5 Things to Know Before the Stock Market Opens Thursday

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

President Donald Trump ended the longest government shutdown in U.S. history last night, signing into law a short-term funding bill passed by the House of Representatives earlier in the evening that funds the government through January. The resolution, however, merely kicks the can down the road, setting the stage for another budget showdown in the new year.

Here’s what to know:

• While the deal does not include the extension of enhanced Obamacare tax credits that Democrats wanted, it does include a guarantee from Republicans that the Senate will vote on a health care bill of Democrats’ choosing next month. This compromise highlights the continued political gridlock surrounding healthcare policy, a key concern for investors in the insurance and pharmaceutical sectors.
• The agreement also ensures funding for food stamps, the reversal of shutdown-related layoffs and backpay for government employees. This provides short-term relief to affected workers and sectors, but the long-term economic impact of repeated shutdowns remains a concern.
• As he signed the legislation ending the 43-day shutdown, Trump said “people were hurt so badly” and that “we can never let this happen again.” He blamed Democrats for the closure, saying “Republicans never wanted a shutdown.” However, political analysts note that both parties share responsibility for the impasse, reflecting the deep partisan divisions in Washington.
• Earlier on Wednesday, White House Press Secretary Karoline Leavitt said key inflation and labor data for October may never be released because of the shutdown. Without these reports, Leavitt said Federal Reserve policymakers will be “flying blind at a critical period.” This lack of data transparency raises concerns about the Fed’s ability to effectively manage monetary policy and could lead to market volatility.
• The Department of Transportation also halted the flight cuts it imposed last week as disruptions to air travel eased. The cancellations would have risen from 6% to 10% on Friday. While this prevents immediate disruption, the aviation industry faces continued challenges due to infrastructure constraints and increasing demand.
• The Dow Jones Industrial Average rallied to its first-ever close above 48,000 yesterday as Wall Street hoped that the shutdown’s end was imminent. However, some analysts caution that the rally may be premature, as fundamental economic challenges remain.

Mickey Mouse may be joining Pluto in the dog house. Disney missed Wall Street’s revenue estimates for the fiscal fourth quarter this morning, sending shares down more than 4% in premarket trading. The results highlight the challenges facing traditional media companies in the streaming era.

While the company’s Disney+ streaming service grew, the entertainment giant was hampered by its linear TV business and its its theatrical film slate. But Disney’s quarterly earnings came in higher than analysts anticipated.

“Overall we’re leaving the year with a lot of momentum,” Disney CFO Hugh Johnston told CNBC’s “Squawk Box” this morning, referring to the company’s streaming and experience businesses. Investors will be closely watching Disney’s future content strategy and its ability to compete with other streaming giants like Netflix and Amazon.

Mark your calendar: The Supreme Court said it will hear arguments on Trump’s attempt to fire Federal Reserve Governor Lisa Cook on Jan. 21. The court in October allowed Cook to keep her job while the case plays out. This legal battle underscores the ongoing political tensions surrounding the Fed’s independence and its role in managing the economy.

Meanwhile, Atlanta Fed President Raphael Bostic announced yesterday that he will leave his position when his term expires in February. Bostic, the first Black and openly gay regional Fed president, said in a statement that he was proud of efforts “to turn the lofty goal of an economy that works for everyone into more of a reality.” His departure marks a significant loss for the Fed and raises questions about the future direction of monetary policy.

As drug costs in the U.S. skyrocket, a growing industry of businesses called alternative funding programs are promising patients more affordable options for accessing specialty medications — in many cases by obtaining the drugs overseas.

Federal authorities are raising alarm about the legality of AFPs and the potential health risks for patients. Nicole Johnson, a special agent with the Department of Homeland Security, said AFPs are fulfilling prescriptions through “unverified” suppliers and “potentially illicit” online pharmacies.

In a new investigation, CNBC traced medications traveling into the U.S. via a supply chain that’s not authorized by the drug companies that make them. The investigation shows how ubiquitous these companies — which contract with employer-sponsored health plans — are becoming. This exposes vulnerabilities in the pharmaceutical supply chain and raises ethical questions about the balance between cost savings and patient safety. The rise of AFPs reflects the growing frustration with the high cost of prescription drugs in the U.S., but also poses potential risks to consumers.

Anthropic announced yesterday that it plans to spend $50 billion to build out infrastructure tied to artificial intelligence. As CNBC’s MacKenzie Sigalos notes, the move makes the technology company a major U.S. player in physical AI infrastructure. The project will start with custom data centers in Texas and New York and is expected to create 800 permanent jobs and more than 2,000 construction positions. This massive investment signifies the growing importance of AI and its potential to transform various industries. The competition for AI infrastructure is intensifying, with major players like Amazon, Microsoft, and Google also investing heavily in this space.

But there’s growing political backlash to the AI industry’s data centers, with voters angry over rising electricity prices. Abigail Spanberger, who won last week’s governor race in Virginia, promised to make the industry pay “their fair share” of higher costs. This highlights the challenges of balancing technological innovation with environmental sustainability and economic equity. The increasing energy demand from data centers raises concerns about grid capacity, carbon emissions, and the impact on local communities.

The House Oversight and Government Reform Committee released more than 20,000 documents obtained from sex offender Jeffrey Epstein’s estate yesterday, among which were emails referencing Trump. The president has denied knowing about Epstein’s sexual abuse of underage girls and young women and has never been charged with wrongdoing in connection with Epstein.

House Speaker Mike Johnson said the House would vote next week on releasing files related to Epstein. This continued scrutiny adds to the already complex political landscape and underscores the importance of transparency and accountability in public life.