- McDonald’s shares tanked after an E. coli outbreak at the chain killed 1 person and hospitalized 10 others.
- The IRS raised federal income and capital gains tax bracket thresholds, while also boosting estate and gift tax exemptions.
- Coca-Cola announced third-quarter earnings that beat Wall Street expectations.
1. A rough patch
stock market’s futures slid Wednesday after the S&P 500 posted its first back-to-back loss since early September. Futures tied to the S&P 500 dropped 0.1%, while Dow futures lost 0.4% and Nasdaq 100 futures fell 0.2%. The yield on the benchmark 10-year Treasury note rose 3 basis points to 4.23%, putting pressure on both the S&P 500 and Dow, which dropped 0.05% and 0.02%, respectively, on Tuesday. The Nasdaq Composite rose close to 0.2%. Follow live market
2. Boeing’s big day
Boeing and new CEO Kelly Ortberg are set for a big day as the company announced earnings Wednesday morning. The aircraft manufacturer reported an adjusted loss per share of $10.44, while analysts surveyed by LSEG had expected a loss of $10.52, and revenue came in at $17.84 billion versus $17.82 billion. Ortberg will lead a call with analysts for the first time since taking the helm of the aviation giant in August that has been at the center of widespread safety issues and a massive strike. More than 32,000 machinists on strike will vote on a new contract proposal, with results expected to come Wednesday night. Analysts are cautiously optimistic that the proposal, which requires a simple majority of the vote, could pass, putting an end to the more than five-week work stoppage that has halted most of the company’s production of airplanes.
3. McDonald’s E. coli outbreak
McDonald’s shares sank in extended trading Tuesday after the Centers for Disease Control and Prevention said an E. coli outbreak was tied to the chain’s Quarter Pounder burgers. The agency said 49 cases had been reported in 10 states between Sept. 27 and Oct. 11, with most of the illnesses in Colorado and Nebraska. An older adult in Colorado died while 10 others were hospitalized. Initial findings from the ongoing investigation show that some of the illnesses may be linked to slivered onions that are used in the Quarter Pounder and sourced by a single supplier that serves three distribution centers, according to a statement from McDonald’s. The company said it has paused distribution of slivered onions in the affected area and has made the Quarter Pounder temporarily unavailable in several Western states.
4. IRS adjusts provisions
The IRS announced Tuesday a slew of updated tax provisions for 2025. The IRS raised the income thresholds for each federal income tax bracket, which applies to tax year 2025 for returns filed in 2026. The top rate of 37% applies to individuals with taxable income above $626,350 and married couples filing jointly earning $751,600 or more. Capital gains tax brackets were also boosted, which apply to assets owned for more than one year. Meanwhile, the standard deduction will rise to $15,000 for single filers and $30,000 for married couples filing jointly starting in 2025. Estate and gift tax exemptions, tax-free transfers during life and at death, were also hiked to $13.99 million per person in 2025, up from $13.61 million in 2024
5. Coca-Cola
Coca-Cola announced third-quarter earnings on Wednesday that beat Wall Street expectations as higher prices helped offset slow demand for beverages. The company reported adjusted earnings of 77 cents per share compared with 74 cents per share estimated by an LSEG survey of analysts. Revenue was $11.95 billion which topped the $11.60 billion analysts predicte
1. Economic Indicators and Reports
Before the market opens, it’s essential to keep an eye on key economic indicators being released. This Wednesday, several reports could influence stock market’s sentiment. For instance, look out for:
- Consumer Price Index (CPI): This is a critical measure of inflation. A higher-than-expected CPI may indicate rising inflation, leading to speculation about interest rate hikes.
- Employment Data: Jobless claims data released weekly can provide insight into the health of the labor market. A rise in claims might concern investors about economic stability.
- Retail Sales: As the holiday season approaches, retail sales data can significantly affect consumer stock market’s and the broader stock market’s. Strong sales figures could boost market optimism.
Understanding these indicators helps you anticipate stock market’s movements and adjust your investment strategies accordingly.
2. Earnings Reports
Earnings season is a critical time for investors, and this Wednesday, several major companies are set to report their quarterly earnings.
- Tech Giants: If companies like Microsoft, Apple, or Amazon release their earnings, their performance can set the tone for the technology sector and the overall market.
- Financial Sector: Keep an eye on banks and financial institutions, as their earnings can provide insight into economic trends and consumer spending.
Investors should analyze these earnings reports closely, focusing on not just the numbers but also management’s guidance and stock market’s reactions.
3. Geopolitical Events
Global events can have a significant impact on the stock market’s. Investors should stay informed about any ongoing geopolitical tensions or developments that could affect market dynamics.
- Trade Relations: Watch for news regarding U.S.-China trade relations or any other trade agreements. Changes in tariffs or trade policies can influence various sectors, particularly manufacturing and technology.
- Political Developments: Legislative changes or political unrest in key regions can create volatility in the stock market’s. Be sure to monitor any relevant news that may emerge.
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Conclusion
As you prepare for the stock market’s opening this Wednesday, keep these five insights in mind. By staying informed about economic indicators, earnings reports, geopolitical events, technical analysis, and investor sentiment, you’ll be better equipped to make sound investment decisions. Whether you’re a seasoned investor or just starting out, a proactive approach can help you navigate the ever-changing landscape of the stock market. Happy trading!