Traders work on the floor of the New York Stock Exchange (NYSE) in Manhattan, New York, U.S., November 11, 2022.
andrew kelly | Reuters
Here are the most important information investors need to start their trading day:
1. Holiday disappointment
Shares fell into a funk on Wednesday as investors digested a dismal earnings report from a major retailer Target. While the actual results weren’t so hot, it was Target’s holiday season warning that seemed to drag everyone down. Target’s caution has highlighted one of the biggest shifts in the economy as Americans shake off more than two years of pandemic life. Right now, people seem to be prioritizing services and experiences like travel over buying more stuff, even at very low prices. Beyond that, however, market watchers try to get a solid idea of the state of the American consumer, but it’s elusive. Read live market updates here.
2. Nvidia’s Fairly Good Report
The logo of Nvidia Corporation is seen during the annual Computex computer exhibition in Taipei, Taiwan, May 30, 2017.
Tyrone Siu | Reuters
Manufacturer of chips and software Nvidia posted earnings below Wall Street expectations, but its revenue beat forecasts. The company supplies numerous computer manufacturers and cloud providers, making it a closely watched indicator for the tech industry. While Nvidia said sales of its gaming division fell 51% from the prior year period, due to macroeconomic conditions, the company’s data center business saw sales growth of 31%. %. Overall, investors welcomed the report. Nvidia shares rose more than 1% in after-hours trading.
3. Starbucks sees red
Official Starbucks reusable red mug, left, and Starbucks Workers United red mug.
Source: Starbucks; Starbucks United Workers
Starbucks Workers United, the union representing baristas at a growing number of the coffee giant’s cafes, plans to strike Thursday at more than 100 locations across the country. Thursday is also Starbucks‘ Red Cup Day, when the company hands out holiday-themed reusable red cups to customers. The union will hand out its own red mugs that feature what looks like the Grinch’s hand holding an ornament with the union logo. More than 250 Starbucks locations have voted to unionize in the past 12 months, defying Starbucks CEO Howard Schultz, who has come out against unions. The union said it was on strike at the scene to draw attention to Starbucks’ alleged union busting and other tactics. The company denied allegations of unfair labor practices. Starbucks operates approximately 9,000 locations in the United States.
4. GOP wins the house
US House Republican Leader Kevin McCarthy (R-CA) arrives to address supporters during a 2022 House Republicans midterm election party in Washington, USA, on November 9, 2022.
Tom Brenner | Reuters
It took a little over a week, but it is now confirmed that the Republican Party will take control of the House of Representatives in January, while the Senate will remain in the hands of the Democrats. It means Nancy Pelosi’s days as Speaker of the House are likely over for good as the 82-year-old Democratic leader considers her next steps while her husband recovers from a brutal hammer attack. (Pelosi is expected to discuss his future on Thursday.) California Republican Kevin McCarthy, who had served as the House Minority Leader for the past few years, is set to take the president’s gavel. The House majority will give the GOP an effective veto over President Joe Biden’s bigger agenda items over the next two years, but the party also faces deep divisions within the party, as former President Donald Trump’s loyalists will seek to assert themselves.
5. Russia attacks Ukraine’s energy grid
Firefighters work to put out a blaze after two residential buildings were hit in the Pechersk district of Ukraine’s capital Kyiv on November 15, 2022.
Anadolu Agency | Anadolu Agency | Getty Images
Russia launched another missile barrage on Ukraine, specifically targeting the country’s energy grid. Russian attacks have already caused significant damage to infrastructure in Ukrainian cities, even as Ukrainian forces advance on the battlefield, retaking territories claimed by Moscow’s armies. Russian missiles also hit residential areas. “The enemy thinks they will weaken our defense with energy strikes and can hit us in the back. This is a naive tactic of cowardly losers that we are ready for,” said senior Ukrainian official Andriy Yermak . Read live war updates here.
– CNBC’s Alex Harring, Kif Leswing, Amelia Lucas, Kevin Breuninger and Holly Ellyatt contributed to this report.
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