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What to Watch Today: Stocks Set to Rise With Shoppers Undeterred by Higher Prices

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BY THE NUMBERS

U.S. stock futures rose Tuesday as investors looked to strong earnings from Dow stocks Walmart (WMT) and Home Depot (HD) and better-than-expected retail sales data from the government. October retail sales rose 1.7% overall. Excluding autos, sales also increased 1.7%, compared to estimates of 1%. (CNBC)

* Rent for single-family homes surged 10% in September (CNBC)

The Dow, the S&P 500 and the Nasdaq dipped Monday, coming off their first negative weeks in six. However, all three stock benchmarks were still less than 1% away from their last record high closes on Nov. 8. The 10-year Treasury yield ticked lower Tuesday but remained above 1.6%. (CNBC)

Bitcoin and other digital currencies fell sharply on Tuesday retreating from near-record highs. The world's largest digital coin dropped toward $60,000 as China's state planner said it will continue to clean up crypto mining in the country. Earlier this year, Beijing cracked down on bitcoin mining leading to an exodus of miners. (CNBC)

IN THE NEWS TODAY

Shares of Walmart initially rose 1% but turned modestly lower in premarket trading after the retail giant reported on Tuesday adjusted third-quarter earnings and revenue that beat expectations. Walmart won back grocery shoppers. The company boosted full-year earnings guidance. (CNBC)

Home Depot rose 1% in the premarket after issuing on Tuesday adjusted third-quarter earnings and revenue that exceeded expectations. Same-store sales climbed 6.1% in the quarter, solidly beating estimates as consumers continue to fix up their homes during Covid, albeit at a slower rate than a year ago. (CNBC)

Tesla (TSLA) CEO Elon Musk faces a potential tax bill of more than $10 billion on stock options that he was granted in 2012. On Monday, Musk sold another $930 million in shares to pay taxes on options that he exercised on 2.1 million shares. That brings his total options exercises to about $4.6 billion since Nov. 8. (CNBC)

* JPMorgan sues Tesla for $162 million in warrants dispute around Musk's 2018 take-private tweets (CNBC)

Lucid (LCID) surged 5.8% in the premarket after the electric vehicle start-up reported more than 17,000 reservations for its Air sedan. That's up from 13,000 in the prior quarter. Lucid also confirmed its 2022 production targets in its first quarterly financial results as public company. Lucid listed via a SPAC deal back in July. (CNBC)

Peloton (PTON) said Tuesday it plans to sell an additional $1 billion of its Class A common shares. The connected fitness equipment maker is looking for ways to come up with cash as momentum slows for its products. Shares fell 1.5% in premarket and roughly 70% year to date. (CNBC)

Jeff Bezos may have earmarked $1 billion of Amazon (AMZN) stock a year to fund his Blue Origin rocket company, but he said he's spending more of his fortune on addressing climate change. "I'm actually spending even more money on the Bezos Earth Fund than I'm spending on space," he said at a Washington event. (CNBC)

U.S. President Joe Biden and Chinese President Xi Jinping met virtually Tuesday in the closest communication between the two countries' leaders since Biden took office in January. Both sides noted points of tension, and issued public statements after the meeting that emphasized ways to avoid conflict. (CNBC)

* Biden to push infrastructure deal at ‘red list’ bridge in New Hampshire (AP)

STOCKS TO WATCH

Rackspace Technology (RXT) beat estimates by a penny a share, with quarterly earnings of 25 cents per share. The cloud computing company's revenue also topped Wall Street forecasts. It was Rackspace's eighth consecutive quarter of revenue growth, and the company said it was well-positioned in a booming market. Shares surged 8.3% in the premarket.

Axon Enterprise (AXON) soared 23.5 % in premarket trading, after the maker of Tasers, body cameras and other public safety equipment reported much-better-than-expected sales and revenue for its latest quarter.

Royalty Pharma (RPRX) rallied 7.8% in premarket trading, following news that Warren Buffett's Berkshire Hathaway (BRK.B) took a new $475 million stake in the drug royalty purchaser.

Advance Auto Parts (AAP) earned $3.21 per share for its latest quarter, beating the $2.87 a share consensus estimate. The auto parts retailer beat on revenue and other key metrics. Advance Auto said it was seeing higher-than-expected inflation headwinds, however, and the stock fell 2% in premarket action.

Diageo (DEO) rose 2.4% in premarket trading after it issued stronger-than-expected profit and sales guidance for 2023 through 2025, reversing the spirits maker's prior stance of abandoning specific numerical guidance.

Autoliv (ALV) rallied 4.4% in the premarket, following the announcement of a new stock repurchase program of up to $1.5 billion. The maker of automotive safety systems also updated its growth target, expecting 4% to 6% growth per year in 2024 and beyond.

WATERCOOLER

Wall Street is set to see the highest bonuses since the Great Recession after a busy and profitable 2021, according to a pay consultancy report. Overall bonuses for investment banking underwriters are forecast to jump 30% to 35% from the year prior, while investment banking advisors and equities traders can expect a 20% to 25% year-over-year bonus increase. (CNBC)

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