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Here are the most important news items that investors need to start their trading day:
1. December chill
Stocks were on a rocket last month. Now they’re coming down to Earth somewhat. The three major indices were mixed Tuesday, with the Dow falling for a second straight day, the S&P 500 sliding a touch and the Nasdaq posting a slight gain. Markets are still on pace for big gains on the year, though. With earnings season practically over, Wall Street is instead focusing on economic data while expecting the Federal Reserve to cut its benchmark interest rate next year after ramping it up for over a year to fight inflation. The yield on the 10-year Treasury note also ticked lower, falling under 4.2% as job openings came in lower than expected. On the schedule for Wednesday: CEOs of the country’s biggest banks are set to testify before senators starting at 9:30 a.m. ET. Follow live market updates.
2. Soft landing in sight
Workers look on ahead of remarks by US President Joe Biden, not pictured, at an Amtrak facility in New Castle County, Delaware, on November 6, 2023.
Andrew Caballero-Reynolds | Afp | Getty Images
That job openings number, by the way, has economists feeling better about the U.S. economy coming in for a so-called soft landing. That would mean the Fed was able to cool off inflation without causing a recession, resulting in a “Goldilocks”-type situation where the economy is “just right.” More jobs data is on the way, too. Friday brings the nonfarm payrolls report for November. Yet, even if the U.S. doesn’t go into a recession – and some think it could still happen next year – it’ll be hard to convince Americans that things are completely peachy. While inflation has eased a bit, consumer sentiment is low as prices are still higher than they were just a few years ago, and people are paying higher interest on their credit cards.
3. Bitcoin builds
Bitcoin extended its recent tear Tuesday, hitting $44,000 for the first time since April 2022. It’s up more than 150% on the year, at that. A big reason? As CNBC’s Tanaya Macheel reports, optimism is growing that U.S. regulators will approve a spot bitcoin ETF next year. The product would allow people to bet on bitcoin’s moves without actually owning the cryptocurrency itself. There’s also the potential for interest rates coming down, which would certainly open the door to more investors taking risks on nontraditional assets and those with high growth potential.
4. Broadband warning
Sopa Images | Lightrocket | Getty Images
Tuesday wasn’t great for for big cable companies, which are already dealing with customers cutting the TV cord in favor of streaming. Charter Communications shares fell more than 8% after finance chief Jessica Fischer said the company could lose broadband internet subscribers during the current quarter. Charter, which owns Spectrum, saw soft broadband results in October and November, blaming economic headwinds and the company’s since-resolved battle with Disney. Rival Comcast, which owns CNBC parent company NBCUniversal, also saw its shares slide Tuesday, by more than 3%. Comcast has had its own recent struggles on the broadband side of the business, losing 18,000 subscribers in the third quarter.
5. Wall Street’s new ‘not Trump’
Former U.S. Ambassador and S.C. Gov. Nikki Haley addresses a crowd for her 2024 presidential run at USCB’s Sand Shark Recreation Center on Monday, Nov. 27, 2023 in Bluffton.
The Island Packet | Tribune News Service | Getty Images
It’s your turn, Nikki Haley. Wall Street Republican donors have sought in vain to find a viable rival to former President Donald Trump in the 2024 GOP primary. Haley, who herself served in the Trump administration, has emerged as the latest hope for wealthy financiers. Just this week, a swanky fundraiser at the Upper West Side penthouse of Elliott Investment Management executive and ex-Bush administration official Dan Senor and his spouse, former Facebook executive Campbell Brown, netted $500,000 for Haley’s efforts. Whether Haley can surpass Trump among primary voters remains to be seen. Trump, who’s indicted in four separate criminal cases, including for his efforts to overturn the 2020 election, is well ahead of Haley and the dwindling primary field in polls. (The next GOP debate, which will air at 8 p.m. ET Wednesday on NewsNation, will include Haley, Florida Gov. Ron DeSantis, former N.J. Gov. Chris Christie and businessman Vivek Ramaswamy.)
– CNBC’s Lisa Kailai Han, Greg Iacurci, Tanaya Macheel, Drew Richardson and Brian Schwartz contributed to this report.
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