5 things to know before the stock market opens Wednesday

5 things to know before the stock market opens Wednesday

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

1. Winning streak

It was a muted and mixed day on Wall Street. The Dow Jones Industrial Average finished slightly higher Tuesday and is on its longest winning streak since December. The blue-chip index added 31.99 points, or 0.08%. The S&P 500, meanwhile, climbed 0.13%, while the Nasdaq Composite slipped 0.1%. The 10-year U.S. Treasury yield took a leg down in the session, which typically gives stocks momentum. But those gains were hampered as Disney shares fell 9.5% after the entertainment giant issued soft guidance. Investors will be watching for earnings from Uber and Shopify before the bell. Follow live market updates.

2. Peloton’s next ride

Several private equity firms have been considering taking Peloton private in a potential buyout, and the the connected fitness company has had talks with at least one firm, CNBC reported. There’s no guarantee a deal could be made. Peloton has seen its market capitalization plummet from a high of $49.3 billion in January 2021 to about $1.3 billion as of Monday. The news comes after the company announced last week that its CEO would be stepping down and it would be laying off 15% of its staff. Shares of Peloton soared more than 15% on Tuesday after CNBC’s report was published.

3. Fresh crop of Apples

Apple on Tuesday unveiled its first new iPad models since October 2022. The fresh versions of its iPad Air and iPad Pro tablets will come in two sizes: an 11-inch model and a 13-inch model. The iPad Pro uses a new Apple chip called the M4 — an update from the M3 chips that currently power Apple’s laptops — and starts at $999. It can snap into a case with a “Magic Keyboard,” for an additional cost, that also has a trackpad to make it feel like a laptop. The iPad Air will start at $599 and will be available in stores next week.

4. Reddit stock rockets

Reddit rallied nearly 15% in extended trading after the company released quarterly earnings results on Tuesday for the first time since its initial public offering in March. Revenue climbed 48% from $163.7 million a year earlier, and the company posted a faster rate of growth in ad revenue than its top competitors. Reddit also reported 82.7 million daily active users for the period. The stock climbed past $58 in after-hours trading on Tuesday before coming back a bit. Reddit had priced its IPO at $34 per share.

5. FTX funds

FTX says almost all customers of the collapsed cryptocurrency exchange will get their money back. The company estimates it owes creditors roughly $11.2 billion, and it has between $14.5 billion and $16.3 billion to distribute to creditors, according to a reorganization plan published late Tuesday. The plan also said customers whose claims amount to $50,000 or less will receive approximately 118% of the amount of their allowed claim — which covers about 98% of customers. The moves still need to be approved by bankruptcy court. FTX founder Sam Bankman-Fried was convicted of seven criminal counts in early November and sentenced to 25 years in prison, including for stealing billions from customers.

— CNBC’s Pia Singh, Gabrielle Fonrouge, Lillian Rizzo, Kif Leswing, Ashley Capoot and Arjun Kharpal contributed to this report.

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