Traders on the floor of the New York Stock Exchange, October 21, 2022.
Here are the most important news that investors need to start their trading day:
1. There is a lot to chew on
Investors will have a great deal of data to digest on Tuesday. Several big names reported earnings before the bell (see below), and new economic indicators, such as the S&P Case-Shiller home price index and the October consumer confidence reading, are also coming soon. Stocks will post big gains over two days in a row, but what companies reported on Tuesday could throw things off track. two tech giants, Microsoft And the the alphabetReport after the bell. Read live market updates here.
Read more: Inflation dominates talk of earnings calls
2. GM remains steady
General Motors CEO Mary Barra speaks to reporters as she awaits the arrival of President Joe Biden at the media day of the North American International Auto Show in Detroit, Michigan, September 14, 2022.
Rebecca Cook | Reuters
GM It posted another big win on earnings while losing a bit on earnings. That’s somewhat of a recent trend for Detroit’s big three automakers. More importantly, the company quickly stuck to its earnings forecast for the year. CEO Mary Barra said GM stuck to its guidance because “Demand for GM products remains strong and we are actively managing the headwinds we’re facing.” One interesting nugget: GM Financial reported lower profits, a reversal of the days prior to the Covid pandemic, when consumers financed cars at low interest rates. Interest rates are now higher as the Federal Reserve tries to cope with rising inflation.
3. New PM, same problems
Conservative leadership candidate Rishi Sunak arrives at Broadcasting House before appearing on BBC Sunday with The Laura Kuenssberg Show in London, Britain on September 4, 2022.
Phil Noble | Reuters
Rishi Sunak takes over as Britain’s Prime Minister and faces several major problems simultaneously. The government needs to plug a £45 billion gap in public finances, while also dealing with a cost-of-living crisis caused by decades-old high inflation. He will also face a dissatisfied workforce that has launched strikes in recent months in several industries, including lawyers and rail workers. Then there are the political divisions, both in the nation and within his conservative party. The Conservatives are divided despite having a majority in Parliament, and Sunak is the third prime minister this year alone, so many in Britain are calling for a general election. But the only way that happens before the early 2025 deadline for a broader vote is if the Conservatives agree to it — and their chances of winning don’t look too hot right now.
4. Adidas finally had enough
Rapper Kanye West smiles during a meeting with US President Donald Trump to discuss criminal justice reform at the White House in Washington, October 11, 2018.
Kevin Lamarck | Reuters
Adidas has ended its partnership with Ye, aka Kanye West, after weeks of pressure from several groups, including the Anti-Defamation League, to take action following the rapper’s anti-Semitic comments. The decision is effective immediately. “Adidas does not tolerate anti-Semitism and any other type of hate speech,” the company said in a statement. “Yi’s recent comments and actions have been unacceptable, hateful, and dangerous, and violate the company’s values of diversity, inclusion, mutual respect and fairness.” Adidas had its relationship with Ye under review earlier this month, and the rapper and fashion mogul taunted the company for its inaction: “I can say anti-Semitic things, and Adidas can’t let me down. Now what?” Well, we have the answer.
5. UPS is committed to its future outlook
A United Parcel Service driver unloads cargo in the Lincoln Park neighborhood in Chicago, Illinois, US, on Monday, November 30, 2020.
Christopher Dilts | Bloomberg | Getty Images
The macroeconomic environment may be “very dynamic,” according to United Parcel Service CEO Carol Tomei, but the shipping giant on Tuesday reaffirmed its forecast for this year. UPS reported third-quarter revenue that came in just below Wall Street expectations, but its net profit easily beat it. Revenue in the US segment, the company’s largest, grew significantly due to higher freight rates, which also boosted UPS’s international business. Despite this, revenue in the company’s supply chain solutions business declined, due to lower air and sea freight.
Samantha Sobin, Michael Wayland, Karen Gilchrist, Jenny Reed and Jack Stebbins of CNBC contributed to this report.
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