- U.S. stock futures are lower on Wednesday, extending back-to-back losses.
- Chipmaker and AI maker Nvidia reports earnings after the market closes on Wednesday.
- A new sports streaming joint venture between Disney, Fox and Warner Bros. Discovery is facing its first challenge.
Here are the key news investors need to start the trading day:
A microchip and the Nvidia logo are seen on the screen of a phone in this photo taken on April 10, 2023 in Krakow, Poland.
Photo only | Getty Images
Chipmaker and AI maker Nvidia reports earnings after the market closes on Wednesday. The mood on Wall Street appears uncertain, with the stock falling 4% on Tuesday. (It's still up 40% this year and up more than 200% in the last 12 months.) What could be of concern is its valuation, which last week overtook Alphabet to become the third-most valuable U.S. company behind Microsoft and Apple. “NVDA stock’s appreciation has been parabolic,” Bank of America analysts wrote in a recent report. “We believe one interpretation of this NVDA move is a mix of fear and greed and indiscriminate investor hunting for anything AI-related.”
A flag in front of the headquarters of drugstore chain Walgreens during a three-day strike by pharmacists in Deerfield, Illinois, USA, November 1, 2023.
Vincent Alban | Portal
Walgreens Boots Alliance is out. Amazon is there. S&P Dow Jones Indices said Tuesday that the tech giant will replace Drugstore in the Dow Jones Industrial Average effective next week. The swap is an attempt to realign the price-weighted valuation of 30 stocks with increased exposure to consumer retail after Dow component Walmart's 3-for-1 stock split reduced their weightings. The restructuring also includes the removal of airline JetBlue Airways from the transportation average and replaced by ride-hailing company Uber.
In this illustration photo taken in Krakow, Poland, February 6, 2022, the TV remote control with the fuboTV logo is seen on a screen.
Jakub Porzycki | NurPhoto | Getty Images
A new sports streaming joint venture between Disney, Fox and Warner Bros. Discovery is facing its first challenge. FuboTV filed a lawsuit against the media giants for “extreme suppression of competition in the U.S. sports streaming market.” The joint venture aims to offer sports fans a sleeker alternative to the traditional pay-TV package, but it has raised concerns among traditional cable providers and now sports streamer Fubo. “By combining to exclusively retain the rights to distribute a dedicated live sports package, we believe these companies are creating insurmountable barriers that will effectively deter any new competitor from entering the market,” said David Gandler, CEO of FuboTV. A spokesman for the joint venture declined to comment.
American Airlines agents assist customers at Miami International Airport on May 2, 2023 in Miami, Florida.
Joe Raedle | Getty Images
American Airlines is increasing baggage fees for the first time since 2018. Travelers can now expect to pay $35 for their first checked bag if they purchase the option in advance, or $40 if they check in at the airport. Previously, each option cost $30. A second checked bag is now $45 instead of $40, either in advance or in person. This is the latest example of strengthening bottom lines as companies make 2024 a year of cost cutting. Scott Chandler, senior vice president of revenue management and loyalty at American, said the cost of bag transportation has been “significantly higher” in recent years.
—CNBC's Hakyung Kim, Kif Leswing, Jordan Novet, Julia Boorstin and Leslie Josephs contributed to this report.
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