5 things to know before the stock market opens on Wednesday

Happy Wednesday. A strategic war is brewing for Gen Z’s attention — and it involves everything from neon signs to dead mascots.

Stock futures are down this morning. THE S&P500 ended yesterday’s session without much change.

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

The September Consumer Price Index – the basket of goods and services closely tracked by the Bureau of Labor Statistics – is out this morning. It’s the last CPI reading before the midterm elections, and economists expect it to show that price growth is reaccelerating.

Here’s what you need to know:

• Economists surveyed by Dow Jones expect the headline CPI to rise 0.6% from August and 3.6% from a year ago.
• Rising energy costs have been a major driver of inflation since the start of the war in Iran in February. Oil prices are rising this morning after the International Energy Agency said it expects diesel supply to remain tight in the second half of next year.
• Ahead of today’s data release, New York Federal Reserve Chairman John Williams told Bloomberg News that he sees “disinflationary forces at play” and that the central bank may not have to raise rates in 2027.
• Many investors are turning to inflation-indexed bonds because they are concerned about rising prices.
• We’ll have more data tomorrow with last month’s producer price index, a measure of wholesale inflation.
• The S&P 500 has had a sleepy week so far as Wall Street awaited this morning’s report.
• Follow live market updates here.

Actions of Bank of America are down more than 4% in premarket trading after the bank reported a sharp decline in third-quarter profit thanks to a $1.2 billion penalty from the U.S. Treasury Department. The company’s revenue for the period also disappointed, coming in below Wall Street estimates.

The Treasury Department announced a ten-figure fine yesterday, saying the bank allegedly violated anti-money laundering laws and sanctions. The sanction weighed heavily on Bank of America’s earnings, reducing earnings by 17 cents per share. As CNBC’s Hugh Son writes, the fine could raise questions about CEO Brian Moynihan’s management of the bank.

In the meantime, Morgan Stanley beat revenue and bottom line estimates this morning, posting stock trading revenue figures that beat analysts’ expectations by more than $900 million. Bank of America’s Moynihan and Morgan Stanley CEO Ted Pick will both join CNBC’s “Squawk on the Street” today. Watch live on CNBC or CNBC+.

Anthropic is expected to disclose its third-quarter financial results today to a group of institutional investors, two people familiar with the matter told CNBC. The meeting, scheduled to be held at its San Francisco headquarters, comes as the Claude maker prepares for what could be a record IPO.

The revenue figures of private AI giants have also become increasingly important to technology investors. Last week, OpenAI’s updated revenue numbers sent industry stocks lower and raised questions about how Anthropic will account for partner sales and revenue.

Speaking of OpenAI: The company and the Justice Department said yesterday that one of its employees was arrested after a “sophisticated recording device” was found in its executive conference room. Abdulrahman Alfozan, a national of the Kingdom of Saudi Arabia, was arrested in connection with the case last week, the DOJ said.

Latino voters in South Texas surprised observers of the 2024 election, when the historically Democratic-leaning group flipped for President Donald Trump. In next month’s midterm elections, they could be in play.

After their victory in 2024, Republicans became optimistic that they could continue their momentum with Hispanic voters. But enthusiasm for the Republican Party appears to be waning amid concerns about inflation and immigration policy.

CNBC’s Justin Papp traveled to the Lone Star State to speak to those voters in South Texas, where three House races in majority-Hispanic border districts could decide which party controls Congress next year.

Apple on Tuesday, launched its new home hub called HomeView. Priced at $299, the device has a seven-inch screen and is designed to sit on a table or mount on a wall. It can also serve as a smart hub for household members’ Apple devices.

As CNBC’s Kif Lewsing writes, Apple appears to be using HomeView — as well as the new Apple TV and HomePod hardware announced yesterday — as a showcase for its new Siri capabilities. The new products also mark Apple’s first non-iPhone launch under new CEO John Ternus.

The attacks on Saudi Arabia’s second airport have highlighted how commercial aviation has become a growing target in global conflicts. Here’s how volume at the Middle East’s busiest airports has changed over the past year:

— CNBC’s Michelle Fox, Chloe Taylor, Hugh Son, Leslie Picker, Kate Rooney, CJ Haddad, Justin Papp, Kif Leswing, Leslie Josephs and Gabriel Cortes contributed to this report.

Caleigh Keating contributed to the production of this newsletter. Joséphine Rozzelle edited this edition.