5 things to know before the stock market opens Tuesday, December 20

Date:

Traders work on the floor of the New York Stock Exchange during morning trading on December 2, 2022 in New York City.

Michael M. Santiago | Getty Images

Here are the most important news items investors need to start their trading day:

1. Santa breakdown

Stocks have yet to shake off these December blues. They are on track to post a losing month, which would wrap up a year of losses. The three major indices all fell on Monday, setting a harsh tone for the week heading into Christmas. Meanwhile, futures were ubiquitous Tuesday morning after the Bank of Japan surprised investors by easing its limit on bond yields. The move triggered a sell-off in several markets. In terms of revenue, two big names, FedEx and Nike, are set to report after the bell. Read live market updates here.

2. Amazon gives up pandemic profits

Packages go down a conveyor belt at an Amazon fulfillment center on Monday, November 28, 2022 on Cyber ​​Monday in Robbinsville, New Jersey.

Stephanie Keet | Bloomberg | Getty Images

Amazon flourished during the early days of the pandemic. How could it not? People were mostly at home, so they shopped a lot online, spent incentive checks, and money they saved by not commuting on both necessary and fun items. But that didn’t last long, even though Covid is still around, and now Amazon’s shares are back to where they were at the start of the pandemic. The stock is down nearly 50% this year and is on track for its worst year since 2000 — during the dotcom crash. There could be more pain to come, notes CNBC’s Annie Palmer, as Amazon’s outlook for the holiday quarter fell well short of Wall Street expectations.

3. Rough outlook for EVs

U.S. President Joe Biden gestures after driving a Hummer EV during a tour of the General Motors ‘Factory ZERO’ electric vehicle assembly plant in Detroit, Michigan, Nov. 17, 2021.

Jonathan Ernst | Reuters

Motorists are much more optimistic about the near-term outlook for EV adoption than they were a year ago. By 2030, the median expectation for electric vehicle sales in the US is 35% of the new vehicle market, according to a KPMG survey of 900 industry executives. That’s less than 65% last year, and well below the Biden administration’s target of 50%. The new reading reflects concerns about the high cost of materials to make EVs, as well as wider economic concerns, such as higher interest rates and inflation. “There is still a sense of long-term optimism, but more importantly, there is a sense of short-term realism. You see this realism throughout the study,” said Gary Silberg, KPMG global head of automotive.

Read more: EV maker Lucid closes $1.5 billion in Saudi public wealth fund raise, others

4. High-stakes holiday

Target has more than 1,700 toys exclusive to its stores and website this holiday season. It also has a deal to sell items from legendary toy brand FAO Schwarz.

Melissa Repko | CNBC

Target has a lot of driving on this holiday season. The big-box retailer is much bigger than many other retailers under scrutiny, so it could be going through a rough patch. But it needs to turn things around, and soon, after struggling with bloated inventories, three quarters of disappointing earnings and weak current quarter outlook. The company hopes an emphasis on value will save the day — that means larger signs promoting low prices, more aggressive promotion of a price guarantee, and prominent displays with affordable gift options. This strategy could continue beyond the holiday season as the company attempts to rekindle growth.

5. Congress Unveils Funding Bill

Fog envelops the US Capitol building in the early morning hours on November 4, 2022 in Washington, DC.

Samuel Korum | Getty Images

Leaders in Congress released a $1.7 trillion bill to fund the government and avoid a shutdown that was due to begin this weekend. The measure, which is likely to be the last big step business lawmakers will take before Republicans take over the House in the new year, is expected to pass with more bipartisan support in the Senate. The bill also includes more aid for Ukraine as Russia continues its airstrike across the country. However, it does not include child tax credit expansion or immigration provisions as Democrats had hoped. Lawmakers also passed tougher laws designed to prevent another insurgency, such as the January 6, 2021, invasion of the pro-Trump Capitol. That move came on the heels of the January 6 commission that officially referred the former president to the Justice Department for prosecution.

– CNBC’s Tanaya Macheel, Annie Palmer, Michael Wayland and Melissa Repko contributed to this report.

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The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.

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