Here are the most important news items that investors need to start their trading day:
1. New Year's hangover
Stocks were mixed Tuesday, the first trading day of 2024. While the Dow posted a slight gain, the S&P 500 slipped a little. The Nasdaq fell sharply, making for the tech-heavy index's worst day since October. The yield on the 10-year Treasury note approached 4% again, a minor reversal of recent trends that saw rates decline and risk-on assets jump in what turned out to be a blockbuster year for stocks. On Wednesday, investors will pore over the minutes from the Federal Reserve's December policy meeting as well as the latest ISM manufacturing data. Follow live market updates.
2. Bite of the Apple
Apple shares dragged on the market Tuesday following a Barclays downgrade of the tech giant. The stock fell more than 3%, after an analyst at the bank warned investors that "lackluster" iPhone 15 demand in China doesn't bode well for the next edition of the gadget as well as other Apple products. There are other issues on the horizon, according to Barclays' Tim Long. "In 2024, we should get an initial determination on the Google TAC, and some app store investigations could intensify," he wrote, referring to how Google pays Apple to retain its default search status on iPhones and other devices.
3. Rough seas
Danish freight carrier Maersk extended its pause on Red Sea shipping indefinitely following a fresh attack over the weekend by Iranian-backed Houthi militants. The decision came even as a U.S.-backed coalition took to the vital body of water to protect ships carrying goods and oil. Indeed, American helicopters sank three of the four Houthi vessels that attacked a Maersk ship days ago. Challenges remain, however, as more carriers divert ships the long way around South Africa's Cape of Good Hope, which has triggered an increase in shipping times – and rates. The situation has already affected more than $200 billion in trade as of Tuesday, according to CNBC's Lori Ann LaRocco. If it continues, global trade could be in for an even more serious disruption.
4. Bitcoin bash
The bitcoin party kept rocking Tuesday, hitting an intraday high of $45,913.30 – its best mark since April 2022. Investors have high hopes for a bitcoin ETF this year, and perhaps sooner than later. BlackRock and other firms recently updated registration forms for their proposed ETFs, intensifying the anticipation. Other factors boosting the cryptocurrency include a recent decline in yields on Treasury bonds and indications that the Federal Reserve will cut its benchmark rate three times this year after steadily increasing it to battle inflation.
5. Flush with franchises
Hollywood is betting big on sequels, prequels and franchises in general this year. The problem is, franchise movies, with a few exceptions, flagged at the box office in 2023 as audiences showed signs of being exhausted with existing movie series like Paramount's Mission: Impossible, Warner Bros. Discovery's DC Extended Universe and Disney's Marvel Cinematic Universe. Movies like "Transformers One," "Dune: Part Two," "Venom 3" and "Kung Fu Panda 4" dominate the would-be blockbuster calendar, stoking worries that the biz could be in for another year of grosses below pre-Covid levels. Now, there may be some surprises, especially with the calendar benefiting from some delayed movies. "However," said Jeff Bock, senior box office analyst at Exhibitor Relations, "the odds are it will be an off year."
Disclosure: NBCUniversal, which will distribute "Kung Fu Panda 4" and the new Despicable Me movie this year, is the parent company of CNBC.
– CNBC's Samantha Subin, Rohan Goswami, Lori Ann LaRocco, Arjun Kharpal, Tanaya Macheel and Sarah Whitten contributed to this report.
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