Investors largely expected the FOMC to cut rates by a quarter point.The Fedread more
India could benefit from the fallout in the U.S.-China trade war, experts told CNBC — but much-needed reforms on land and labor could prove to be a challenge for companies...Asia Economyread more
The FAA administrator's comments come on the eve of his visit to Boeing facilities outside Seattle. While there, he's scheduled to meet with Boeing executives and be briefed...Airlinesread more
The photo depicts Canadian leader Justin Trudeau wearing a turban and robe, with dark makeup on his hands, face and neck. Liberal Party spokesman confirms the photo is of...Electionsread more
As the Fed was meeting to consider cutting interest rates, it lost control of the very benchmark rate that it manages.Market Insiderread more
CBS, CNN and other major media companies are starting to pull e-cigarette advertising off their airways, as the death toll from a mysterious vaping-related illness continues...Health and Scienceread more
The U.S. Federal Reserve on Wednesday cut its overnight rate by 25 basis points to a range of 1.75% to 2%, a move that was widely expected. The central bank, however, appeared...Asia Marketsread more
Investors bought bank stocks because there's a chance the Federal Reserve's interest rate cut may "put an end to this artificially inverted yield curve," Jim Cramer says.Mad Money with Jim Cramerread more
AT&T is considering selling DirecTV, according to a report in the Wall Street Journal.Technologyread more
The Facebook CEO will talk to policymakers "about future internet regulation," according to a spokesperson.Technologyread more
Disney CEO Bob Iger writes in his autobiography that he believes he would have discussed combining Disney with Apple had Steve Jobs lived.Technologyread more
Amazon's company-wide minimum-wage hike won't cost the company more; rather, it will reduce the number of staff, David Bahnsen of private wealth management company Bahnsen Group told CNBC on Tuesday.
"They will not end up spending more in wages. They will end up hiring less people," Bahnsen said on CNBC's "Closing Bell."
The new minimum wage will benefit more than 250,000 Amazon employees — including part-time and temporary employees — as well as another 100,000 seasonal employees, the company said. Some employees who already make $15 per hour will also see a pay increase.
Bahnsen, who is founder and chief investment officer at Bahnsen Group, said that once Amazon addresses the "hurdle" of actually hiring as many staffers as it needs, the company will spend less on wages, not more.
"Through time, they are going towards an automation process that's going to be hiring less people," Bahnsen said.
Amazon did not immediately respond to CNBC's request for comment.
Liz Dunn, founder and CEO of Pro4ma, said, "Amazon's margins will get squeezed in the near term," but the change will benefit the company long term — and also maybe hurt Amazon's competitors.
"Amazon has made it very difficult to be a retailer in the U.S. Part of the way that they've done that is raise the expectations about fulfillment, cost and speed," she said in the same "Closing Bell" interview as Bahnsen. "This is one other way they are raising the expectations on retailers and making it more difficult to be a successful retailer if you are not Amazon in the United States."
And politically, the move looks great, Bahnsen said.
"They can afford to pay this greater increase in wages and now go trade it in for a chip of political optics that are really beneficial for them," Bahnsen said.
Amazon and its CEO, Jeff Bezos, have been under tremendous political pressure over pay disparity in the company. Sen. Bernie Sanders last month introduced legislation called the Bezos Act to tax corporations for every dollar that their low-wage workers receive in government health-care benefits or food stamps.
Sanders later praised Amazon's announcement, calling the wage hike "not only enormously important for Amazon's hundreds of thousands of employees; it could well be, and I think it will be, a shot heard around the world."
But Bahnsen said the company shouldn't get too comfortable. "Amazon is going to be in a political crossfire for years to come."
Amazon's shares closed down 1.65 percent on Tuesday at $1,971.31 per share.