Traders on the NYSE floor, August 24, 2022.
Source: NYSE
Here are the most important news investors need to start their trading day:
1. Stocks are looking for a new winning streak
Stock futures pointed to a higher open on Thursday after a positive Wednesday for all three major US indexes. Markets are looking to get back on track heading into September after the summer rally lost some momentum this month. Investors are eager for clues about what the Federal Reserve will do at its meeting next month in its fight against inflation. A couple of days of comments from Fed speakers in Jackson Hole, Wyoming, starting Thursday could scratch that itch. Fed Chairman Jerome Powell is scheduled to speak on Friday.
2. Ugly Peloton results
Losses continue to pile up for Peloton, the fitness equipment maker that became a phenomenon during the Covid pandemic lockdowns only to hit rock bottom, and then some, after people started leaving their homes again. On Thursday, the company posted its sixth consecutive quarter of reported losses as sales collapsed and its gross margin hit a staggering negative 98.1% in the fiscal fourth quarter. (It was up 11.7% in the year-ago period.) Peloton didn’t even bother to give full-year guidance. The report came a day after investors celebrated news that Peloton began selling gear and apparel through Amazon, marking the company’s first deal with another retailer.
3. Salesforce Smooth Guide
Salesforce CEO Marc Benioff at the WEF in Davos, Switzerland on May 25, 2022.
Adam Galicia | CNBC
Shares of business software maker Salesforce fell in after-hours trading after the company cut its outlook for the year. “Almost everyone I’ve talked to is taking a more measured approach to their business,” Marc Benioff, the company’s co-founder and co-CEO, said on a conference call with analysts. “We expect these trends to continue in the near term, and we have reflected this in our guidance.” Salesforce also approved a $10 billion share buyback program. It’s also raising prices for Slack, the team messaging app it acquired last year for $28 billion, as it became clear that hybrid work arrangements were here to stay.
4. What’s next for Amazon’s health push?
Amazon Care is a pilot medical clinic for employees.
Amazon’s telehealth service, Amazon Care, will shut down at the end of the year. It marks a big step back for Amazon, although its health ambitions remain robust. Amazon Care helped the company understand “what is needed over the long term to deliver meaningful healthcare solutions for individual and business customers,” the service’s leader, Neil Lindsay, wrote in the note. The company reached a deal to acquire primary care provider One Medical last month and is reportedly bidding for Signify Health, a provider of home health services.
5. Written in the stars
Invitation to the Apple event in September.
apple
September is just around the corner. That means it’s Apple season. The tech giant on Wednesday sent out space-themed invitations to a big event on September 7, when it’s expected to unveil the latest iPhones. Investors and consumers alike will be looking to see if Apple will raise its already top-tier prices given supply chain issues and inflation, writes CNBC’s Kif Leswing. Apple could also unveil a new Apple Watch at the event.
– CNBC’s Carmen Reinicke, Lauren Thomas, Jordan Novet, Annie Palmer and Kif Leswing contributed to this report.
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