Here are the most important news items that investors need to start their trading day:
After a four-day losing streak, the Dow Jones Industrial Average rebounded with a 200-point surge, bringing positive momentum to the markets. Both the S&P 500 and Nasdaq Composite also experienced gains. Investor attention is squarely fixed on the flurry of earnings reports flooding in. Approximately 150 S&P 500 companies are slated to unveil their financial performance this week. Simultaneously, investors are keeping a watchful eye on Treasury yields. Standout performers for the day included Verizon, which saw its stock surge by over 9%, marking the company’s most robust performance in nearly 15 years. Similarly, Spotify experienced a remarkable 10% uptick. For live market updates, stay tuned.
Tech giants are immersed in their earnings season. Alphabet reported an 11% increase in revenue for the third quarter. However, its cloud business fell short of analysts’ projections by over $20 million, causing a nearly 7% dip in after-hours trading. In contrast, Microsoft celebrated a 27% growth in net income, propelling its shares to a 6% surge in extended trading. The company’s revenue also witnessed an impressive almost 13% year-over-year rise in the quarter, surpassing both revenue and earnings per share estimates. Snap Inc. experienced a significant after-hours spike, soaring up to 20%. Nevertheless, sentiment reversed as news circulated that certain advertisers were pausing spending in the wake of the Israel-Hamas conflict.
Meta Faces Legal Battle Over Platform Addiction
A bipartisan coalition of 42 attorneys general has initiated a lawsuit against Meta, alleging that its social media platforms, namely Facebook and Instagram, are designed to be addictive, with a deliberate focus on capturing the attention of children and teenagers. The attorneys contend that Meta was cognizant of the detrimental impact features like notifications and the “infinite scroll” could have on young users. The states involved are pushing for an end to what they perceive as harmful practices by Meta, along with penalties and restitution. The wide-ranging support for this legal action could pose a significant threat to Meta’s business operations.
UAW Responds to GM’s Strong Earnings Report with Strikes
In swift response to GM’s robust third-quarter earnings report, the United Auto Workers union announced a walkout of approximately 5,000 members from a highly profitable full-size SUV plant in Texas. This action comes mere hours after the automaker announced healthy profits and record third-quarter revenue. UAW President Shawn Fain emphasized, “Another record quarter, another record year. As we’ve said for months: record profits equal record contracts.” GM also disclosed that UAW strikes have already resulted in $800 million in lost production.
Gaza Faces Critical Shortage of Essential Supplies
In Gaza, a critical shortage of fuel is exacerbating an already dire situation. Hospitals have issued warnings that they may be forced to shut down without an urgent resupply. Alongside fuel, essential resources such as water, medicine, and food are running perilously low. U.N. Secretary-General Antonio Guterres issued an overnight warning, stating that the situation is deteriorating rapidly. The United Nations Relief and Works Agency for Palestine Refugees has declared that unless it receives the necessary fuel supplies for transportation, water desalination, and medical equipment operation, it will be unable to conduct vital aid operations beyond Wednesday night. The Israel Defense Forces contend that while fuel is present in Gaza, it is under the control of Hamas. In response to Guterres’s remarks on the Israel-Hamas conflict, Israel’s U.N. representative has called for his resignation.