Traders on the NYSE floor, August 11, 2022.
Source: NYSE
Here are the most important news items traders need to start their trading day:
1. Bad start for stocks
Futures fell on Monday morning, suggesting a mild opening to an important week for investors looking for clues about the state of the economy. All three major US indexes closed higher last week. For the S&P 500, this is the fourth consecutive winning week. On Monday, however, the markets were swarming with bad economic news from China (more on that below) while looking ahead to strengthening the retail earnings report (more on that). that below). There is some good news for consumers, however, as crude oil prices fell after weak China data, a sign that gas prices will fall even further.
2. Big week for retail earnings
Signage at a Walmart store in Secaucus, New Jersey.
Lucas Jackson | Reuters
Retailers in turn become the focus of income. On Tuesday, Walmartmade waves by cut its forecast and company job cuts This summer, will give investors a look at how inflation and oversupplied inventories are cutting margins. Targetdeep into a inventory reduction plan its own, reported Wednesday. Home improvement retailer Home Depot and Lowe’s Tuesday and Wednesday reports, respectively. Finally, on Thursday, Kohl’s is set to report. Investors will be looking for clues about the department store chain’s strategy after the deal with Franchise Group disbanded at the end of June.
3. Slow growth in China
Employees work on the production line of air conditioners at the Midea factory in Guangzhou, China.
Ngoc Gao | AFP | beautiful pictures
Some soft economic data points from China weighed in stocks on Monday morning. The government reported growth in industrial production and retail sales fell below analyst expectations. Investment in the manufacturing sector slowed, while investment in real estate increased rapidly. China’s economy has struggled to withstand the impact of strict Covid restrictions, while the country’s real estate sector is suffering from reduced cash flows as many homebuyers have stopped making mortgage payments in order to save money. oppose the delay in house construction.
4. Peloton cuts growth seeking
In case you missed it on Friday, honey Peloton disclosure some drastic measures as it seeks to profit as people return to the great gyms and outdoors for exercise. The connected fitness company said it would cut 780 jobs, close some retail locations and hand over other logistics and delivery functions to third parties. “We have to make our revenue stop falling and start growing again,” CEO Barry McCarthy told employees in a memo Friday. “Cash is oxygen. Oxygen is life.” Shares of Peloton were down before the market opened on Monday.
5. South facing
Scott Keogh of Volkswagen USA at the VW plant in Chattanooga, TN, June 8, 2022.
Michael Wayland | CNBC
As automakers’ plans to build and sell electric vehicles grow, so do their investments in South America. Since 2017, car companies have invested billions more in the Southern states than in the states in the Great Lakes region, where Detroit, i.e. Auto City, is located. There were a number of reasons executives were drawn to the South, including lower costs, as well as reduced taxes and non-union labor. But auto companies are also facing some difficulties. Read CNBC auto reporter Michael Wayland’s Intensive dispatch from Tennessee.
– CNBC’s Tanaya Macheel, Evelyn Cheng, Pippa Stevens, Lauren Thomas and Michael Wayland contributed to this report.
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