Here are the most important news items that investors need to start their trading day:
1. Credit outlook cut
The major U.S. stock averages have notched two straight weeks of gains. Several factors could test that trend in the coming days. Traders will digest Moody’s decision to cut its U.S. credit outlook to negative after the closing bell Friday. The agency affirmed U.S. credit ratings of Aaa, but said fiscal policy and political dysfunction in Washington create risks. Other events that could drive markets this week include the Tuesday release of the consumer price index, which could help to shape Federal Reserve interest rate policy, and the earnings reports of some of the largest U.S. retailers. Follow live market updates here.
2. Shutdown scramble
The House has a new speaker. He’s dealing with familiar problems. The U.S. government will partially shut down Saturday if Congress fails to pass a funding bill before then. As lawmakers run out of time, House Speaker Mike Johnson, R-La., will try to convince far-right members of his party, who are pushing for spending cuts, to support a short-term funding plan. House Republicans over the weekend released a novel spending proposal that would extend funding for parts of the government until Jan. 19, and others until Feb. 2, according to NBC News. The Democratic-led Senate will likely reject the approach, and is considering a stopgap funding measure to keep all of the government running through mid-January, according to NBC. If Congress fails to act, a prolonged shutdown could lead to widespread furloughs of federal workers and drag on economic growth.
3. Retail’s big week
A handful of the largest U.S. retailers will post third-quarter earnings this week, offering insight into consumer spending and the health of the economy. Executives at industry giants like Walmart, Target and Home Depot will also give their takes on how they are faring at the start of the critical holiday quarter. More than 90% of S&P 500 companies have reported results for the third quarter, and earnings have climbed 6.3% from the prior-year period, according to LSEG, formerly known as Refinitiv. Revenue has grown at a slower pace of 1.4% year over year. Here are the major reports to watch this week:
4. Heart health hopes
The benefits of Novo Nordisk‘s Wegovy could go beyond weight loss. Weekly injections of the drug reduced the risk of heart attack, stroke and death from cardiovascular causes by 20% in a highly-anticipated study. The trial, results of which were presented and published Saturday, studied the effects of Wegovy on about 17,500 people who had obesity and heart disease but not diabetes. The data could unlock wider insurance coverage for Wegovy and lead to more people using it.
5. Marvel malaise
Walt Disney‘s wildly successful Marvel Cinematic Universe just notched its weakest domestic box office opening ever. “The Marvels” raked in $47 million during its first weekend in theaters, the lowest out of the 33 MCU entries so far. A stronger international opening of $63.3 million carried it to a global total of $110.3 million. The haul is a great one for most releases, but stands out in a franchise that has produced many of the highest-grossing movies ever. Disney is looking for the right approach for the Marvel universe after many fans felt overwhelmed by trying to keep up with a flurry of franchises released in theaters and on the streaming service Disney+.
– CNBC’s Hakyung Kim, Robert Hum, Angelica Peebles and Sarah Whitten contributed to this report.
— Follow broader market action like a pro on CNBC Pro.
