5 Things to Watch Before the Stock Market Opens Monday

This is CNBC’s Morning Squawk newsletter. 

Here are five key things investors need to know to start the trading day:

Capitol Hill was the focal point last night as the Senate approved the initial step towards a deal that could potentially end the protracted federal government shutdown. The shutdown, lasting 41 days, had intensified in the past week, marked by the FAA’s mandated flight cancellations and the Trump administration’s reluctance to fund food stamps.

Here’s the latest breakdown:

• In a surprising move, eight Democratic Senators dissented from their party’s leadership and voted in favor of an agreement to fund the government until January. The procedural measure secured passage with a 60-40 vote. This bipartisan support suggests a growing weariness with the shutdown’s economic consequences.
• While the package lacks an extension for enhanced Affordable Care Act tax credits, a key Democratic demand during the shutdown, Republicans have guaranteed a vote on the matter next month. This compromise could be a pivotal point in garnering broader support for the agreement.
• The measure’s advancement triggers subsequent votes on the agreement, commencing today. Endorsement from the House of Representatives and President Donald Trump is also required to officially terminate the shutdown, which stands as the longest in American history.
• Earlier on Sunday, Transportation Secretary Sean Duffy cautioned that U.S. air travel could be reduced to “a trickle” ahead of Thanksgiving, following the Trump administration’s directive to cancel hundreds of flights due to the shutdown. The airline industry is estimated to have lost billions due to resulting disruptions.
• The Department of Agriculture instructed states to refrain from issuing full SNAP benefits for the current month and threatened penalties for those that didn’t “undo” full payments already made. This decision has sparked concerns about food security for millions of low-income Americans.
• The Supreme Court intervened on Friday and temporarily halted a federal judge’s order that mandated the Trump administration to fully fund food stamps for November. This legal back-and-forth reflects the intense political and ideological battles surrounding the shutdown.

Stocks are recovering from a turbulent week, with the Nasdaq Composite recording its most significant weekly loss since April. Notable tech companies, including Oracle, Advanced Micro Devices, and Broadcom, contributed to the market’s downward pressure, fueling concerns about the robustness of the artificial intelligence trade. Investors are closely eyeing upcoming earnings reports and economic indicators to gauge the long-term health of the sector.

However, stock futures are showing positive movement this morning, buoyed by the Senate’s vote, which has instilled optimism among traders that the end of the shutdown is within reach. The week ahead features a lighter schedule for economic data and corporate earnings, potentially allowing for market digestion of recent events, according to CNBC’s Sarah Min. Analysts suggest that this period of relative calm could provide an opportunity for investors to reassess their positions and strategies in light of prevailing market uncertainties.

Startup data provider PitchBook has unveiled a new artificial intelligence tool called PitchBook Navigator. This strategic move highlights the increasing importance of AI-driven solutions in the financial data and analytics landscape. The integration of AI aims to provide users with a more efficient and insightful experience, reflecting the growing demand for sophisticated tools in the private equity and venture capital sectors.

Slated to launch later this month, subscribers will gain the ability to formulate inquiries to the AI assistant to obtain insights into market transactions and trends. PitchBook is also integrating its product with ChatGPT. By leveraging natural language processing, PitchBook is attempting to streamline the process of extracting key data points from vast datasets, enabling faster and more informed investment decisions.

The new AI-powered tool emerges amidst a surge in interest in private market transactions as the valuations of promising startups rapidly increase. CNBC’s Jaures Yip notes that this innovation coincides with a heightened demand for intelligence and analysis in the dynamic and competitive startup ecosystem. The integration of AI functionalities can potentially provide PitchBook with a competitive edge, enhancing its ability to attract and retain clients in a rapidly evolving market.

Cleveland Guardians pitchers Emmanuel Clase and Luis Ortiz have been indicted for their alleged involvement in a sports betting scheme, according to federal prosecutors. Allegations suggest that the pair accepted bribes to manipulate bets on pitches during MLB games. The integrity of professional sports has come under increasing scrutiny as gambling becomes more prevalent.

The pair could face sentences of up to 20 years in prison if convicted on the most serious charges. The MLB had placed both players on leave in July while the league conducted its investigation into the matter. This incident serves as a reminder of the challenges involved in safeguarding the fairness and transparency of professional sporting events.

The scandal represents the latest in a string of betting-related controversies to hit major league sports. The federal government indicted individuals last month for leaking confidential information about NBA players to bettors. As sports gambling continues to expand across the country, leagues face pressure to tighten their oversight and enforcement mechanisms.

Emerging data indicates that catering to a millionaire’s physical well-being might be more profitable than managing their finances. This trend reflects a shift in priorities among high-net-worth individuals who are increasingly emphasizing health and lifestyle enhancements.

According to research conducted by professional network Long Angle, approximately 1 in 5 millionaires plan to discontinue their relationships with wealth advisors. Furthermore, only a third of millionaires use a wealth advisor for financial planning purposes. This data underscores the evolving role of financial advisors and the need for firms to adapt to changing client demands. Meanwhile, millionaires reported significantly higher satisfaction levels with personal trainers, therapists, and private schools for their children. These findings suggest that millionaires are placing greater value on services that directly contribute to their personal enrichment and the well-being of their families.

The survey highlights a broader trend in which affluent individuals are seeking holistic solutions that address both their financial and personal needs. This insight presents an opportunity for service providers to tailor their offerings and forge deeper relationships with their millionaire clients.

Here are some key releases we’re keeping an eye on this week. The ongoing implications of the government shutdown may affect the scheduled release of certain economic data. The situation remains fluid, and CNBC will provide updates as they become available.

— CNBC