5 things to know before the stock market opens on Monday

5 things to know before the stock market opens on Monday

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, October 14, 2022.

Brendan McDermid | Reuters

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

1. Volatility and profits

Last week, economic data fueled market volatility. Inflation remains scorching, so it doesn’t look like the Federal Reserve will scale back on its aggressive efforts to cool the economy. This week, earnings season is accelerating. Investors will be able to see how companies are managing high costs and price-conscious consumers, while watching how the strong dollar is weighing on business overseas. You can follow live market coverage here. Meanwhile, Bank of America reported on Monday (more on that below). Here are some of the other big names set to report this week:

2. Let’s try again, okay?

Jeremy Hunt is interviewed for Sophie Raworth’s ‘Sunday Morning’ at the BBC Broadcasting House in London.

Tejas Sandhu | Light flare | Getty Images

Britain has a new finance minister, Jeremy Hunt, and he unveiled a new economic plan on Monday. Hunt replaces Kwasi Kwarteng, who was sacked after just a few weeks on the job because his tax-cut economic plan sent UK bonds and the pound higher. Hunt said on Monday the new plan will eliminate nearly all of the tax cuts proposed under Kwarteng’s budget. Premier Liz Truss’ government, which has only been in office for a little over a month, is already on ice in the face of market turbulence, but she is likely to remain in office for the time being. UK Conservative Party rules state that a new leadership election cannot be held for a year.

3. Bank of America beats

Brian Moynihan, CEO of Bank of America, speaking at the WEF in Davos, Switzerland on May 23, 2022.

Adam Galica | CNBC

Bank of America Monday posted earnings and revenue that beat Wall Street expectations. The bank cited better-than-expected gains from fixed-income trading and interest income, which were fueled by rising interest rates and market volatility. Bank of America’s results follow the first wave of big bank earnings last week. JPMorgan and Wells Fargo beat forecasts due to high interest income. Citigroup also beat estimates, but Morgan Stanley fell short on disappointing investment management results. Goldman Sachs is expected to report Tuesday.

4. Drones pound Kyiv

A soldier is seen sitting on the ground after Russian attacks in Kyiv, Ukraine October 17, 2022. It was reported that at least four explosions were heard in the Ukrainian capital Kyiv on Monday as authorities reported attacks by Russian kamikaze drones.

Methane Acta | Anadolu Agency | Getty Images

Russia’s assault on Ukrainian cities continues. Vladimir Putin’s army is relying more on drones to launch attacks in urban centers. Kyiv’s mayor and other officials said drone attacks on the capital’s central district killed people, including a pregnant woman, and damaged residential buildings. Fighting is fierce elsewhere in Ukraine. Russian forces went on the offensive in the eastern region of Donbass in an effort to consolidate its lines after Ukrainian forces recaptured large swathes of occupied territory. Read live war updates here.

5. Ye pulls a trump card

Kanye West arrives at the Vanity Fair Oscar Party on February 9, 2020 in Beverly Hills, California.

Evan Agostini | Vision | PA

Ye, the entertainer formerly known as Kanye West, has agreed to buy the right-wing social media app Talk just days after Instagram and Twitter restricted his accounts following his recent anti-Semitic remarks. The billionaire rapper and producer’s decision is reminiscent of former President Donald Trump’s creation of Truth Social. He helped find the Twitter-like app after Twitter, Facebook and other platforms banned him for inciting violence on January 6, 2021, when hundreds of his followers stormed the United States Capitol. Parler, like Truth Social and other pro-conservative social networks, touts its dedication to “freedom of speech,” which Ye emphasized in a statement provided by Parler’s parent company: “In a world where opinions conservatives are seen as controversial, we need to make sure we have the right to express ourselves freely.” Elon Musk, who has praised Ye and is set to acquire Twitter, albeit reluctantly, has also pledged to make Twitter a “free speech” platform. He also said he would allow Trump to backtrack on the app.

– CNBC’s Yun Li, Jenni Reid, Holly Ellyatt, Hugh Son and Ryan Browne contributed to this report.

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