Andrew Kelly | Reuters Here are the most important news investors need to start their trading day:
1. Cruising the holidays
Stocks fell into a funk on Wednesday as investors digested a dismal earnings report from major retailer Target. While the actual results weren’t all that hot, it was Target’s holiday season alert that seemed to have everyone hooked. Target’s attention underscored one of the biggest changes in the economy as Americans shake off more than two years of pandemic life. For now, people seem to prefer services and experiences like travel over buying more stuff, even at deep markups. Beyond that, though, market watchers are trying to put a firm spin on the state of the American consumer, but it’s elusive. Read live market updates here.
2. Pretty good reference by Nvidia
The logo of Nvidia Corporation is seen during the annual Computex computer show in Taipei, Taiwan on May 30, 2017. Tyrone Siu | Reuters Chip and software maker Nvidia posted earnings that fell short of Wall Street expectations, but revenue beat forecasts. The company supplies many PC manufacturers and cloud providers, making it a closely watched benchmark for the technology industry. While Nvidia said its gaming division’s sales fell 51% from the year-ago period due to macroeconomic conditions, the company’s data center business posted a 31% sales increase. Overall, investors took the report with a grain of salt. Shares of Nvidia rose more than 1% in after-hours trading.
3. Starbucks sees red
Official Starbucks red reusable cup, left and red cup from Starbucks Workers United. Source: Starbucks; Starbucks Workers United Starbucks Workers United, the union that represents baristas at a growing number of the coffee giant’s coffee shops, plans to strike Thursday at more than 100 locations across the country. Thursday is also Starbucks Red Cup Day, when the company gives customers reusable holiday-themed red cups. The union will be giving out their own red cups that will feature what looks like a Grinch hand holding a union logo ornament. More than 250 Starbucks locations have voted to unionize in the past 12 months, defying Starbucks CEO Howard Schultz, who has advocated against unions. The union said it is striking the locations to call attention to alleged union busting and other Starbucks tactics. The company has denied allegations of unfair labor practices. Starbucks operates approximately 9,000 locations in the United States.
4. The GOP wins the House
U.S. House Republican Leader Kevin McCarthy (R-CA) arrives to address supporters at a 2022 U.S. House Republican Midterm Election Party in Washington, U.S., November 9, 2022. Tom Brenner | Reuters It took just over a week, but now it’s confirmed that the Republican Party will take control of the House of Representatives in January, while the Senate will remain in Democratic hands. That means Nancy Pelosi’s days as speaker of the House are likely to be 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 her future on Thursday.) California Republican Kevin McCarthy, who has been the House minority leader for the past several years, is poised to take the speaker’s gavel. The House majority will give the GOP an effective veto on the most ambitious items on President Joe Biden’s agenda over the next two years, but the party must also contend with sharp divisions at home as loyalists to former President Donald Trump seek to impose themselves .
5. Russia attacks Ukraine’s energy grid
Firefighters work to extinguish a fire after two residential buildings were hit in the Pechersk district of the Ukrainian capital Kyiv on November 15, 2022. Anadolu Agency | Anadolu Agency | Getty Images Russia has launched yet another missile barrage in Ukraine, specifically targeting the country’s energy grid. Russian attacks have already caused significant damage to infrastructure in Ukrainian cities, even as Ukrainian forces make progress on the battlefield, seizing territory that had been claimed by Moscow’s armies. Russian missiles also hit residential areas. “The enemy believes that he will weaken our defenses with energy strikes and be able to hit us in the back. This is a naive tactic of cowardly losers that we are ready for,” said top 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. — Join the CNBC Investing Club now to follow Jim Cramer’s every stock move. Follow the broader market action like a pro on CNBC Pro.
