5 things to know before the stock market opens on Friday

5 things to know before the stock market opens on Friday


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

Traders work on the floor of the New York Stock Exchange during afternoon trading on September 13, 2022 in New York City.

Michael M. Santiago | Getty Images News | fake images

1. Stock futures fall

Wall Street was headed for another week down with US stock futures down on Friday. Traders were absorbing an ugly earnings warning from FedEx, which reported weakening global shipping volumes for its latest quarter and withdrew guidance for the full year. Earlier in the week, US stocks had their worst day since 2020 after the consumer price index report for August showed headline inflation rising 0.1% month-on-month, despite a drop in gasoline prices. That indicated an increasingly difficult path for the Federal Reserve to reduce inflation. Traders will get consumer confidence data at 10am ET on Friday, but all three major averages were on track for their fourth losing week in five.

A Federal Express truck drives down a freeway in San Diego, California.

mike-blake | Reuters

2. More about FedEx

Shares of FedEx tumbled late Thursday after the company said it is aggressively cutting costs after weakening global shipping volumes dragged down last quarter’s results. FedEx said it had anticipated demand to rise as factories in China reopen with the easing of Covid pandemic restrictions. Instead, he said global demand fell. CEO Raj Subramaniam said in an interview with CNBC’s Jim Cramer on “Mad Money” that the volume loss was far-reaching and that the company has seen weekly declines since its investor day in June. He said that was an indication of poor economic conditions. “We are a reflection of everyone else’s business, especially the high-value economy in the world,” Subramaniam said.

Ether has massively outperformed bitcoin since both cryptocurrencies bottomed out in June 2022. Ether’s top gains came as investors anticipated a major upgrade to the ethereum blockchain called “the merger.”

Yuriko Nakao | fake images

3. Regulation of cryptocurrencies

The White House has released a long-awaited framework for what cryptocurrency regulation in the US should look like. The direction from Washington includes how the financial services industry should evolve to facilitate borderless transactions and how to crack down on cryptocurrency. fraud in the digital asset space. The framework follows an executive order issued in March, in which President Joe Biden called on federal agencies to examine the risks and benefits of cryptocurrencies and issue official reports on his findings. A section of the White House’s new framework on crypto regulation focuses on rooting out illegal activity in the industry, and the proposed measures appear to have real force.

A pedestrian walks past a Bed Bath and Beyond store in San Francisco, California.

justin sullivan | fake images

4. Bed Bath & Beyond Closures

Kanye West arrives at the Vanity Fair Oscar Party on February 9, 2020 in Beverly Hills, California.

Evan Agostini | Invision | access point

5. Yeezy and Gap split

Kanye West, who goes by Ye, is ending the contract between his company, Yeezy, and Gap Inc. The partnership made headlines when it was announced in 2020, selling the first product in the Yeezy Gap line, a bright blue puffer jacket. . within hours of its release a year later. But then, in a letter sent by his lawyers on Thursday, Yeezy told Gap that the retailer failed to meet its contractual obligations, including opening dedicated Yeezy Gap stores. Gap CEO Mark Breitbard confirmed the breakup in a memo to employees later that day, saying the two parties shared a vision for Yeezy Gap, but how they work to deliver the vision is “not aligned.” . In an interview on CNBC’s “Closing Bell,” the rapper and designer put it another way: “A king can’t live in someone else’s castle.”

— CNBC’s Sarah Min, Jack Stebbins, MacKenzie Sigalos, Melissa Repko and Gabriel Cortes contributed to this report.

Register now for the CNBC Investing Club to follow all of Jim Cramer’s stock moves. Follow the broader market action like a pro on professional cnbc.


Source link