Here are the top news stories that investors need to know before they begin their trading day:
1. Sensing low
Tuesday saw minimal movement in stocks. While the Dow barely finished in the black, both the Nasdaq and the S&P 500 had minor declines. On Wednesday morning, futures were lower. In the interim, earnings season continues. Morgan Stanley and Procter & Gamble release earnings before the market opens, while Tesla and Netflix release earnings after the market closes.
2. The effects of war
Investors have been forewarned by United Airlines that the current quarter’s results will suffer as a result of the battle between Israel and Hamas forcing the airline’s suspension of flights to Tel Aviv. How much of an influence depends on how long the battle and, consequently, the stop last.
3. Horrors of housing
These days, real estate is scary. As rising mortgage rates deter purchasers, homebuilder sentiment dropped to its lowest point in 10 months and further dipped into the negative. According to the Mortgage Bankers Association, the demand for mortgages actually decreased to its lowest point since 1995. Given that many homeowners locked in low rates as the Federal Reserve maintained the cost of money low for years, fewer people are refinancing as well. Now that the Fed is fighting inflation and yields on the 10-year Treasury are still high, the already pricey housing market must deal with higher rates.
4. No speaker as of yet
Rep. Jim Jordan, R-Ohio, a staunch conservative and ally of Donald Trump, failed miserably in his bid to become speaker of the House in his first attempt. While Jordan continues to compete for votes, the next vote is anticipated for late Wednesday morning. Jordan told reporters late Tuesday, “We’ve got to keep talking to members.”
5. Risky journey
In an effort to express support for the Israeli people as they fight back against the devastating Hamas terrorist strikes of October 7, which left 1,400 people dead, President Joe Biden paid a visit to Israel. The timing of Biden’s visit coincided with Israeli and Palestinian officials blaming one another for an explosion that killed about 500 people in a Gaza hospital.
Source (CNBC)
