- Google announces AI program Bard, its rival to ChatGPT.
- President Biden delivers the State of the Union address at 9 p.m. ET.
- What does the future of TV look like? We asked over a dozen industry insiders.
Here are the most important news items that investors need to start their trading day:
1. Moving on
Monday's session ended on a down note across the board, as bond yields and the dollar index rose, although the Dow did scrape its way to only a slight loss after being down 240 points. Tuesday brings a new challenge: Federal Reserve Chairman Jerome Powell is set to speak. Investors saw Powell's post-rate hike remarks last week as somewhat dovish, prompting a rally in stocks. This time might be different, though. "I think you will likely see an attempt to perhaps dampen some of the reaction to the statements in the press conference," said Sinead Colton Grant, global head of investor solutions at BNY Mellon Investor Solutions. Read live markets updates.
2. Welcome to the AI wars
It's on now. Google, under pressure to respond to artificial intelligence chatbot ChatGPT, announced its own conversational AI product, Bard. The Alphabet company will roll out Bard in the next few weeks, and it's an all-hands-on-deck situation. In an internal memo sent soon after the Bard announcement, CEO Sundar Pichai called on every Google employee to help test the product. "We're looking forward to getting all of your feedback — in the spirit of an internal hackathon — more details coming soon," Pichai wrote. Meanwhile, Microsoft appears to be set to make an AI-related announcement Tuesday. The company, which has invested in ChatGPT's creator, OpenAI. Indeed OpenAI CEO Sam Altman tweeted a picture of himself and Microsoft CEO Satya Nadella in Microsoft's hometown of Redmond, Washington, saying he was "excited" for the event.
3. State of the Union time
When he delivers the State of the Union address Tuesday night, President Joe Biden will have a big stage to defend the economy under his watch. He'll have plenty to brag about. Unemployment is historically low, wages have grown, and fears of a recession are in check, for now. But, as CNBC's Emma Kinery points out, it's much more complicated than that. Inflation is still high, the Fed is raising interest rates, and while a recession may not hit soon, there's still a chance for a rough landing. There's also the pressing matter of the debt limit. The United States breached it recently, but has enacted extraordinary measures to hold off a default for months. Biden will need to explain how the government will avoid this economic catastrophe while contending with a GOP-run House.
4. What does the future hold for TV?
It's clear what's going on with television. Cord-cutting is accelerating and streaming services are trying to figure out how to turn a profit. What's less clear, however, is how these dynamics will shape the TV landscape in the longer term. CNBC's Alex Sherman and Lillian Rizzo talked to over a dozen media industry insiders about what the future holds for the medium, and there's anything but a consensus about what TV will look like in even three years' time. Find out what Barry Diller, Bela Bajaria, Jeff Zucker, Bill Simmons, Byron Allen and more have to say about the future of TV, which streaming services will dominate and what else we can expect.
5. Putting a premium on experience
America's biggest movie theater chain is rolling out a new tiered-pricing plan for seats. AMC said Monday it would start charging more for seats with so-called "preferred" sightlines, meaning the middle of theaters. It will also have "value"-priced seats in less-desired parts of the auditorium. The move comes as the theater industry girds for a bigger release schedule this year as Hollywood makes up for the time it lost in the earlier days of the pandemic. Studios and theater chains alike are eager to upsell viewers to a variety of experiences, whether it's luxury seating or higher-quality sound and visuals. The success of "Avatar: The Way of Water," is a model. The movie is among the top five highest-grossing movies of all time, due in large part to more expensive 3D and premium tickets.
– CNBC's Samantha Subin, Jennifer Elias, Ashley Capoot, Emma Kinery, Sarah Whitten, Nicolas Vega, Alex Sherman and Lillian Rizzo contributed to this report.
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