Here are the most important news items that investors need to start their trading day:
1. A lot to chew on
2. General Motors holds steady
General Motors CEO Mary Barra speaks to reporters while she waits for the arrival of President Joe Biden at media day of the North American International Auto Show in Detroit, Michigan, September 14, 2022.
Rebecca Cook | Reuters
GM posted another big beat on earnings while missing slightly on revenue. That’s fairly on trend of late for the Big Three Detroit automaker. More importantly, however, is that the company held fast to its profit outlook for the year. CEO Mary Barra said GM stuck to its guidance because “demand continues to be strong for GM products and we are actively managing the headwinds we face.” One interesting nugget: GM Financial posted lower earnings, a reversal from the earlier days of the Covid pandemic, when consumers were financing vehicles at low interest rates. Now rates are higher as the Federal Reserve tries to beat back surging inflation.
3. New PM, same problems
Conservative leadership candidate Rishi Sunak arrives at Broadcasting House ahead of his appearance on BBC’s Sunday with Laura Kuenssberg show in London, Britain September 4, 2022.
Phil Noble | Reuters
Rishi Sunak takes over as Britain’s prime minister facing several big problems at once. The government needs to fill a GBP45 billion hole in public finances, while also contending with the cost-of-living crisis brought on by decades-high inflation. He will also confront a dissatisfied work force that has launched strikes in recent months across several industries, including barristers and rail workers. Then there are political divisions, both in the nation and within his own Conservative Party. Conservatives are fractured despite holding a majority in Parliament, and Sunak is the third prime minister this year alone, so many in Britain are calling for a general election. But the only way that happens before the early 2025 deadline for a broader vote is if Conservatives agree to it – and their chances of victory aren’t looking so hot right now.
4. Adidas finally had enough
Rapper Kanye West smiles during a meeting with U.S. President Donald Trump to discuss criminal justice reform at the White House in Washington, October 11, 2018.
Kevin Lamarque | Reuters
Adidas has ended its partnership with Yeaka Kanye West, after weeks of pressure from numerous groups, including the Anti-Defamation League, to take action after the rapper’s antisemitic remarks. The decision is effective immediately. “Adidas does not tolerate antisemitism and any other sort of hate speech,” the company said in a release. “Ye’s recent comments and actions have been unacceptable, hateful and dangerous, and they violate the company’s values of diversity and inclusion, mutual respect and fairness.” Adidas had put its relationship with Ye under review earlier this month, and the rapper and fashion mogul taunted the company for its inaction: “I can say antisemitic things, and Adidas can’t drop me. Now what?” Well, we have the answer.
5. UPS sticks to its outlook
A United Parcel Service driver unloads package in the Lincoln Park neighborhood of Chicago, Illinois, U.S., on Monday, Nov. 30, 2020.
Christopher Dilts | Bloomberg | Getty Images
It may be a “very dynamic” macroeconomic environment, according to United Parcel Service CEO Carol Tomé, but the shipping giant on Tuesday reaffirmed its outlook for this year. UPS posted third quarter revenue that came in just below Wall Street’s expectations, but its bottom line easily surpassed them. Revenue in the U.S. segment, the company’s largest, grew in large part because of higher shipping rates, which also boosted UPS’ international business. Revenue in the company’s supply chain solutions business fell, though, due to a decline in air and ocean freight forwarding.
– CNBC’s Samantha Subin, Michael Wayland, Karen Gilchrist, Jenni Reid and Jack Stebbins contributed to this report.
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