5 things to know before the stock market opens Tuesday, October 25

Traders on the floor of the NYSE, October 21, 2022.

Source: NYSE

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

1. Plenty to chew

2. General Motors remains stable

General Motors CEO Mary Barra speaks to reporters as they await the arrival of President Joe Biden during the North American International Auto Show media day in Detroit, Michigan on September 14 2022.

Rebecca Cook | Reuters

GM posted another big hit on earnings while lacking slightly on revenue. It’s been pretty trending lately for the Big Three Detroit automaker. More importantly, however, the company maintained its earnings outlook for the year. CEO Mary Barra said GM is sticking to its guidelines because “demand continues to be strong for GM products and we are actively managing the headwinds we face.” An interesting nugget: GM Financial posted lower profits, a reversal from the early days of the Covid pandemic, when consumers financed vehicles at low interest rates. Now rates are higher as the Federal Reserve tries to fend off runaway inflation.

3. New PM, same issues

Conservative leadership candidate Rishi Sunak arrives at the Broadcasting House ahead of his Sunday appearance on the BBC with the Laura Kuenssberg show in London, Britain September 4, 2022.

Phil Noble | Reuters

Rishi Sunak becomes British Prime Minister deal with several big problems at once. The government must plug a £45billion hole in public finances, while dealing with the cost of living crisis caused by decades-high inflation. He will also have to deal with a dissatisfied workforce that has launched strikes in recent months in several sectors, including lawyers and railway workers. Then there are political divisions, both within the nation and within his own Conservative Party. The Tories are fractured despite having a majority in Parliament, and Sunak is the third prime minister this year alone, so many in Britain are calling for a general election. But the only way before the early 2025 deadline for a wider vote is if the Conservatives accept it – and their chances of victory don’t look so high right now.

4. Adidas finally had enough

Rapper Kanye West smiles during a meeting with US President Donald Trump to discuss criminal justice reform at the White House in Washington, October 11, 2018.

Kevin Lamarque | Reuters

Adidas has ended its partnership with Ye, aka Kanye West, after weeks of pressure from numerous groups, including the Anti-Defamation League, to act on the rapper’s anti-Semitic remarks. The decision is effective immediately. “Adidas does not tolerate anti-Semitism and any other type of hate speech,” the company said in a statement. “Ye’s recent comments and actions have been unacceptable, hateful and dangerous, and they violate the company’s values ​​of diversity and inclusion, mutual respect and fairness.” Adidas had put his relationship with Ye under scrutiny earlier this month, and the rapper and fashion mogul taunted the company for its inaction: “I can say anti-Semitic things, and Adidas can’t let me go. And now ?” Well, we have the answer.

5. UPS sticks to its outlook

A United Parcel Service driver unloads a package in the Lincoln Park neighborhood of Chicago, Illinois, U.S., Monday, Nov. 30, 2020.

Christophe Dilts | Bloomberg | Getty Images

It could be a “very buoyant” macroeconomic environment, according to United Parcel Service CEO Carol Tomé, but the shipping giant on Tuesday reaffirmed its outlook for this year. UPS revenue published in the third quarter which came in just below Wall Street expectations, but its bottom line easily exceeded them. Revenue from the US segment, the company’s largest, rose largely due to higher shipping rates, which also boosted UPS’s international business. Revenue from the company’s supply chain solutions business, however, fell due to a decline in air and ocean freight transportation.

– CNBC’s Samantha Subin, Michael Wayland, Karen Gilchrist, Jenni Reid and Jack Stebbins contributed to this report.

Register now for the CNBC Investing Club to follow Jim Cramer’s every stock market move. Follow the evolution of the market like a pro on CNBC Pro.

Leave a Comment

Your email address will not be published. Required fields are marked *