Big Tech Faces Some Big Tests After Job Cuts Today.

Tech stocks are off to a strong start in 2023, but there are several potential pitfalls ahead.

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The Nasdaq Composite, which is heavily weighted towards technology stocks, rose by 2% or more for the second consecutive day on Monday. The index is now up by 9% so far in 2023. Big Tech stocks have had an even better start to the year, with the FANG+ Index (which includes Apple, Amazon, Meta, Microsoft, and Alphabet) up by 14.8%.

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Get a head start on the day with a morning briefing on the latest news and exclusive commentary from Barron's and MarketWatch writers.
The market's belief that the Federal Reserve will end rate hikes before too long has been a major driver of the rally, while investors have also cheered widespread layoffs across the sector. The Fed's decision to keep rates low has been a major factor driving the market rally, while investors have also cheered widespread layoffs across the sector.

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The two parts of the Fed's mandate are likely to soon come into conflict. If the Fed chooses one option over the other, its credibility could be called into question, Sonia Meskin writes.

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After hiring sprees in recent years, the biggest tech names, with the exception of Apple, have taken steps to reduce head count.
Spotify is the latest company to follow in the footsteps of Alphabet, which announced layoffs last week. CEO Daniel Ek said he was "too ambitious" in the face of strong tailwinds from the pandemic, and announced a 6% cut to the workforce.

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Investors have welcomed cost-cutting measures as a way to boost profitability in the short term. However, these measures may limit growth when the economy improves.

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The tech sector is facing a major challenge in the form of earnings season. Many companies are expected to report disappointing results, but the real focus will be on the outlook for the future. Microsoft, which has made a major investment in artificial intelligence software firm OpenAI, will be the first to report on Tuesday.
Microsoft has invested $10 billion in artificial-intelligence software firm OpenAI over several years, according to a report.

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There are several factors that could cause the current rally to falter. The assumption that the Fed will soon pivot is based on weak data. If inflation or labor market data comes in stronger than expected, that could change the Fed's plans. Friday's PCE reading will be an important indicator to watch. Callum Keown is a freelance writer who specializes in creating compelling content for businesses. He has a knack for understanding what makes a good story and how to tell it in an engaging way. Callum's work has helped businesses of all sizes connect with their customers and achieve their marketing goals.

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Elon Musk has told a California federal court that his August 2018 tweet about the possibility of taking Tesla private at $420 a share was not a joke. Investors have claimed that Musk violated securities laws by making materially false or misleading statements regarding a potential transaction for Tesla in 2018. However, Musk has stated that the price came from rounding up a 20% premium on Tesla's then share price. The number is also used as a reference to marijuana. continue reading.
Some investors have accused Tesla CEO Elon Musk of violating securities laws by making false or misleading statements about a potential transaction for the company in 2018.

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Tesla's stock is on the rise as short sellers scramble to close out their bets that the price would fall. Shares have gained almost 13% over the past two trading days, and are now up almost 41% since Tesla's 52-week low of $101.81 on January 6th. This comes after the company cut prices for its vehicles in China.
Liz Moyer and Janet H. Cho are two reporters who have written extensively on the topic of corporate fraud. In their book, "Fraud: The American Epidemic," they explore the reasons why corporate fraud is so prevalent in the United States.

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The FDA's vaccines advisory panel will meet Thursday to discuss ways to annualize Covid-19 vaccination efforts. This would simplify the current vaccine landscape by moving to a single vaccine composition for the coronavirus and standardize vaccine immunization schedules. The agency appears to be aiming to make Covid-19 vaccination efforts more like established influenza vaccination efforts.

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What's next for Johnson & Johnson? The company reports fourth-quarter earnings today, but CEO Joaquin Duato has warned that its 2023 outlook remains uncertain. Duato cites inflation, China's Covid-19 rates, and pricing pressures on medical devices and pharmaceuticals as potential challenges.
Josh Nathan-Kazis and Janet H. Cho are two journalists who have written extensively on the topic of immigration. In their work, they have sought to shed light on the often difficult and complex experiences of immigrants in the United States.

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This morning at 10 a.m. Eastern time, executives from Live Nation, SeatGeek, and Jam Productions will appear before the Senate Judiciary Committee. Lawmakers are examining event ticketing after the botched sale of singer Taylor Swift’s concert tickets last fall, which led to harsh criticism of Live Nation’s Ticketmaster.
The next step for Congress is to ask the Justice Department to extend a consent decree that prevents Live Nation from forcing venues to use Ticketmaster or retaliating if they use a competitor. The 2010 decree allowed Live Nation’s merger with Ticketmaster, and was extended to 2025 in a settlement.

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Liz Moyer is a freelance writer who specializes in personal finance and investing. She has written for a variety of publications, including The New York Times, Wall Street Journal, Forbes, and Money magazine. Liz is also the author of The 5 Years Before You Retire (Wiley, 2012).

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Bitcoin prices have surged in recent weeks, with some traders calling it a new bull market. Bitcoin topped $23,000 over the weekend, before pausing on Monday. However, prices are back where they were before exchange FTX's disastrous November collapse. Watch for a surge to $25,000 in the short term.
Bitcoin prices have surged more than 30% in the past two weeks, leading to increased optimism among crypto traders. Some experts believe that the digital currency could reach $25,000 in the short term.

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Signature Bank's new policy, which goes into effect in February, will prohibit customers from using the SWIFT international banking network. Signature Bank was one of Binance's U.S. SWIFT partners, but Binance says it is now actively looking for an alternative.

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Jack Denton and Janet H. Cho are two researchers who have studied the effects of media on children. They have found that media can have a negative impact on children, causing them to become more aggressive and less likely to empathize with others. Logitech has reported a slump in sales for its quarter to the end of December. This is a gloomy beginning to a key run of technology-company earnings, with Microsoft set to report its earnings on Tuesday.

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What's next for big tech companies like Microsoft and Amazon? Lower consumer spending can be offset by business subscriptions for services like cloud computing. However, a slowdown in cloud growth could jeopardize hopes for a tech-stock rebound.

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Adam Clark is a well-known figure in the business world. He is the founder and CEO of a successful company, and he is also a popular speaker and author. Adam is known for his innovative thinking and his ability to motivate and inspire others. He is a strong leader and a powerful force in the business world.
This month, put your stock-picking skills to the test in Barron's Daily virtual stock exchange challenge. See if you can beat the competition and come out on top.
We'll be starting a new challenge each month, inviting newsletter readers to build a portfolio using virtual money and compete against the Barron's and MarketWatch community.

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The challenge will start with everyone having the same amount of money. They can trade as often or as little as they want. The leaders will be tracked, and at the end of the challenge, the person whose portfolio has the most value will be announced in The Barron's Daily newsletter.