Traders on the NYSE floor, August 11, 2022.
Source: NYSE
Here are the most important news investors need to start their trading day:
1. Markets looking up
US stock futures were pointing to a rebound on Friday morning, a day after the three major indexes posted mixed results. The Dow ended slightly higher on Thursday, while the tech-heavy S&P 500 and Nasdaq fell after another round of inflation data showed price increases were slowing somewhat. But a month of data shows no trend and inflation remains high even as gas prices are coming off June’s all-time highs. The Federal Reserve is still expected to take an aggressive stance against rising prices and is expected to raise rates again in September. Next week, markets will get even more insight into how inflation is affecting consumers as Walmart, Target, Home Depot and Lowe’s are set to report quarterly results.
2. The Dems are ready to pass their big bill
US House Speaker Nancy Pelosi speaks during a bill signing ceremony for S. 3373, the SFC Heath Robinson Honoring Our PACT Act of 2022 at the US Capitol in Washington, DC on August 9, 2022.
Sarah Silbiger | Reuters
The House on Friday is poised to pass the climate, health care and corporate tax legislation now known as the Inflation Reduction Act, largely along party lines. The law aims to give a boost to the electric vehicle industry, among other climate-related issues, while strengthening Medicare and Obamacare. The bill is much smaller than the initial proposals. Still, it represents a victory for the Democratic majority, which has struggled for months to pass several points on President Joe Biden’s agenda while negotiating with centrist members of his own party, Sens. Joe Manchin and Kyrsten Sinema. Passage in the House will send the bill to Biden for his signature.
3. Rivian expects a wider loss for the year
Employees work on an assembly line at startup Rivian Automotive’s electric vehicle factory in Normal, Illinois on April 11, 2022.
Kamil Krzaczynski | Reuters
Electric vehicle startup Rivian said it now expects a wider loss for the year than previously projected as it grapples with supply chain issues and other headwinds facing the electric vehicle industry. It posted a loss of $1.7 billion in the second quarter. The company, which has Amazon as an investor, maintained its forecast of about 25,000 deliveries this year, but also said it would reduce its capital expenditures. As of June 30, Rivian had about $15.5 billion in cash on hand. The R1 electric truck maker said it is confident it has enough cash to start producing its smaller R2 vehicle platform in 2025.
4. CDC relaxes its Covid guidelines
Luca Moore, 11 months, receives a vaccine against the coronavirus disease (COVID-19) as his mother, Dr. Danielle Smith, takes him to Northwell Health’s Cohen Children’s Medical Center in New Hyde Park, New York, USA , on June 22, 2022.
Shannon Stapleton | Reuters
The Covid-19 pandemic is far from over. Tens of thousands of people are infected every day in the United States. But the disease poses a less serious health threat, the US Centers for Disease Control and Prevention said Thursday, as they eased their guidelines for fighting the virus. The agency said there are high levels of immunity in the population, as well as a variety of vaccines and other treatments for it. Among the changes to the CDC’s recommendations: no more testing in schools for people who don’t have symptoms, and unvaccinated people will no longer have to quarantine themselves if they’ve been exposed to the virus.
5. The DOJ wants to release Trump’s search warrant
US Attorney General Merrick Garland speaks about the FBI search warrant served on former President Donald Trump’s Mar-a-Lago estate in Florida during a statement at the US Department of Justice in Washington, USA on August 11, 2022.
Evelyn Hockstein | Reuters
The historic confrontation between the US Department of Justice and former President Donald Trump has entered a tense new phase. Attorney General Merrick Garland said Thursday that the DOJ had filed a motion to unseal the search warrant that FBI agents executed earlier this week at Trump’s private Mar-a-Lago club in the South from Florida. Officers reportedly removed several boxes and documents from the complex. The New York Times and the Washington Post, both citing background sources, reported that US officials were seeking sensitive documents with national security implications. The former president, who has referred to various investigations surrounding him as a “witch hunt,” said Thursday afternoon that he would not oppose the order’s release. Trump’s lawyers also have a copy of the warrant, as well as a list of items taken in the search, but have not released any documents. The manifesto, if published, would likely be heavily redacted if there were classified materials on the list.
– CNBC’s Samantha Subin, John Rosevear, Spencer Kimball and Dan Mangan contributed to this report.
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