5 things to know before the stock market opens Wednesday

Here are the most important news investors need to start their trading day:

So far this month, markets have kept their heads above water even as economic data points to a possible recession and corporate earnings have been mixed at best. As of the latter point, more than 70 companies listed in the S&P 500 have reported quarterly results this earnings season, with nearly two-thirds performing better than expected, according to Refinitiv. So there’s still some time left, and investors will zoom in on the offering of guidance companies in particular as economic concerns mount. Earnings Docket on Wednesday: boeing, AT&T, Tesla, IBM And Levi Strauss, Reading live market update here,

Microsoft may have beaten the Street on earnings, but the company posted its slowest revenue growth since 2016, and its outlook indicated that bad trends will continue, The tech giant said Tuesday that it expects revenue growth to remain slow. Microsoft’s Windows and Office businesses experienced declines late last year, and more declines are likely as the personal computer market shrinks again. New business growth for the company’s Azure cloud unit also softened in December, which doesn’t bode well for the early part of the year. “In our commercial business we expect the trading trend seen at the end of December to continue into the third quarter,” said Amy Hood, head of finance.

Inflation is still high – the consumer price index for December was up 6.5% from a year earlier – but it is slowing. This is good news for consumers, but only up to a point. Many companies have raised prices, but just because costs have gone down, doesn’t mean they are going to lower the prices Across the board, or so, as CNBC’s Melissa Repko and Amelia Lucas explain. One reason: Many companies are locked into long-term contracts that fix prices for goods and shipping months in advance. In addition, companies that previously faced higher costs are now looking to improve their profit margins. “We don’t take something that was $1, move it to $1.10 and then a year or two later, move it to $1,” Utz Brands CEO Dylan Lysett said earlier.

Tesla The auto industry recently dealt a blow when it reduced prices on several models across multiple markets. The move comes after the electric vehicle leader posted weaker-than-expected year-end deliveries, indicating CEO Elon Musk is trying to tame demand. also planted New pressure on Tesla’s rivalsIncluding ford And GM, as they struggle with high material costs while trying to increase their own EV output while setting ambitious goals for the next decade. The market for used Teslas is also paying a price: In the first 17 days of January, according to Edmunds, prices for cars from the 2020 model year or later fell to an average price of $58,657, down from its June low of $76,626. was below the peak. Tesla reports earnings after the bell on Wednesday.

Rupert Murdoch on Tuesday scrapped your plan Fox News owner to rejoin Fox Corporation And news corpowner of The Wall Street Journal and HarperCollins, after determining that “a combination is not optimal for shareholders.” The Murdoch family has effective control of both companies, forming a vast but fading empire of media interests. In October, Fox and News Corp formed a special committee to explore a possible deal that would re-merge the companies nearly 10 years after their separation. However, some large non-Murdoch shareholders have pushed back, indicating it will not be an easy move for the media mogul and his son Lachlan Murdoch, a top executive at both companies. Meanwhile, News Corp is in advanced talks to sell realtor.com owner Move Inc. Costar Group,

— CNBC’s Yoon Lee, Jordan Novett, Melissa Repko, Amelia Lucas, Michael Wieland and Lillian Rizzo contributed to this report.

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