Here are the most important news items that investors need to start their trading day:
1. Inflation and the Fed
The Federal Reserve kicks off its two-day policy-setting meeting Tuesday, just as markets start processing the latest consumer price index report, a key indicator of inflation. It came in just as expected, increasing just 0.1% month over month and 4% at an annual rate — the lowest since March 2021. The slower pace should end up encouraging the Fed's policymakers to skip a rate hike this month, according to CNBC's Jeff Cox. Investors, meanwhile, will look at whether Tuesday's session can bounce off Monday's positive results. Follow live market updates.
2. Boss battle
The fight between tech giant Microsoft and government regulators just leveled up. The Federal Trade Commission on Monday took legal action in an attempt to block the XBox gaming console maker's $68.7 billion deal to buy videogame maker Activision Blizzard, saying it would be anti-competitive. Activision Blizzard produces the popular and lucrative Call of Duty series, which is also available on Microsoft rival Sony's PlayStation consoles. The FTC, which had sued to block the acquisition in December, faced a rapidly approaching deadline for the deal. Microsoft had said it expected to close the transaction by the end of this month.
3. Oracle shines
Oracle shares enjoyed a nice bump in extended trading after the software giant posted better than expected quarterly results and upbeat sales guidance. The company's cloud business drove much of the success. Cloud services and license support revenue rose 23% to $9.37 billion, accounting for the lion's share of Oracle's revenue for the quarter. Revenue from cloud licenses and on-premises did slide, but the company's growing cloud infrastructure surged again. Oracle will also release a generative artificial intelligence cloud service that's part of a partnership with startup Cohere, according to co-founder and Executive Chairman Larry Ellison.
4. Toyota charges forward
Toyota unveiled new plans to juice its approach to electric vehicles, sending the company's stock higher in overseas trading. The Japanese auto giant had been more cautious than some of its competitors in joining the EV fray, focusing on hybrids while also focusing on specific markets' demands. On Tuesday, however, Toyota announced a new unit, called BEV Factory, that aims to produce a full lineup of EVs sporting extended battery range starting in 2026. Toyota aims to achieve sales of 3.5 million all-electric vehicles annually by 2030.
5. Arraignment day
Former President Donald Trump is set to be arraigned Tuesday afternoon at a federal courthouse in Miami. He stands charged with 37 felony counts over his retention of classified government documents, including top secret national security records. Trump has claimed the case is a continuation of a "witch hunt," while special counsel Jack Smith, who led the probe, has urged Americans to grasp the gravity of the alleged crimes. Smith is still investigating Trump in a different inquiry focused on the ex-president's attempts to keep power after Joe Biden defeated him in the 2020 election. Trump is set to return to his private club in Bedminster, New Jersey, after his arraignment. There, he'll host a 2024 campaign fundraiser in honor of his birthday. Trump, the frontrunner for the Republican nomination, turns 77 on Wednesday.
And one more thing ...
The NBA has a new king, and his name is Nikola Jokic. The staid Serbian superstar led the deeply talented Denver Nuggets to their first NBA title Monday night, knocking off the scrappy Miami Heat in five games. Jokic, who has already won two regular season MVP awards, was named NBA Finals MVP after racking up 28 points and 16 rebounds in the deciding game. "The job is done," Jokic said afterward. "We can go home now."
– CNBC's Samantha Subin, Jeff Cox, Lauren Feiner, Jordan Novet, Lim Hui Jie and Christina Wilkie contributed to this report.
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