Traders work on the floor of the New York Stock Exchange during the morning trading on November 07, 2024 in New York City.
- The major indexes are looking to close out a week of postelection gains.
- The Federal Reserve lowered its benchmark rate by a quarter point.
- Earnings season is starting to wrap up, and it's been a stronger-than-expected round of results
Here are five key things investors need to know to start the trading day:
1. Postelection gains
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Stock futures slipped Friday as the major indexes look to close out a week of postelection gains. So far this week, the Dow Jones Industrial Average has advanced 4%, the S&P 500 has added 4.2% and the Nasdaq Composite is up 5.6%. Those results put both the Dow and the S&P on pace for their best weeks since November 2023. Follow live market updates.
2. Another quarter
Shave another quarter point off. The Federal Reserve lowered its benchmark rate once again Thursday to a range of 4.5% to 4.75%. The cut was widely telegraphed after the central bank's half-point reduction at its last meeting. Fed Chair Jerome Powell said he was "feeling good about economic activity" and added the agency is not on any preset course for rate decisions. He also answered questions about the U.S. election and said he would not resign if President-elect Donald Trump asked him to.
Money Report
3. Earnings rundown
Earnings season is starting to wrap up, and it's been a stronger-than-expected round of results. More than 85% of S&P 500 companies have reported their most recent results as of midday Thursday. So far, earnings are about 8% higher than the year-ago period, and revenue is about 5% higher. Here are some of the most notable reports from Thursday after the bell:
- Affirm beat expectations on the top and bottom lines
- Airbnb missed on earnings but squeaked out a revenue beat
- Block fell short on revenue, and the stock plunged in after-hours trading
- Lucid reported widening losses but still topped Wall Street expectations
- Pinterest issued weak fourth-quarter revenue guidance
- Rivian's net loss narrowed year over year, but it lowered full-year earnings guidance
4. Deal or no deal?
Let's make a deal. Wall Street is expecting a Trump presidency to usher in a friendlier regulatory environment and unlock deal-making. There's plenty of pent-up demand, with executives in the pharmaceutical, financial and media sectors particularly eager to reignite M&A. "We're very excited about the upcoming regulatory environment," Chris Ripley, CEO of broadcast station group owner Sinclair, said during an earnings call this week. "It does feel like a cloud over the industry is lifting here."
5. Debt swap
China is tackling local government debt. The country's Minister of Finance, Lan Fo'an, announced Friday a 10 trillion yuan ($1.4 trillion) package, spent over five years, to address so-called "hidden debt" at the local level. The funds are intended to alleviate pressure on local governments and free up resources for economic growth. Authorities signaled more economic support could come next year.
– CNBC's Hakyung Kim, Jeff Cox, Darla Mercado, Spencer Kimball, Lillian Rizzo, Gabrielle Fonrouge, Rohan Goswami, Annika Kim Constantino, Robert Hum, MacKenzie Sigalos, Ashley Capoot, Michael Wayland, Jonathan Vanian and Evelyn Cheng contributed to this report.
