5 things to know before the stock market opens Wednesday
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Traders work the floor at the New York Stock Exchange (NYSE) during the opening bell in New York on May 23, 2023. Stock markets slid on May 23 after fresh talks between President Joe Biden and House Speaker Kevin McCarty on raising the US debt ceiling ended without an agreement as a crucial deadline approaches. (Photo by ANGELA WEISS / AFP) (Photo by ANGELA WEISS/AFP via Getty Images) Angela Weiss | Afp | Getty Images
Here are the most important news items that investors need to start their trading day:
1. Gloom grows
This week isn't looking so hot for stocks. After a mixed session Monday, the three major U.S. stock indices all fell Tuesday, with the Nasdaq and the S&P 500 each declining by more than 1%. And each day without a debt ceiling deal in Washington (see below for more) ratchets up the tension as investors dwell more on what could be the United States' first sovereign default. Retailers' earnings haven't been so strong, either, as companies warn of a slowdown in consumer spending. Kohl's and mall retailers Abercrombie & Fitch and American Eagle are next up to report Wednesday. In the afternoon, the Federal Reserve is slated to release the minutes from its meeting earlier this month. Follow live market updates.
2. What's the deal?
Speaker of the House Kevin McCarthy, R-Calif., talks with reporters about the debt ceiling negotiations in the U.S. Capitol on Tuesday, May 23, 2023. Tom Williams | CQ-Roll Call, Inc. | Getty Images
The United States could run out of money to pay its debts as soon as June 1 – eight days from now – and there still isn't a deal in Washington. Some Republicans questioned whether the deadline is actually so soon, suggesting there's more wiggle room for talks. Negotiations have been heating up, however, as the White House and House Speaker Kevin McCarthy's team tightened their focus for compromise on a handful of issues. Wednesday's talks could be pivotal, especially with lawmakers itching to get out of town for Memorial Day weekend.
3. Netflix cracks down
Netflix sign in page displayed on a laptop sscreen and Netflix logo displayed on a phone screen are seen in this illustration photo taken in Krakow, Poland on January 2, 2023. Jakub Porzycki | Nurphoto | Getty Images
It took a little longer than expected, but Netflix's password-sharing crackdown has come to the U.S. after rolling out in other countries. On Tuesday, the streaming giant said it started emailing subscribers to lay down the law on passwords. "Your Netflix account is for you and the people you live with — your household," the emails read. Each account user outside of a household will cost an extra $7.99 a month. These users can also transfer their Netflix profile if they want to start their own account. Netflix, like other streamers, is in a profitability push as subscriber growth slows. Company executives have said the new password-sharing policy will probably result in fewer viewers at first, with many eventually coming back to start their own accounts.
4. It's over
The company's 747 jet "Cosmic Girl" releases a LauncherOne rocket in mid-air for the first time during a drop test in July 2019. Greg Robinson / Virgin Orbit
Virgin Orbit, the once-promising rocket company founded by Richard Branson, is now fully dead after selling off the bulk of its assets to aerospace companies Rocket Lab, Stratolaunch and Launcher. The company's six remaining rockets, which are in various states of development, have yet to be sold, nor has the company's intellectual property. Virgin Orbit once reached a multibillion-dollar valuation as its novel concept – launching space rockets from refitted airliners mid-flight – but the company had problems executing quickly and raising money, eventually leading to its bankruptcy and liquidation.
5. The Ron and Elon Show
Tesla CEO Elon Musk (L) and Florida Governor Ron DeSantis. Ludovic Marin | AFP | Getty Images
Source: CNBC
