Here are the most important news items that investors need to start their trading day:
1. Technical victory
Hooray for the Nasdaq. The tech-heavy index snapped a four-session losing streak by finishing slightly higher Monday. The win came as the yield on the 10-year Treasury retreated a little. The other two major indices, however? They finished in the red. The Dow slipped 190 points, while the S&P 500 declined seven points. Aside from 10-year, investors are focused on earnings Tuesday, with General Motors and Coca-Cola up before the bell and Alphabet and Microsoft coming after the close. All in all, about 30% of the S&P 500 is scheduled to report results this week. Futures were higher Tuesday morning. Follow live market updates.
2. The strike factor
Striking United Auto Workers (UAW) members from the General Motors Lansing Delta Plant picket in Delta Township, Michigan September 29, 2023.
Rebecca Cook | Reuters
Just how much are the United Auto Workers’ targeted strikes hurting business at the Big Three Detroit automakers? General Motors gave investors a big look this morning, when it pulled its full-year guidance while reporting third-quarter earnings and revenue. While the company has the fewest UAW members on strike, compared with rivals Ford and Stellantis, it’s still taking a hit. GM said Tuesday morning that the strikes, which started in mid-September, have cost it more than $800 million in pretax earnings. But you should expect the UAW to key in on another number, as it seeks higher wages and better benefits: GM’s nearly $3.1 billion in quarterly profit. Ford reports earnings after the close Thursday, and Stellantis reports next week.
3. Some fizz from Coke
A man walks past shelves of Coca-Cola bottles and cans at a shopping mall in Lagos, Nigeria November 5, 2019.
Temilade Adelaja | Reuters
4. Hezbollah in focus
People carry the coffin of Hezbollah member Abbas Shuman, who was killed in southern Lebanon amidst tension between Israel and Hezbollah, during his funeral, in Baalbek, Lebanon, October 23, 2023.
Amr Alfiky | Reuters
While Israel bombards the Gaza Strip in its war against Palestinian militant group Hamas, the world is worrying more about a second front opening in the north – leading to an even bigger conflict. There, Israeli forces have traded fire with the Iran-backed Lebanese militant group, Hezbollah. Israel’s president, Isaac Herzog, said his country doesn’t want a war with the group, but warned that “Hezbollah is playing with fire.” Elsewhere, Hamas released two more Israel hostages the group took during its terrorist attacks on Israel on Oct. 7. Follow live updates.
5. Will we finally get a speaker?
U.S. House Majority Whip Tom Emmer (R-MN) speaks during Republican leadership a news conference on Capitol Hill in Washington, U.S. January 10, 2023.
Jonathan Ernst | Reuters
Here we go again. Congressional Republicans are set to pick yet another nominee to be speaker of the House. They’re scheduled to hold a closed-door vote to pick a nominee Tuesday morning, and a House floor vote could come later in the day. Eight members are in the running, which may make it even tougher to figure out a candidate who can consolidate the GOP caucus, which has a tiny majority in the House. (A ninth candidate, Rep. Dan Meuser of Pennsylvania, dropped out overnight.) The clock is ticking, too. The White House has requested urgent security funding for Israel and Ukraine, and the government is facing another potential shutdown Nov. 17.
– Tech Zone Daily’s Alex Harring, Michael Wayland, Amelia Lucas, Matt Clinch and Spencer Kimball contributed to this report.
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