5 Things to Know Before the Stock Market Opens on Wednesday 

 KEY POINTS

  •  President Biden expressed solidarity with Israel during his visit to the country.

  • United Airlines warned that the war between Israel and Hamas could hurt its financial results.

  •  Demand for mortgages fell to its lowest level since 1995.

 Here’s the key news  investors need as the trading day begins:

 1. Static

Stocks didn’t do much on Tuesday. The Nasdaq and S&P 500 indices fell slightly, while the Dow barely touched green territory. Futures fell on Wednesday morning. Meanwhile, earnings season continues. Before opening, we met Morgan Stanley and Procter & Gamble as Tesla and Netflix report post-shutdown. As for economic indicators, Wednesday will shine the spotlight on the housing sector, with forthcoming reports on fresh housing developments and mortgage request trends. (See more housing information below.) Stay tuned for current market updates.

2. A high-risk trip

President Joe Biden visited Israel in solidarity with the Israeli people as the country weathers the brutal October 7 Hamas terror attacks that killed 1,400 people. During Biden’s visit, tensions rise as Israeli and Palestinian authorities point fingers at each other for the devastating hospital explosion in Gaza, claiming the lives of approximately 500 individuals. Biden said in Tel Aviv on Wednesday that he did not believe Israel was responsible for the explosion. The president’s planned visit to Jordan to meet with officials was canceled as anger grew in the region against the United States over its support of Israel. As the war continues in Gaza, around 3,000 people have been killed so far. Track updates in real-time.

 3. Impact of the war

United Airlines has warned investors that the suspension of flights to Tel Aviv imposed by the war between Israel and Hamas will have an impact on the company’s financial results for the current quarter. The magnitude of the influence hinges on the duration of the conflict’s resolution. United also attributed pressure on profits to fuel costs at airports, which have risen nearly 25% since the start of the summer. In the third quarter, United reported profit and revenue growth that exceeded Wall Street expectations.

4. The Horror of Housing

Real estate is scary these days. Homebuilder confidence fell to a 10-month low before slipping back into negative territory as rising mortgage rates spooked buyers. Demand for mortgages has fallen to its lowest level since 1995, according to the Mortgage Bankers Association. Fewer people are refinancing, in part because many homeowners have opted for low interest rates. In the end, the Federal Reserve has maintained historically low-interest rates for an extended period. Today, the already expensive real estate market is facing higher interest rates as the Fed fights inflation and  10-year Treasury yields remain high.

5. Still No President

The House of Representatives failed again to elect a president when Trump’s ultra-conservative ally, Republican Jim Jordan of Ohio, failed in his first attempt with the gavel. The next vote is expected on Wednesday morning as Jordan continues to fight for votes. “We need to talk to the members,” Jordan told reporters Tuesday night. The House Republican caucus is divided as it tries to find a successor to Republican Kevin McCarthy, who eight far-right Republicans removed from office. Just a few days ago, Rep. Steve Scalise, R-La. He withdrew from the competition early because he could not get enough votes.

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