Key insights
- OpenAI has confidentially filed for an IPO, signaling continued tech sector activity and potential future market entrants. Apple announced significant updates to Siri and its interface, which could impact its ecosystem and related hardware sales. Additionally, a federal judge vacated a controversial fee on H-1B visa applications, potentially easing hiring costs for some US companies and impacting labor dynamics.
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Happy Tuesday. If Shakespeare were alive today reading about all these IPOs, he might’ve instead written: “To buy, or not to buy, that is the question.”
Stock futures are rising this morning after a mixed session. The S&P 500 rose modestly yesterday.
Here are five key things investors need to know to start the trading day:
Apple made a slew of announcements at its annual Worldwide Developers Conference yesterday, revealing updates to Siri, its Liquid Glass interface design and more.
Here’s what to know:
OpenAI is getting in on the IPO craze. The company said yesterday that it has confidentially filed with the Securities and Exchange Commission, making it the latest tech firm to take steps toward a public debut.
As CNBC’s Ashley Capoot and Kate Rooney note, the filing allows the ChatGPT maker to submit its financials to regulators before they are available for the public and potential investors. The company, which has been readying to go public as early as the fourth quarter, said it hasn’t decided on specific timing.
Anthropic, an OpenAI rival, confidentially filed its IPO prospectus last week. Meanwhile, investors are gearing up for the SpaceX IPO slated for Friday.
A federal judge on Monday vacated President Donald Trump’s controversial $100,000 fee for employers’ H-1B visa applications.
Judge Leo Sorokin said the hefty fee violated the federal Administrative Procedure Act and the Constitution. Sorokin agreed with the plaintiff states that the fee is a tax, and Congress did not delegate that power to the executive branch. The Trump administration said it would appeal the ruling.
Trump’s fee on H-1B visas — which allow U.S. employers to temporarily hire skilled workers from overseas — sent corporate America scrambling last year. Companies such as Walmart previously said they would pause their participation in the H-1B program due to the fee.
CNBC’s Morning Squawk recaps the biggest stories investors should know before the stock market opens, every weekday morning.
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The Agriculture Department confirmed two more cases of screwworm in Texas yesterday, bringing the total count to four. But Agriculture Secretary Brooke Rollins told CNBC that the U.S. food supply is “not at risk,” in comments made shortly before the additional cases were announced.
As CNBC’s Annika Kim Constantino notes, the pest’s return reignites a threat that the country spent decades focused on eliminating. Rollins said the U.S. would look to the strategy it used in the 1950s to combat the parasite, which included releasing sterile insects to lower the pest’s population.
The outbreak has caused a rift between Rollins and Texas Agriculture Commissioner Sid Miller, two of the top agricultural leaders in the country. Miller, who in March lost the Republican primary despite an endorsement from Trump, has criticized the the Agriculture Department’s response to screwworm for being too slow. Rollins on Monday called Miller “unserious.”
Airplane engine makers wowed airlines with more fuel-efficient options. But as CNBC’s Leslie Josephs reports, those engines have instead become money-guzzling problems.
Airline executives say they’re being forced to take these new engines in for maintenance sooner than they anticipated, increasing their costs and chipping away at the fuel savings they were counting on.
That’s not the only problem facing the sector. The International Air Transport Association warned global airline profitability could be cut in half this year as fuel costs collectively rise by $100 billion.
Venture capital firms are buying their way into the AI craze. They’re purchasing traditional companies and reorienting them around AI, leaving private equity firms on their back feet.
— CNBC’s Kif Leswing, MacKenzie Sigalos, Zev Fima, Sean Conlon, Ashley Capoot, Sawdah Bhaimiya, Leslie Josephs, Annika Kim Constantino, Garrett Downs, Deirdre Bosa and Jasmine Wu contributed to this report.
CJ Haddad assisted in the production of this newsletter. Josephine Rozzelle edited this edition.