5 Things to Know Before Markets Open

Tesla shares dropped after cutting prices on some models in European markets and Spirit Airlines shares extended losses following a court ruling blocking its proposed merger with JetBlue. Here’s what investors need to know today.

1. Tesla Stock Drops After Price Cuts in European Markets

Shares of Tesla (TSLA) traded lower by 1.8% after it cut prices for its Model Y electric vehicle (EV) in Germany, France, Norway and the Netherlands, coming after similar price reductions a week ago for vehicles sold in China. Tesla operations in Germany have been affected by shipping issues in the Red Sea, with the cuts coming as competition is heating up in EV markets in China and Europe.

2. Spirit Airlines Extends Losses After Judge Blocks JetBlue Merger

Spirit Airlines (SAVE) shares fell another 10% in pre-market trading after a federal judge on Tuesday blocked its proposed $3.8 billion acquisition by JetBlue (JBLU), leading to a 50% drop in Spirit’s share price. The merger would have created the nation’s fifth-largest airline. While shares of JetBlue gained close to 5% on the news Wednesday, they traded lower by 2.5% in the pre-market.

3. Amazon To Launch AI Tool for Shopping App

Amazon (AMZN) will reportedly roll out an artificial intelligence (AI) tool that will let shoppers using its mobile app ask questions about products, delivering answers based on product reviews. While the AI chatbot doesn’t have the ability to carry out a conversation like ChatGPT, it can deliver creative answers about the products, such as delivering the answer as a poem. Shares of Amazon lost 0.6% in the pre-market.

4. Interactive Brokers Drops After Earnings Miss Expectations

Shares of Interactive Brokers Group (IBKR) fell 4.3% in pre-market trading after it reported adjusted quarterly earnings of $1.52 a share, lower than the $1.53 a share in earnings that analysts were looking for. Lifted by higher interest rates, the brokerage reported a 17% year-over-year jump in revenue, meeting analyst expectations, while its net interest income jumped 29% over the prior year.

5. Retail Sales, Homebuilder Confidence Projected to Increase

At 8:30 a.m. ET, government data is expected to show U.S. retail sales increased 0.4% in December, accelerating slightly from 0.3% growth the month before. Homebuilder confidence is projected to increase to a reading of 39 for January, up from 37 in the prior month, when it is released at 10 a.m. ET. Fed Vice Chair Michael Barr and Fed Gov. Michelle Bowman are also scheduled to speak at 9 a.m. ET, followed by remarks from New York Fed President John Williams at 3 p.m. ET.