Vehicles are offered for sale at a GM dealership in Lincolnwood, Illinois, on June 20, 2024.
- Nike withdrew its full-year guidance and postponed its investor day.
- Iran launched a ballistic missile attack on Israel.
- JD Vance and Tim Walz met in a vice presidential debate.
Here are five key things investors need to know to start the trading day:
1. Down day
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Stocks retreated Tuesday as growing tensions in the Middle East overshadowed investor excitement for a strong quarter. The Dow Jones Industrial Average dropped 173.18 points, or 0.41%, while the S&P 500 fell 0.93% and the Nasdaq Composite lost 1.53%. Small-cap stocks also saw losses, with the Russell 2000 falling 1.5%. Tech stocks felt some of the worst declines, which is why the Nasdaq saw outsized losses, as Tesla, Nvidia and Apple all fell for the day. Follow live market updates.
2. Missile attack
Iran launched a ballistic missile attack on Israel on Tuesday, further escalating tensions in the Middle East. The attack — which Iran said was in retaliation for Israel's recent killing of Hezbollah leader Hassan Nasrallah and an Iranian commander in Lebanon — came shortly after Israel deployed ground forces into southern Lebanon. Most of the nearly 200 missiles Iran fired were intercepted by Israeli and U.S. defenses, and there were no known fatalities in Israel from the attack. U.S. crude oil prices rose more than 2% for the day after the attack as traders assessed whether Israel might target Iran's nuclear facilities or oil infrastructure in response to the attack. The Cboe Volatility Index (VIX), a popular measure of the stock market's expectation of volatility, spiked above 20 at its high on Tuesday.
3. VP debate
Republican Sen. JD Vance of Ohio and Democratic Gov. Tim Walz of Minnesota met in the only vice presidential debate of the campaign season on Tuesday evening in New York. The two were cordial at times, with Walz saying they found "some common ground" on housing and Vance expressing condolences to Walz when he said his 17-year-old son had witnessed a shooting in a community center while playing volleyball. But they also clashed on issues such as abortion and immigration. They also touched on conflict in the Middle East, and both candidates said they support Israel. Read a recap of the VP debate here.
4. Refresh
New CEO, new plans. Nike on Tuesday withdrew its full-year guidance and postponed its investor day as longtime company veteran Elliott Hill prepares to take the top job at the sneaker giant. Instead, executives said Nike will provide quarterly guidance for the rest of the year. The company reported mixed results, as it beat earnings expectations by 18 cents, but fell short on revenue. Nike has been accused of falling behind on innovation and ceding market share to competitors. Its performance has also been weighed down by the uneven economy in China. Shares of Nike fell about 7% in early trading Wednesday.
Money Report
5. Sales tales
General Motors reported slightly better-than-expected sales during the third quarter, thanks in part to increased sales of small crossovers and electric vehicles. The automaker reported a 2.2% decrease in sales, compared with a year earlier, an improvement over auto industry forecasts that projected a decline of more than 3% in the quarter. EV sales rose roughly 60% year-over-year during the quarter, though electric vehicles only make up roughly 4.9% of the company's total sales. Toyota Motor, meanwhile, reported an 8% decrease in third-quarter sales, while Honda Motor reported an 8% increase over the same period.
— CNBC's Alex Harring, Dan Mangan, Spencer Kimball, Fred Imbert, Dan Mangan, Kevin Breuninger, Annie Nova, Rebecca Picciotto, Josephine Rozzelle, Brian Schwartz, Ece Yildirim Gabrielle Fonrouge and Michael Wayland contributed to this report.
