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Five Things to Know on Wednesday Before the Stock Market Starts

To begin their trading day, investors should be aware of the following key news items:

1. Low inflation, a thriving market

Haha. Tuesday’s stock market gains, led by the S&P 500 having its best day since April, were fueled by lower-than-expected inflation figures. While the Dow gained about 500 points, the Nasdaq increased by more than 2%, helped in part by Home Depot’s impressive post-earnings rise.

2. The mortgage interest rate

The Mortgage Bankers Association reports that demand for mortgages reached a five-week high, driven by last week’s decline in interest rates. Meanwhile, this week saw mortgage rates continue to fall as a result of a drop in Treasury yields sparked by the weak inflation report.

3. Fundamental operations

Sundar Pichai, the CEO of Alphabet, revealed in a Tuesday testimony that Apple receives a staggering 36% of Safari search income from Google. The Justice Department’s antitrust lawsuit is around the two tech titans’ agreement, which makes Google the default search engine for Apple products. However, the topic was raised in court for a distinct case:

4. Target reports much higher profits.

This morning, Target announced profits that substantially exceeded Wall Street’s projections. Recently, when it attempted to reallocate its inventory due to an excess of unsold merchandise burdening earnings, the bargain retailer has faced criticism for disclosing sales. Sales remain challenging even though the company has made headway in addressing its inventory issues, which significantly affected its profitability a year ago.

5. Go to San Francisco

Meeting in San Francisco on Wednesday is scheduled between President Joe Biden and Chinese Leader Xi Jinping as both countries attempt to defuse rapidly rising trade and military concerns. Still, the Biden team has made an effort to temper hopes for a major development. Although investors would probably be satisfied with just an agreement for more regular talks between the two sides, Wall Street is nevertheless cautiously hopeful about the summit, according to Pia Singh of CNBC Pro.

Source (CNBC)

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