Traders work on the floor of the New York Stock Exchange during morning trading on December 02, 2022 in New York City.
Michael M. Santiago | Getty Images
Here are the most important information investors need to start their trading day:
1. Fall of Santa Claus
Equities have yet to shake off those December blues. They are about to post a losing month, which would conclude a year of losses. All three major indexes fell on Monday, setting a harsh tone for the week before Christmas. Futures contracts, meanwhile, were everywhere on Tuesday morning after the Bank of Japan surprised investors by loosen its cap on bond yields. This decision caused a massive sell-off in several markets. On the profit side, two big names, fedex and Nike, are configured to signal after the bell. Read live market updates here.
2. Amazon forfeits pandemic gains
Packages move along a conveyor belt at an Amazon fulfillment center on Cyber Monday in Robbinsville, New Jersey, Monday, November 1. 28, 2022.
Stephanie Keith | Bloomberg | Getty Images
Amazon flourished during the early days of the pandemic. How could he not? People were largely stuck at home, so they shopped a lot online, spending stimulus checks and money saved from not commuting for necessities and fun items. But that didn’t last, even though Covid is still around, and now Amazon stocks are back to where they were. at the start of the pandemic. The stock has fallen nearly 50% this year, and is on course for its worst year since 2000 – during the dotcom crash. There could be more pain ahead, notes CNBC’s Annie Palmer, since Amazon’s forecast for the holiday quarter is well below what Wall Street expected.
3. Approximate prospects for electric vehicles
US President Joe Biden gestures after driving a Hummer EV during a visit to General Motors’ ‘Factory ZERO’ electric vehicle assembly plant in Detroit, Michigan on November 17, 2021.
Jonathan Ernest | Reuters
Auto executives are much more bearish on the near-term outlook for EV adoption than a year ago. For 2030, the median expectation for U.S. electric vehicle sales is 35% of the new-vehicle market, according to a KPMG survey of 900 industry executives. That’s down from 65% last year, and well below the Biden administration’s 50% target. The new reading reflects concerns about the high cost of materials to make electric vehicles, as well as broader economic concerns, such as rising interest rates and inflation. “There’s always a sense of long-term optimism, and yet, more importantly, there’s a sense of short-term realism. You see that realism throughout the survey,” said Gary Silberg, global head of automotive at KPMG.
Read more: Electric vehicle maker Lucid closes $1.5 billion fundraising from Saudi state fund, among others
4. Target’s high-stakes vacation
Target is bringing more than 1,700 exclusive toys to its stores and website this holiday season. It also has an agreement to sell items from the popular toy brand FAO Schwarz.
Melissa Repko | @CNBC
target has a lot riding on this holiday season. The big-box retailer is much bigger than many other retailers under watch, so it may be in for a tough time. But we have to change things, and soon, after struggling with bloated inventories, three quarters of disappointing earnings and a weak outlook for the current quarter. The company hopes the focus on value will save the day – that means bigger signs touting lower prices, more aggressive promotion of a price match guarantee, and prominent displays offering options for affordable gifts. This strategy may well continue after the holidays as well, as the company tries to rekindle growth.
5. Congress Unveils Funding Bill
Fog shrouds the US Capitol building in the early morning hours on November 4, 2022 in Washington, DC.
Samuel Corum | Getty Images
Leaders in Congress released a $1.7 trillion note to finance the government and avoid a shutdown that would begin this weekend. The measure, which is the last big bill business lawmakers are likely to take before Republicans take control of the House in the new year, is expected to pass with more bipartisan support in the Senate. The bill also includes additional aid for Ukraine as Russia continues its aerial assault across the country. However, it does not include an expansion of the child tax credit or immigration provisions, as Democrats had hoped. Lawmakers also included tougher laws meant to prevent another insurgency like the pro-Trump invasion of the Capitol on Jan. 1. January 6, 2021. This decision came in the wake of January 1. 6 Committee officially referring the former president to the Department of Justice for the office.
CNBC’s Tanaya Macheel, Annie Palmer, Michael Wayland and Melissa Repko contributed to this report.
— Track market action like a pro on CNBC Pro.
0 Comments