Home » 5 things to know before the stock market opens Tuesday, October 11

5 things to know before the stock market opens Tuesday, October 11

by TopBusinessView

Traders on the floor of the NYSE, Oct. 7, 2022.

Source: NYSE

Here are the most important news items that investors need to start their trading day:

1. A new skid

U.S. stock markets started October with a bang, but have now posted four straight losing sessions. The tech-laden Nasdaq on Monday closed at its lowest level in two years, and it looks like Tuesday morning will bring more declines. JPMorgan CEO Jamie Dimon, days before his bank reports quarterly earnings, told CNBC that he thinks the S&P 500 could fall another 20% depending on how the Federal Reserve continues to handle its battle against decades-high inflation. Investors are looking forward to reams of economic data this week, including inflation reports Wednesday and Thursday, as well as earnings reports from several big companies, including Delta Air Lines and Citigroup. Read live market updates here.

2. Fighting a ‘fire sale’

The Bank’s Financial Stability Committee on Sep. 28 announced a two-week emergency purchase program for long-dated U.K. government bonds.

Bloomberg | Bloomberg | Getty Images

The Bank of England is expanding its emergency bond-buying program, which is set to expire Friday, in a bid to calm the volatile debt market in the United Kingdom. A selloff in bonds, known as gilts in Britain, threatened to ruin what are known as liability driven investment funds, which are, in turn, widely held by pension funds in the U.K. Bond markets suffered further large selloffs Monday, even as the central bank boosted its limit for daily gilt purchases. “Dysfunction in this market, and the prospect of self-reinforcing ‘fire sale’ dynamics pose a material risk to UK financial stability,” the Bank of England said Tuesday. Prime Minister Liz Truss’s new government sparked the market chaos a few weeks ago, when it unveiled an economic package that included large tax cuts for the wealthiest, even as the country struggles with a cost-of-living crisis. Truss has since backed off the tax plan.

3. Ukraine vows to strike back

Ukraine’s President Volodymyr Zelenskyy speaks during an interview with Reuters, amid Russia’s attack on Ukraine, in Kyiv, Ukraine September 16, 2022. 

Valentyn Ogirenko | Reuters

4. GM gets into the home grid game

The all-electric Chevrolet Silverado at the New York Auto Show, April 13, 2022.

Scott Mlyn | CNBC

General Motors on Tuesday said it is launching a new business unit, called GM Energy, that will offer people a variety of products and services to help people produce and store electricity at homes and offices. GM Energy will sell battery packs, solar panels and cloud software that will connect electric vehicles to energy utility companies. With the new unit, GM is getting in on an energy production and storage business model similar to what Tesla has done and crosstown Detroit rival Ford is also pursuing. GM’s home energy systems are slated to go on sale next year, alongside the launch of the 2024 Chevrolet Silverado EV.

Read more: Delta invests in electric air taxi startup Joby

5. Apple thrives as PC shipments fall

A sign with the apple logo of an Apple store on March 5, 2022, in Madrid, Spain. Several companies have closed their branches and stores in Russia after it invaded Ukraine. Inditex announced the temporary closure of its 502 stores in Russia.

A. Perez Meca | Europa Press | Getty Images

Slowing demand and persistent supply chain problems are taking a toll on the global personal computer market. Shipments declined 15% year-over-year during the third quarter, according to new findings from International Data Corp. Lenovo, HP and Dell saw shipments decline by particularly large margins: 16%, 28% and 21%, respectively. Apple was the sole bright spot among PC makers during the quarter. The tech giant posted a 40% increase in shipments. Still, according to IDC, PC shipments are higher than they were before the Covid pandemic, which sent millions of people home to work remotely. Even as employees return to offices, hybrid work arrangements look like they are here to stay.

– CNBC’s Sarah Min, Elliot Smith, Holly Ellyatt, John Rosevear, Michael Wayland and Sofia Pitt contributed to this report.

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