Shares of technology companies were flat ahead of earnings reports from Microsoft and others.
Microsoft shares rallied after hours as sales of cloud-computing products in the fiscal second quarter eased fears about slowing growth in that key area. Recession fears had weighed on Microsoft and other tech stocks during much of 2022.
"I doubt people are betting on earnings already turning around ... earnings are just starting to decline," said Lorenzo Di Mattia, manager of hedge fund Sibilla Global Fund. "The hope is that, as the Fed stops and cuts (as Fed Funds futures are pricing) the earnings decline will be very mild."
A recent bounce in tech stocks was likely a function of short sellers buying back bets against the sector, Mr. Di Mattia said.
The Justice Department is seeking the breakup of Google's business brokering digital advertising across much of the internet, a major expansion of the legal challenges the company faces to its business in the U.S. and abroad.
Rockley Photonics Holdings, which makes microchips that can be used in wearable health monitoring devices, filed for bankruptcy with a creditor-backed plan that will hand control of the business to bondholders.
Tesla shares continued a torrid 2023 rally ahead of its earnings, and as Chief Executive Elon Musk defended his tweets about a mooted attempt to take the company private in 2018.
Grayscale Investments Chief Executive Michael Sonnenshein told Barron's that the firm would resist pressure to buy back shares of its Bitcoin Investment Trust in an effort to erase the discrepancy between its depressed share price and the underlying value of the de-facto exchange-traded fund's bitcoin holdings.
Carvana reached a settlement with Illinois over delays in transferring vehicle ownership to customers and its misuse of temporary license plates.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-24-23 1728ET
