5 things to know before the stock market opens on Wednesday, December 21st
Traders work on the trading floor of the New York Stock Exchange (NYSE) in New York City, the United States, December 14, 2022.
Andrew Kelly | Reuters
Here is the key news investors need to start their trading day:
1. A touch of holiday spirit
Stocks woke up from their funk on Tuesday, if only a little, but it was still enough to stoke fading hopes of a Santa Claus rally. The three major US indices endured a four-day losing streak during the session and there may be a chance for better performance on Wednesday after two major earnings reports lifted investor sentiment. FedEx Revenue fell short of Wall Street forecasts, but earnings beat them. Nike, meanwhile, slightly beat estimates and made progress on its inventory clearance efforts (more on that below). Investors will also get a look at the latest mortgage application data on Wednesday. Read live markets updates here.
2. NFL Sunday ticket deal is imminent
NFL Commissioner Roger Goodell during the NFL football game between the Miami Dolphins and the Indianapolis Colts at Hard Rock Stadium on October 3, 2021 in Miami, FL.
Andrew Bershaw | Sportswire icon | Getty Images
National Football League commissioner Roger Goodell had said he expected the league to reach an agreement on its Sunday card rights in the fall. Well, after months of talks between the NFL and Apple, Amazon and others, the calendar is about to transition from fall to winter, and it looks like we might have a deal. The NFL was close to signing a deal with Tuesday night Google‘s YouTube TV to broadcast the game package. The terms of the agreement have yet to be ironed out. DirecTV has paid $1.5 billion for Sunday Ticket every year since 2015. The NFL is looking for a buyer willing to pay between $2 billion and $3 billion.
3. Nike makes inventory advances
People wearing protective face masks walk past the closed Nike store on 5th Avenue during the outbreak of the coronavirus disease (COVID-19) in New York City May 11, 2020.
Fresh Mike | Reuters
Nike continued its winning streak with an excellent report on Tuesday, slightly beating Wall Street’s expectations. The sportswear manufacturer and retailer also improved its sales outlook while reporting improved sequential-on-quarter inventory figures. Nike, like other retailers, is caught in a glut, largely due to supply chain issues, so inventories are still much higher than last year, and they’re eating into margins. But some aggressive cleanups, including a major shift of products to wholesale channels, have helped Nike feel it has passed the peak of its inventory woes. The company’s shares rose in after-hours trading.
4. SBF on the way
Sam Bankman-Fried, co-founder of FTX, is escorted out of District Court in Nassau, Bahamas on Monday, December 19, 2022.
Tristan Wheelock | Bloomberg | Getty Images
Accused fraudster Sam Bankman-Fried returns to the United States, this time for real. The disgraced founder of bankrupt crypto firm FTX has agreed to drop the extradition fight in the Bahamas as he faces multiple federal charges in the US, including fraud and conspiracy. Bankman-Fried, also known as SBF, is returning to American soil after several days of court chaos in the Bahamas, where the former billionaire ran his now-collapsed crypto empire. Prosecutors have accused him of using $8 billion in client assets to buy real estate and stadium naming rights while making large political donations. If convicted, Bankman-Fried faces decades in prison.
5. Mr. Zelenskyj goes to Washington
Ukrainian President Volodymyr Zelenskyy holds a phone call with U.S. President Joe Biden December 11, 2022 in Kyiv, Ukraine.
Ukrainian Presidential Press Service | Reuters
Volodymyr Zelenskyy comes to America. The Ukrainian president’s Wednesday trip to Washington, DC, is his first known trip outside of his country since Russia launched its unprovoked invasion in February. Zelenskyy’s visit coincides with Congress’ last big deal of the year, a $1.7 trillion financing bill that includes $44 billion in aid to Ukraine. The Ukrainian leader is expected to visit President Joe Biden at the White House and also address a joint session of Congress. The development comes after Dmitry Medvedev, a senior lieutenant to Russian President Vladimir Putin, made a surprise trip to Beijing to meet Chinese President Xi Jinping. Read live war updates here.
– CNBC’s Tanaya Macheel, Alex Sherman, Lillian Rizzo, Gabrielle Fonrouge, Rohan Goswami, MacKenzie Sigalos and Holly Ellyatt contributed to this report.
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