Here are the main news for investors to kickstart their trading day:
1. December Momentum
On Monday, stocks went up, continuing the positive trend at the end of the year. The Dow Jones Industrial Average increased by about 0.4%, which is more than 150 points. The S&P 500 and the Nasdaq Composite also saw gains, rising by 0.4% and 0.2% respectively.
Although these three major averages have been on the rise for the past six weeks, there are some important economic reports expected later this week that could cause changes. The consumer price index for November will be released on Tuesday, the Federal Reserve’s decision on interest rates is scheduled for Wednesday, and several global central banks will announce their rate decisions on Thursday.
2. Oracle’s Financial Report
After the software giant Oracle released its fiscal second-quarter results, its stock declined by almost 9% during extended trading. Oracle fell short of Wall Street estimates in three out of four key revenue segments. Sales in cloud services and license support, cloud and on-premises licenses, and services all didn’t meet consensus expectations, as per StreetAccount estimates.
However, the company’s smallest revenue division, hardware, exceeded estimates. Even though earnings per share performed well, with an outperformance, the net income also increased by 44% compared to the previous year.
3. Pickups Cut Down
Ford has decided to cut in half its initially planned 2024 production of the F-150 Lightning pickup. This is a significant change for the electric vehicle (EV) that Ford has been promoting as crucial for widespread adoption.
The company now anticipates producing approximately 1,600 electric trucks per week on average at its Rouge Electric Vehicle Center in Dearborn, Michigan, next year. This is a reduction from the earlier production plans of about 3,200.
Ford executives have recently emphasized aligning production with customer demand, which, as observed, hasn’t been as strong as anticipated in the broader EV industry.
4. Discount Discrimination
A recent investigation by the Consumer Financial Protection Bureau (CFPB) across the mortgage banking industry raised concerns about the way loan discounts were being used at Wells Fargo.
The bank received an official notice from the CFPB regarding these discounts and conducted an internal investigation that continued into late this year. The investigation found that the discounts, which could reduce a borrower’s APR by 25 to 75 basis points, were applied with “statistically significant disparities,” putting Black and female customers at a disadvantage.
5. Meeting at the White House
On Tuesday, President Joe Biden will meet with Ukrainian President Volodymyr Zelenskyy at the White House to talk about ongoing support for Ukraine in its struggle against the Russian invasion. The question of additional funding for Ukraine has sparked disagreement among U.S. lawmakers recently.
However, Biden and others have stressed that cutting off aid could give Moscow an advantage over Ukraine. U.S. National Security Spokesman John Kirby stated on Monday that the White House is likely to announce new security assistance for Ukraine before the critical year-end deadline they’ve described.
Summary
The trading day began with positive momentum in the stock market, followed by Oracle’s financial report revealing a stock decline. Ford’s decision to cut F-150 Lightning production marked a shift in EV promotion. Wells Fargo faced scrutiny for loan discount disparities, disadvantaged certain customers. President Biden’s meeting with Ukrainian President Zelenskyy highlights the ongoing debate over additional aid amid the Russian invasion threat.
