A sign for the U.S. fast food restaurant chain McDonald’s is seen outside one of their restaurants in Sint-Pieters-Leeuw, near Brussels, Belgium March 4, 2024.
- Stocks gained on Monday ahead of a Federal Reserve meeting and the release of major corporate earnings.
- McDonald's reported mixed results.
- Paramount Global CEO replaced by three executives.
Here are the most important news items that investors need to start their trading day:
1. Climbing
Stocks continued their gains on Monday ahead of a Federal Reserve meeting and the release of major corporate earnings. The S&P 500 climbed 0.32% while the Nasdaq Composite and Dow Jones Industrial Average rose 0.35% and 0.38%, respectively. Tesla shares jumped 15% after it passed a milestone to release its advanced driver-assistance technology in China. Apple also climbed 2.5% on an upgrade from investment firm Bernstein ahead of the tech giant's earnings release Thursday. Traders will closely follow earnings after the bell today from Amazon, Advanced Micro Devices and Starbucks. Follow live market updates.
2. McDonald's mixed
McDonald's reported mixed results Tuesday. The company had a slight beat on revenue but earnings per share were just below estimates. McDonald's saw low-income customers in the U.S. pull back on spending. Overseas, the chain faced boycotts after its Israeli licensee offered discounts for soldiers. McDonald's had to close some locations temporarily, pressuring sales in the Middle East.
3. Three-E-Os
Paramount Global is shaking things up in the C-suite. The company announced Monday that CEO Bob Bakish will be replaced by an "Office of the CEO" headed by three executives. The media giant will be led by CBS President and CEO George Cheeks; Chris McCarthy, president and CEO of Showtime/MTV Entertainment Studios and Paramount Media Networks; and Brian Robbins, the head of Paramount Pictures and Nickelodeon. The announcement comes as Paramount is nearing a merger with Skydance Media. Paramount also reported mixed results for the first quarter Monday that beat on earnings but missed on revenue.
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4. Luxury demand poor
Volkswagen reported a 20% drop in operating profit for the first quarter as it saw weaker demand for its premium brands. Vehicle sales totaled 2.1 million units in the quarter, down about 2%. Operating profit for the German carmaker's luxury brand Porsche plummeted about 30% compared with a year ago. Meanwhile, global automaker Stellantis reported a 12% decline in revenue. The company cited lower sales and foreign exchange fees as net pricing held firm.
5. New label
Walmart is rolling out a new grocery brand. The big-box retailer announced Tuesday it will sell more trend-and chef-driven foods under a private label called BetterGoods. Most items will cost less than $5. Walmart's low-priced reputation has helped its food business as shoppers have faced high inflation. The company is the largest U.S. grocer by revenue and about 60% of its domestic sales came from groceries in the most recent fiscal year.
Money Report
— CNBC's Alex Harring, Amelia Lucas, Lillian Rizzo, Sophie Kiderlin, Jenni Reid and Melissa Repko contributed to this report.
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