Here are five key things investors need to know to start the trading day:
1. Winning streak ends
Stock futures slid Tuesday morning after the Dow Jones Industrial Average broke its three-day winning streak by closing more than 344 points, or 0.8%, lower on Monday. The S&P 500 declined 0.2% during Monday’s trading session, while the Nasdaq Composite added close to 0.3%. Wall Street will continue to focus on third-quarter earnings season as about 14% of companies in the broad index have reported results, with more than 7 out of 10 topping earnings estimates, according to FactSet. Follow live market updates.
2. GM crushes earnings
A view of the main entrance of the General Motors’ pickup truck plant as workers vote to elect a new union under a labor reform that underpins a new trade deal with Canada and the United States, in Silao, Mexico February 1, 2022.
Sergio Maldonado | Reuters
General Motors raised its guidance targets for 2024 after easily exceeding Wall Street’s third-quarter earnings estimates. The Detroit automaker reported adjusted earnings of $2.96 per share compared with the $2.43 per share expected by an LSEG survey of analysts. Revenue was $48.76 billion and also beat the consensus estimate of $44.59 billion, as strong pricing offset losses in China and year-over-year increases in labor and warranty costs. GM now expects full-year adjusted earnings before interest and taxes of between $14 billion and $15 billion, or $10 and $10.50 a share, up from its prior estimate of $13 billion to $15 billion, or between $9.50 and $10.50 a share. This marks the third time this year that GM has updated its guidance after beating Wall Street’s top- and bottom-line expectations.
3. Disney leadership plans
Disney logo is seen in New York City, United States on July 13, 2024. (Photo by Jakub Porzycki/NurPhoto via Getty Images)
Nurphoto | Nurphoto | Getty Images
Disney announced Monday that James Gorman will replace Mark Parker as the company’s next chairman, starting in January. The media giant also plans to name a successor for CEO Bob Iger in early 2026. Disney initially targeted 2025 to announce a successor, but pushing the date back to early 2026 will give the board more time to conduct due diligence on both internal and external candidates, said people familiar with the matter. Gorman joined Disney’s board less than a year ago and was named the head of the succession planning committee in August. He already had experience with succession planning, as the former Morgan Stanley CEO oversaw the process for Ted Pick to succeed him at the start of this year.
4. Trump’s tax reform
Republican presidential nominee and former U.S. President Donald Trump attends a roundtable hosted by “Building America’s Future” in Auburn Hills, Michigan, U.S. October 18, 2024.
Brian Snyder | Reuters
5. Nike’s hoops dream
People wearing protective face masks walk past the closed Nike store on 5th Avenue during the outbreak of Covid-19, in New York City on May 11, 2020.
Mike Segar | Reuters
Nike will be the exclusive uniform and apparel provider for the National Basketball Association and Women’s National Basketball Association for another 12 years. The sneaker giant and the leagues announced their renewed partnership on Monday. Nike’s previous contract with the NBA, which started with the 2017-18 season, was reportedly worth $1 billion and its latest contract is “much bigger,” a person familiar with the matter told Tech Zone Daily. The company’s contract renewal with the NBA comes as new CEO Elliott Hill tries to regain market share and shore up relationships with its critical partnerships, including being the official uniform supplier for the National Football League and Major League Baseball. Nike’s deal with the NFL expires after the 2027 season but the league has opened up the process to other bidders and is already in talks with several interested companies, a source told Tech Zone Daily.
— Tech Zone Daily’s Michael Wayland, Alex Sherman, Hugh Son, Rebecca Picciotto, Kevin Breuninger, Lorie Konish, Jessica Golden and Gabrielle Fonrouge contributed to this report.
