity prices that could push up inflation. Other dangers are the potential for financial stress from elevated debt and high borrowing costs, trade fragmentation, climate-related disasters, and weaker-than-expected growth in China.

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  Tue, January 9, 2024 at 12:45 PM MST

  Meta unveils new protections for teen users

  Meta (META) said it will expand its safety efforts to protect teenaged users, according to a blog post the company published on Tuesday.

  The teen safety rollout will include new settings for Facebook and Instagram users. Meta said that it will hide more types of content for teens, in line with expert guidance. That includes restricting search results related to suicide, self-harm and eating disorders, the company said. When users try to search around those topics, they will be directed to expert resources for help.

  “We already hide results for suicide and self harm search terms that inherently break our rules and we’re extending this protection to include more terms. This update will roll out for everyone over the coming weeks,” Meta said in the post.

  In addition Meta will automatically place teens into the most restrictive content control settings on Instagram and Facebook and restrict additional terms in search on Instagram. The social media company will also prompt teen users to update their privacy settings on Instagram in a single tap with new notifications.

  The restrictions and safety measures come as Meta has faced renewed criticism over the effects its platforms have on the well-being of young people whose social lives often revolve around online communications and relationships.

  Meta said it has developed more than 30 tools and resources to support teens and their parents.

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  Tue, January 9, 2024 at 12:30 PM MST

  United Airlines stock up 2% on double upgrade from BofA

  United Airlines (UAL) stock was up more than 2% on Tuesday after BofA analysts double upgraded the stock to Buy from Underperform.

  “Today, we see a valuation disconnect vs UAL’s execution and its more favorable leverage outlook than expected,” wrote analyst Andrew Didora. His team increased the stock’s price target to $56 from $40.

  The last time BofA had a Buy rating on United was right around the start of the pandemic, in March 2020.

  On Tuesday BofA analysts also downgraded JetBlue (JBLU) to Underperform from Neutral, citing a “tough domestic airline industry backdrop.” Didora and his team reduced their price target on the airline to $3 from $6.

  JetBlue shares sank more than 10% on Tuesday after the company announced a leadership change, further increasing concerns among investors on whether the airline’s proposed merger with Spirit (SAVE) will be approved.

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  Tue, January 9, 2024 at 12:00 PM MST

  Netflix faces 3 potential risks in downgrade by Citi

  The streaming giant Netflix faces a host of potential risk factors as it competes against cash-rich tech giants for attention and content.

  In a new report by Citi, analysts detail three major risks: lower revenues, higher costs for cash spending, and an absence of pursuing M&A deals that hang over the $200 billion company.

  Citi downgraded Netflix to Hold” as it described inflated expectations on Wall Street for the company. Among the challenges for the established streamer is continuing to boost its revenue. In recent months, an array of steamers have increased their prices and announced ad-supported subscriptions as the streaming environment becomes more competitive.

  Shares of Netflix sank about 0.3% during afternoon trading on Tuesday.

  As Yahoo Finance’s Jared Blikre reports, Netflix is operating in an environment in which pure-play media companies have lagged behind more diversified tech and media firms. Warner Bros. Discovery (WBD), for instance, is barely positive over the past year, rising just 0.7% while Paramount (Para) has suffered a 22% decline in its share price.

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  Tue, January 9, 2024 at 11:15 AM MST

  Stocks trending in afternoon trading

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

  Tilray (TLRY): The cannabis and consumer packaged good company rose 7% Tuesday afternoon after reporting record revenue of $194 million in its second quarter earnings released earlier in the day. Gross profit increased 11% to $47 million, the company said.

  Amazon (AMZN): Shares of the e-commerce giant rose 1.5% following a prediction from Jefferies senior analyst Brent Thill that it will be the top-performing mega-cap in 2024 as the company launches an “all-out offensive to catch-up in AI. “Amazon’s stock works when they’re in ‘harvest mode’ and we think they’ll continue to harvest the investments they put in during the pandemic,” Thill told Yahoo Finance Live. 

  JetBlue (JBLU): The airline sank more than 9% 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 7% after the company announced plans to lay off about 1,800 employees, or 25% of its workforce.

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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 than 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%.