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Key Pre-Market Insights: 5 Things to Know Before Friday's Stock Market Opening

Latest Business News

Key Market Updates for Investors to Start Their Trading Day

The stock market is poised for a challenging week on Wall Street as the Federal Reserve hints at a potential rate hike. The S&P 500 and Nasdaq Composite are down 2.7% and 3.5% respectively, on track for their worst weekly performance since March. Both indexes are heading for their third consecutive negative week. In contrast, the Dow has experienced a more modest decline of 1.6%. The news has led to a surge in bond yields, with the benchmark 10-year Treasury yield reaching its highest level since 2007 at 4.498%, and the 2-year rate hitting its highest level since 2006 at 5.2%.

Rupert Murdoch Steps Down as Chairman of Fox Corp. and News Corp.

Media mogul Rupert Murdoch has announced his resignation as chairman of both Fox Corp. and News Corp. However, he will continue to be "engaged daily with news and ideas" in his new role as chairman emeritus of each company. His son, Lachlan Murdoch, will take over as the sole chairman of News Corp. and continue as Fox Corp.'s executive chair and CEO. This move follows a tumultuous year for Fox's TV network, including a significant settlement in the Dominion Voting Systems defamation lawsuit and the departure of top talent Tucker Carlson.

Microsoft Unveils New Surface Computers and Windows 11 Details

Microsoft has introduced new Surface computers and shared details about its latest operating system, Windows 11. The company also announced the rollout of a supplemental artificial intelligence tool for core apps like Word and Excel. Notable features of the new operating system include smarter snipping tools that enable users to extract text directly from screenshots and redact sensitive information. The higher-end model, Surface Laptop Studio 2, boasts a new chip, a 14.4-inch screen, and the ability to function as a tablet, starting at $1,999. On the other hand, the entry-level Surface Laptop Go 3, starting at $799, offers a 12.4-inch touch screen and is lighter than previous models.

Cisco Acquires Splunk in Historic $28 Billion Cash Deal

Cisco, the world's largest maker of computer networking equipment, has made its largest acquisition to date by purchasing cybersecurity software company Splunk. The cash deal, valued at approximately $28 billion, equates to around 13% of Cisco's market cap. The acquisition is expected to be finalized in the third quarter of 2024. Splunk's technology, which helps businesses monitor and analyze data to mitigate hacking risks and resolve technical issues efficiently, aligns with Cisco's focus on bolstering its cybersecurity business. Following the announcement, Splunk shares surged by 21%, while Cisco shares ended the day down 4%.

McDonald's Raises Royalty Fees for Franchisees for the First Time in Nearly 30 Years

McDonald's, a fast-food giant, is implementing its first increase in royalty fees for franchisees in almost three decades. Starting January 1st, franchisees who add new restaurants will be required to pay 5% in fees, up from the previous rate of 4%. However, this change will not affect franchisees maintaining their current restaurant footprint. With franchisees operating approximately 95% of McDonald's 13,400 U.S. restaurants, this fee adjustment could impact their financial obligations. While the company has experienced a strained relationship with its U.S. franchisees in recent years, its domestic business has been thriving this year. In summary, investors should be prepared for a challenging week in the stock market as the Federal Reserve hints at a potential rate hike. Rupert Murdoch's resignation, Microsoft's new product and operating system announcements, Cisco's historic acquisition, and McDonald's royalty fee increase all contribute to the dynamic landscape of today's business world.

Market Updates and Their Potential Impact on New Business Ventures

The current stock market scenario, marked by potential Federal Reserve rate hikes and declining indexes, presents a challenging landscape for new business ventures. As the S&P 500 and Nasdaq Composite face their worst weekly performance since March, new businesses must brace for potential economic turbulence.

Leadership Changes and Their Implications

In the media industry, Rupert Murdoch's step down from his chairman roles at Fox Corp. and News Corp. could signal a shift in the media landscape. As his son, Lachlan Murdoch, assumes these roles, new businesses in the media sector may need to adapt to potential changes in leadership style and strategic direction.

Technological Innovations and Market Opportunities

Microsoft's unveiling of new Surface computers and Windows 11 details represents a significant technological advancement. The introduction of a supplemental artificial intelligence tool for core apps and smarter operating system features could present new market opportunities for businesses in the tech sector.
Major Acquisitions and Market Dynamics
Cisco's historic acquisition of cybersecurity software company Splunk underscores the growing importance of cybersecurity in today's digital landscape. This development could inspire new businesses to explore opportunities in the cybersecurity sector.
Changes in Franchise Models
McDonald's decision to raise royalty fees for franchisees for the first time in nearly 30 years could impact new businesses considering a franchise model. As McDonald's adjusts its financial obligations for franchisees, new businesses must weigh the potential benefits and challenges of entering the franchising space. In essence, these market updates present both challenges and opportunities for new businesses. From navigating economic turbulence to capitalizing on technological innovations and understanding the implications of major acquisitions, new businesses must be agile and strategic in their approach to these dynamic market conditions.
Story First Published at: https://www.cnbc.com/2023/09/22/5-things-to-know-before-the-stock-market-opens-friday-september-22.html
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