5 things to know before the stock market opens Wednesday
Here are the most important news, trends and analysis that investors need to start their trading day:
- Wall Street awaits Fed decision after another record day
- Lots of big premarket movers: LYFT, BBBY, ZG, CAR
- CVS beats on quarterly results, boosted by Covid vaccines
- CDC gives final OK to Pfizer Covid vaccine for kids 5 to 11
- Rough night for Democrats in Virginia and maybe New Jersey
1. Wall Street awaits Fed decision after another record day
U.S. stock futures were little changed Wednesday ahead of the conclusion of the Federal Reserve's two-day November meeting. Central bankers will almost certainly announce they're reducing the amount of bonds they buy each month. The Fed's extraordinary Covid-era monetary policies also include near-zero interest rates, and investors will be looking for signals on when the cost of borrowing may be going up.
- The Dow Jones Industrial Average, the S&P 500 and the Nasdaq on Tuesday closed at record highs for the third session in a row.
- ADP said Wednesday that U.S. companies added a much better-than-expected 571,000 jobs in October. During the pandemic, ADP has not been a great indicator of the government's jobs report, which will be released Friday.
2. Lots of big premarket movers: LYFT, BBBY, ZG, CAR
Lyft jumped roughly 15% in the premarket on better-than-expected third-quarter results. Zillow fell more than 16% in premarket trading, the morning after announcing it will close its homebuying and flipping business. Bed Bath & Beyond rose Tuesday on a partnership announcement with Kroger but its over 60% premarket surge that followed was likely fueled by a short squeeze. In another possible short-squeeze story, Avis fell about 6% in the premarket but more than doubled Tuesday after better-than-expected quarterly results and talk about adding more electric vehicles to its fleet.
3. CVS beats on quarterly results, boosted by Covid vaccines
CVS Health on Wednesday beat expectations with third-quarter earnings and revenue. The pharmacy chain got a boost from filling more prescriptions and giving more Covid vaccines. CVS raised its forecast for the year. Before adjustments, however, that guidance was revised downward and shares dropped nearly 1% in the premarket. As of Tuesday's close, CVS shares touched a 52-week high and were up about 33% in 2021. The company's stock market value was more than $120 billion.
4. CDC gives final OK to Pfizer Covid vaccine for kids 5 to 11
Children ages 5 to 11 will be able to get a Covid-19 vaccine after the CDC cleared Pfizer's doses for younger kids Tuesday night, allowing many parents across the U.S. to breathe a sigh of relief. Vaccinations for young kids are expected to begin immediately. The FDA granted emergency approval for the shots Friday. The White House said Monday it began the process of moving 15 million doses from Pfizer's freezers and facilities to distribution centers.
5. Rough night for Democrats in Virginia and maybe New Jersey
Glenn Youngkin, a wealthy Republican businessman, won Virginia's hotly contested gubernatorial election, defeating Democratic power player and former Gov. Terry McAuliffe in a race that drew national scrutiny, according to an NBC News projection.
- Potentially even more concerning for Democrats, the governor's race in New Jersey between incumbent Phil Murphy and Republican Jack Ciattarelli was still too close to call.
- Democrat Eric Adams, a former police captain, was elected mayor of New York City. He'll be the city's second Black mayor.
— NBC News, The Associated Press and Reuters contributed to this report. Follow all the market action like a pro on CNBC Pro. Get the latest on the pandemic with CNBC's coronavirus coverage.
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