The OpenAI saga: could Sam Altman return?
The OpenAI drama continued on Tuesday as investors in the ChatGDP maker said they want to bring ousted Sam Altman back to the company.
Thrive Capital, Khasola Ventures and Tiger Global Management are looking to protect their investment after OpenAI laid off more than two-thirds of its employees, according to Bloomberg. Allegedly Threatened to resign if Altman were ousted.
Microsoft (MSFT) CEO Satya Nadella indicated he’s open to the idea, despite the company hiring Altman to lead its in-house AI division. Still, certain conditions must be met, according to the report, including the resignation of the startup’s current board as well as a change in OpenAI’s governance.
“No matter where Sam is, he’s working with Microsoft,” Nadella said in an interview on Monday.
As Yahoo Finance’s Julie Hyman points out, this story has massive implications for investors, especially those who own Microsoft shares. Microsoft’s stock closed at a record high on Monday as Wall Street applauded the move to bring Altman fully into the company. However, at this point, it’s TBD if he stays.
Retail earnings disappointing just ahead of Black Friday…
It was not a very good earnings season for some retailers as forecasts were bleak and sales declined due to a decline in consumer spending. Here’s a summary of what you need to know:
Lowe’s (Lowes): Shares of the home improvement giant fell nearly 3% after the company cut its full-year outlook amid a decline in consumer spending. Third quarter sales declined 13% while comparable sales declined 7.4%. Lowe’s CEO Marvin Ellison blamed the performance on do-it-yourself or DIY customers who spent less than expected on big-ticket items. “DIY pressure disproportionately impacted our third quarter performance,” he said. competitor’s shares Home Depot (HD) Also fell on the news.
Best Buy (BBY): Shares of the electronics retailer fell nearly 4% in early trading after the company posted mixed earnings results with net sales below expectations. Best Buy CEO Corey Barry said in the release that “consumer demand is even more uneven and difficult to predict.” Yahoo Finance’s Brooke DePalma gives you the full details here.
American Eagle Outfitters (AEO): Despite beating third-quarter earnings estimates, shares of the young adult retailer fell nearly 20% on Tuesday after its fourth-quarter operating income forecast disappointed investors. The company said it expects fourth-quarter operating income to be between $105 million and $115 million. Analysts had expected $114 million. competitor Abercrombie & Fitch (ANF) Shares fell despite beating earnings estimates and raising its 2024 outlook, as investors demand more from the company’s turnaround plan.
Kohl’s (KSS): Despite the decline in earnings, the department store saw its shares fall more than 10% after reporting a decline in sales. Net sales declined 5.2% while comparable sales declined 5.5%. The company cut its full-year sales forecast to 4% from 2.8%, but raised its full-year EPS forecast.
Dick’s Sporting Goods (DKS): Shares rose about 10% after the company reported a decline in third-quarter earnings and raised its full-year outlook amid strong demand for sports gear, lagging other retailers. The strong results come after the company struggled with retail theft and a decline in profits in 2023.
shares fell flat
Stocks fell Tuesday, with the tech-heavy Nasdaq Composite (^IXIC) leading the morning decline, falling about 0.6% shortly after the opening bell, while the benchmark S&P 500 (^GSPC) fell about 0.3%. Went. The move comes after both indices closed at their highest levels since August.
Meanwhile, the Dow Jones Industrial Average (^DJI) fell more than 0.1% as the yield on the 10-year Treasury note traded nearly 1 basis point lower at 4.41%.
Fall in stock futures signals pause in rally
Wall Street stocks opened lower on Tuesday after closing with gains minutes ahead of earnings from AI chipmaker Nvidia and the Federal Reserve.
Futures on the Dow Jones Industrial Average (^DJI) slipped 0.14%, or 49 points, while S&P 500 (^GSPC) futures fell 0.15%. Contracts on the tech-heavy Nasdaq 100 (^NDX) fell 0.18%.