Traders work on the floor of the New York Stock Exchange (NYSE) in New York, August 8, 2022.
andrew kelly | Reuters
Here are the most important information investors need to start their trading day:
1. Mixed stock futures
US stock markets were ready for moderate opening Tuesday morning, a day after the Dow took a win and the Nasdaq and S&P 500 slipped slightly. Investors are anticipating Wednesday’s consumer price index report as economists expect the pace of inflation to slow a bit, but they are eagerly awaiting more earnings reports. Although there were big flops – Novovax stocks fell after significantly slashing its forecast on Monday – earnings for most companies were positive. About three-quarters of the more than 400 companies that have reported so far this season have exceeded expectations, according to FactSet. Spirit reported Tuesday morning, Coinbase is expected to announce after the bell and disney is due to report on Wednesday.
2. Consumers expect lower inflation
The Federal Reserve, which battled high inflation for four decades with steep rate hikes, actually received good news monday. Respondents to the New York Fed’s monthly consumer expectations survey said they expect inflation to persist at around 6.2% next year and 3.2 % over the next three years. These numbers are still high, but have moderated as gas prices and mortgage rates have fallen from recent highs. The Fed is expected to follow up with further rate hikes after back-to-back three-quarter-point increases this summer.
3. Cut all the birds
Allbirds’ new activewear line includes high-waisted leggings, biker shorts and a women’s running tank top with a built-in bra.
Source: Allbirds PR
Inflation is still a problem, however. all the birds, which specializes in “eco-friendly” shoes, said on Monday it would slow its pace of hiring and cut costs in the face of falling demand spurred by soaring prices and other economic factors. The retailer also cut its forecast for the year. The stock fell more than 10% during trading hours. Allbirds went public in November last year, with a valuation of around $4 billion. Its market capitalization at the closing bell on Monday was $842 million.
4. Warner Bros. Discovery has a “Flash” problem
Ezra Miller, Ben Affleck and Gal Gadot star in “Justice League.”
Source: Warner Bros.
Last week, Discovery of Warner Bros. CEO David Zaslav has touted his company’s upcoming slate of DC Comics superhero movies, including a new “Shazam,” “Black Adam,” and Dwayne Johnson’s “The Flash.” (Just not the almost complete “Batgirl”, that the studio denied for tax relief.) “We’re very excited about them. We’ve seen them. We think they’re great,” Zaslav said on the company’s earnings call. But what he didn’t mention were all the issues for “Flash” star Ezra Miller. On Monday, news broke that Miller was charged with burglary in Vermont. This follows a series of misconduct allegations against Miller, who was accused of injuring a woman and caring for children. So far, Warner Bros. has been quiet about Miller’s ongoing legal issues, but the controversy will likely only grow ahead of the release of the big-budget “Flash” next year.
5. Feds search Trump’s house
Former US President Donald Trump delivers remarks at the America First Policy Institute America First Agenda Summit in Washington, July 26, 2022.
Sarah Silbiger | Reuters
FBI agents spent several hours on Monday at former President Donald Trump’s home and private club in South Florida. Various media outlets reported that the search was at least tied to a Justice Department investigation into how and why 15 boxes of White House files — which included documents marked as classified — ended up at Mar-a-Lago in the place of the National Archives. A Trump attorney told NBC News that officers seized documents. Trump himself was in New York on Monday. The search and seizure comes as Trump faces mounting legal issues stemming from a House committee’s investigation into the Jan. 6 pro-Trump uprising on Capitol Hill and a Georgia investigation into the interference. electoral. The political impact of the raid and its aftermath promises to be seismic, as Trump eyes another run for the White House and Republicans attempt to win Congress this fall.
– CNBC’s Sarah Min, Jeff Cox, Lauren Thomas, Sarah Whitten, Kevin Breuninger and Dan Mangan contributed to this report.
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