- Amazon will lay off hundreds of people in its cloud computing division.
- Disney shareholders overwhelmingly rejected Nelson Peltz's activist bid.
- Fed Chairman Jerome Powell reiterated that the Fed is in no hurry to cut rates.
Here are the most important news items investors need to start their trading day:
On Wednesday, the Dow Jones Industrial Average fell for the third day in a row. The 30-stock index fell 43.10 points (0.11%). Intel, which posted an operating loss in its semiconductor manufacturing business, led the decline by more than 8%. The S&P 500 fared even better, gaining 0.11% for its first win of the week. The Nasdaq Composite Index also ended the day in positive territory, rising 0.23%. In another sign of the economy's resilience, ADP statistics released Wednesday showed private payrolls rose higher than expected in March. Follow live market updates.
Attendees walk through Expo Hall during Amazon Web Services' Reinvent conference at the Venetian on November 29, 2022 in Las Vegas.
Noah Berger | Getty Images Entertainment | Getty Images
Amazon's cloud computing division is cutting hundreds of jobs in its brick-and-mortar technology and sales and marketing departments. Amazon Web Services, the company's highly profitable cloud services division, has seen revenue growth slow in recent quarters as companies cut back on cloud spending. The job cuts come after Amazon announced it would remove cashier-less checkout systems from its U.S. Fresh stores. The AWS division includes a team that oversees cashierless technology.
Bob Iger poses with Mickey Mouse while attending Mickey Mouse's 90th Annual Spectacular at the Shrine Auditorium on October 6, 2018 in Los Angeles.
Valerie Macon | AFP | Getty Images
Disney shareholders overwhelmingly re-elected the company's entire board of directors on Wednesday, ending a month-long battle brought by activist Nelson Peltz. The election is a seal of approval for the board's decisions, from the return of CEO Bob Iger to the company's efforts to reinvigorate the $223 billion media company. Mr. Peltz and his company, Trian Partners, fired two members of its board of directors, citing low stock prices, a failed succession process and billions of dollars in misinvestments, and Mr. Peltz and a former Disney chief. It wanted to give its executive director, Jay Laslo, a seat on its board of directors. Another activist investor, Blackwells, also failed to win a board seat in another disappointing bid.
Federal Reserve Chairman Jerome Powell holds a press conference after a two-day Federal Open Market Committee meeting on interest rate policy in Washington, U.S., March 20, 2024.
Elizabeth Franz | Reuters
Contrary to what you may have heard, Federal Reserve Chairman Jerome Powell is in no hurry to ease monetary policy. “In terms of inflation, it's too early to tell whether the recent readings are anything more than just an increase,” he said Wednesday at Stanford University. Markets expect the U.S. Federal Reserve to begin cutting interest rates before the end of the year, but the timing and extent of the cuts are uncertain as inflation remains above the central bank's desired 2% target. And Mr. Powell is not alone. Atlanta Fed President Rafael Bostic, San Francisco Fed President Mary Daley, and Cleveland Fed President Loretta Mester (voting members of this year's key Fed committees) met this week to discuss the need for a wait-and-see approach. emphasized.
Levi Strauss sold nearly half of its blue jeans and other clothing through its own stores and website rather than through department stores like Macy's and Kohl's. The changes come as wholesalers struggle and are a boon to Levi's profits. Levi's also beat Wall Street's profit and sales expectations when it reported first-quarter results on Wednesday, and raised its full-year profit outlook. Shares rose as much as 10% in extended trading.
— CNBC's Hakyung Kim, Annie Palmer, Alex Sherman, Rohan Goswami, Sarah Whitten, Jeff Cox and Gabrielle Fonrouge contributed to this report.
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