This week ahead || Jan 22nd - Jan 26th 2024
Here's your news for the week.
Inflation data, big tech earnings test stocks' new record high: What to know this week
In the upcoming week, the stock market faces challenges to sustain its new record high amid a flurry of corporate earnings reports and the release of the Fed's preferred inflation gauge. Key technology results from Netflix and Tesla are expected to take center stage, while reports from Johnson and Johnson, United Airlines, Verizon, and AT&T will also contribute to a busy week for quarterly reports. The economic data scheduled for release includes the first reading of economic growth for Q4 and the Personal Consumer Expenditures (PCE) Index, a crucial inflation indicator. The stock market is currently trading at or near record levels, with positive consumer sentiment and upbeat economic outlook contributing to the optimistic mood on Wall Street. Analysts are closely watching economic growth trends, inflation data, and corporate earnings to gauge the market's direction in the short term.
Dish creditors send letter to company alleging debt swap fraud
A group of Dish Network Corp. creditors, in collaboration with law firm Milbank, has sent a letter to the company's board alleging that Dish's restructuring plan is illegal. The letter claims that the plan, which involves swapping nearly $10 billion of debt for new secured notes, violates debtholder agreements. It also suggests that Dish's move to transfer valuable collateral away from existing creditors could be considered fraudulent and an illegal dividend. The creditors have threatened legal action if the restructuring deal is not reversed. Dish Network has been facing challenges as it seeks to restructure and pivot its business toward wireless services.
SolarEdge to lay off 16% of workforce to trim operating costs
SolarEdge Technologies has announced plans to lay off approximately 16% of its global workforce, affecting around 900 employees, as part of efforts to reduce operating costs. The decision comes after the company ceased manufacturing in Mexico, reduced manufacturing capacity in China, and terminated its light commercial vehicle e-mobility activities. The move aims to align the company's cost structure with changing market dynamics. SolarEdge had previously trimmed its fourth-quarter revenue expectations in November due to weak demand for its solar inverters, with solar growth slowing in Europe and challenges in the U.S. market.
Tata Motors raises prices on passenger vehicles including EVs due to input costs
India's Tata Motors, a leading automotive manufacturer, has announced a price hike across its entire passenger vehicle range, including popular electric vehicle (EV) models such as Punch, Nexon, Tiago, Tigor, and Harrier. The revision is set at an average increase of 0.7%. The company cited rising input costs as the primary reason for this adjustment. The new pricing is slated to take effect from February 1, reflecting a response to the economic pressures of increased costs in materials and components necessary for vehicle production. This move mirrors the broader industry trend where manufacturers are adjusting prices to manage profitability in the face of cost inflation.
