A trader watches Federal Reserve Chairman Jerome Powell speak on a screen on the floor of the New York Stock Exchange (NYSE), November 2, 2022.
Brendan McDermid | Reuters
Here are the most important information investors need to start their trading day:
1. A busy week ahead
U.S. stock futures were up on Monday ahead of this week’s Congressional midterm elections and key inflation data.
Tuesday’s election will determine which party will control Congress. Democrats currently control the House and have a majority in the Senate. But a Republican sweep could signal greater support for oil and gas companies.
The corporate earnings season is winding down, with the majority of S&P 500 companies reporting results. But several companies are expected to report this week, including Lyft, Palantir Technologies and Take-Two Interactive on Monday.
Investors will get the CPI data on Thursday, and a hot inflation report could signal that a pivot from higher interest rates could be further away than expected. Last week, major averages fell as the Dow Jones Industrial Average ended a four-week winning streak on rate hike fears.
The first major reduction in the number of people at Facebook’s parent company, Meta, is set to begin as early as Wednesday, according to a Wall Street Journal report.
Thousands of employees will be affected, according to the report. At the end of September, the company had more than 87,000 workers.
A spokesperson for Meta declined to comment and referred CNBC to CEO Mark Zuckerberg’s remarks on the company’s earnings call last month.
“In 2023, we will focus our investments on a small number of high-priority growth areas,” Zuckerberg said at the time. “This means that some teams will grow significantly, but most other teams will remain stable or shrink over the next year. Overall, we expect to end 2023 with roughly the same size, or even a slightly smaller organization than we are today.”
3. Elon Musk’s Twitter Rules
Twitter’s new owner, Elon Musk, said Sunday that the social media site will permanently suspend impersonators’ accounts without warning if they are not clearly labeled as parody.
Musk tweeted the decision after several celebrity-verified and blue-check Twitter users changed their accounts to mimic him.
Previously, Twitter required users engaging in parody to single out both their account name and bio. But the site usually didn’t jump to a permanent ban on a user’s account for impersonation.
As of Sunday evening, Twitter had yet to update its terms of service to reflect Musk’s direction.
Musk’s decision drew immediate backlash, in part because he portrays himself as a free speech absolutist and has opposed lifetime bans.
4. Lidar Consolidation
Lidar manufacturers Expulsion and Velodyne are joining forces to increase their competitiveness as investors grow increasingly disillusioned with self-driving vehicle technology.
Lidar, short for “light detection and ranging”, uses invisible lasers to create a 3D map of the sensor’s surroundings. Investor interest in the potential of autonomous vehicles has led many lidar startups to go public in recent years, but valuations have plummeted as major automakers cut their investments in autonomous vehicles in favor of systems. more limited driving assistance.
Ouster CEO Angus Pacala will lead the combined company, which does not yet have an official name. Velodyne CEO Ted Tewksbury, who joined the lidar maker last year, will chair the company’s board after the merger.
“We all knew there was a need for consolidation in the market,” Pacala told CNBC’s John Rosevear. “We’re the ones who go out and do it.”
5. Apple warns against iPhone production
Apple has temporarily reduced iPhone 14 production at an assembly plant in China due to Covid-19 restrictions.
The Zhengzhou plant is operating at “significantly reduced capacity,” Apple said in a statement Sunday. He warned that he would ship fewer units and that customers would experience longer wait times when ordering devices.
The company’s warning raises the possibility that it will sell fewer iPhones in the December quarter. Apple said it continues to see strong demand for the affected models, which are more expensive than other iPhone models and start at $999 and $1,099.
Last week, China ordered shutdowns in Zhengzhou, where Apple does the majority of its iPhone production. The factory in China has been struggling with employees fleeing the factory due to its policies and Covid outbreaks, according to Reuters.
– CNBC’s Sarah Min, Ashley Capoot, Jonathan Vanian, Lora Kolodny, John Rosevear and Kif Leswing contributed to this report.
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