Here are five important things investors should know to start the trading day:
1. Winning Streak Ends
Stock futures dropped Tuesday morning after the Dow Jones Industrial Average fell over 344 points (0.8%) on Monday, breaking its three-day winning streak. The S&P 500 went down by 0.2%, while the Nasdaq Composite gained about 0.3%.
Wall Street will keep an eye on the third-quarter earnings season, with around 14% of companies having reported results so far. Over 70% have beaten earnings expectations, according to FactSet.
2. GM Exceeds Earnings Expectations
General Motors raised its 2024 forecast after easily beating Wall Street’s third-quarter earnings predictions. The company reported adjusted earnings of $2.96 per share, higher than the $2.43 expected by analysts.
GM’s revenue was $48.76 billion, also beating the estimated $44.59 billion. Strong pricing helped offset losses in China and higher labor and warranty costs.
GM now expects full-year adjusted earnings before interest and taxes to be between $14 billion and $15 billion, or $10 to $10.50 per share, up from its previous estimate of $13 billion to $15 billion, or $9.50 to $10.50 per share. This is the third time this year GM has updated its forecast after beating expectations.
3. Disney’s Leadership Plans
Disney announced that James Gorman will take over as chairman, replacing Mark Parker, starting in January. The company also plans to name a successor for CEO Bob Iger in early 2026.
Although they originally aimed for 2025, pushing the decision to 2026 will give the board more time to carefully evaluate both internal and external candidates, according to sources. Gorman, who joined Disney’s board less than a year ago, became head of the succession planning committee in August. He has prior experience in this role, having overseen Morgan Stanley’s CEO transition earlier this year.
4. Trump’s Tax Reform Plans
Donald Trump‘s tax reform ideas could fully or partially exempt about 93.2 million Americans from income taxes. His official proposals include eliminating income tax on tips, Social Security benefits, and overtime pay. He’s also considering tax exemptions for firefighters, police officers, military personnel, and veterans.
Overall, this could exempt a portion or all of the taxes for around 38% of the 244 million Americans eligible to vote in 2024. However, according to a nonpartisan budget group, these proposals would speed up the timeline for Social Security running out of funds, making it insolvent in six years and increasing the cash shortfall by trillions of dollars.
5. Nike’s Basketball Partnership
Nike will continue to be the exclusive uniform and apparel provider for the NBA and WNBA for the next 12 years. The sneaker company and the leagues announced their renewed partnership on Monday. Nike’s previous contract with the NBA, starting in the 2017-18 season, was reportedly worth $1 billion, but the new deal is “much bigger,” according to a source.
This contract extension comes as Nike’s new CEO, Elliott Hill, works to regain market share and strengthen key partnerships, including deals with the NFL and MLB. Nike’s deal with the NFL ends after the 2027 season, but the league is already talking with other companies interested in bidding for the next contract.
Summary
Today’s main updates include the Dow’s losing streak ending, GM raising its earnings forecast, Disney’s plans for new leadership, Trump’s tax reform ideas that could affect millions, and Nike renewing its partnership with the NBA and WNBA, boosting its role in sports.
