Here are the key news, trends and analyzes that investors need to start their trading day:
1. Wall Street looks lower as technology stocks come under pressure again
A trader during the Sweetgreen IPO in front of the New York Stock Exchange (NYSE) in New York on Thursday, November 18, 2021.
Michael Nagle | Bloomberg | Getty Images
Dow futures fell by around 150 points on Wednesday as investors prepare for a series of economic figures as they struggle with earnings losses that crushed shares in Gap and Nordstrom in the premarket and Covid concerns in Europe, where Germany must decide to tighten mitigating measures, including a possible full lockdown and a vaccine mandate.
- The Nasdaq fell 0.5% on Tuesday, the second day in a row, when technology stocks came under pressure again.
- The Dow’s gain of 194 points, or nearly 0.6%, put the average of 30 stocks on a two-session winning streak.
- The S & P 500’s rise of 0.17% beat a two-day slide.
- Nasdaq and Dow were less than 2% from their record highs of November 19 and 8, respectively. The S&P 500 was 0.3% back compared to the record closing on 18 November.
2. There is a wealth of financial data prior to Thanksgiving
The financial calendar flows over Wednesday, a day before the market closes for Thanksgiving Day. The exchange closes early Friday. At 8:30 a.m. ET, one hour before Wednesday’s opening time, the government will release data on weekly initial unemployment claims, durable goods orders in October and revised third-quarter gross domestic product. At 10.00 ET, investors will receive a printout of October’s personal income and spending as well as the Federal Reserve’s preferred inflation indicator: the core price index for personal spending. Sales of new homes in October and the final figures for consumer sentiment in November are also clear.
Shares in Gap, Nordstrom suffer after earnings lack estimates
A pedestrian walks past the closed GAP flagship store on August 18, 2020 in San Francisco, California.
Justin Sullivan | Getty Images
Gap shares fell 20% in Wednesday’s premarket, while Nordstrom shares fell 25%, the morning after the two retailers reported earnings that did not live up to expectations. Gap reduced its full-year outlook as third-quarter results were hit by Covid-related factory closures, leading to significant product delays. At Nordstrom, labor costs eroded quarterly profits and sales, and its Nordstrom Rack business struggled to return to pre-pandemic levels. The department store operator confirmed its expectations for full-year revenue, even as competitors Macy’s and Kohl’s strengthened forecasts.
4. Elon Musk sells several Tesla shares worth more than $ 1 billion
Maja Hitij | Getty Images News | Getty Images
Tesla fell about 1% in Wednesday’s premarket, a day after regulatory applications showed CEO Elon Musk exercised options to buy 2.15 million shares in the electric car maker and sold 934,091 shares worth just over $ 1 billion. Since his Twitter poll on Nov. 6, where he asked if he should sell shares, Musk has unloaded 9.2 million shares worth $ 9.9 billion. A majority of the people who participated in the vote said he should sell. Tesla shares, which hit a hard patch earlier this month, have more than doubled in the past year. The stock remained above a market value of $ 1 trillion.
5. Biden is ready to make another election for the White House Budget Director
US President Joe Biden announces the release of 50 million barrels of oil from the US Strategic Petroleum Reserve as part of a coordinated effort with other major economies to help ease rising gas prices, while commenting on the economy and “lowering prices” below a speech at the Eisenhower Executive Office Buildings South Court Auditorium in the White House in Washington, USA, November 23, 2021.
Evelyn Hockstein | Reuters
President Joe Biden will nominate Shalanda Young to be director of the White House Office of Management and Budget, according to media reports. Currently acting OMB director, Young is to be confirmed by the Senate to the post. Biden’s first choice for the job, Neera Tanden, withdrew from consideration in March after she encountered fierce opposition over tweets that upset lawmakers. Young, a former Capitol Hill employee, would be the first black woman to head the budget office.
– Reuters contributed to this report. Follow all the marketing action like a pro CNBC Pro. Get the latest news about the pandemic CNBC’s coverage of coronavirus.