Lauren Miller

April 23, 2024 - 20:00 pm

1. Market Tension

Stock futures experienced a decline following Israel's limited strike on Iran. With no official comment from Israel, uncertainty prevails, reflected in fluctuating oil prices. Dow Jones Industrial Average futures fell by 0.3%, S&P 500 futures by 0.4%, and Nasdaq 100 futures by 0.6%. All three indexes are on track for a negative week.

2. Netflix's Earnings Strategy

Netflix announced a significant shift in its earnings reporting approach. Starting next year, the company will no longer disclose quarterly membership numbers or average revenue per user. Instead, it will prioritize revenue and operating margin. This announcement coincided with Netflix's report of a 16% increase in memberships for the first quarter, surpassing Wall Street's expectations. However, the company's shares dropped around 6% in premarket trading.

3. Rising Mortgage Rates

Mortgage rates have reached their highest point this year, with the 30-year fixed rate averaging around 7.5%, according to Mortgage News Daily. Despite a 5% increase in mortgage applications for home purchases last week, affordability is declining. March home sales decreased due to the impact of rising mortgage rates. The spring housing market is witnessing faster movement and increased competitiveness, with homes spending an average of 33 days on the market.

4. TikTok's Defensive Spending

TikTok has significantly increased its advertising spending, surpassing $4.5 million, amidst concerns over a potential U.S. ban. The surge in spending comes as Congress considers legislation that could compel ByteDance, TikTok's parent company, to divest from the app. TikTok's heightened ad expenditure, including substantial television advertising since March, reflects a proactive effort to influence ongoing discussions in Washington.

5. Meta's AI Expansion

Meta has initiated the rollout of its free artificial intelligence assistant, Meta AI, across its platforms - WhatsApp, Instagram, Facebook, and Messenger. CEO Mark Zuckerberg announced the deployment alongside the introduction of Meta Llama 3, the company's latest large language model. Meta AI offers various functionalities, including answering questions, creating animations, and generating images. Additionally, Meta AI has partnered with Google and Microsoft to leverage their search engines for providing answers. According to Zuckerberg, Meta AI represents one of the most advanced freely accessible AI assistants available.