Traders work on the trading floor of the New York Stock Exchange (NYSE) in New York, August 8, 2022.
Andrew Kelly | Reuters
Here are the most important news investors need to start their trading day:
1. Mixed Stock Futures
US stock markets were poised for a subdued open Tuesday morning, a day after the Dow scored a victory and the Nasdaq and S&P 500 fell slightly. Investors await Wednesday’s consumer price index report as economists expect the pace of inflation to ease somewhat but expect more earnings reports. While there have been some big misses (Novovax stock sank after sharply cutting its guidance on Monday), earnings for most companies have been positive. About three-quarters of the more than 400 companies that have reported so far this season beat expectations, according to FactSet. Spirit reported Tuesday morning, Coinbase will announce after the bell and Disney will report Wednesday.
2. Consumers expect inflation to decrease
The Federal Reserve, which has been battling four-decade high inflation with steep rate hikes, got some good news on Monday. Respondents to the New York Fed’s monthly Survey of Consumer Expectations said they believe inflation will persist at a pace of about 6.2% next year and 3.2% over the next three years Those numbers remain high, but have moderated as gas prices and mortgage rates fell from recent peaks. The Fed is expected to follow up with more rate hikes after consecutive three-quarter point hikes this summer.
3. Allocells cutting
Allbirds’ new activewear line includes high-waisted leggings, biker shorts and a women’s running tank that includes a built-in bra.
Source: Allbirds PR
Inflation is still a problem, though. Allbirds, which specializes in “green” footwear, said on Monday it would slow its hiring pace and cut costs as it grapples with a decline in demand spurred by rising prices and other economic factors. The retailer also lowered its forecast for the year. Shares fell more than 10% in after-hours trading. Allbirds went public in November last year, at a valuation of around $4 billion. Its market capitalization as of the closing bell on Monday 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, the CEO of Warner Bros. Discovery’s David Zaslav touted his company’s upcoming slate of DC Comics superhero movies, including a new “Shazam” movie, “Black Adam” and Dwayne Johnson’s “The Flash.” (Not the near-complete “Batgirl,” which the studio scrapped for a tax break.) “We’re very excited about them. We’ve seen them. We think they’re great,” Zaslav said on the company’s earnings call. . But what he didn’t mention was all the trouble “Flash” star Ezra Miller is in. It was announced Monday that Miller was charged with burglary in Vermont. This follows a series of allegations of misconduct against Miller, who has been accused of injuring a woman and grooming children. So far, Warner Bros. has been tight-lipped about Miller’s legal troubles, but the controversy is only likely to grow before the big-budget “Flash” hits theaters next year.
5. Feds search Trump’s house
Former U.S. President Donald Trump delivers a speech at the America First Policy Institute’s America First Agenda Summit in Washington on 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. Multiple media outlets reported that the search was at least related to a Justice Department investigation into how and why 15 boxes of White House records, which contained documents marked classified, ended up at Mar-a-Lago instead of the National Archives. A lawyer for Trump told NBC News that agents seized documents. Trump himself was in New York on Monday. The search and seizure comes as Trump faces mounting legal troubles stemming from a House committee investigation into the Jan. 6 pro-Trump riot at the Capitol and a Georgia probe into election interference. The political impact of the attack and its aftermath looks seismic as Trump weighs another run for the White House and Republicans try 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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