Traders work on the floor of the New York Stock Exchange (NYSE) on November 29, 2022 in New York.
Spencer Platt | Getty Images
Here are the most important news investors need to start their trading day:
1. Hours of rate hikes
Federal Reserve Chairman Jerome Powell is scheduled to speak at the Brookings Institution today, and investors will be heeding any hint that the central bank will slow or stop rate hikes. After four consecutive 0.75 percentage point hikes to curb high inflation, many are expecting a smaller 0.5 percentage point rise at the Fed meeting next month. A pause in rate hikes or a reversal is likely to push the markets higher. Equity futures rose ahead of Powell’s speech and as the market looked ahead to other economic data expected on Wednesday, including the ADP Private Employment Report and Jobs and Turnover Review.
2. Tesla’s market share is shrinking
Visitors learn about the Tesla Model S at the 5th China International Import Trade Show in Shanghai, China, 7 November 2022.
CFO | Future Publishing | Getty Images
As the EV market becomes increasingly saturated, Tesla’s dominance in the US is waning. The company’s vehicles accounted for 65% of new EV registrations in the third quarter, up from 71% last year and 79% in 2020. according to S&P Global Mobility. By 2025, the firm predicts this will drop to less than 20%. Despite the decline, Tesla’s sales volume is expected to increase in the coming years as the popularity of electric vehicles grows. And there is plenty of room for growth. Currently, electric models make up just 5.1% of the more than 10 million vehicles registered in the US.
3. Railway strike deadline ahead
CSX Transportation freight trains are parked at the train yard in September during the initial threat of a potential freight rail union strike.
Washington Post | Washington Post | Getty Images
Congressional leaders move to to accept a preliminary contract agreement for railroad workers before the strike expires next month. President Joe Biden called on Congress to intervene after talks between the railroads and four unions stalled over paid sick leave. Biden said he did not want to override the union vote against the contract, but that shutting down the railroad would “devastate” the economy. The House of Representatives is expected to pass legislation to pass the agreement on Wednesday. Senate Majority Leader Chuck Schumer, a New York Democrat, also promised swift action in the Senate.
4. Kroger, CEO of Albertsons in the hot seat
Albertsons and Kroger Supermarkets
Bridget Bennett | Bloomberg | Getty images; Brandon Bell | Getty Images
Heads of two product companies faced a number of questions in a congressional hearing about how their proposed merger could change the competitive landscape and the prices consumers pay at the store. Lawmakers said the proposed deal comes at a time when groceries take up a large portion of American households’ budgets and inflation drives up the price of everyday goods. Kroger and Albertsons executives said the combination of their companies will help them lower food prices and remain competitive as the industry undergoes dramatic changes. “The best way to compete with mega-stores like Walmart and large-cap online companies like Amazon is to merge with Kroger,” Albertsons CEO Vivek Sankaran said at the hearing.
5. Hope for BlockFi?
In this photo illustration, the BlockFi logo is displayed on a smartphone.
Rafael Enrique | sopa images | Light rocket | Getty Images
Lawyers for crypto lender BlockFi have expressed optimism that the firm is in a position to save its business. One day after filing for Chapter 11 bankruptcy protection, BlockFi lawyers said: at Tuesday’s court hearing, the company plans to resume withdrawals as part of an effort to “maximum customer reimbursement.” The collapse of the company was caused by the impact of Alameda Research, the trading arm of FTX, which borrowed hundreds of millions of dollars from BlockFi, and Three Arrows Capital, which filed for bankruptcy protection in July. Familiarity with both firms led to the withdrawal of client funds, but lawyers said it was FTX’s plan to acquire BlockFi that ultimately led it into bankruptcy proceedings.
– CNBC’s Carmen Reinicke, Michael Weiland, Laura Kolodny, Laurie Ann LaRocco, Melissa Repko, Rohan Goswami and Mackenzie Sigalos contributed to this report.
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