5 things you should know before the stock market opens on Tuesday

5 things you should know before the stock market opens on Tuesday

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, on October 17, 2022.

Brendan McDermid | Reuters

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

1. Real rally or not?

Stocks had a great day to start the week. The Dow rose 550 points and the S&P 500 jumped 2.6%. But Monday was particularly kind to the Nasdaq, which rose 3.4% for its best day since late July. But can it last? Futures on Tuesday morning indicated that we could look forward to further gains. So far companies have been reporting decent earnings and after causing so much market turmoil with the tax cut economic plan, the UK government has reversed course (even though the Prime Minister is on the hot seat). But nothing is simple as long as inflation remains high and the Fed is dead set on raising rates to cool prices. “I think it’s going to be one of those bear market rallies that has people scratching their heads,” Guy Adami, director of advisor advocacy at Private Advisor Group, told CNBC’s “Fast Money.” Follow live market updates here.

2. Microsoft confirms layoffs

Microsoft CEO Satya Nadella speaks during Microsoft’s annual shareholder meeting at the Meydenbauer Center on November 28, 2018 in Bellevue, Washington. Microsoft recently surpassed Apple, Inc. and became the world’s most valuable publicly traded company.

Stephen Brashear | Getty Images News | Getty Images

Microsoft has laid off more employees as the tech giant faces slowing revenue growth, especially as the PC market cools, the company confirmed to CNBC on Monday. “Like all companies, we regularly evaluate our business priorities and make structural adjustments accordingly,” a Microsoft spokesperson said. The number of layoffs is unclear, but the move comes three months after Microsoft cut less than 1% of its workforce, which still had 181,000 people in the summer of 2021. Citing an unnamed source, Axios reported earlier Monday that the new round of cuts affected fewer than 1,000 employees.

3. More airstrikes in Ukraine

Police officers patrol a street after a drone attack in Kyiv on October 17, 2022, amid Russia’s invasion of Ukraine.

Sergej Supinsky | Afp | Getty Images

Ukraine reported more explosions in cities as Russia attacked urban centers with deadly airstrikes. Ukraine’s government has pleaded for more air defense help from its Western allies as it works to deal with infrastructure problems caused by Russian strikes. “Ukraine is under fire from the occupiers. They continue to do what they do best – terrorize and kill civilians,” President Volodymyr Zelenskyy said. Elsewhere, Danish officials said explosions were the cause of a major gas leak from the Nord Stream pipeline in late September. Other authorities said the blasts indicated sabotage. Read live updates here.

4. Netflix earnings after the bell

A scene from Netflix’s “Stranger Things” season 4.

Courtesy: Netflix

Investors have some big questions Netflix when the streaming giant reports third-quarter earnings after the market closes Tuesday. Firstly, will there be more details about the new tier supported by ads? A less expensive version of the service will launch within weeks in some major markets, including the United States, and Wall Street is wondering if Netflix will offer any financial advice tied to it. Another question: Was third-quarter subscriber growth as strong as the company expected? During its most recent earnings report, when Netflix reported smaller-than-expected subscriber losses, it said it would capture a million new subscribers during the third quarter. And what does the company do to keep viewers coming back? According to a new article from The Wall Street Journal, Netflix has been trying to figure out how to do that while it adjusts its business model.

5. ‘The Difference Between Life and Death’

A vial of Omicron’s BA.4 and BA.5 subvariants of the coronavirus disease (COVID-19) booster vaccine is shown at Skippack Pharmacy in Schwenksville, Pennsylvania, on September 8, 2022.

Hannah Beier | Reuters

It’s gotten colder and the holiday season will soon be in full swing. That means more parties and dinners – and more people getting sick, whether it’s the flu, colds or Covid. Seniors still face the highest risk of hospitalization and death from Covid, even as vaccines and treatments become stronger and more widespread. That’s why the White House’s Covid czar is urging seniors to get boosters as soon as possible. “If you’re over 50, certainly if you’re over 65, you need to get these vaccines because it could actually, literally, save your life,” Dr. Ashish Jha. “It’s the difference between life and death. Earlier this month, Jha actually said that about 70% of people dying of Covid these days are aged 75 and over. More than 300 people in the United States die from this disease every day.

– CNBC’s Carmen Reinicke, Jordan Novet, Sam Meredith and Spencer Kimball contributed to this report.

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