Get ready for a thrilling morning edition of CNBC's Morning Squawk! We've got some hot topics that will keep you on the edge of your seat.
The Retail Revolution: Walmart's Earnings and the Future of Retail
Walmart, the retail giant, has seen its stock soar in the past year, but today's pre-market trading tells a different story. The company's guidance for the current fiscal year has investors concerned, with shares dropping over 2%.
Here's the breakdown:
- Walmart narrowly exceeded expectations for the fourth quarter, but its full-year forecast fell short of Wall Street's predictions.
- Adjusted earnings per share are expected to be between $2.75 and $2.85, lower than the anticipated $2.96.
- This news comes as investors are closely watching Walmart's new CEO, John Furner, who took charge earlier this month.
- Despite the recent dip, Walmart's stock has been on an impressive run, rising over 21% in the last 12 months and nearly 175% in the last five years.
But here's where it gets controversial...
Fellow retailer Wayfair also reported results, showcasing its first annual sales gain since 2020. Meanwhile, Etsy climbed even higher before the bell, beating Wall Street's expectations and announcing the sale of its clothing resale service, Depop, to eBay.
So, is this a sign of a retail revival, or are these companies just riding the wave of a post-pandemic boom?
The Fed's Dilemma: Interest Rates and Monetary Policy
The Federal Reserve's January meeting minutes revealed an interesting divide among officials. While most approved of holding interest rates steady, there was a notable disagreement on the next steps for monetary policy.
Some Fed members suggested that interest rates could be lowered further if inflation continues to slide. Others argued that such easing might not be necessary for some time, waiting for clear signs of disinflation.
And this is the part most people miss...
White House economic advisor Kevin Hassett had some strong words for the authors of a recent New York Fed paper, suggesting they should be "disciplined." He called the study, which found that U.S. companies and consumers are bearing the brunt of President Trump's tariffs, "the worst paper" in Federal Reserve history.
The FDA's Bold Move: Over-the-Counter Drugs and Early-Stage Development
Food and Drug Administration Commissioner Marty Makary warned that the U.S. is losing ground to China in early-stage drug development. He believes the U.S. should streamline the process for beginning trials on new treatments.
In an interview, Makary took it a step further, stating that all drugs should be over the counter, except those that are unsafe, addictive, or require monitoring. This proposal has sparked debate within the pharmaceutical industry, with some expressing concerns about increased costs and reduced access for patients.
Moderna, on the other hand, received some good news as the FDA agreed to review its experimental mRNA flu shot, reversing its previous refusal.
The Social Media Trial: Zuckerberg's Testimony and the Industry's Future
Meta CEO Mark Zuckerberg took the stand yesterday in a landmark trial on social media and safety. This trial, along with several others, is being described as the social media industry's "Big Tobacco" moment.
In his testimony, Zuckerberg addressed the issue of engagement on Instagram, stating that increasing user time spent on the platform was never a company goal. He also revealed that he had approached Apple CEO Tim Cook to discuss the wellbeing of teens and kids.
An intriguing twist occurred when members of Zuckerberg's team were seen wearing Meta's Ray-Ban AI glasses at the courthouse. Judge Carolyn B. Kuhl threatened to hold anyone using smart glasses during the CEO's testimony in contempt of court, emphasizing the need to delete any recorded content.
United Airlines' Mileage Plus Program: A Change in Rewards
If you're a frequent flyer with United Airlines, you might want to pay attention to this. The airline is making some significant changes to its Mileage Plus program.
United will no longer reward customers flying basic economy who don't have the airline's credit card, following the lead of American Airlines and Delta Air Lines. However, card-holding travelers will enjoy more points and frequent flyer discounts.
These changes mark some of the biggest adjustments to United's frequent flyer program in over a decade.
The Daily Dividend: Trump's Tariffs and the Furniture Industry
The Supreme Court could rule on Trump's tariffs this week, but the furniture industry might not find relief, regardless of the decision.
So, there you have it! A morning filled with retail earnings, Fed meeting insights, social media trials, and more. Stay tuned to CNBC for all the latest updates and don't forget to subscribe to our newsletter for future editions.
Have a fantastic Thursday, and remember, stay informed, stay curious!
