5 things to know before the stock exchange opens on Thursday 17 November

Traders work on the trading floor of the New York Stock Exchange (NYSE) in Manhattan, New York City, United States, on November 11, 2022.

Andrew Kelly | Reuters

Here are the key news investors need to start their trading day:

1. Holiday bummer

Stocks fell into a funk Wednesday as investors digested a dismal earnings report from the big box retailer Goal. While the actual results weren’t that hot, it was Target’s warning about the holiday season that seemed to drag everyone down. Target’s caution highlighted one of the bigger shifts in the economy as Americans shake off more than two years of pandemic life. Currently, people seem to prefer services and experiences such as travel to buying more things, even at deep discounts. Beyond that, though, market watchers are trying to get a solid pin on the state of the American consumer, but it’s elusive. Read live market updates here.

2. Nvidia’s good enough report

The logo of Nvidia Corporation is seen during the annual Computex computer exhibition in Taipei, Taiwan May 30, 2017.

Tyrone Siu | Reuters

Chip and software maker Nvidia had earnings that fell short of Wall Street expectations, but its revenue beat expectations. The company supplies many computer manufacturers and cloud providers, making it a closely watched indicator of the technology industry. While Nvidia said sales of its gaming division fell 51% from last year, driven by macroeconomic conditions, the company’s data center business saw sales growth of 31%. All in all, investors took the report in stride. Shares of Nvidia rose more than 1% in after-hours trading.

3. Starbucks sees red

Starbucks official reusable red cup, left, and red cup from Starbucks Workers United.

Source: Starbucks; Starbucks Workers United

Starbucks Workers United, the union that represents baristas at a growing number of the coffee giant’s cafes, plans to strike Thursday at more than 100 locations nationwide. It’s also Thursday Starbucks‘ Red Cup Day, where the company gives away holiday-themed reusable red cups to customers. The union will be handing out its own red cups that will have what looks like the Grinch’s hand holding an ornament with the union logo. More than 250 Starbucks locations have voted to organize over the past 12 months, defying Starbucks CEO Howard Schultz, who has spoken out against unions. The union said it is striking at the sites that call attention to Starbucks’ alleged union-busting and other tactics. The company has denied allegations of unfair labor practices. Starbucks operates about 9,000 locations in the United States.

4. The GOP wins the House

U.S. House Republican Leader Kevin McCarthy (R-CA) arrives to address supporters at a 2022 US House Republicans Midterm Party in Washington, U.S., on November 9, 2022.

Tom Brenner | Reuters

It took just over a week, but now it’s confirmed that the Republican Party will take control of the House of Representatives in January, while the Senate remains in Democratic hands. That means Nancy Pelosi’s days as Speaker of the House are likely over for good as the 82-year-old Democratic leader considers her next steps while her husband recovers from a brutal hammer attack. (Pelosi is expected to discuss his future Thursday.) California Republican Kevin McCarthy, who had been House Minority Leader for the past few years, is poised to take the speaker’s gavel. The House majority will give the GOP an effective veto over President Joe Biden’s more ambitious agenda items over the next two years, but the party must also contend with sharp divisions within as loyalists to former President Donald Trump seek to assert themselves.

5. Russia attacks Ukraine’s energy grid

Firefighters work to put out a fire after two residential buildings were hit in the Pechersk district of the Ukrainian capital Kyiv on November 15, 2022.

Anadolu Agency | Anadolu Agency | Getty Images

Russia launched another missile barrage against Ukraine, specifically targeting the country’s energy network. Russian attacks have already done significant damage to the infrastructure of Ukraine’s cities, even as Ukrainian forces advance on the battlefield and retake territory that had been claimed by Moscow’s armies. Russian missiles have also hit residential areas. “The enemy thinks that he will weaken our defenses with energy strikes and will be able to hit us in the back. This is a naive tactic of cowardly losers that we are ready for,” said top Ukrainian official Andriy Yermak . Read live war updates here.

– CNBC’s Alex Harring, Kif Leswing, Amelia Lucas, Kevin Breuninger and Holly Ellyatt contributed to this report.

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