The daily business briefing: November 2, 2022
Wall Street braces for the Fed's decision on interest rates, Musk considers using subscriptions to boost Twitter revenue, and more
Stock futures little changed ahead of Fed decision
U.S. stock futures inched higher early Wednesday ahead of the Federal Reserve's decision on its next interest rate hike. Futures tied to the Dow Jones Industrial Average were flat at 6:30 a.m. ET. S&P 500 and Nasdaq futures were up 0.1 percent and 0.2 percent, respectively. The Fed is expected to announce its fourth straight 0.75 percent interest-rate increase when it concludes a two-day policy meeting Wednesday. Investors will be looking for indications in the central bank's post-meeting statement on whether the Fed might slow the rate increases it is using to fight high inflation in December. "It's all about what's to come," Victoria Greene, chief investment officer at G Squared Private Wealth, said on CNBC's Closing Bell: Overtime.
Musk considers boosting Twitter revenue with subscriptions
Elon Musk indicated in several tweets that he is considering using subscriptions to increase revenue after his $44 billion takeover of Twitter, The Wall Street Journal reported Tuesday. Musk indicated he might use an $8-per-month subscription model for verified Twitter accounts as part of a push to make the social media company less reliant on digital ads, which account for nearly 90 percent of its sales. Musk's tweets came after two big advertising companies, Interpublic Group of Cos. and Havas Media, this week urged clients to suspend Twitter advertising over concerns about its ability to monitor content, the Journal reported, citing people familiar with the situation.
Job openings rise unexpectedly
U.S. job vacancies jumped unexpectedly to 10.7 million in September, up from 10.3 million in August, the Labor Department reported Tuesday. Economists had forecast the number of job openings to fall under 10 million for the first time since June 2021. The uptick suggested the Federal Reserve's interest rate hikes were not cooling off the economy as fast as intended. Employers have had trouble finding enough workers over the past two years as the economy rebounded from the worst of the coronavirus crisis. Employers have enticed employees with higher pay, which has been a factor in pushing inflation to 40-year highs, according to The Associated Press.
Harris to unveil plan to help low-income families with energy costs
Vice President Kamala Harris is expected to announce Wednesday that the Biden administration will provide $4.5 billion to help low-income families cover energy bills and energy-related home repairs. The Department of Energy also will provide $9 billion from the Inflation Reduction Act to help up to 1.6 million households with home upgrades to bring down energy bills. "We know that winter heating bills account for the largest share of low-income households' home energy needs. So it is imperative that the funds reach households as efficiently and effectively as possible," a senior administration official said.
SpaceX launches 1st Falcon Heavy rocket in 3 years
Private space flight company SpaceX on Tuesday launched its Falcon Heavy — the world's most powerful operational rocket — in its first flight since mid-2019. The rocket blasted off from NASA's Kennedy Space Center in Florida with a payload of military satellites. The Falcon Heavy made its debut in a 2018 test launch that put SpaceX CEO Elon Musk's personal Tesla Roadster into space. SpaceX launched the three-pronged Falcon Heavy two more times in 2019. One of those missions put a large TV and phone service satellite into orbit for Saudi Arabia-based Arabsat. The other carried experimental Defense Department satellites. After Tuesday's launch, the Falcon Heavy's two side boosters made synchronized landings on ground pads.