5 crucial points to consider before the stock market commences trading on Monday.

5 crucial points to consider before the stock market commences trading on Monday.
5 crucial points to consider before the stock market commences trading on Monday.
  • Ahead of a week of earnings featuring Goldman Sachs, United Airlines, Tesla, and Netflix, stock futures rose.
  • Officials rejected rumors of a truce that would enable foreigners to exit the Gaza Strip and humanitarian aid to enter the region.
  • Rite Aid filed for Chapter 11 bankruptcy protection.

The most crucial news items for investors to begin their trading day are:

1. Markets look for footing

On Monday morning, U.S. stock futures rose higher, despite a week of mixed trading. Last week, the Dow Jones Industrial Average increased by 0.8%, while the S&P 500 climbed 0.5%. In contrast, the Nasdaq Composite fell approximately 0.2% for the week. Several factors, including earnings reports and the ongoing conflict between Israel and Hamas, will influence the stock market this week. Notable economic data points include the release of September retail sales, which is scheduled for Tuesday. Stay updated on live market news here.

2. Earnings season gets into gear

This week, investors will have a comprehensive understanding of the financial health of major transportation, media, and health companies through their quarterly earnings reports. The reports from JPMorgan and Wells Fargo marked the beginning of the earnings season on Friday. Notable companies that will release their earnings reports this week include [insert company names].

  • Tuesday: Before the bell, and after the bell.
  • Wednesday: Before the bell, and After the bell.
  • Thursday: (before the bell)

3. Humanitarian crisis escalates

The conflict between Israel and Hamas is causing growing humanitarian concerns, with officials denying reports of a corridor out of Gaza through Egypt's Rafah crossing. Since the militant group Hamas launched attacks in Israel earlier this month, Israel has carried out a siege and air strikes on Gaza, resulting in the deaths of more than 2,700 people in Gaza and more than 1,400 in Israel. As the world waits for a possible Israeli ground assault on Gaza, U.S. President Joe Biden has stated that an occupation of the area would be a "big mistake." Biden, whose administration has said Israel has a "right to defend itself," also emphasized the need for a path to a Palestinian state. Follow live updates on the war here.

4. Rite Aid files for bankruptcy

On Sunday, Rite Aid filed for Chapter 11 bankruptcy protection, marking the culmination of a gradual decline for the pharmacy chain. Sluggish sales, including a decline in Covid vaccine visits, mounting debt, and a string of opioid-related lawsuits have contributed to Rite Aid's struggles. The chain has seen more customers opt for competitors like Walgreens and CVS for lower prices on drug-store essentials, and has witnessed rivals like Walmart and Target pivot more heavily into health-care services. Rite Aid announced that it would work with creditors on a restructuring plan that could include closing underperforming locations. Additionally, the company appointed Jeffrey Stein, an experienced executive in restructuring, as its new CEO.

5. Pfizer’s Covid slump

Covid products are not the only reason for Rite Aid's lower revenue and earnings guidance. The company has cut its revenue outlook to $58 billion to $61 billion, down from $67 billion to $70 billion, due to lower demand for Covid treatment and vaccine. Fewer people have sought Covid treatment in recent months, as immunity gained from vaccination and prior infection makes cases more mild for many people. Uptake of the latest round of Covid boosters has also been underwhelming, due to lower demand and supply and insurance issues.

This report was contributed to by Samantha Subin, Natasha Turak, Gabrielle Fonrouge, Melissa Repko, and Annika Kim Constantino of CNBC.

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by Jacob Pramuk

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