People watch a television screen at a bar showing the local news channel as the community prepares for Hurricane Milton on October 8, 2024 in Orlando, Florida.
- Floridians and companies alike are scrambling to prepare for Hurricane Milton
- More than a dozen state attorneys general filed lawsuits against TikTok for its effects on young users.
- The Justice Department indicated it is considering breaking up Google after a judge ruled it had a search monopoly.
Here are five key things investors need to know to start the trading day:
1. Landing zone
Stocks climbed Tuesday as investors look for signs of a so-called soft landing — the Federal Reserve reining in inflation without damaging the economy. The S&P 500 rose nearly 1% for the day, while the Nasdaq Composite climbed about 1.5% and the Dow Jones Industrial Average inched up 0.3%. Since the Fed cut rates by 0.5 percentage points last month, a stronger than expected September jobs report has bolstered hopes that the economy can withstand anti-inflation moves. Market watchers will get some more details on the Fed's thinking through the central bank's latest meeting minutes due out Wednesday. Follow live market updates here.
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2. Prepping for Hurricane Milton
Strong winds from Hurricane Milton are expected to hit central Florida Wednesday, and companies are preparing for what will likely be devastating damage to the state. Wall Street analysts expect the hurricane to cause damage of $50 billion, with the potential for more than $175 billion in a worst-case scenario. Airlines have already canceled more than 750 flights while cruise lines have shifted routes and theme parks have prepared to close areas at risk. Goldman Sachs projected on Tuesday that the storm could reduce earnings before interest and taxes for Disney's Parks and Experiences segment by about $150 million to $200 million in its current 2025 fiscal first quarter. Floridians have rushed to store necessities as about 1,200 of the state's 7,900 gas stations, nearly 16%, had run out of fuel by late Tuesday morning.
3. Google breakup ahead?
Money Report
The Justice Department suggested it is considering breaking up Alphabet's Google, weeks after a U.S. judge ruled the company holds a monopoly in the search market. The DOJ said recommendations for Google's search engine business "could include contract requirements and prohibitions; non-discrimination product requirements; data and interoperability requirements; and structural requirements." It added that it was "considering behavioral and structural remedies that would prevent Google from using products such as Chrome, Play, and Android to advantage Google search and Google search-related products and features — including emerging search access points and features, such as artificial intelligence — over rivals or new entrants." A ruling on the remedies may not come down until next year, and appeals by Google could draw out the process. Google Vice President of Regulatory Affairs Lee-Anne Mulholland called the proposals "radical" and said they would bring "unintended consequences" for consumers.
4. Another TikTok dance in court
A bipartisan group of more than a dozen state attorneys general is filing lawsuits against social media app TikTok for its effects on children and young users. The officials accuse the company of damaging children's mental health by keeping them hooked on the app, and of operating an illegal money transmissions business. A spokesperson for TikTok said in a statement that the company disagrees with the claims and provides adequate safeguards for young users. The accusations come after lawyers for TikTok argued in a federal appeals court in September that a new law, which would ban the app by Jan. 19 unless China-based owner ByteDance finds a non-Chinese buyer for the company, was unconstitutional.
5. Boeing talks grounded
Boeing's talks with striking workers have stalled for now. The company withdrew a contract offer for about 33,000 machinists who have been on strike since mid-September, adding that further talks "do not make sense at this point." Boeing said the union did not consider higher proposed contract pay during talks this week, while the International Association of Machinists and Aerospace Workers said the company refused to improve wages, vacation and sick leave. As the strike drags on, it will put Boeing, already reeling from years of missteps, into further financial difficulties.
— CNBC's Jeff Cox, Leslie Josephs, Spencer Kimball, Jennifer Elias and Dan Mangan contributed to this report.
