News of the day for July 5, 2023
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The U.S. is looking to restrict Chinese companies’ access to U.S. cloud computing services and minutes of the latest Federal Reserve meeting could provide clues into how it will treat upcoming rate hike decisions. Here’s what investors need to know today.
1. US Looks to Restrict Chinese Access to Cloud Computing
The Biden administration is reportedly preparing to propose new rules limiting Chinese companies’ access to U.S. cloud computing services, a move that would require companies like Amazon (AMZN) and Microsoft (MSFT) to obtain government permission before providing cloud computing that utilizes artificial intelligence (AI). The proposal comes after China said this week it would impose restrictions on exporting metals used in chip manufacturing. Shares of Microsoft traded 0.8% lower in pre-market trading, while Amazon shares fell 0.5%.
2. Fed Meeting Minutes Could Offer Insight on Rate Hike Pause
Investors will get a look into the Federal Open Market Committee discussions over its decision to pause interest rate hikes when at 2 p.m. ET the Federal Reserve releases the minutes for its June meeting. The minutes can provide added insight into how the Fed will act on interest rates at its next meeting on July 26. Also today, data on factory orders will be released at 10 a.m. ET.
3. Meta Platforms to Launch Twitter Rival ‘Threads’ This Week
Facebook-parent Meta Platforms (META) is expected to unveil a rival to Twitter called “Threads” on Thursday, launching under the umbrella of its photo social media site Instagram. The launch comes on the heels of new Twitter rules that limit the number of posts a user can see, part of changes that have unnerved advertisers and led to a 40% drop in ad revenue. Shares of Meta Platforms traded 0.4% lower in pre-market trading.
4. Rivian Shares Rise After Reporting Higher-Than-Expected Production
Rivian Automotive (RIVN) shares moved higher after it reported vehicle production that beat estimates, producing 13,992 vehicles in the quarter ending on June 30, better than the 12,562 vehicles analysts were anticipating. The results come after rival Tesla (TSLA) also reported beating estimates for second quarter deliveries. Shares of Rivian were up more than 3% in pre-market trading, while Tesla shares dipped 0.7%.
5. Teamsters Union Says UPS ‘Walked Away’ From Labor Negotiations
The Teamsters labor union said that United Parcel Service (UPS) has “walked away” from negotiation on a new contract, raising the possibility that its 340,000 workers at the parcel delivery firm will go on strike. The Teamsters Union said that UPS’s latest offer in the negotiations was unanimously rejected by the negotiating committee, ahead of the July 31 contract expiration deadline. UPS shares fell 1.5% in pre-market trading.
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