Here are the main news points that investors should know as they start their trading day:
1. Winning Streak Into Shortened Week
Stocks are on the rise as we head into a shorter trading week due to the holiday. The major U.S. indexes have all been doing well for three weeks in a row, a first since the summer.
Last week, the Dow Jones Industrial Average went up by 1.9%, and the S&P 500 and Nasdaq Composite increased by 2.2% and 2.4%, respectively.
The stock market will be closed on Thursday for Thanksgiving and will close early at 1 p.m. ET on Friday. The positive momentum is partly due to lower-than-expected inflation in October, raising hopes that the Federal Reserve might not need to raise interest rates further to control high prices.
2. Altman Joins Microsoft
Just two days after OpenAI surprised the tech community by removing CEO Sam Altman, the prominent figure in the AI world has found a new position. Satya Nadella, the CEO of Microsoft, announced on the social media platform X that Altman will lead an advanced AI team at Microsoft.
At the same time, OpenAI revealed that it has appointed former Twitch CEO Emmett Shear to temporarily lead the company.
This development follows a tumultuous period during which OpenAI investors advocated for Altman’s return to the company. Now, Altman has landed at Microsoft, where Nadella stated that the company will provide him, along with former OpenAI executive Greg Brockman and other new hires, with the necessary resources for their success. Altman confirmed the move in a post on X, stating, “The mission continues.”
3. Earnings Wrap-Up
Almost all S&P 500 companies have shared their third-quarter earnings, but a few businesses reporting this week will give important insights into the economy and U.S. consumer behavior. Nvidia, closely watched this year due to its strong performance in the AI sector, will draw even more attention to its results on Tuesday after the recent change in leadership at OpenAI.
Major retailers like Lowe’s, Best Buy, and Abercrombie & Fitch will announce their earnings on Tuesday morning, providing insights into how companies are doing during the crucial holiday quarter.
As of Friday, third-quarter earnings for S&P companies had increased by 6.6% compared to the same period last year, but revenue had only gone up by 1.4%. Here are the key companies reporting this week:
- Tuesday (Before the Bell): Lowe’s, Best Buy, Dick’s Sporting Goods, Abercrombie & Fitch, American Eagle Outfitters
- Tuesday (After the Bell): Nvidia, Nordstrom, HP
4. Extended Black Friday Deals
The traditional Black Friday, occurring the day after Thanksgiving, has been known for offering discounts to smart holiday shoppers. However, its significance has diminished a bit for deal-seeking consumers.
According to data from Adobe Analytics, retailers provided more early Black Friday promotions in October compared to previous years. Discounts on items like clothing, appliances, computers, furniture, and TVs were higher this October compared to 2022 and 2021, while discounts on electronics and toys were lower.
The early promotions might indicate that retailers are concerned about holiday season demand, partly because shoppers, affected by inflation, have grown accustomed to finding good deals.
5. Cruise CEO Steps Down
The CEO of Cruise, a robotaxi company owned by General Motors, has resigned. Kyle Vogt did not provide a specific reason for his departure but mentioned his intention to “spend time with [his] family and explore some new ideas.”
His resignation comes after a challenging time for the company, marked by a voluntary recall of nearly 1,000 vehicles and the suspension of operations on public roads. Incidents, such as a Cruise car colliding with a pedestrian, drew increased regulatory attention to the company.
Summary
As investors navigate the trading day, key highlights include a three-week stock market upswing and positive momentum driven by lower-than-expected October inflation. Former OpenAI CEO Sam Altman joins Microsoft’s advanced AI team after a brief leadership change. Additionally, upcoming earnings reports and insights into holiday consumer trends, along with early Black Friday promotions, shape the economic landscape. Cruise faces challenges as its CEO resigns amid a series of incidents, including a vehicle recall and increased regulatory scrutiny.
