5 things to know before the stock market opens Thursday, Oct. 21

Here are the top news, trends and analysis that investors need to start their trading day:

1. The Dow is set to fall after hitting an intraday record

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, US, October 20, 2021.

Brendan McDermid | Reuters

2. The Southwest American Report Adjusted Losses But Revenue Improved

A Southwest Airlines Boeing 737 passenger plane arrives at Midway International Airport (MDW) in Chicago, Illinois, United States, on Monday, October 11, 2021.

Look Sharett | Bloomberg | Getty Images

Southwest Airlines on Thursday reported third-quarter earnings thanks to federal payroll support. However, excluding one-time items, the carrier posted a loss per share of 23 cents. Revenues were also better than analysts had expected. Southwest earlier this month canceled more than 2,000 flights, blaming poor weather in Florida and air traffic control issues exacerbated by a staff shortage. The airline said cancellations and customer refunds cost $75 million. Shares of Southwest — which are up just 6% this year — are up slightly in the pre-market.

Pilots talk as they look at the tail of an American Airlines plane at Dallas-Fort Worth International Airport.

Mike Stone | Reuters

American Airlines on Thursday reported a third-quarter profit thanks to federal payroll support. Excluding one-time items, American posted a loss of 99 cents per share. Quarterly revenue was also better than expectations. America’s shares — nearly 24% in 2021 — rose 1% in the primary market.

3. Tesla beats profits and revenue; Deliver more cars

A Tesla vehicle is being charged at the Tesla Supercharger Station on April 26, 2021 in Corte Madera, California.

Justin Sullivan | Getty Images

Shares of Tesla — which have risen more than 20% in 2021 and have increased by 100% over the past 12 months — fell 1% in the primary market Thursday, the morning after the electric car maker announced its best-estimated third-quarter earnings and revenue. Tesla delivered 73% more cars than it did in the same quarter last year. Despite citing a variety of challenges, including semiconductor shortages and blackouts, Tesla reiterated previous guidance that it expects to “achieve a 50% annual growth rate in vehicle deliveries” over a multi-year horizon.

4. WeWork to go public in SPAC deal at much lower valuation

A general view of the pioneer WeWork Weihai Road on April 12, 2018 in Shanghai, China. WeWork, the world’s leading space company, will acquire the China-based Naked Hub for $400 million. (Photo by Jackal Pan/Visual China Group via Getty Images)

VCG | Getty Images

WeWork is set to go public on Thursday, two years after its long-awaited initial public offering collapsed due to investor concerns about its business model and the management style of its founder Adam Newman. After Neumann’s ouster, Japan’s SoftBank, already a major investor, rescued faltering WeWork. In March, the office-sharing company agreed to merge and go public in a deal with special purpose buyout firm BowX Acquisition. WeWork is valued at $9 billion, a far cry from 2019’s steep valuation of $47 billion.

5. Trump announces plan to launch social media platform, SPAC deal

Homepage and app advertisement for “Truth Social”. Former US President Donald Trump wants to create an alternative social network. Aside from the advertisement, there isn’t much to see just yet.

Christoph Dernbach | Image Alliance | Getty Images

Former President Donald Trump announced Wednesday that he will launch his own media network, including the social media platform. The app appears to be the first project of Trump Media and Technology Group, which will be rolled out to the public through SPAC’s merger with Digital World Acquisition. This is according to an announcement posted on Twitter by spokeswoman Liz Harrington. Earlier this year, Trump, when he was president, was banned by major social media giants earlier this year, following his posts regarding the January 6 riots in the US Capitol.

– Reuters contributed to this report. Follow all market movements like a pro CNBC Pro. Get the latest news on the epidemic with CNBC’s coronavirus coverage.


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