Here are the key news, trends, and analysis investors need to start their trading day:
1. Dow futures slide, bond yields rise before the holidays
A trader during the initial public offering (IPO) of Sweetgreen in front of the New York Stock Exchange (NYSE) in New York on Thursday, November 18, 2021.
Michael Nagel | Bloomberg | Getty Images
Dow futures fell about 200 points and 10-year government bond yields surged above 1.68% on Wednesday as investors digested a number of economic metrics as they grappled with lost earnings affecting Gap and Nordstrom stocks in the premarket and Covid concerns in Europe shattered. Germany will decide on tougher containment measures, including a possible full lockdown and a vaccine mandate.
- The Nasdaq fell 0.5% on Tuesday, the second straight downward day as technology stocks came under pressure again.
- The Dow’s gain of 194 points, or nearly 0.6%, put the 30-stock average on a two-session winning streak.
- The 0.17% increase in the S&P 500 saw a two-day decline.
- The Nasdaq and Dow were less than 2% from their record highs on November 19 and November 8, respectively. The S&P 500 was 0.3% below its record low on November 18.
2. Lowest initial jobless claims since 1969 highlight a busy data day
The economic calendar is crowded on Wednesday, the day before Thanksgiving Day market closes. The exchange closes early Friday.
- An hour before the opening bell, the government announced that initial jobless claims had dropped to 199,000, the first time below 200,000 during Covid and a number that has not been seen since November 15, 1969 when claims stood at 197,000.
- A revised increase in gross domestic product of 2.1% in the third quarter was slightly above the previous value, but slightly below estimates.
- Durable goods orders fell 0.5% in October. Economists had expected an increase of 0.3%.
- At 10 a.m. ET, investors will receive hard copies of personal income and expenses for October, as well as the Federal Reserve’s most popular inflation indicator, the core consumer spending index.
- The October new home sales figures and the final November consumer sentiment figures are also due.
3. Gap, Nordstrom stocks suffer after earnings miscalculations
A pedestrian walks past the closed GAP flagship store on August 18, 2020 in San Francisco, California.
Justin Sullivan | Getty Images
Gap stocks fell 20% in the premarket on Wednesday, while Nordstrom stocks fell 25% in the morning after the two retailers reported gains that fell short of expectations. Gap lowered its full-year outlook as third-quarter results were impacted by Covid-related factory closures that resulted in significant product delays. At Nordstrom, labor costs weighed on quarterly profits and sales, and the Nordstrom Rack business struggled to return to pre-pandemic levels. The department store operator reiterated its sales forecast for the full year, even if the forecasts of competitors Macy’s and Kohl were raised.
4. Elon Musk sells more than $ 1 billion worth of Tesla stock
Maja Hitij | Getty Images News | Getty Images
Tesla lost around 1% in the premarket on Wednesday, the day after filings showed that CEO Elon Musk exercised options to buy 2.15 million shares in the electric vehicle maker and sold 934,091 shares valued at just over $ 1 billion. Since his November 6th Twitter poll asked if he should sell shares, Musk has dumped 9.2 million shares valued at $ 9.9 billion. The majority of those who took part in the survey said to sell. Tesla shares, which got into a difficult phase earlier this month, more than doubled in the past year. The stock remained above a market value of $ 1 trillion.
5. Biden will make another election for White House Treasurer
US President Joe Biden announces the release of 50 million barrels of oil from the US strategic oil reserve as part of a coordinated effort with other major economies to mitigate rising gas prices, while speaking on the economy during a comment on “lowering prices.” Speech in the South Court Auditorium of the Eisenhower Executive Office Building in the White House in Washington, USA, 23 November 2021.
Evelyn Hockstein | Reuters
According to media reports, President Joe Biden will appoint Shalanda Young as director of the White House’s Office of Management and Budget. The current incumbent OMB director Young must be approved by the Senate for the post. Biden’s first pick for the job, Neera Tanden, retired from the exam in March after encountering fierce opposition over tweets angry with lawmakers. Young, a former Capitol Hill employee, would be the first Black woman to run the home office.
– Reuters contributed to this report. Follow all market activity like a pro on CNBC Pro. Get the latest on the pandemic with coronavirus coverage from CNBC. “5 Things” returns on Monday.