What to Know Before Markets Open: GM EV Sales Rise, Nike Falls, Eli Lilly Invests $4.5B

Stocks took a downturn on Tuesday as heightened tensions in the Middle East cast a shadow over what had been shaping up to be a strong quarter for many companies. The Dow Jones Industrial Average dropped 173.18 points, or 0.41%. The S&P 500 slipped 0.93%, while the Nasdaq Composite saw steeper losses, dropping 1.53%. The Russell 2000, a benchmark for small-cap stocks, fell by 1.5%.

Premarket Movers:

Nike Faces Uncertainty with Leadership Change

On the corporate side, Nike (NYSE:NKE) withdrew its full-year guidance on Tuesday and postponed its upcoming investor day.

This comes as the company transitions to a new CEO, with veteran leader Elliott Hill stepping into the role. The athletic wear giant reported mixed earnings, exceeding profit expectations by 18 cents per share, but falling short on revenue.

Nike has faced criticism for lagging behind in innovation, and some analysts believe it is losing market share to competitors. The company is also feeling the pinch from uneven economic conditions in China, a key market. In early Wednesday trading, shares of Nike were down about 7%, as investors reacted to the uncertainty surrounding its leadership and future plans.

GM Beats Expectations Amid EV Surge

In the auto industry, General Motors (NYSE: GM) reported better-than-expected sales figures for Q3. Though sales were down 2.2% year-over-year, this was a smaller decline than industry analysts had predicted.

A key factor in GM’s performance has been the rise in sales of electric vehicles (EVs), which were up about 60% from the same period last year.

However, EVs still account for only 4.9% of GM’s total sales, indicating that the traditional combustion engine models continue to dominate. The slight sales decline was better than expected, providing some optimism for the automaker moving forward.

Jobs Market Continues to Strengthen

The job market showed positive signs in September, with private companies adding 143,000 jobs, according to a report from ADP on Wednesday.

This was a notable improvement from the 103,000 jobs added in August and beat forecasts, which had predicted an increase of 128,000.

Job growth was broad-based, with the leisure and hospitality sector leading the way, adding 34,000 jobs. Construction followed with 26,000 new positions, and education and health services added 24,000 jobs. These numbers suggest that the labor market remains resilient despite ongoing concerns about an economic slowdown.

Eli Lilly Announces $4.5 Billion Investment in U.S. Manufacturing

In corporate news, pharmaceutical giant Eli Lilly (NYSE: LLY) unveiled plans for a massive $4.5 billion investment in a new center for advanced manufacturing and drug development in Indiana.

The facility is set to open in 2027 and is expected to increase the company's output by 400%.

CEO David Ricks stated that this new site will help the company speed up the delivery of medicines to patients. Once fully operational, the plant is expected to create 400 full-time jobs, including roles for engineers, scientists, and lab technicians.

This investment is part of a broader trend for Eli Lilly, which has already committed $5.3 billion to expand manufacturing capacity in Lebanon, particularly for ingredients used in its diabetes and obesity treatments. In total, the company’s U.S. investments since 2020 exceed $23 billion.