Microsoft gets hit with a cyberattack, CBS cancels The Late Show with Colbert

Business news update for Tuesday, July 22nd.

capitalcurrentsdaily.substack.com

In today’s episode, Microsoft’s latest struggles with cyberattacks, then we’ll discuss why CBS canceled The Late Show.

Stocks are coming off a winning week with the S&P 500 up 0.6% and the Nasdaq up 1.5%, both hitting record highs. The market’s been surprisingly calm lately—likely due to lower summer trading volumes as Wall Street heads to the Hamptons. But I think volatility could return soon as earnings season heats up. This week, big names like Tesla, Google, and Intel are set to report. Meanwhile, tariff negotiations are intensifying ahead of the August 1st deadline, with EU talks reportedly getting tense.

Now let’s talk about Microsoft. Over the weekend, they issued an alert about active cyberattacks targeting SharePoint, their document-sharing platform. One expert even called it a “dream” for ransomware groups. The attacks seem global—hitting everything from government agencies to corporations. Microsoft is rolling out patches, but many organizations using on-premise servers remain vulnerable.

This isn’t the first time Microsoft’s security culture has been under fire. A White House review board previously called it “inadequate,” pointing to a China-based hack that accessed senior US officials’ emails. And just last week, Microsoft was accused of letting engineers in China maintain Department of Defense systems with little US oversight. Needless to say, the pressure is mounting.

⸻

Now let’s shift to the entertainment world. CBS made headlines last week by canceling The Late Show with Stephen Colbert. The show has been a fixture for nearly 30 years, with Colbert hosting the last 10—but its financials were rough.

With a $100 million annual budget and 200 staffers, the show was losing nearly $40 million a year. Ratings had tanked, especially among younger viewers, as audiences moved to TikTok, podcasts, and YouTube. Late night ad revenue has collapsed—from $439 million in 2018 to just $221 million in 2024.

There’s also political speculation. Colbert was often critical of President Trump. CBS’s parent, Paramount, is currently being acquired by Skydance Media—owned by David Ellison, son of Larry Ellison. That deal is under regulatory review, and some wonder if canceling The Late Show was a strategic move to help push it through.

⸻

In market news, shares of Block (formerly Square) are up nearly 10% this morning after being tapped to join the S&P 500. The fintech firm, known for Cash App and its embrace of crypto, will replace Hess after Chevron’s acquisition. Block’s goal is to become a one-stop financial hub—handling banking, lending (via its FDIC-approved Borrow product), and Bitcoin payments through Square.

On the flip side, Domino’s shares are down about 2% after missing Q2 profit expectations. There was a silver lining—same-store sales rose 3.4%, beating estimates. The company credits that to new promos and items like the Parmesan stuffed crust. But the profit miss is what’s weighing on investor sentiment.