Here are the most important news for investors starting their trading day:
1. Scary October
In October, the stock market didn’t do very well. The Dow and the S&P 500 went down by 1.4% and 2.2%, respectively. This was the first time both indexes had a losing streak of three months since March 2020. The Nasdaq, which has a lot of technology companies, also had a tough time and fell by 2.8% in October.
This was the third month in a row that it went down. But there’s still some hope for investors. November has typically been a good month for the stock market. The time of year might help boost the market, but it also depends on how well government bond interest rates do from now until then, and on what the Federal Reserve decides to do today.
2. Two Big Things Happening
Normally, the financial markets don’t pay much attention to the Treasury Department selling off government debt. But these days, things are different. Both the bond and stock markets have been acting unpredictably because people are worried about too much debt being sold when the Federal Reserve is trying to control the amount of money in the economy.
As government debt, budget deficits, and interest rates have all gone up, investors are more curious than usual about how the government plans to handle its borrowing. This makes Wednesday a day with two significant events. The Treasury Department will announce its plans for borrowing at 8:30 a.m. ET, and later in the day at 2 p.m. ET, the Federal Reserve will decide on interest rates.
3. JetBlue’s Tough Times
On Tuesday, the stock price of JetBlue Airways fell by more than 10%, reaching its lowest point in nearly 12 years. This drop happened because the company expects to lose money in the fourth quarter of the year. At the same time, JetBlue is getting ready to defend its plan to buy Spirit Airlines, a budget airline.
The U.S. Department of Justice has taken legal action against this proposed $3.8 billion purchase, which would make the combined company the fifth-largest airline in the United States. The government’s concern is that this deal could lead to higher ticket prices and fewer options for travelers on various routes across the country. On the other hand, JetBlue argues that it needs to get bigger to compete with other large airlines.
4. Bud Light’s Sales Troubles Continue
Anheuser-Busch InBev, the world’s largest beer maker, did better than expected in the third quarter, but its revenue dropped by almost 14% in its biggest market, the United States, from July to September. This decline is mainly due to ongoing problems with Bud Light sales.
The trouble began earlier this year when some conservative groups called for a boycott of Bud Light after the company partnered with a transgender influencer named Dylan Mulvaney. Now, Anheuser-Busch wants to change its approach and focus on promoting its products at events like sports and music, which it believes will be less controversial, in the hope of improving sales.
5. SBF’s Legal Case Progresses
FTX founder Sam Bankman-Fried is now waiting for a jury to make a decision in his legal case. He finished giving his testimony during the trial, which lasted for three days, and the defense team also finished presenting their side of the case. Starting on Wednesday, the jury will listen to arguments and evidence.
Sam Bankman-Fried, who is 31 years old, is facing serious fraud charges related to the failure of the crypto exchange FTX and the hedge fund Alameda Research late last year. If he’s found guilty, he could potentially be sentenced to life in prison. Bankman-Fried has denied all the charges and, during his testimony, tried to place the blame for the collapse on others.
Summary
Investors should be aware of the challenging October market, the Treasury Department’s debt handling, JetBlue’s stock decline, Bud Light sales issues, and FTX founder Sam Bankman-Fried’s ongoing legal case, which carries significant consequences.
