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Homefinance5 things to know before the stock market opens Wednesday, May 10

5 things to know before the stock market opens Wednesday, May 10


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Oscar Wong | Moment | Getty Images

Here are the most important news items that investors need to start their trading day:

1. Where do we go from here?

2. Push it to the limit

U.S. President Joe Biden speaks to reporters in the Roosevelt Room after holding debt limit talks with U.S. House Speaker Kevin McCarthy (R-CA), Senate Republican Leader Mitch McConnell (R-KY) and Democratic congressional leaders at the White House in Washington, May 9, 2023.

Kevin Lamarque | Reuters

The big meeting between President Joe Biden and the four main leaders in Congress didn’t yield any progress on the debt ceiling, which, going by the Treasury Department’s calculations, is rapidly approaching. Still, the sides plan to meet again Friday, which indicates the gears are at least turning. Republicans, led by House Speaker Kevin McCarthy, have said they would only address the debt limit if there are spending cuts attached. Biden has refused to negotiate over the debt ceiling itself and would rather negotiate over spending as a separate issue. Even with the United States’ credit and reputation on the line, markets haven’t reacted all that much to the brewing crisis. We’ll see whether that changes if we go a few more days without a deal.

3. Disney on deck

A performer dressed as Mickey Mouse entertains guests during the reopening of the Disneyland theme park in Anaheim, California.

Bloomberg | Bloomberg | Getty Images

It’s been a busy week for earnings, but Disney is the biggest dog on the block this time around. The entertainment and media giant is slated to report its quarterly results after the closing bell Wednesday. Analysts polled by Refinitiv expect Disney to report per share earnings of 93 cents and revenue of $21.79 billion. Investors will be paying close attention to what the company says about the next stage of CEO Bob Iger’s restructuring plan. Disney has said it plans to wrap up its third round of job cuts by summer. Disney watchers will also be looking out for any updates on the company’s battle with Florida Gov. Ron DeSantis over the special district that governs Walt Disney World.

4. Decent report for Rivian

Electric vehicle maker Rivian‘s stock jumped in off-hours trading after the company posted a narrower-than-expected quarterly loss after the close Tuesday. The company, known mainly for its R1 pickups and SUVs, also said it is on track to meet its production outlook of 50,000 vehicles this year, which would about double what it produced last year. It also intends to continue its focus on keeping costs in check. “Our core priorities for 2023 are unchanged,” CEO RJ Scaringe said in Rivian’s earnings release. “The team remains focused on ramping production, driving cost reductions, developing the R2 platform and future technologies and delivering an outstanding end-to-end customer experience.”

5. E. Jean Carroll triumphs in court

E. Jean Carroll reacts as she exits the Manhattan Federal Court following the verdict in the civil rape accusation case against former U.S. President Donald Trump, in New York City, May 9, 2023.

Brendan McDermid | Reuters

The writer E. Jean Carroll won her federal civil lawsuit against former President Donald Trump. A jury awarded Carroll $5 million after finding that Trump sexually abused her in the 1990s and later defamed her after she came forward with her story. She had accused him of rape, but the jury didn’t find Trump liable on that matter. On everything else, though, they sided with Carroll. “This victory is not just for me but for every woman who has suffered because she was not believed,” she said after the verdict was announced Wednesday. Trump, who is running for president again, rejected the decision. “I have absolutely no idea who this woman is,” he posted on Truth Social, which he founded after social media networks banned him in January 2021 for stoking an insurrection at the U.S. Capitol. Trump, whose lawyers vowed to appeal, has been indicted for several criminal counts on a separate matter in New York state and faces multiple criminal probes.

– CNBC’s Samantha Subin, Christina Wilkie, Emma Kinery, John Rosevear and Dan Mangan contributed to this report.

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