Traders on the floor of the NYSE, Oct. 7, 2022.
Here are the most important news items that investors need to start their trading day:
1. A new skid
U.S. stock markets started October with a bang, but have now posted four straight losing sessions. The tech-laden Nasdaq on Monday closed at its lowest level in two years, and it looks like Tuesday morning will bring more declines. JPMorgan CEO Jamie Dimon, days before his bank reports quarterly earnings, told CNBC that he thinks the S&P 500 could fall another 20% depending on how the Federal Reserve continues to handle its battle against decades-high inflation. Investors are looking forward to reams of economic data this week, including inflation reports Wednesday and Thursday, as well as earnings reports from several big companies, including Delta Air Lines and Citigroup. Read live market updates here.
2. Fighting a 'fire sale'
We've got the news you need to know to start your day. Sign up for the First & 4Most morning newsletter — delivered to your inbox daily. >Sign up here.
The Bank of England is expanding its emergency bond-buying program, which is set to expire Friday, in a bid to calm the volatile debt market in the United Kingdom. A selloff in bonds, known as gilts in Britain, threatened to ruin what are known as liability driven investment funds, which are, in turn, widely held by pension funds in the U.K. Bond markets suffered further large selloffs Monday, even as the central bank boosted its limit for daily gilt purchases. "Dysfunction in this market, and the prospect of self-reinforcing 'fire sale' dynamics pose a material risk to UK financial stability," the Bank of England said Tuesday. Prime Minister Liz Truss's new government sparked the market chaos a few weeks ago, when it unveiled an economic package that included large tax cuts for the wealthiest, even as the country struggles with a cost-of-living crisis. Truss has since backed off the tax plan.
3. Ukraine vows to strike back
After Russian missiles rained down on several Ukrainian cities, killing civilians and damaging the power grid, Ukraine President Volodomyr Zelenskyy vowed to make Russia's forces feel even more pain on the battlefield. While Russia's attacks are its broadest in months, Vladimir Putin's military has largely been on the run. Ukraine, bolstered by U.S. and Western arms and funds, has been conducting a lightning counteroffensive, reclaiming land in the nation's eastern and southern regions. Elsewhere, Zelenskyy was set to make a virtual address Tuesday to an emergency meeting of the Group of Seven nations. Read live war updates here.
4. GM gets into the home grid game
General Motors on Tuesday said it is launching a new business unit, called GM Energy, that will offer people a variety of products and services to help people produce and store electricity at homes and offices. GM Energy will sell battery packs, solar panels and cloud software that will connect electric vehicles to energy utility companies. With the new unit, GM is getting in on an energy production and storage business model similar to what Tesla has done and crosstown Detroit rival Ford is also pursuing. GM's home energy systems are slated to go on sale next year, alongside the launch of the 2024 Chevrolet Silverado EV.
Money Report
Read more: Delta invests in electric air taxi startup Joby
5. Apple thrives as PC shipments fall
Slowing demand and persistent supply chain problems are taking a toll on the global personal computer market. Shipments declined 15% year-over-year during the third quarter, according to new findings from International Data Corp. Lenovo, HP and Dell saw shipments decline by particularly large margins: 16%, 28% and 21%, respectively. Apple was the sole bright spot among PC makers during the quarter. The tech giant posted a 40% increase in shipments. Still, according to IDC, PC shipments are higher than they were before the Covid pandemic, which sent millions of people home to work remotely. Even as employees return to offices, hybrid work arrangements look like they are here to stay.
– CNBC's Sarah Min, Elliot Smith, Holly Ellyatt, John Rosevear, Michael Wayland and Sofia Pitt contributed to this report.
— Sign up now for the CNBC Investing Club to follow Jim Cramer's every stock move. Follow the broader market action like a pro on CNBC Pro.
