5 things to know before the stock market opens on Thursday August 11

Traders on the floor of the NYSE, August 8, 2022.

Source: NYSE

Here are the most important information investors need to start their trading day:

1. Stock futures are on the rise

US markets on Thursday were ready to go up after a government report showing inflation cooling fueled a rally on Wednesday. The three main clues come out of a good day: Dow jumped over 500 points, while S&P500 reached its highest level since early May, and the Nasdaq notched its highest close since April. Ahead of Thursday’s session, investors analyze Disney’s earnings from Wednesday night (more details below), while eagerly awaiting the producer price index and weekly job claims data later. in the morning.

2. Gas drops to less than $4 a gallon

Gasoline prices in the United States have been falling for several weeks now, but the average cost of a gallon has fallen below a key psychological barrier this week. A gallon of regular gasoline now costs $3.99, the lowest level since March, AAA said on Thursday. Prices hit a record high of $5.02 in June and were indeed higher than that in several places across the country. The news came a day after the Bureau of Labor Statistics announced that growth in the consumer price index, a measure of inflation, slowed slightly more than expected in July. Prices remain high, but relief from lower gasoline prices and slowing inflation could help the economy stave off a recession, at least for now. writes CNBC’s Jeff Cox.

3. Disney’s Streaming Changes

Captain Minnie poses aboard Disney’s new cruise ship, The Wish.

disney

Disney pretty much had the earnings spotlight on Wednesday night, and it took full advantage of it. Entertainment giant delivered a deluge of news that pushed its stock higher in after-hours trading: quarterly results beat Wall Street expectations up and down, parks business performed well, and streaming subscriber additions easily exceeded projections. The the company raised prices for its streaming offers, while reducing its ambitious longer-term objective for Disney+ subscribers of 15 million, which several industry analysts had requested. And it looks like the company has given investors what they’ve been looking for, especially as a leader in streaming. netflix is struggling to adjust its business amid heavy subscriber losses and Discovery of Warner Bros. places greater emphasis on theatrical releases and traditional linear television. disney shares rose a good margin before the bell on Thursday, following Wednesday’s nearly 4% gain.

4. Ford CEO’s EV battery warning

Ford F-150 Lightning at the 2022 New York Auto Show.

Scott Mill | CNBC

Electric vehicle manufacturers, such as Ford Motor and You’re here, have recently increased their prices, driven in large part by rising battery manufacturing material costs. Don’t expect this to change in the foreseeable future, Ford CEO Jim Farley said wednesday. “I don’t think there will be much relief on lithium, cobalt and nickel soon,” he told reporters. Farley’s warning came as Congress was set to pass a climate and health care bill that includes several provisions aimed at steering Americans away from gasoline engines toward electric vehicles, which are expensive and relatively rare. Several key industry figures warn, however, that the legislation could actually hinder sales.

5. The United States is rethinking China’s tariff strategy

A screen shows Chinese President Xi Jinping attending a virtual meeting with US President Joe Biden via video link, at a restaurant in Beijing, China November 16, 2021.

Tingshu Wang | Reuters

The Biden administration is reconsidering its strategy on tariffs on Chinese goods following China’s aggressive response to House Speaker Nancy Pelosi’s visit to Taiwan, Reuters reports. The Chinese government claims dominance of Taiwan, a self-governing island, and it has conducted several major military exercises nearby to protest Pelosi’s trip. President Joe Biden and his team had considered whether to drop some existing tariffs on Chinese goods, and possibly impose more, but officials put those options aside and Biden has yet to make a decision, according to the report.

– CNBC’s Samantha Subin, Jeff Cox, Alex Sherman, Sarah Whitten, Pippa Stevens, John Rosevear and Michael Wayland contributed to this report.

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