Here are the most important news for people who invest and trade:
1. Market Correction
The stock market, specifically the S&P 500, is not doing well right now. It has dropped more than 10% from its highest point this year. This means it’s in a correction phase, similar to the Nasdaq.
Additionally, it’s on track to have three months in a row with losses, something that hasn’t happened since 2020. Whether things will improve depends on some significant events this week. The Federal Reserve will decide on interest rates on Wednesday, and we’ll get the job numbers for October on Friday. There are also some important company earnings reports expected in the coming days.
On Monday morning, futures, which are predictions of how the market will perform, were showing higher numbers.
2. Ride the Earnings Wave
This week, there are many big companies sharing their earnings. It all starts with McDonald’s on Monday morning, and later in the day, Pinterest will report its earnings. These are just a few of the major companies reporting this week.
On Tuesday, we’ll hear from Pfizer and Jetblue in the morning, and in the evening, Advanced Micro Devices will report.
Wednesday brings earnings reports from Kraft Heinz and Yum Brands in the morning, and Qualcomm and Airbnb in the evening.
Thursday’s lineup includes Starbucks, Eli Lilly, and Moderna in the morning, while Apple and Paramount Global will report in the evening.
On Friday, Restaurant Brands will share its earnings in the morning.
Lastly, on Saturday, we’ll hear from Berkshire Hathaway.
3. Odd Automaker Out
As the weekend approached, it seemed like General Motors was very close to reaching an agreement with the United Auto Workers to end a six-week strike. However, in a surprising turn of events, it was Stellantis that managed to finalize a deal during weekend negotiations, just like Ford had previously.
Instead of resolving issues with General Motors, the UAW decided to expand their strikes to include an assembly plant in Spring Hill, Tennessee. It remains to be seen if this move will help General Motors reach an agreement with the union.
On a related note, Stellantis still faces some challenges because the Canadian union Unifor initiated a strike at the company’s plants in Canada, impacting over 8,200 workers and the production of Dodge muscle cars.
4. Ready to Walk
Employees at major pharmacy chains like Walgreens in the United States are experiencing high levels of stress and feeling overwhelmed. Some of them have reached a point where they can’t take it anymore, and they’re expressing their frustration through temporary walkouts.
Pharmacists and pharmacy technicians at Walgreens, CVS, and other retail pharmacy stores are planning to participate in these walkouts from Monday to Wednesday, at various times and locations nationwide.
This could potentially impact a significant number of stores, according to one of the organizers who spoke with CNBC’s Annika Kim Constantino. Representatives from both Walgreens and CVS have stated that they are actively working to support their employees and address their concerns.
5 The White House Discusses AI
On Monday, President Joe Biden issued a special directive focused on artificial intelligence. His administration is determined to tackle a wide range of challenges associated with this rapidly advancing and increasingly used technology. This directive, according to the White House, is the first of its kind created by the government.
It covers concerns related to privacy breaches, allegations of bias, and the protection of labor and healthcare. However, it’s uncertain what kind of effect this order will have. There are particular concerns about AI’s potential to create misleading images and text, especially in light of events like the conflicts in Gaza and Ukraine, as well as the upcoming 2024 U.S. election campaign.
Summary
This week, the stock market is struggling, major companies are sharing their earnings, there are labor strikes in the auto industry, pharmacy employees are walking out due to stress, and the White House is addressing AI concerns with new rules.
