Traders on the floor of the NYSE, August 8, 2022.
Source: NYSE
Here are the top news investors need to start their trading day:
1. Stock futures are rising
U.S. markets were poised to rally again on Thursday after a government report showing inflation was cooling fueled Wednesday’s rally. All three major indexes are coming off a strong day: The Dow jumped more than 500 points, while the S&P 500 hit its highest point since early May and the Nasdaq hit its highest close since April. Ahead of Thursday’s session, investors are reviewing Disney’s earnings from Wednesday night (more on that below) as they look forward to the PMI and weekly job claims data later in the morning.
2. Gas falls below $4 a gallon
Gasoline prices in the United States have been falling for several weeks, but the average price per gallon fell below a key psychological barrier this week. A gallon of regular gas is now going for $3.99, the lowest level since March, AAA said Thursday. Prices hit a record high of $5.02 in June and were indeed higher than in several locations across the country. The news came a day after the Bureau of Labor Statistics reported that growth in the consumer price index, a measure of inflation, cooled slightly more than expected in July. Prices remain high, but relief from falling gas prices and slower inflation could help the economy stave off recession, at least for now, CNBC’s Jeff Cox writes.
3. Disney Streaming Changes
Captain Minnie poses aboard Disney’s newest cruise ship The Wish.
Disney
Disney was in the earnings spotlight on Wednesday night and took full advantage of it. The entertainment giant delivered a flurry of news that pushed its stock higher in after-hours trading: quarterly results beat Wall Street expectations on the top and bottom lines, the parks business performed well and streaming subscriber additions easily beat forecasts. The company raised prices for its streaming offerings while lowering its ambitious long-term target for Disney+ subscribers by 15 million, which many industry analysts had been calling for. And the company appears to have given investors what they were looking for, especially as streaming leader Netflix struggles to right its business amid heavy subscriber losses and Warner Bros. Discovery puts more emphasis on theatrical releases and traditional linear television. Disney shares rose by a solid margin before the bell on Thursday, following a nearly 4% gain on Wednesday.
4. Ford CEO’s EV battery warning
Ford F-150 Lightning at the 2022 New York Auto Show
Scott Mill | CNBC
Electric vehicle makers such as Ford Motor and Tesla have increased prices recently, largely driven by the rising cost of materials to make batteries. Don’t expect that to change in the foreseeable future, Ford CEO Jim Farley said Wednesday. “I don’t think there’s going to be much relief anytime soon for lithium, cobalt and nickel,” he told reporters. Farley’s warning came as Congress was set to pass a climate and health care bill that includes several provisions designed to shift Americans from gas engines to electric vehicles, which are expensive and in relatively short supply. However, several key industry figures warn that the legislation could actually hinder sales.
5. The US is rethinking China’s tariff strategy
A screen shows Chinese President Xi Jinping attending a virtual meeting with US President Joe Biden via video link at a restaurant in Beijing, China, 16 November 2021.
Tingshu Wang | Reuters
The Biden administration is reviewing its strategy on tariffs on Chinese goods after China’s aggressive response to House Speaker Nancy Pelosi’s visit to Taiwan, Reuters reports. The Chinese government claims sovereignty over Taiwan, a self-governing island, and has held several major military exercises nearby to protest Pelosi’s trip. President Joe Biden and his team have considered whether to remove some existing tariffs on Chinese goods and possibly impose more, but officials have shelved those options and Biden has not yet made a decision, according to the report.
— CNBC’s Samantha Subin, Jeff Cox, Alex Sherman, Sarah Wheaton, Pippa Stevens, John Rosevear and Michael Weiland contributed to this report.
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