5 things to know before the stock market opens on Friday, January 20th

Here are the top stories investors need to start their trading day:

1. The January march is losing steam

Just like many New Year’s resolutions, the January stock market rally faded after only a few weeks. The three major indices are heading for a losing week, while the Dow Jones turned negative for the new year. Investors are facing a mixed bag of corporate earnings, ambiguous signals from major banks, and the possibility of a recession, and there is no indication that the Federal Reserve will begin to abandon its large interest rate hikes, despite its recent success in slowing inflation. Next week brings an even bigger list of earnings, as well as the upcoming Fed rate-setting meeting. Read live markets updates here.

2. Google has joined the tech layoff spree

Google CEO Sundar Pichai speaks on a panel at the CEO Summit of the Americas hosted by the US Chamber of Commerce on June 09, 2022 in Los Angeles, California.

Anna Money Maker | Getty Images

the alphabetGoogle said Friday morning it would lay off 12,000 employees, making it the latest tech giant to unveil major job cuts. CEO Sundar Pichai told employees in a note that the decision was based on a “rigorous review” of the company’s business, and that the layoffs would affect different regions and production areas. “As a nearly 25-year-old company, we are bound to go through tough economic cycles,” Pichai said. Google’s announcement comes two days after Amazon began laying off 18,000 people and Microsoft said it would cut 10,000 jobs.

3. Netflix Wild Tour

Netflix jumps on paid net additions for the fourth quarter, 7.66 million vs. 4.57 million expected

Netflix It gave the markets plenty to chew on when it reported quarterly earnings after Wednesday’s bell. First, the streaming giant said Reed Hastings, who helped found the DVD-rental mail-order company in 1997, would leave the co-CEO position and become CEO. Chief Operating Officer Greg Peters now joins Ted Sarandos as Co-CEO. Netflix also reported about 7.7 million new subscribers last quarter, easily beating Wall Street’s forecast of about 4.6 million. Once upon a time, this might have been bad news for Netflix’s streaming competitors. But, as CNBC’s Alex Sherman points out, all broadcast operators are effectively united against a common enemy: slowing growth. Delivering a good quarterly for Netflix could also bode well for others.

4. A crypto infection called Genesis

Barry Silbert, Founder and CEO, Digital Currency Group

Anjali Sundaram | CNBC

The world of cryptography is a land of confusion. Lender Genesis filed for Chapter 11 bankruptcy protection late Thursday. The filing follows months of speculation about whether Genesis will file for bankruptcy. The lender is a key part of Barry Silbert’s cryptocurrency group, which has come under increasing pressure since the collapse of Three Arrows Capital and Sam Bankman Fried’s empire, including Alameda Research and FTX. Genesis has listed more than 100,000 creditors, with liabilities ranging from $1.2 billion to $11 billion, according to bankruptcy documents.

5. NATO considers tanks for Ukraine

Ukraine has repeatedly requested battle tanks from its Western allies.

Sean Gallup/Staff/Getty Images

Ukraine’s NATO allies are considering whether to supply German tanks to help the country’s army in its protracted fight against the Russian invaders. German Chancellor Olaf Scholz was wary of provoking Russia, a major energy supplier, and Germany could veto the move on its own. Poland, which has two of the German Leopard tanks in question, said it was ready to send them to Ukraine if Germany opposed the move. “At the moment we are trying to get Germany to agree not only to Poland or other countries sending these tanks, but also to do it themselves,” Reuters quoted the Polish deputy foreign minister as saying. Read live war updates here.

— CNBC’s Carmen Renick, Ryan Brown, Sarah Whitten, Rebecca Pichetto, Rohan Goswami, Mackenzie Cigalos and Natasha Turak contributed to this report.

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