Here are the key news, trends, and analysis investors need to start their trading day:
1. Wall Street tries to avoid a four-session losing streak
Traders operate on the floor of the New York Stock Exchange (NYSE) on October 12, 2021.
Brendan McDermid | Reuters
2. Problems in the supply chain, rising costs can lead to bumpy revenues
Supply chain issues, labor shortages and higher energy prices make this quarter very difficult to model. According to Nick Raich, CEO of The Earnings Scout, 22 early reporter companies beat estimates by 11% on Tuesday. While that’s above the traditional beat of 3 to 5%, it is well below the average for previous quarters this year, including around 18% in the second quarter. The estimates for the third quarter, which have been rising steadily for months, have been discontinued in the last few weeks.
3. Consumer prices remain high in September
The 10-year government bond yield rose to around 1.6% on Wednesday after the government reported that the consumer price index rose 5.4% year over year in September. The core CPI, which excludes the food and energy sectors, rose 4% year over year. Both were largely in line with the estimates and were similar to the growth of the previous month compared to the previous year. The Federal Reserve released the minutes of its September monetary policy meeting at 2:00 p.m. ET when central bankers announced that they would “soon” begin reducing monthly asset purchases but did not say when.
4. The White House wants to help keep key West Coast ports open around the clock
Cargo ships filled with containers will dock at the Port of Los Angeles in Los Angeles, California on September 28, 2021.
Frederic J. Brown | AFP | Getty Images
President Joe Biden will unveil a plan on Wednesday to try to reduce residues from West Coast ports by expanding around-the-clock operations. The Port of Los Angeles is expected to announce a shift to 24/7 operations after a similar transition at the Port of Long Beach, California last month. At the heart of this supply chain disruption alleviation plan is pledges from some of the country’s leading retailers and shippers, including FedEx, UPS, Walmart, and Home Depot, to increase port night and opening hours in order to bring the goods to market. Together, ports account for approximately 40% of shipping containers calling into the United States.
5. The US will reopen land borders to fully vaccinated people in November
Flags of the USA, Canada and Mexico flutter side by side in Detroit, Michigan, the United States, on August 29, 2018.
Rebecca Cook | Reuters
The U.S. announced on Wednesday that it will reopen its land borders for non-essential travel next month, ending a 19-month freeze due to Covid as the nation mandates vaccination of all international visitors. Vehicle, rail, and ferry travel between the United States and Canada and Mexico have been largely limited to the essentials since the earliest days of the pandemic. The latest move follows last month’s announcement that the US will lift country-based travel bans on air travel and instead require Covid recordings for foreigners who plan to enter by plane.
– The Associated Press 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.