5 things to know before the stock market opens Wednesday, Nov. 17

Here are the top news, trends and analysis that investors need to start their trading day:

1. Wall Street looks flat after more retail earnings, near record close

Traders work on the floor of the New York Stock Exchange (NYSE) on November 15, 2021 in New York City.

Spencer Platt | Getty Images

US stock futures were relatively flat on Wednesday, a day after Wall Street’s strong retail earnings surge. The S&P 500 and Nasdaq on Tuesday finished close to their record close on November 8th. The Dow Jones Industrial Average also rose, boosted by Home Depot’s 5.7% advance, but it needed to recoup more than 0.8% to break the record close on November 8. Dow’s Boeing shares surged 1.5% in the primary market on Wednesday after the company received an order from India’s Akasa Air for $9 billion worth of 737 Max planes. On Wednesday, Bitcoin crossed $60,000 again but remained down about 13% from last week’s high.

2. Hit the target to try to keep prices low. Lowe’s gets a boost from powerful results

Retail earnings continued Wednesday, with Target reporting fiscal third-quarter earnings and revenue that beat estimates. The big box retailer hoisted the steering forward. But like Walmart on Tuesday, target investors were wary of margins as the company absorbed some of the higher costs of supply chain disruptions and labor shortages rather than passing them on to consumers. Target stocks fell more than 3% in the Premarket.

A day after Home Depot’s strong quarterly results, Lowe’s announced third-quarter fiscal earnings and revenue that beat expectations. The home improvement chain has gotten a bump in the business from home and online sales professionals. Like Home Depot, Lowe’s quarterly sales at the same-digit single-store beat estimates but not nearly as much as the nesting trend fueling Covid a year ago. Lowe’s raised full-year revenue forecasts. Shares rose 3% in the central market.

3. Bond yields remain high ahead of key housing data

A contractor works on the roof of a home under construction at the Steelpoint subdivision in Sumter, South Carolina, U.S., on Tuesday, July 6, 2021. U.S. pending home sales unexpectedly rose in May by more than nearly a year as borrowing costs fell along with listings Growing demand boosted.

Bloomberg | Getty Images

The 10-year Treasury yield held above 1.6% early Wednesday ahead of the government’s 8:30 a.m. ET release of October housing starts and building permits. Economists expect to start increasing 1.6% to an annual rate of 1.58 million units compared to September’s decline of 1.6%. Permits in October are expected to rise 2.6% to an annual rate of 1.63 million after a 7.7% decline the previous month. On Tuesday, homebuilders’ confidence jumped earlier expectations, as buyer demand remained high.

4. Biden tours GM’s electric car factory to sell infrastructure spending

A sign was unveiled at the General Motors Assembly Detroit-Hamtramck on October 16, 2020, presenting the new name of the facility: Factory Zero, the Detroit-Hamtramck Assembly Center.

GM

President Joe Biden is scheduled to tour the General Motors plant in Detroit that makes electric cars on Wednesday, as he continues to sell the benefits of a recently signed $1 trillion bipartisan infrastructure package. Biden is expected to highlight $7.5 billion in the new law for electric chargers. The GM plant the president would visit was scheduled to close in 2018 as the automaker tried to dispose of excess plant capacity. The facility, which has made cars with internal combustion engines since it opened in 1985, was rescued a year later and Factory Zero was dedicated to building zero-emission electric cars.

5. The market value of the “Lucid” electric vehicle startup has surpassed Ford

People test drive the Dream Edition P and Dream Edition R electric cars at the Lucid Motors plant in Casa Grande, Arizona, September 28, 2021.

Caitlin O’Hara | Reuters

As legacy automakers ramp up their offerings for electric vehicles, investors are bidding for a group of new entrants in electric vehicles such as Lucid Group. The stock, which began trading in July, rose nearly 24 percent on Tuesday after executives said bookings for its first cars jumped and production plans for 2022 were still on track. This stock price movement pushed Lucid’s market capitalization to $89.87 billion, and the stock surged again in the primary market on Wednesday. That’s nearly as high as GM and higher than Ford. Lucid CEO Peter Rawlinson, a former Tesla executive, told CNBC Tuesday night that the automaker aims to expand the plant in China and the Middle East by the middle of the decade.

The Associated Press contributed to this report. Follow all market movements like a pro CNBC PRO. Get the latest news on the epidemic with CNBC’s coronavirus coverage.

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