Tuesday, May 21, 2024
HomeTrading RoomBefore the Market Starts on Wednesday

Before the Market Starts on Wednesday

The following news items are the most crucial for investors to know as they begin their trading day:

1. Adapt to it

The stock market is now experiencing a lot. Tuesday saw more than 1% declines in each of the three major indices, and the Dow is now down for the year. (For what it’s worth, the S&P 500 and the Nasdaq are still up double digits.) The primary offender? rates of interest, of course.

2. The Painful House

Washington’s position is also making things worse. Good luck to Congress if the markets want assurance. For the first time in American history, the House removed California Republican Kevin McCarthy from his position as speaker on Tuesday. The so-called motion to vacate was approved by all Democrats, eight Republicans, and one extreme-right Republican.

3. Intel’s upcoming major action

Sometime in the next three years, Intel plans to spin off its business in programmable chips through an IPO. The business, which recently separated its Mobileye self-driving unit, could look for private funding in such a move, but it also expects to retain a majority interest.

4. Deals and walkouts

The strikes by the United Auto Workers aren’t yet affecting General Motors’ sales. The Detroit carmaker outperformed its overseas competitors Toyota, Hyundai, and Kia in the third quarter, increasing its sales by 21.4% year over year. Although it isn’t related to the strikes but rather current corporate patterns, Stellantis, which is also in negotiations with the UAW, reported a minor dip.

5. Mortgage downturn

Returning to the subject of interest rates, the Mortgage Bankers Association reports that the demand for mortgages has reached its lowest level since 1996. Rates have risen sharply as a direct result, making it even harder for both buyers and sellers to afford homes.

Source (CNBC)

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