• Investors are eager to hear what the Federal Reserve will say today.
• Alphabet and Microsoft beat expectations but that wasn't good enough.
• A Delaware judge voided Elon Musk's $56 billion Tesla compensation package.

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

1. Reading the tea leaves

Wall Street is waiting with bated breath to hear what the Federal Reserve will say Wednesday about interest rates. The S&P 500 closed nearly flat Tuesday ahead of the announcement, while the Dow Jones Industrial Average was up 0.3% and the Nasdaq Composite fell 0.6%. Investors aren't necessarily expecting a big change in rates at this meeting. In fact, the fed funds futures market has priced in a 97% probability that the central bank will leave rates unchanged. Instead, they're more interested in the post-meeting statement the Fed will release, and what it means for the future of the bank's policy. For now, follow live market updates.

2. Not good enough

It was good, just not good enough. Both Alphabet and Microsoft saw their stock sell off in extended trading Tuesday despite reporting revenue and earnings that topped expectations. Alphabet shares slid roughly 6% as the company reported disappointing ad revenue of $65.52 billion didn't hit the $65.94 billion that StreetAccount analysts were forecasting. YouTube also came in shy of expectations, but Google Cloud was a bright spot, expanding 26% in the fourth quarter compared with a year ago. Microsoft shares, meanwhile, initially dropped more than 2%, though they recovered some of those losses. Microsoft said in a statement that its revenue increased 17.6% year over year, although its outlook was a bit light. Its Intelligent Cloud segment beat analysts' expectations, and revenue from Azure and other cloud services grew 30%.

3. Boeing blowout

Boeing reported a narrower loss than expected for the last three months of the year, but its future is still unknown. The company reported an adjusted loss per share of 47 cents versus the 78 cents loss analysts expected. Aircraft demand and deliveries rose for that same period. But the report comes weeks after a door plug blew out on a Boeing 737 Max 9 that was flying at 16,000 feet, leaving a gaping hole in the side of the plane. The company did not provide a 2024 outlook. But investors are eager to hear from the planemaker about how the blowout could reverberate through the industry as the incident is under federal investigation. "While we often use this time of year to share or update our financial and operational objectives, now is not the time for that," Boeing CEO Dave Calhoun said in a message to employees.

4. UPS down

UPS is cutting 12,000 jobs. CEO Carol Tomé said the layoffs will save the shipping giant about $1 billion in costs and that 2023 was a "unique, and quite candidly, difficult and disappointing year." UPS shares dropped more than 8% Tuesday as the company fell short of Wall Street's revenue estimates. UPS also reported a drop in international and domestic shipping volume, with Tomé citing softness in Europe, as well turmoil in the Red Sea region and Panama and Suez canals contributing to the decline.

5. Too much?

A Delaware judge voided Elon Musk's $56 billion Tesla compensation on Tuesday, agreeing with a plaintiff that Musk's pay package was inappropriately set by the board. The compensation plan that Tesla granted Musk in 2018 was unprecedented and the judge noted it was the largest in public corporate history. It also made Musk the richest person on the planet. But Chancery Court Chancellor Kathaleen McCormick said in a 200-page ruling that Tesla failed to show "that the compensation plan was fair" or provide much evidence that its members had even negotiated with Musk. She said the plaintiff in the case is entitled to rescission. Tesla shares slid about 3% in after-hours trading after the decision was announced.

— CNBC's Brian Evans, Ashley Capoot, Ari Levy, Jordan Novet, Leslie Josephs, Laya Neelakandan, Dan Mangan and Lora Kolodny contributed to this report.

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