5 things to know before the stock market opens Wednesday, January 25

Here are the most important news items investors need to start their trading day:

So far this month, markets have held their ground, even as economic data pointing to the possibility of a recession and corporate earnings at best are at odds. On the second point, more than 70 companies listed on the S&P 500 have reported quarterly results this earnings season, with about two-thirds of them performing better than expected, according to Refinitiv. So there’s still some time to go, and investors will pay particular attention to the guidance companies are giving out, as economic concerns mount. On Wednesday’s earnings table: Boeing airplanes, AT&T, Tesla, IBM and Levi Strauss. Read Live market updates here.

Microsoft may have beaten Street in earnings, but the company posted slowest revenue growth since 2016, and its outlook indicates that The bad trend will continue. The tech giant said on Tuesday that it expected revenue growth to continue to slow. Microsoft’s Windows and Office businesses experienced declines late last year, and more declines are likely as the PC market shrinks again. New business growth for the company’s Azure cloud unit also fell slightly in December, which wasn’t good for the start of the year. “In our commercial business, we expect the business trends we saw at the end of December to continue into the third quarter,” said Amy Hood, chief financial officer.

Inflation remains high – December consumer price index rose 6.5% from a year ago – but is slowing. That’s good news for consumers, but only to an extent. Many companies have raised prices, but just because costs are down, it doesn’t mean they will reduce the price on a large scale, as CNBC’s Melissa Repko and Amelia Lucas explain. One reason: Many companies have closed long-term contracts that set monthly prices for goods and transportation. Additionally, companies that have previously been squeezed by higher costs will want to see their margins improve. “We don’t take something that costs $1, move it to $1.10, and then a year or two later, move it to $1,” Brand Utz CEO Dylan Lissette said previously.

Tesla recently shocked the auto industry by slashing prices on several models in many markets. The move comes after the electric vehicle leader posted weaker-than-expected delivery numbers at the end of the year, suggesting CEO Elon Musk is trying to stimulate demand. It also puts New pressure on Tesla’s rivalsincluding Ford and GM, as it faces higher material costs while trying to increase production of its own electric vehicles, while setting ambitious goals for the next decade. The used Tesla market is also paying a price: During the first 17 days of January, the price of cars from the 2020 model year and later fell to an average price of $58,657, down from an all-time high. June is $76,626, according to Edmonds. Tesla reports earnings after the bell on Wednesday.

Rupert Murdoch on Tuesday cancel my plan Fox News boss reunion fox corporation and News Corporation, owner of The Wall Street Journal and HarperCollins, after determining “that the combination is not optimal for shareholders.” The Murdoch family has effective control over both companies, which form a vast but dying empire of media interests. In October, Fox and News Corp formed a special committee to explore a possible deal that would reunify the companies about 10 years after the split. However, several major non-Murdoch shareholders have refused, signaling that it will not be an easy move for the media mogul and his son Lachlan Murdoch, a top executive. of both companies. Meanwhile, News Corp is in talks to sell Move Inc., owner of realtor.com, to costar group.

– CNBC’s Yun Li, Jordan Novet, Melissa Repko, Amelia Lucas, Michael Wayland and Lillian Rizzo contributed to this report.

— Follow broader market action like a pro on CNBC expert.