Geoffrey Smith 

Investing.com — Rivian, a company without any meaningful sales to date, plans an IPO that would be the third largest in U.S. history after Alibaba (NYSE:), and Facebook (NASDAQ. The world’s supply chain agony is set to drag on for at least another five months. Stocks and oil are quiet as the Federal Reserve starts its two-day meeting, but the central bank of Australia shows that inflation hawks aren’t having things all their own way just yet. Tesla stock (NASDAQ:) falls premarket following an eye-catching tweet from Elon Musk. Here’s what you need to know in financial markets on Tuesday, 2^http://nd.November

1. Rivian eye $8.4 Billion IPO

Rivian, the electric van and truck maker backed by Amazon (NASDAQ:) and Ford, is looking to raise up to $8.4 billion in what would be one of the world’s biggest ever initial public offerings.

The company, which has yet to sell its products in any meaningful volume, is targeting a valuation of around $53 billion – more than Ferrari (NYSE:) and only a little less than Honda. This could result in significant value for both Amazon (NYSE:), with a share of less than 20%, and Ford Motors (NYSE:), who owns 5%.

Amazon has already ordered 100,000 of the company’s planned electric vans in an attempt to cut the carbon footprint of its delivery network. Rivian’s expects its other source of revenue to be high-end pickup trucks, a space where it will compete with Tesla, as and when the latter’s ‘cybertruck’ plans are realized.

2. The Nintendo and Maersk supply chain problems for the Maersk flag continue to drag on

Overnight, the global supply chain drama took a few new twists. AP Moeller-Maersk, the Danish shipping company that accounts for one in five of the world’s containers, said it expects the extraordinarily tight conditions for shipping to continue at least through the end of the first quarter of 2022.

In addition to increasing its share purchaseback program by $5B, the company expanded further into air freight operations.

Elsewhere, the newspaper reported that Nintendo’s production of its Change According to (NYSE):, the game console sales will fall to 24 million during the current fiscal year. This is a decrease of 28.8 millions last year because there are fewer silicon chips. Nintendo (NASDAQ:), would join a growing number of companies, including Apple (NASDAQ.) that admits that it is difficult to meet the demand for its products from worldwide customers due to supply chain problems.

3. Tesla’s rally corrects; Stocks to Open Flat

After closing on Monday at all-time highs, U.S. stocks will open later in consolidation mode. The market is likely to settle down ahead of the Federal Reserve’s policy meeting, which starts later Tuesday and concludes on Wednesday.

At 6:30 am ET (1030 GMT), the points were flat at 4 points. They were also down 0.1% and 0.2% respectively.

Stocks likely to be in focus later include Tesla and Hertz Global, after the former’s CEO Elon Musk tweeted that the two companies still haven’t signed a contract for the $4.5 billion order that added nearly $300 billion of market value to the EV maker.

 Earnings are due early from – among others – Pfizer (NYSE:), Dupont Automation, Rockwell Automation Global Payments (NYSE: Gartner (NYSE:), while T-Mobile and Amgen (NASDAQ;), Activision Blizzard(NASDAQ:), Match Group, (NASDAQ 🙂 as well as Mondelez (NASDAQ 🙂 report on the closing.

4. Australia shows inflation hawks aren’t in control – yet

Inflation hawks got a reality check overnight as the Reserve Bank of Australia, which was expected by many to raise its key interest rate to rein in inflation that’s running over 3%, refused to do so. It said the country’s labor market still wasn’t strong enough to require such a step.

The RBA did however end its policy of trying to control the country’s yield curve, a policy modelled on the Bank of Japan’s. The RBA stated that it won’t be intervening in the bond market anymore to preserve the 0.1% interest rate for the three year bond. This was after signalling the same last week as market speculation drove the three-year note above 1%.

One sector of Australia’s economy is experiencing a serious cooling off. On Tuesday, iron ore futures fell another 5% to China and now have reversed every gain since March 2020. That’s due in large measure to collapsing demand from Chinese steel companies, whose biggest customer is the real estate sector. 

5. Fed maintains lead in oil, OPEC+. API Eyed

The market entered a phase of waiting-and-see before the Fed meeting, with crude oil prices mixed overnight. Another meeting, of the Organization of Petroleum Exporting Countries and other big exporters led by Russia – the so-called OPEC+ group – is also casting its shadow. The meeting is scheduled for Thursday.

Futures fell 0.1% to $83.94 per barrel at 6:30 AM ET. However, they were flat at $84.72 per barrel at that time.

At 4:30PM ET, as per usual, The American Petroleum Institute (API) will release weekly data regarding U.S. inventories.