To begin their trading day, investors should be aware of the following key news items:
1. Credit forecast reduced
For the past two weeks, the main U.S. stock averages have increased. Over the next few days, a number of things might challenge that trend. Traders will analyse Moody’s move to downgrade the outlook for U.S. credit after Friday’s closing bell. The agency maintained the Aaa rating for US credit, but said that concerns stem from Washington’s dysfunctional politics and budgetary policy. This week’s market moves could also come from the consumer price index release on Tuesday, which could influence Federal Reserve interest rate policy, and the earnings reports of some of the biggest US retailers.
2. Chaos during shutdown
There is a new speaker in the House. He’s juggling well-known issues. If a financing package is not passed by Congress by Saturday, the federal government will partially shut down. With time running out, House Speaker Mike Johnson, a Republican from Louisiana, will attempt to persuade his party’s far-right members, who are demanding budget cuts, to back a short-term funding proposal. Over the weekend, House Republicans unveiled a creative budget proposal that would finance certain government agencies through January 19 and others till February 2, according to NBC News.
3. Marvel senility
The highly popular Marvel Cinematic Universe from Walt Disney recently experienced its worst-ever opening weekend in the United States box office. During its opening weekend in theatres, “The Marvels” took in $47 million, the least amount of any of the 33 MCU films to date. Its stronger $63.3 million international opening helped it reach a total of $110.3 million worldwide. Although the haul is impressive for most releases, it is particularly noteworthy in a franchise that has given rise to some of the highest-grossing films ever.
4. Heart health objectives
Wegovy from Novo Nordisk may have advantages over just helping people lose weight. A widely anticipated trial found that weekly injections of the medicine lowered the risk of heart attack, stroke, and cardiovascular death by 20%. Results of the research, which examined the effects of Wegovy on over 17,500 adults without diabetes but also had heart disease and obesity, were presented and published on Saturday. Wegovy may see an increase in usage as a result of the data opening up additional insurance coverage.
5. The important week in retail
This week, several of the biggest American retailers will release their third-quarter financial results, providing information on consumer spending patterns and the state of the global economy. At the beginning of the crucial holiday quarter, executives from major players in the market such as Walmart, Target, and Home Depot will also share their insights. As per LSEG (previously Refinitiv), almost 90% of S&P 500 businesses have released their third-quarter results. The companies’ earnings have increased 6.3% compared to the same period last year. Year over year, revenue growth has slowed to 1.4%. These are the main stories to keep an eye on this week:
Home Depot on Tuesday, prior to the bell
Prior to the bell on Wednesday, Target and TJX Companies
Thursday: before the bell at Walmart and Macy’s; after the bell at Gap
Source (CNBC)
