Here are the main things investors should know before they start trading today:
1. Steady as She Goes
This morning, the outlook for stocks is positive as major indexes aim for their third consecutive week of growth. Futures linked to the Dow Jones Industrial Average went up by around 80 points, or 0.24%. Also, S&P 500 futures increased by 0.2%, and Nasdaq 100 futures remained mostly unchanged.
For the week, the Dow rose by 1.9%, the S&P 500 by 2.1%, and the Nasdaq by 2.3% until Thursday’s closing.
2. Deflation Nation
Walmart suggests that Christmas might be more affordable this year. The CEO, Doug McMillon, mentioned during the quarterly earnings report that the company anticipates lower prices for certain general merchandise and important grocery items.
He mentioned, “In the U.S., we might be dealing with a period of deflation in the upcoming months,” and added that despite the challenges it poses, they welcome it because it benefits their customers. However, the company’s stock dropped by 8% on the day due to this cautious prediction.
3. High Demand for Boeing
Boeing, the airplane maker, received an impressive 295 orders during the four days of the 2023 Dubai Air Show. In comparison, its French competitor Airbus secured only 86 orders, as per reports from the companies and independent counts.
The annual aviation event in the Middle East attracts numerous orders for jets, and this year, there was a notable interest in wide-body planes. Boeing’s success at the show signals a significant recovery after facing safety concerns in previous years.
4. Agreement Approved at General Motors
The union workers at General Motors officially accepted a labor deal with the United Auto Workers, as announced in the union’s Thursday posting of results. The agreement secured 54.7% of the nearly 36,000 votes cast, with all local chapters contributing to the count. The voting process faced challenges in the last days, with some major plants rejecting the contracts.
However, enough support from workers at smaller facilities ensured the ratification. Union workers at Ford Motor and Stellantis are still in the process of voting on similar contracts, and currently, about two-thirds of each automaker’s voting population has endorsed these agreements.
5. Debt Relief
A growing number of individuals with student loans are finding relief through bankruptcy proceedings, a shift influenced by a policy adjustment by the Biden administration aimed at aiding those facing financial challenges due to debt.
Since the policy change ten months ago, over 630 bankruptcy cases have been filed by student loan borrowers, showing a notable increase compared to previous years, as reported by officials from the Biden administration.
Associate Attorney General Vanita Gupta stated on Thursday, “Our efforts have had a real impact on borrowers’ lives.” It’s worth noting that outstanding student debt in the U.S. now exceeds $1.7 trillion, and economists suggest that this increasing debt burden could potentially slow down the U.S. economy.
Summary
Today’s trading outlook is positive with major stock indexes on track for a third consecutive week of growth. Walmart predicts a more affordable Christmas, while Boeing outshines Airbus with 295 orders at the Dubai Air Show. General Motors’ labor deal is approved, and a rising number of student loan borrowers find relief through bankruptcy amid a policy change. The impact on the U.S. economy is a concern with outstanding student debt exceeding $1.7 trillion.
