Here are the key news highlights that investors should consider as they kick start their trading day:
1. A Brief Respite
September was not kind to the stock market, maintaining its reputation for volatility. But there was hope on Monday when stocks closed higher, ending a four-day losing streak.
However, it is still worth noting that we are heading towards a month of negative growth. Looking ahead to Tuesday, the future points to a potentially difficult day. We also expect earnings season to begin in a few weeks as we approach the end of the third quarter.
On Tuesday, investors will also closely follow the Federal Reserve’s new consumer confidence data and new home sales data. In politics, the possibility of a one-day government shutdown is increasing as a majority of House Republicans try to approve the bill. Please pay attention to business time updates.
2. Politics and culture
The situation will become official after the United Auto Workers’ ongoing strike against Detroit automakers failed to find a solution. President Joe Biden is scheduled to travel to Michigan on Tuesday to join officials on the picket line.
United Auto Workers President Sean Fein is expected to join Biden, who advocates that automotive companies share their huge profits with workers. The United Auto Workers, in particular, did not support Biden. Similarly, former President Donald Trump, who will make harsh decisions against Biden next year, plans to hold his own rally in Michigan on Wednesday to exploit the division among union members.
However, the White House says Trump’s plan will not affect Biden’s decision. Press Secretary Karine Jean-Pierre explained: “The decision to visit the truck line is based on his own desire. That’s what the president wants; to stand in solidarity with auto workers.”
3. Reorganization in Space
Space company ‘Blue Origin’ founded by Jeff Bezos, will have a new CEO before the end of the year. In an announcement Monday, the company informed employees that Bob Smith will resign in December. He will be replaced by Amazon executive Dave Limp, Bezos’ previous CEO.
During his time at Amazon, Bezos worked closely with Limp on several major projects, including Alexa and Project Kuiper, the company’s internet satellite initiative.
The leadership change comes as Blue Origin struggles to catch up with Elon Musk’s SpaceX, which has become a dominant force in the aerospace industry.
4. Apple on the stand
One of Apple’s most influential executives will testify on Tuesday. The Justice Department is trying to charge Alphabet’s Google with violating online search by consent. Eddy Cue, Apple’s vice president of services, is expected to testify confirming that Apple chose Google search as an option on its iPhones because of its superior performance.
Cue was responsible for negotiating the deal with Apple, for which Google paid Apple billions of dollars.
Analysts estimate that this amount could reach up to $19 billion this year alone. The plan is one of the most important in the tech industry, but many of its details remain secret even as the government examines it through ongoing testing.
5. Where to Go
While the entertainment industry welcomed the special agreement between the Writers Guild of America and Hollywood studios, investors reacted positively, pushing up shares of film companies. AMC, Cinemark and IMAX shares rose Monday following the news.
But Hollywood still faces challenges. While the actors continue to strive for the production to be good, the agreement awaits the author’s approval. Elsewhere, the SAG-AFTRA actors union is preparing to shut down, with actors and actresses making the video, this time in the video game industry. Vote a lot through protest.
As investors start their trading day, September’s stock market volatility continues, briefly halted by Monday’s rebound. Negative growth for the month looms, with challenges ahead, including Federal Reserve data, a potential government shutdown, and the United Auto Workers strike.
Blue Origin undergoes leadership changes, and Apple’s Eddy Cue testifies in the Google antitrust trial. While Hollywood’s Writers Guild agreement boosts film companies, challenges persist, and SAG-AFTRA actors prepare to protest in the video game industry.