Here is the most important news investors need to start their trading day:
1. Feeling flat
Stocks didn't rise much on Tuesday. The Nasdaq and S&P 500 fell slightly, while the Dow barely finished in the green. Futures were down Wednesday morning. Meanwhile, earnings season continues. Before opening, we have Morgan Stanley and Procter & Gamblewhile tesla and Netflix report after closing. In terms of economic data, the housing market will be in the spotlight on Wednesday as reports on home construction and mortgage demand are released. (See below for more information on housing.) Follow live market updates.
2. High-risk travel
Israeli Prime Minister Benjamin Netanyahu (L) greets US President Joe Biden upon his arrival at Tel Aviv's Ben Gurion Airport on October 18, 2023, amid ongoing battles between Israel and the Palestinian group Hamas.
Brendan Smialowski | afp | fake images
President Joe Biden visited Israel in a show of solidarity with the Israeli people as the country counters the brutal Hamas terrorist attacks of October 7 that killed 1,400 people. Biden's visit came as Israeli and Palestinian officials blamed each other for an explosion at a Gaza hospital that killed about 500 people. Speaking in Tel Aviv on Wednesday, Biden suggested that he believed Israel was not responsible for the explosion. The president's scheduled visit to meet with officials in Jordan was canceled, as anger against the United States grew in the region for its support of Israel. So far, some 3,000 people have been killed in Gaza as the war continues. Continue live updates.
3. Impact of war
A United Airlines plane is seen taxiing on the runway at Orlando International Airport in Orlando, Florida.
Pablo Hennessy | Light rocket | fake images
united airlines warned investors that its suspension of flights to Tel Aviv, forced by the war between Israel and Hamas, weigh on your bottom line for the current quarter. The impact will depend on how long the war lasts and, consequently, the cessation. United also attributed the profit pressure to jet fuel costs at airports, which have risen nearly 25% since early summer. For the third quarter, United posted profit and revenue growth that exceeded Wall Street expectations.
4. Housing horrors
Contractors erect a framed wall on a home under construction in the Toll Brothers Regency community at Folsom Ranch in Folsom, California, on Thursday, May 18, 2023.
David Paul Morris | Bloomberg | fake images
The real estate sector is scary these days. Sentiment of home builders fell to its lowest point in 10 months, sinking further into negative territory as rising mortgage rates scare away buyers. Indeed, mortgage demand fell to the lowest level since 1995, according to the Mortgage Bankers Association. Fewer people are also refinancing, as many homeowners were stuck with low rates while the Federal Reserve kept the cost of money low for years. Now the already expensive housing market has to contend with higher rates as the Federal Reserve battles inflation and 10-year Treasury yields remain elevated.
5. There is no speaker yet
Former House Speaker Kevin McCarthy (R-CA) laughs at something he saw on his cell phone and hands the phone to Rep. Derrick Van Orden (R-WI) as they sit behind U.S. Rep. Jim Jordan (R- OH). ), the leading contender in the race to be the next speaker of the United States House of Representatives, during the first round of voting for a new speaker on the House floor at the US Capitol in Washington , on October 17, 2023.
Jonathan Ernst | Reuters
The House failed to elect a president, once again, as Trump's superconservative ally, Rep. Jim Jordan, R-Ohio, failed on his first attempt to win the deck. The next vote is expected Wednesday morning, as Jordan continues to compete for votes. "We have to continue talking to members," Jordan told reporters Tuesday night. The House Republican caucus is divided as it tries to find a replacement for Rep. Kevin McCarthy, whom eight far-right Republicans helped oust from office. Just a few days ago, Rep. Steve Scalise, R-Louisiana, dropped out of the race because he couldn't get enough votes.
โ CNBC's Samantha Subin, Emma Kinery, Sam Meredith, Natasha Turak, Leslie Josephs, Diana Olick and Spencer Kimball contributed to this report.
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