Traders work on the floor of the New York Stock Exchange (NYSE) on May 12, 2022 in New York City. The Dow Jones Industrial Average fell in morning trade as investors continued to worry about inflation and other global issues.
Spencer Platt | Getty Images
Here are the most important information investors need to start their trading day:
1. A wary market
U.S. stock futures were a little higher ahead of Wednesday’s bell as investors eagerly awaited new inflation data due out later in the morning. All three major indexes fell on Tuesday as markets began to digest early reports of the earnings season. Several major Wall Street banks are expected to report results this week, including Morgan Stanley and JPMorgan.
2. Crucial Inflation Report
A woman shops for t-shirts in Rosemead, California on June 28, 2022.
Frederic J. Brown | AFP | Getty Images
The latest Consumer Price Index report is scheduled for release at 8:30 a.m. ET on Wednesday. Observers expect another hot reading, this time an 8.8% year-over-year increase, according to Dow Jones. Inflation has soared to rates not seen in four decades, and it has weighed on consumer sentiment, even as Americans continue to spend at high levels. Investors are eager to see signs that inflation could peak, as the Federal Reserve plans to raise rates by 50 or 75 basis points at its next meeting.
3. Alphabet is slowing down hiring
A woman passes the logo of web search engine provider Google during the digital society festival ‘re:publica’, at Arena Berlin in Berlin, Germany on June 9, 2022.
Annegret Hilse | Reuters
Alphabet, Google’s parent company, is the latest company to begin a hiring slowdown in Silicon Valley. In a memo to employees, CEO Sundar Pichai said the tech giant needed to “be more enterprising by working with greater urgency, sharper focus and more hunger than we’ve shown on sunnier days.” . While the labor market has remained strong, there have been warning signs coming from the tech world. The sector is grappling with share price losses after helping to drive stock market growth for several years. Earlier, Facebook parent Meta said in May it would slow down hiring, while Amazon executives called the e-commerce leader’s warehouses “overstaffed”.
4. Twitter vs. Musk
The Twitter logo and trading information are displayed as a trader works on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 3, 2022.
Brendan Mcdermid | Reuters
Twitter has followed through on its threat to sue Elon Musk for backing out of his $44 billion deal to buy the social networking company. Twitter filed a lawsuit Tuesday in Delaware, seeking to force the CEO of Tesla and SpaceX to honor the deal. The company, accusing Musk of acting in “bad faith”, is seeking a four-day trial in September, but that move could just be the start of a long and costly legal battle. Read more: 8 ways the Elon Musk-Twitter saga could end
5. Delta launches airline revenue
Delta Airlines passenger jets are pictured outside Delta Airlines’ newly completed $4 billion, 1.3 million square foot Terminal C at New York’s LaGuardia Airport on June 1, 2022.
Mike Segar | Reuters
On Wednesday, Delta Air Lines offered a first look at how carriers are faring as fares rise and cancellations spike amid overwhelming travel demand and staffing shortages. Delta posted revenue that beat Wall Street expectations, and it said it expects sales and costs to rise in the third quarter. Rivals United Airlines and American Airlines are expected to release their quarterly results next week.
– CNBC’s Yun Li, Patti Domm, Jennifer Elias, Kif Leswing, Lauren Feiner and Leslie Josephs contributed to this report.
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