Traders on the floor of the NYSE, August 11, 2022.
Source: NYSE
Here are the top news investors need to start their trading day:
1. Markets are looking up
U.S. stock futures pointed to a rally on Friday morning, a day after the three major indexes posted mixed results. The Dow finished slightly higher on Thursday, while the S&P 500 and the tech-heavy Nasdaq were lower after another round of inflation data showed that price gains were slowing somewhat. But the one-month data do not create a trend, and inflation remains high even as gas prices fall from record highs in June. The Federal Reserve is still expected to take an aggressive approach against rising prices and is expected to raise rates again in September. Next week, markets will get even more information on how inflation is affecting consumers as Walmart, Target, Home Depot and Lowe’s are set to report quarterly results.
2. Democrats are ready to push their big bill
Speaker of the U.S. House of Representatives Nancy Pelosi speaks during a sign-in ceremony for S. 3373, SFC Heath Robinson Honoring Our PACT Act of 2022 at the U.S. Capitol in Washington, DC, August 9, 2022 .
Sarah Silbiger | Reuters
On Friday, the House must pass the climate, health care and corporate tax legislation, now known as the Lower Inflation Act, largely along party lines. The law aims to boost the electric vehicle industry, among other elements on the climate side, while supporting Medicare and Obamacare. The bill is far less than the original proposals. Still, it represents a victory for the majority of Democrats, who have struggled for months to pass several of President Joe Biden’s agenda items while negotiating with centrist members of their own party, Sens. Joe Manchin and Kirsten Sinema. House passage will send the bill to Biden for signature.
3. Rivian predicts a bigger loss for the year
Employees work on an assembly line at electric vehicle start-up Rivian Automotive’s factory in Normal, Illinois, April 11, 2022.
Kamil Krzaczynski | Reuters
Electric vehicle startup Rivian said it now expects a bigger loss for the year than it previously forecast as it faces supply chain issues and other headwinds facing the broader EV industry. It reported a loss of $1.7 billion for the second quarter. The company, which counts Amazon as an investor, stuck to its forecast of about 25,000 deliveries this year, but also said it would reduce capital spending. As of June 30, Rivian had about $15.5 billion in cash. The maker of the R1 electric pickup truck said it is confident it has enough cash to possibly start production of its smaller R2 car platform by 2025.
4. CDC eases its Covid guidelines
Luca Moore, 11 months, receives a vaccine against the coronavirus disease (COVID-19) as his mother, Dr. Danielle Smith, holds him at Northwell Health’s Cohen Children’s Medical Center in New Hyde Park, New York, U.S., 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 on Thursday, as it eased its guidelines to combat the virus. The agency said it has high levels of immunity in the population, as well as a range of vaccines and other treatments for it. Among the changes in 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 if they’ve been exposed to the virus.
5. DOJ wants to release Trump’s search warrant
U.S. Attorney General Merrick Garland speaks about the FBI search warrant issued at former President Donald Trump’s Mar-a-Lago estate in Florida during a statement at the U.S. Department of Justice in Washington, U.S., August 11, 2022.
Evelyn Hochstein | Reuters
The historic clash between the US Department of Justice and former President Donald Trump has entered a new tense phase. Attorney General Merrick Garland said Thursday that the DOJ has filed to unseal the search warrant for FBI agents executed earlier this week at Trump’s private Mar-a-Lago club in South Florida. Agents reportedly removed several boxes and documents from the resort. The New York Times and the Washington Post, citing sources familiar with the matter, reported that US officials were seeking sensitive documents with national security implications. The former president, who has called the various investigations swirling around him a “witch hunt,” said late Thursday that he would not oppose releasing the order. 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 either document. The manifesto, if published, would likely be heavily redacted if classified material was on the list.
— CNBC’s Samantha Subin, John Rosevear, Spencer Kimball and Dan Mangan contributed to this report.
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