Traders work on the floor of the New York Stock Exchange (NYSE) in New York on August 8, 2022.
Andrew Kelly | Reuters
Here is the key news investors need to start their trading day:
1. Mixed stock futures
US stock markets were poised for a muted open Tuesday morning, a day after the Dow reported gains and the Nasdaq and S&P 500 were modestly down. Investors await Wednesday’s CPI report as economists expect inflation to ease slightly, but look forward to more earnings reports. While there have been some big flops — Novovax shares plummeted after sharply lowering its guidance on Monday — most companies’ earnings have been positive. About three-quarters of the 400+ companies that have reported so far this season have beaten expectations, according to FactSet. Spirit reported Tuesday morning, Coinbase will announce after the bell and Disney will report Wednesday.
2. Consumers expect inflation to slow down
The Federal Reserve, which has been battling high inflation with steep interest rate hikes for four decades, did get some good news on Monday. Respondents to the New York Fed’s monthly survey of consumer expectations said they believe inflation will remain at a pace of around 6.2% next year and 3.2% over the next three years. Those numbers are still high, but they’ve softened as gasoline prices and mortgage rates slipped from recent highs. The Fed is expected to make more rate hikes after raising three quarters of a point in a row this summer.
3. Cut back allbirds
The new Allbirds line of activewear includes high-waisted leggings, biker shorts and a women’s running tank top with built-in bra.
Source: Allbirds PR
However, inflation is still an issue. Allbirds, which specializes in “eco-friendly” shoes, said Monday it will slow its hiring pace and cut costs as it grapples with a slump in demand fueled by rising prices and other economic factors. The retailer also reduced its full-year guidance. The stock fell more than 10% after hours. Allbirds went public in November last year at a valuation of about $4 billion. The market cap as of Monday’s close 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, David Zaslav, CEO of Warner Bros. Discovery, announced his company’s upcoming series of DC Comics superhero films, including a new “Shazam” movie, Dwayne Johnson’s “Black Adam” and “The Flash.” (Except for the nearly finished Batgirl, which the studio scrapped for a tax break.) “We’re very excited about her. We saw her. We think they’re great,” Zaslav said on the company’s conference call. But what he didn’t mention were all the troubles “Flash” star Ezra Miller is in. It was announced on Monday that Miller was charged with burglary in Vermont. This follows a series of misconduct allegations against Miller, who has been accused of hurting a woman and caring for children. So far, Warner Bros. has remained silent about Miller’s ongoing legal woes, but the controversy is only likely to increase before the big-budget “Flash” is released next year.
5. Feds raid Trump’s house
Former U.S. President Donald Trump delivers a speech at the America First Agenda Summit at the America First Policy Institute in Washington, July 26, 2022.
Sarah Silbiger | Reuters
FBI agents spent several hours Monday at former President Donald Trump’s home and private club in south Florida. Various outlets reported that the search was at least related to a Justice Department investigation into how and why 15 boxes of White House records — including documents marked as classified — ended up in Mar-a-Lago rather than the National Archives . A lawyer for Trump told NBC News that agents had seized documents. Trump himself was in New York on Monday. The search and seizure comes as Trump faces escalating legal problems arising from a House committee investigation into the pro-Trump uprising of Jan. 6 in the Capitol and a Georgia investigation into vote-interference. The political ramifications of the crackdown and its aftermath will be seismic as Trump considers another run for the White House and Republicans seek 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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