Traders on the NYSE floor, October 21, 2022.
Source: New York SE
Here is the key news investors need to start their trading day:
1. You want income? We have income.
It’s the biggest week yet for this earnings season, especially for megacap tech names. Google parent Alphabet, Microsoft, Facebook parent Meta, Apple and Amazon are all said to provide quarterly reports. Companies have generally reported solid results, with some exceptions. This trend has added to market volatility as investors search for a bottom. Stocks rose on Friday to cap their best week since June, even as the Federal Reserve prepares to hike interest rates again while inflation remains hot. (Follow live market updates.) Here are the top companies reporting this week:
- Tuesday: General Motors, Coca-Cola, UPS, JetBlue (before the bell); Alphabet, Microsoft, Mattel (after the bell)
- Wednesday: Boeing, Kraft Heinz (in front of the bell); Meta, Ford (after the bell)
- Thursday: McDonald’s, Comcast, Southwest (in front of the bell); Amazon, Apple, Intel (after the bell)
2. Xi tightens his grip on China
China’s President Xi Jinping (R) talks with former President Hu Jintao as he is ushered out of the closing ceremony of the 20th Congress of the Chinese Communist Party at the Great Hall of the People in Beijing October 22, 2022.
Noël Celis | AFP | Getty Images
China’s ruling Communist Party concluded its congress this weekend, leaving no doubt about President Xi Jinping’s authority. He is up for a third term as president and is poised to stay longer as the core leadership group around him is now even more loyalist. The changes also suggest the country’s government is placing more emphasis on its increasingly strained relationship with the United States, according to political analysts studying China. Then there’s the mystery of Hu Jintao, China’s former leader, who was publicly removed from his seat next to his successor Xi and ushered out of the party’s congress on Saturday. As he was pulled away, Hu spoke to Xi, who seemed more focused on the meeting. China has not explained the Hu incident.
Continue reading: Stocks of major Chinese companies fall after Xi’s rise to power
3. The race for the British prime minister is solving itself
Conservative leadership candidate Rishi Sunak meets with supporters as he attends a Hustings event, part of the Conservative Party’s leadership campaign, in Birmingham, Britain, August 23, 2022.
Phil Edel | Reuters
For a minute, it looked as if Boris Johnson wouldn’t actually return to 10 Downing Street two months after his departure. His successor, Liz Truss, resigned as prime minister in an even more embarrassingly spectacular way than Johnson did after his scandal-plagued tenure, and Johnson had previously hinted he could return. But he withdrew from the race for the Conservative leadership over the weekend, paving the way for Rishi Sunak, his former finance minister, to take the reins. Sunak had finished second to Truss in her summer race after she rolled back her economic plans that included steep tax cuts. Markets rebelled when her government actually proposed such an economic package as Britain grappled with a cost-of-living crisis and high levels of wealth inequality, and Truss pulled out. Now investors are looking to Sunak for stability.
4. US Blames Russia Over “Dirty Bomb” Claims
An electrician works to repair a power line damaged by shelling over a former battlefield during the Russian attack on Ukraine in Kharkiv region, Ukraine October 21, 2022.
Clodagh Kilcoyne | Reuters
Russian authorities have circulated claims that Ukraine is preparing to use a so-called dirty bomb, a device capable of poisoning a region with radioactivity without a nuclear explosion. US Secretary of State Antony Blinken and other critics denounced Russia’s “obviously false” message as a pretext for a possible escalation as Vladimir Putin’s ground forces lose ground to Ukraine’s military. Meanwhile, a million Ukrainians are without power after a spate of Russian strikes on cities and infrastructure. Read live war updates here.
5. “Black” magic at the box office
Dwayne Johnson stars in Warner Bros.’ “Black Adam.”
Dwayne “The Rock” Johnson and Warner Bros. pulled quite a spell at the weekend box office. Superhero film Black Adam had its best opening weekend for a film since July with domestic earnings of $67 million. It’s a relief to cinemas, which have been yearning for a big, blockbuster-style film since Thor: Love and Thunder and Top Gun: Maverick have trotted out their lucrative lanes. But the victory can be short-lived. Superhero movies tend to have pretty big dropoffs on their second release weekends, and Black Adam is still yet to recoup a reported $200 million budget. The true test of box office prowess will come on November 11th when the highly anticipated Black Panther: Wakanda Forever hits theaters.
And something else …
Bryce Harper #3 of the Philadelphia Phillies celebrates with teammates after defeating the San Diego Padres in game five to win the National League Championship Series at Citizens Bank Park on October 23, 2022 in Philadelphia, Pennsylvania. (Photo by Michael Reaves/Getty Images)
Michael Reaves | Getty Images Sports | Getty Images
The World Series is set. The surprise Philadelphia Phillies, who defeated the San Diego Padres in five games, will take on American League juggernauts the Houston Astros, who defeated the New York Yankees. Game 1 is scheduled for Friday. While the Astros are the favorites, here at 5 Things we’re willing to bet a DiNic roast pork sandwich that the Phillies will put up at least one good fight.
– CNBC’s Carmen Reinicke, Evelyn Cheng, Hannah Ward-Glenton, Natasha Turak, and Sarah Whitten contributed to this report.
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