To begin their trading day, investors should be aware of the following key news items:
1. eerie October
The markets were not sufficiently shaken by a late rally. October saw declines of 1.4% and 2.2% for the Dow and S&P 500, respectively. This is the first losing run for both indexes in three months since March 2020. In contrast, October saw a 2.8% decline on the tech-heavy Nasdaq, marking its third consecutive negative month.
2. SBF pauses
A jury is going to decide what will happen to Sam Bankman-Fried, the creator of FTX. He spent three days on the stand providing testimony in the criminal trial, and shortly after that the defence rested. The arguments before the jury will begin on Wednesday. The 31-year-old Bankman-Fried may receive a life sentence if found guilty of fraud charges connected to the late-year collapse of the sibling hedge fund Alameda Research and cryptocurrency exchange FTX. He has entered not guilty pleas to all charges and attempted to place the blame for the fall elsewhere in his evidence.
3. Is the Bud Coming Back?
Global’s largest brewer is still being impacted by declining Bud Light sales. Anheuser-Busch InBev reported third-quarter revenue that above estimates, but it also claimed that revenue in the U.S., its biggest market, dropped by about 14% between July and September due to ongoing criticism of Bud Light. Conservatives’ boycott of Bud Light, which was sparked by the brewer’s partnership with transgender influencer Dylan Mulvaney, caused sales to decline this spring.
4. Two-pronged blow
The Treasury Department’s regular practise of auctioning off debt is generally not taken very seriously by the markets. But the markets aren’t operating normally right now. Fears of an excess of bonds and stocks have caused market volatility during a period of restrictive monetary policy from the Federal Reserve. Given the recent spikes in debt, deficits, and bond yields, investors are more curious than ever about how the government plans to get the necessary funds from the market. This implies that on Wednesday, the Treasury Department will announce the refund programme at 8:30 a.m. ET, and the Federal Reserve will announce its interest rate decision two hours later at 2 p.m. ET.
5. Mood: (Jet) Blue
Tuesday saw a more than 10% decline in JetBlue Airways’ stock, which hit a level not seen in almost 12 years. The decline occurs as the airline gets ready to defend its proposed acquisition of Spirit Airlines this week and as the business projects a fourth-quarter deficit. Declaring that the proposed $3.8 billion all-cash acquisition will “raise fares and limit choice on routes across the country,” the U.S. Department of Justice filed a lawsuit. This move would make the airline the fifth-largest in the nation. According to JetBlue, in order to remain competitive with other large carriers, it must expand.