Here are the most important news, trends and analysis investors need to start their trading day:
1. Wall Street looks stable after more retail profits, near record close
Traders work on the floor of the New York Stock Exchange (NYSE) on November 15, 2021 in New York City.
Spencer Platt | Getty Images
US equity futures were relatively flat on Wednesday, a day after strong retail earnings propelled Wall Street higher. The S&P 500 and Nasdaq closed on Tuesday just ahead of their record-breaking November 8 close. The Dow Jones Industrial Average, helped by Home Depot‘s 5.7% advance, also rose, but needed to gain more than 0.8% to break its closing high on November 8. Dow Boeing stock climbed 1.5% on Wednesday before market after the company received an order from India’s Akasa Air for 737 Max jets worth $ 9 billion. Bitcoin topped $ 60,000 again on Wednesday, but remained around 13% of last week’s record.
2. Target achieved for trying to keep prices low; Lowe’s gets a boost on good results
Retail profits continued on Wednesday, with Target reporting higher than estimated third-quarter earnings and revenue. The big box retailer has raised its forecast. But like Walmart on Tuesday, Target investors worried about margins as the company absorbed some of the higher costs of supply chain disruptions and labor shortages rather than passing them on to consumers. Target stocks fell more than 3% in pre-market.
A day after Home Depot’s strong quarterly results, Lowe’s reported higher than expected fiscal third quarter earnings and revenue. The home improvement chain has gotten a boost from home professionals and online sales. Like Home Depot, Lowe’s quarterly percentage increases in same-store sales exceeded estimates, but weren’t as large as the Covid-fueled nesting trend a year ago. Lowe’s has raised its revenue forecast for the full year. Shares rose 3% in the pre-market.
3. Bond yields remain high ahead of key real estate data
A contractor works on the roof of a house under construction in the Stillpointe subdivision in Sumter, South Carolina, United States on Tuesday, July 6, 2021. Pending home sales in the United States unexpectedly increased in May by the most in nearly a year due to low borrowing costs coupled with an increase in listings has supported demand.
Bloomberg | Getty Images
The 10-year Treasury yield held above 1.6% on Wednesday morning ahead of the 8:30 a.m. ET government release of October housing starts and building permits. Economists expect housing starts to rise 1.6% to an annual rate of 1.58 million units, from a drop of 1.6% in September. Permits in October are expected to increase 2.6% to an annual rate of 1.63 million after declining 7.7% the previous month. Homebuilder confidence beat expectations on Tuesday as buyer demand remains high.
4. Biden to visit GM electric vehicle plant to sell infrastructure spending
A sign is unveiled at General Motors Detroit-Hamtramck Assembly on October 16, 2020, featuring the facility’s new name: Factory Zero, Detroit-Hamtramck Assembly Center.
President Joe Biden is expected to visit a General Motors plant in Detroit that makes electric vehicles on Wednesday, as he continues to sell the benefits of the recently signed two-party $ 1,000 billion infrastructure package. Biden is expected to highlight $ 7.5 billion in the new law for electric vehicle chargers. The GM plant the president will visit was set to close in 2018 as the automaker tried to get rid of excess capacity at the plant. The facility, which had been building internal combustion engine vehicles since it opened in 1985, was saved a year later and designated Factory Zero to build zero-emission electric vehicles.
5. The market value of electric vehicle start-up Lucid overtakes Ford
People test drive Dream Edition P and Dream Edition R electric vehicles at the Lucid Motors plant in Casa Grande, Ariz. On September 28, 2021.
Caitlin O’Hara | Reuters
As traditional automakers increase their electric vehicle offerings, investors are making an offer to a host of new electric vehicle entrants like the Lucid Group. The stock, which began trading in July, jumped nearly 24% on Tuesday after executives said reservations for its first vehicles jumped and its production plans for 2022 were still on track. . This move in the stock price pushed Lucid’s market value to $ 89.87 billion, and the stock rose again during Wednesday’s pre-market. It’s almost as high as GM and higher than Ford. Lucid CEO Peter Rawlinson, a former Tesla executive, told CNBC on Tuesday night that the automaker aims to expand its factories in China and the Middle East by the middle of the decade.
– The Associated Press contributed to this report. Follow all market actions like a pro on CNBC Pro. Get the latest pandemic news with CNBC’s coronavirus coverage.