Here are the most important information investors need to start their trading day:
1. S&P on track to end its worst first half in 52 years
Traders on the floor of the NYSE, June 29, 2022.
Equity futures fell Thursday morning as investors continued to weigh the continued impact of inflation, central bank rate hikes and the deluge of second-quarter earnings reports to come in a few weeks. The latest reading from the Fed’s preferred inflation gauge is also due this morning: the Core Personal Consumption Expenditure Index is expected to decline at 8:30 a.m. ET. The S&P 500 is on track for its worst first half since 1970.
2. Bitcoin slips below $19,000
Cryptocurrencies fell in 2022.
Chesnot | Getty Images
There was no respite for bitcoin, which briefly slipped below $19,000 on Thursday morning before rebounding slightly. The cryptocurrency, the world’s largest, is down 58% this year and around 70% since its all-time high in November. While investors in various sectors are facing a perilous macroeconomic situation, people with money in the crypto game are also facing liquidity issues in several companies. Learn more here.
3. Wells Fargo CEO: Economy not ready for rate hikes
Wells Fargo CEO Charles Scharf listens during the Milken Institute Global Conference in Beverly Hills, California on April 30, 2019.
Kyle Grillot | Bloomberg | Getty Images
Charles Scharf, CEO of Wells Fargo, said the economy was not fully prepared for future rate hikes the Fed has in store, as the central bank has fought a battle against high inflation for four decades. “We know rates are going up; that couldn’t be clearer,” he told CNBC’s Sara Eisen on Wednesday at the Aspen Ideas Festival. “We know that consumers and businesses, while strong today, will see deterioration, and we will act surprised when that happens.”
4. Spirit delays shareholder vote on Frontier deal
A JetBlue jetliner lands in front of a Spirit Airlines plane in a taxi lane at Fort Lauderdale Hollywood International Airport on Monday, April 25, 2022. (Joe Cavaretta/Sun Sentinel/Tribune News Service via Getty Images)
Joe Cavaretta | Sentinel of the Sun | Getty Images
In an 11-hour move, Spirit Airlines again delayed a shareholder vote Wednesday night on a proposed merger with fellow low-cost carrier Frontier Airlines. The meeting was scheduled for Thursday morning but was moved to July 8. The delay gives JetBlue another opportunity to push its offer for Spirit, which has been repeatedly rejected despite increasingly watered-down offers. Either merger would create the fifth largest airline in the United States. “Spirit wouldn’t have postponed tomorrow’s meeting if they felt they had the votes,” Henry Harteveldt, travel industry consultant and president of Atmosphere Research Group, told CNBC.
5. Walgreens sticks to its outlook
People walk past a Walgreens, owned by the Walgreens Boots Alliance, Inc., in New York on November 26, 2021.
andrew kelly | Reuters
Pharmaceutical company Walgreens Boots Alliance’s earnings report beat Wall Street expectations on Thursday, thanks in part to growing online sales. Walgreens, which said it administered millions of Covid tests and vaccines in the quarter, is also held back by its profit outlook for the year. Shares of the company fell more than 2% in light premarket trading.
– CNBC’s Pippa Stevens, Ian Thomas, Arjun Kharpal, Leslie Josephs and Melissa Repko contributed to this report.
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