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Stock Market News: Lowe’s warns, Yelp activist target and debt ceiling talks ongoing

Investors are digesting earnings from Lowe's, AutoZone and Dick's Sporting Goods, as debt ceiling talks continue after Treasury Secretary Janet Yellen delivered another warning. Yelp shares jump after activist targets company. FOX Business is providing real-time updates on the markets, commodities and all the most active stocks on the move. FOX Business is providing real-time updates on the markets, commodities and all the most active stocks on the move.


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Wall St ends sharply lower as deadlocked debt ceiling talks spook investors

SP500$4,145.58 -47.05-1.12

Wall Street stocks finished sharply lower on Tuesday and short-term Treasury yields shot up as investor jitters grew over a lack of progress in U.S. debt limit talks.

Representatives of Joe Biden and congressional Republicans ended another round of debt ceiling talks on Tuesday, as the deadline drew closer to raise the government's $31.4 trillion borrowing limit or risk default.

Investors are also waiting for minutes from the Federal Reserve's May 2-3 meeting, due on Wednesday, to assess the central bank's next likely move on interest rates.

Lastly, shares of regional lenders extended gains from Monday, led by a sharp rise in PacWest Bancorp with the KBW regional banking index hitting a three-week high.

Posted by Reuters

Microsoft beefs up ChatGPT and Bing in wide-ranging AI product launch


Microsoft Corp on Tuesday started making available to users a host of AI upgrades, including to ChatGPT, its search engine Bing as well as to cloud services - an expansive launch that seeks to narrow the gap with Alphabet Inc's Google.

Among key changes is the rollout of live search results from Bing to ChatGPT, the viral chatbot from its partner OpenAI whose answers originally were limited to information as of 2021.

Now, ChatGPT can pull from Bing web results for paid subscribers and will do so soon for free users, the company said at its annual Microsoft Build conference.

The company also is expanding so-called plug-ins for Bing, using a standard embraced by OpenAI and letting businesses transact more easily with consumers in its search engine.

Posted by Reuters

Alphabet-backed AI startup Anthropic raises $450 million as funding freeze thaws


Anthropic, an artificial intelligence startup backed by Google parent Alphabet Inc, said on Tuesday it had raised $450 million, in the latest sign of a recovery in the startup funding space.

It takes the company's valuation to $4 billion with total $1 billion raised in funding to date, according to PitchBook data.

Interest in artificial intelligence has piqued after Anthropic's rival OpenAI launched ChatGPT last year but the regulators are concerned about the potential use of the technology to spread misinformation. 

Anthropic, which was founded by former executives from Microsoft Corp-backed OpenAI, said its AI systems are safe because they would not tell users how to build a weapon or use racially biased language.

Posted by Reuters

Boeing does not expect all-new jets before mid-2030s


Boeing Chief Executive Dave Calhoun on Tuesday said that planemakers were unlikely to introduce all-new jet designs before the mid-2030s, citing the pace of emerging propulsion and wing technology.

However, Qatar Airways Chief Executive Akbar Al Baker told a conference he would advise planemakers Boeing, Airbus and Embraer to "start looking now" at sustainable new platforms.

Both executives were speaking in a panel at the Qatar Economic Forum organized by Bloomberg.

Posted by Reuters

Apple signs multi-billion-dollar deal with Broadcom for US-made chips


Apple on Tuesday announced it signed a multibillion-dollar deal with Broadcom to manufacture microchips in the U.S.

Under the deal, Broadcom, a technology and advanced manufacturing company, will develop 5G radio frequency components and wireless connectivity components, Apple said. 

"All of Apple’s products depend on technology engineered and built here in the United States, and we’ll continue to deepen our investments in the U.S. economy because we have an unshakable belief in America’s future," Apple CEO Tim Cook said in a statement.

Posted by FOX Business Team

Waymo, Uber set aside past rift over self-driving car technology to team up on robotaxis in Phoenix


Self-driving car pioneer Waymo is teaming up with ride-hailing leader Uber in the Phoenix area to transport passengers and deliver food in robotic cars that triggered a bitter technological dispute between the two companies.

The partnership announced Tuesday comes five years after Uber reached a $245 million settlement with Waymo to resolve a lawsuit alleging former Uber CEO Travis Kalanick conspired with former Google engineer Anthony Levandowski to steal Waymo's self-driving car technology.

Uber subsequently sold the self-driving car division that triggered the theft allegations and provided the technology in a vehicle that killed a pedestrian in Tempe, Arizona.

Phoenix so far is the only major metropolitan area where a robotaxi operates throughout most of the city, although Waymo and General Motors subsidiary Cruise are vying to run similar autonomous services in San Francisco.

Posted by Associated Press

Climate change protesters carried out of Shell shareholders meeting


Climate change protesters have been dragged away by security guards at oil company Shell’s annual shareholder meeting in London after activists tried to storm the stage and caused major disruption at the event.

Shell chairman Andrew Mackenzie was unable to start the meeting on Tuesday for more than an hour as dozens of protesters chanted “Shut down Shell."

Several attempted to run onto the stage. But they were stopped by security guards who carried them out of the room at London’s ExCel conference center. The activists say Shell and other fossil fuel firms are making record profits at the cost of the environment.

A spokesperson for Shell said it respected people’s right to express their opinions but “protesters have shown that they are not interested in constructive engagement.”

Posted by Associated Press

Auto parts retailer AutoZone misses Q3 sales estimates on inventory pile-up


Auto parts retailer SymbolPriceChange%ChangeAZO$2,619.41-33.63-1.27" target="_blank">AutoZone Inc missed expectations for third-quarter net sales on Tuesday, as increased prices of automobile parts led to a rise in inventories, sending its shares 3.2% lower before the bell.

"Weaker-than-expected sales for the month of March meaningfully affected our results this quarter," CEO Bill Rhodes said.

Elevated material costs and supply chain woes have led to U.S. auto suppliers hiking prices for their products across the board.

On the other hand, consumers weary of a looming recession have been tightening their purse strings and scaling back on discretionary spending.

Posted by Reuters
Developing Story

Yelp shares jump

Yelp Inc.

Activist investor TCS Capital is calling on Yelp, the online review platform, to explore options.

"The purpose of this public letter is to express our serious concern and disappointment with the abysmal performance of Yelp’s stock price and to demand that the Board immediately explore strategic alternatives. We believe that Yelp is shockingly undervalued and could be sold to either a strategic or private equity buyer for at least $70 per share – or more than a 120% premium to Yelp’s current stock price based on reasonable valuation assumptions. Alternatively, we believe Yelp should explore a tax-free merger with Angi Inc. (“ANGI,” formerly known as Angie’s List) to form a powerhouse in the $500 billion home services market" the firm wrote in an open letter.

Shares are up 20% this year, outpacing the S&P 500's 9% rise.

Posted by FOX Business Team
Breaking News

Lowe's warns

Lowes Cos Inc.

Lowe's cut it full its full-year outlook citing softer demand.

“We are pleased with the performance of our business despite record lumber deflation and unfavorable spring weather. Although we delivered positive comparable sales in Pro and online for the first quarter, we are updating our full-year outlook to reflect softer-than-expected consumer demand for discretionary purchases,” said Marvin R. Ellison, Lowe’s chairman, president and CEO.

The home improvement retailer now expects to earn between $87-$89 billion down from the original $88 - $90 billion forecast.

Comp sales are expected to drop between 2% to 4%.

Posted by FOX Business Team

Yellen delivers another warning

Posted by FOX Business Team

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