ECONOMIC SILUET: 5 things to know before the stock market opens Tuesday

Selasa, 03 Januari 2023

5 things to know before the stock market opens Tuesday

TUE, JAN 03, 2023

MORNING SQUAWK

1. New year, new market?

Welcome to the first trading day of 2023. Bulls are licking their wounds after a rough 2022, and are looking for a good start. But the issues that plagued markets last year – inflation, the Federal Reserve's rate hikes and concerns about an impending recession – are still pressing. The new year isn't wasting any time bringing important new data to the market, either. On Wednesday, the Job Openings and Labor Turnover Survey, aka JOLTS, will drop, as will the most recent Fed meeting's minutes. Then, on Friday, investors will chew over the December jobs report to see whether Fed policy makers have had any success in cooling the hot labor market. Read live markets updates here.

2. Tesla falls short

Tesla said it delivered 405,278 new vehicles during the fourth quarter, capping off a year during which the EV maker saw 40% overall growth in deliveries. But that fourth quarter number came in well below what analysts were expecting. In fact, measured against the range of estimates included in the FactSet consensus – 409,000 to 433,000 – it came in lower than the lowest end of the range. Tesla's stock fell dramatically last year as legacy automakers started ramping up their own EV production and CEO Elon Musk sold large chunks of stock and focused much of his attention on his chaotic takeover of Twitter. Tesla has also suffered from Covid-related slowdowns in China. Musk, meanwhile, has told Tesla employees not to pay too much attention to the market. "Long-term, I believe very much that Tesla will be the most valuable company on Earth!" he wrote in a recent email.

3. Retail's big January

The retail industry is on edge over how it will do in ... January? Usually a time for shoppers to return items or spend gift cards they received over the holidays, the first month of the year is often mostly an afterthought as many retailers close out their biggest quarter. This year is different, though, as CNBC's Melissa Repko points out. The verdict on the holiday shopping season isn't settled, so companies are hoping to attract shoppers with more deals in January to push sales higher. It's also an important month for clearing out excess inventory, which was a big problem last year, cutting into chains' profit margins. In 2023, with a potential economic slowdown pending and shoppers getting choosier, it'll be crucial for retailers to get their inventory right.

4. Turmoil in Russia

A Ukrainian strike on New Year's Eve that killed dozens of Russian soldiers in a temporary barracks has triggered a new wave of condemnation back home against Moscow's military commanders. Critics said the barracks, located in an occupied area of Ukraine, were in the same building as a large ammunition storage area, and that officers knew it was within range of rockets, according to Reuters. The stored ammunition ended up making the strike even more destructive, observers believe. Read live war updates here.

5. Shocking scene on 'Monday Night Football'

The sports world froze in shock Monday night after Buffalo Bills safety Damar Hamlin collapsed on the field and paramedics worked to keep him alive. The incident occurred during a hotly anticipated NFL "Monday Night Football" matchup between the Bills and the Cincinnati Bengals on Disney's ESPN. After making a tackle, Hamlin stood up, only to promptly fall down as he suffered cardiac arrest. The 24-year-old defensive back was taken to the hospital and listed in critical condition. The game was postponed. Grisly injuries are commonplace in football, but Hamlin's affliction felt particularly chilling as the situation unfolded on live television. "I've never seen anything like it since I was playing," said NFL executive Troy Vincent, who played in the league from 1992 to 2006.

— CNBC's Mike Calia wrote this newsletter. Tanaya Macheel, Lora Kolodny, Melissa Repko and Natasha Turak contributed.

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