5 things to know before the stock market opens Tuesday, November 1

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Trader on the floor of the NYSE, Oct. 28, 2022.

Source: NYSE

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

1. Looking ahead

2. Homebuilders see a ‘cliff’

A man carries siding into a house at a new home construction site in Trappe, Maryland, on October 28, 2022.

Jim Watson | AFP | Getty Images

Homebuilders who thrived during the earlier days of the Covid pandemic are now experiencing a suddenly cooler market, due to skyrocketing mortgage rates. Home prices have already cooled, sellers have become more reluctant to part ways with their low rates, and buyers are spooked by high prices and surging rates. That adds up to a dire 2023, according to some homebuilders. “There’s this cliff that’s happening in January,” said Gene Myers, CEO of Denver-area Thrive Homebuilders. “Any hope of a soft landing really evaporated last spring, when it became so clear that our customers who are accustomed to such low mortgage rates just were going to go on strike.”

3. One for the books

The Penguin logo is visible on the spines of books displayed on a shelf at Book Passage on Nov. 2, 2021 in Corte Madera, California. The U.S. Department of Justice is suing Penguin Random House and Simon & Schuster to block the companies from completing a merger valued at $2.175 billion.

Justin Sullivan | Getty Images News | Getty Images

Chalk one up for the Biden administration and its skepticism of super mergers. (Kroger and Albertsons, take note.) A federal judge on Monday blocked Penguin Random House’s proposed $2.2 billion takeover of rival publisher Simon & Schuster, which is owned by Paramount Global. The judge, Florence Pan, sided with the Justice Department, saying the merger would “lessen competition” for bestselling books. Bertelsmann-owned Penguin slammed the decision, calling it a “setback for readers and authors,” and said the company would seek an appeal. Stephen King, one of Simon & Schuster’s top authors, lauded the ruling. “The proposed merger was never about readers and writers; it was about preserving (and growing) PRH’s market share. In other words: $$$,” the horror maven tweeted Halloween night.

4. Big profits for Big Oil

Saudi Aramco said strong market conditions helped to push its second quarter net income to $48.4 billion, up from $25.5 billion a year earlier.

Maxim Shemetov | Reuters

Two more oil giants posted blockbuster third quarter earnings Tuesday morning as the industry benefits from higher commodities prices. Britain’s BP said its profit for the period was more than double what it was during the prior-year quarter, easily beating analysts’ expectations. Saudi Aramco’s bottom line also beat expectations, growing to $42.4 billion in the quarter from $30.4 billion during the previous year’s period. The companies’ results come after Shell, Exxon, Chevron and other energy titans posted similarly stellar earnings as consumers across the globe contend with higher fuel prices and inflated cost of living expenses.

Read more: Biden threatens higher taxes on oil companies if they do not work to lower gas prices

5. Ukraine finds Russian torture chambers

The entrance to a basement allegedly used as a torture chamber in a house where prisoners were held, discovered by Ukrainian police in the center of Pisky Radkivsky, Ukraine, on Oct. 6, 2022.

The Washington Post | The Washington Post | Getty Images



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