5 things to know before the stock market opens on Wednesday 5 October

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, the United States, on September 9, 2022.

Brendan McDermid | Reuters

Here are the key news investors need to start their trading day:

1. A great rebound

We’re two trading days into October and we’ve already had two great stock market rallies. For the S&P 500, it was the best two days combined since March 2020, when the world was just beginning to come to grips with the Covid pandemic. It’s quite a turnaround after September’s market meltdown, and as investors prepare for another round of big interest rate hikes from the Federal Reserve. Companies also begin reporting third-quarter earnings in earnest next week. The rally is poised to run out of steam, at least for one morning. Futures were down across the board before trading opened on Wednesday. Follow live market updates here.

2. New chapter in the Twitter saga

Musk moves forward with Twitter deal in 13D filing

Ok, we have a deal. Again. Probably. Elon Musk, the world’s richest person and CEO of the electric picture Tesla, said he would agree to buy Twitter after all, according to a regulatory filing. Earlier this year, he offered $54.20 per share for the social media company. He then tried to back out of the deal, making claims about the number of “bots” on the platform, and Twitter sued him to complete the transaction. The case is due to go to trial on October 17 in Delaware Chancery Court. The news on Tuesday came after several text messages between Musk and allies were made public as part of the legal battle, and after critics hammered Musk over recent tweets about Ukraine and Russia. But now the two sides could reach a deal as soon as Friday, sources told CNBC. “The Company’s intention is to close the transaction at $54.20 per share,” Twitter said Tuesday. Twitter shares rose more than 20% after being halted for much of Tuesday.

Read more: Trump Truth Social SPAC shares fall after Musk revives deal to buy Twitter

3. Streaming shuffle

If you think there are too many streaming services, the streaming companies might agree. Several are already aggregating their own services, as Disney is doing with Hulu, ESPN+ and Disney+. NBCUniversal’s Peacock has been looking to get even bigger by looking to keep up with competitors. Executives at the company discussed potential larger bundles with HBO+ and Paramount+ but were met with resistance, sources told CNBC. Peacock has also held talks with smaller services such as AMC and Starz about potential partnerships, though those discussions have also not produced progress, sources said. But while nothing is moving toward a big bundle at the moment, some industry insiders believe it will happen eventually. “The question becomes what catalyzes it to happen,” Tom Rogers, former president of NBC Cable and current executive chairman of Engine Media, told CNBC.

Read more: Movie business benefits from hybrid release model, says NBCUniversal CEO

4. Ukraine holds down

Ukrainian soldiers adjust their national flag on top of an armored personnel carrier on a road near Lyman in the Donetsk region on October 4, 2022.

Anatoly Stepanov | AFP | Getty Images

Ukrainian forces are moving closer to the Luhansk region, one of four areas in Ukraine that Russia claimed to annex in recent days, and Russian leaders are likely to be worried, according to the British Ministry of Defence. The moves make it increasingly likely that Ukraine’s military could strike a key road with artillery, the ministry added, noting that it will further strain “Russia’s ability to supply its units in the east.” Elsewhere, Ukraine’s President Volodomyr Zelenskyy touted more “good news from the front lines”, saying his forces have made significant progress in the country’s south. Read live Ukraine war updates here.

5. Global CEOs Expect a Short Recession

The KPMG CEO Outlook survey shows that 91% of executives believe that a recession is ahead

Business leaders around the world expect a recession to hit the global economy within the next 12 months, according to new survey results from KMPG. Many of them expect it to be a “mild and short” slowdown, but they see more growth prospects emerging in the near future. “CEOs around the world are showing greater confidence, grit and persistence in shrugging off the short-term economic consequences for their companies, as seen in their increasing confidence in the global economy and their optimism over a three-year horizon,” said Ong Pang Thye , a managing partner of KPMG Singapore.

And one more thing…

New York Yankees center fielder Aaron Judge (99) hits his 62nd home run to break Roger Maris’ home run record during the game between the Texas Rangers and the New York Yankees on October 4, 2022 at Globe Life Field in Arlington, Texas.

Icon Sportswire | Icon Sportswire | Getty Images

The American League has a new single-season home run champion. Aaron Judge hit his 62nd dinger of the season Tuesday night in Texas, putting him on top of fellow New York Yankees Roger Maris (61 in 1961) and Babe Ruth (60 in 1927).

Disclosure: Comcast’s NBCUniversal is also the parent company of CNBC.

– CNBC’s Sarah Min, David Faber, Jonathan Vanian, Ari Levy, Alex Sherman, Lillian Rizzo, Holly Ellyatt and Su-Lin Tan contributed to this report.

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