5 things to know before the stock market opens on Wednesday

  • Berkshire Hathaway manager and investment titan Charlie Munger has died.
  • GM updates its business plan that includes a dividend increase.
  • Mark Cuban sells a majority stake in the Dallas Mavericks to Miriam Adelson.

Here are the key news investors need to start the trading day:

Stocks rebounded from a brief slump and reignited this month’s rally. Remarks from Christopher Waller, a Federal Reserve governor, gave bulls a boost. He said the central bank’s current monetary policy appeared to be sufficient to cool inflation to the Fed’s target rate of 2%, providing a little more confidence on the Street. However, it remains unclear whether interest rate cuts are in prospect. With the exception of a few laggards like Dollar Tree, Foot Locker and Salesforce, earnings season is now coming to an end. Follow live market updates.

Charlie Munger

Lacy O’Toole | CNBC

Charlie Munger, the Berkshire Hathaway executive known for his investing genius and sharp wit, died on Tuesday. He would have been 100 years old on New Year’s Day. Munger, who was also known as Berkshire boss Warren Buffett’s right-hand man, was a real estate investor and lawyer in addition to his work as a philanthropist. He was also one of the most quoted elder statesmen in the investing world. “All intelligent investing is value investing – you acquire more than you pay for,” he once said. Another time he remarked, “I have a friend who says the first rule of fishing is to fish where the fish are. The second rule of fishing is to never forget the first rule. We’ve gotten good at fishing where the fish are.”

Disney CEO Bob Iger speaks with CNBC’s David Faber at Allen&Co. Annual conference in Sun Valley, Idaho.

David A. Grogan | CNBC

After thousands of job cuts and a major restructuring, Disney is eager to start construction again, CEO Bob Iger told employees during a town hall meeting Tuesday. Part of that will involve addressing issues in the company’s studio division, which has produced several recent box office flops, including “The Marvels” and “Wish.” “When it comes to creating a perception of the company, nothing is more effective than films,” said Iger. With Disney stock underperforming the S&P 500 this year and activist investors circling, 2024 is shaping up to be a pivotal year for the Mouse House.

Mary Barra, GM Chairman and CEO, speaks during the unveiling of the Cadillac Celestiq electric sedan on October 17, 2022 in Los Angeles, California.

Frederic J. Brown | AFP | Getty Images

General Motors is looking to get back on track as the company struggles with new labor costs and a weakening electric vehicle market. The Detroit automaker unveiled plans to Wall Street on Wednesday to increase its dividend and buy back $10 billion in stock. GM also reiterated its guidance for this year, including a lower profit outlook to reflect the impact of the six-week strike by the United Auto Workers. It also scaled back the upper part of its investment plan for next year. CEO Mary Barra said the company is setting a budget that “will fully offset the additional costs of our new collective bargaining agreements.”

Dallas Mavericks owner Mark Cuban reacts during a timeout in the game against the Golden State Warriors at the American Airlines Center on March 22, 2023 in Dallas, Texas.

Tim Heitman | Getty Images Sports | Getty Images

Shocking news from the NBA: Dallas Mavericks owner Mark Cuban is selling a controlling stake in the team that helped define his conspicuous public persona to casino mogul Miriam Adelson and her family. News of Cuban’s sale came hours after Las Vegas Sands announced that Adelson and her family, the company’s largest shareholders, would sell $2 billion of their stake to buy a sports team. Cuban will retain some ownership of the team and continue to oversee basketball operations. There were no immediate signs that the Mavericks would move on from Texas, but the deal comes as speculation grows about an NBA team moving to Las Vegas. The deal is expected to value the team at $3.5 billion. Cuban bought it in 2000 for $285 million.

—CNBC’s Brian Evans, Alex Sherman, Michael Wayland, Contessa Brewer and Brian Sullivan contributed to this report, as did Marty Steinberg.

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