Here are some noteworthy news items to kickstart your trading day:
1. December Momentum
Stocks continued their positive momentum on Monday, with the Dow Jones Industrial Average rising over 150 points, or about 0.4%. The S&P 500 and Nasdaq Composite also recorded gains of 0.4% and 0.2% respectively. These three major indexes have experienced six consecutive weeks of growth. However, investors should keep an eye on significant economic reports scheduled for release later this week, as they have the potential to impact the markets.
2. Oracle Reports
Oracle’s stock faced a decline of almost 9% in after-hours trading as the software giant failed to meet Wall Street’s estimates in three out of four key revenue segments during its fiscal second quarter. StreetAccount estimates show that sales in cloud services and license support, cloud and on-premises licenses, and services all fell short of consensus. Only the hardware division surpassed expectations. Nonetheless, earnings per share exceeded predictions, and the company’s net income demonstrated an impressive 44% year-over-year increase.
3. Cutbacks in Pickup Production
Ford has made a significant adjustment to its production plans for the F-150 Lightning pickup truck. Originally intending to ramp up production by 2024, the automaker has now decided to halve its planned output. Ford anticipates producing an average of around 1,600 electric trucks per week at its Rouge Electric Vehicle Center in Dearborn, Michigan, next year, as opposed to the previously planned figure of approximately 3,200. This decision reflects Ford’s intention to align production with customer demand, which has not been as robust as initially anticipated within the electric vehicle industry.
4. Scrutiny over Loan Discounts
A recent probe by the Consumer Financial Protection Bureau into mortgage bankers’ use of loan discounts has raised concerns regarding Wells Fargo. The bank received an official notice from the CFPB regarding the discounts and conducted an internal investigation that concluded late this year. The investigation revealed that the application of discounts, which could lower a borrower’s annual percentage rate (APR) by 25 to 75 basis points, showcased “statistically significant disparities.” This led to disadvantages for Black and female customers.
5. White House Meeting
On Tuesday, President Joe Biden will meet with Ukrainian President Volodymyr Zelenskyy at the White House to discuss ongoing support for Ukraine in its battle against Russian invasion. Additional funding for Ukraine has been a contentious issue among U.S. lawmakers in recent weeks. However, Biden and others argue that a halt in aid could result in a victory for Moscow over Ukraine. U.S. National Security Spokesman John Kirby has stated that the White House expects to announce new security assistance for Ukraine before a critical year-end deadline.
Source (CNBC)
