5 things to know before the stock market opens Thursday, November 3

Here are the most important news investors should start their trading day:

Fed Chairman Jerome Powell made it clear on Wednesday that he will not give up in his battle to tame inflation. “We still have some way to go and data since our last meeting suggests that the final level of interest rates will be higher than previously expected,” Powell said after central bank policymakers voted to increase its base rate by three more. quarters of a point. Initially, it appeared the Fed would take a more dovish stance, indicating it could raise rates in smaller increments. Markets jumped on the news. Then Powell delivered his tough message and stocks reversed course. The chairman’s remarks will focus even more on Friday’s October jobs report. If it is strong, the markets may experience more turmoil. Read live market updates here.

All signs point to Elon Musk preparing to cut Twitter’s workforce. Insiders at the social media company expect the new CEO and owner to cut the workforce by about 50%, or about 3,700 employees. Musk planned to meet with some of his top advisers to discuss the job cuts, CNBC’s Lora Kolodny reported, citing the insider. I tweet communications. Additionally, the calendar item for the meeting was widely visible to Twitter employees on their internal systems, although this may have been accidental. Since taking the helm of Twitter late last week, the world’s richest man has pushed for dramatic changes at the social network, including potentially charging users a monthly fee to keep blue verified badges. He has also come under fire for content moderation blunders, including a tweet he eventually deleted that spread a baseless, anti-LGBTQ conspiracy theory about the attack on House Speaker Nancy Pelosi’s husband, Paul.

Russia’s economy, already frozen by many international corporations and hit by global sanctions, is even worse now as its invasion of Ukraine drags on. The country’s gross domestic product fell 5% in September, according to the Russian Ministry of Economic Development. Inflation remains high in Russia, as elsewhere in the world, with inflation rising at a double-digit rate. Ukraine, meanwhile, is grappling with damage to its infrastructure from Russian missile attacks, while uncovering evidence of atrocities in areas once occupied by Kremlin forces. Read live updates of the fight here.

Restaurant brands served up better-than-expected quarterly results Thursday morning. Net sales rose more than 15%, driven by increases in its Burger King coffee, Popeyes chicken and Tim Hortons chains. The strong report comes after Burger King in September unveiled a $400 million plan to boost sales in the United States through store renovations and a revamped advertising strategy. The company pointed to ongoing issues from the Covid pandemic, namely that it has resulted in labor shortages and reduced hours in some regions.

The peloton reported quarterly results on Thursday and, aside from a few bright spots, they weren’t pretty. The fitness equipment maker posted a bigger loss than Wall Street expected and its revenue fell further than forecast. But his outlook for the current quarter, which includes the holiday shopping season, is even worse. Analysts had expected $874 million for the period, which would already mark a dramatic drop from the year-ago quarter. However, Peloton said it expects revenue in the range of $700 million to $725 million, adding that it believes “short-term demand for Connected Fitness hardware is likely to remain challenged.” While Peloton has had its share of problems and is in the midst of a turnaround effort, this soft guidance fits with larger trends that show consumers spending less on items this holiday season.

The wild MLB postseason took another crazy turn on Wednesday night. The Houston Astros tied the World Series at two games apiece as Cristian Javier and three relief pitchers held the Philadelphia Phillies hitless. It was the second no-hitter in World Series history behind New York Yankees starter Don Larsen’s perfect game in 1956.

– CNBC’s Patti Domm, Carmen Reinicke, Lora Kolodny, Holly Ellyatt, Amelia Lucas and Jack Stebbins contributed to this report.

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