5 things to know before the stock market opens on Monday, August 8

A trader works on the floor at the New York Stock Exchange (NYSE), New York, August 3, 2022.

Andrew Kelly | Reuters

Here are the most important news items traders need to start their trading day:

1. Momentum Seeking Stocks

The US stock market is on track to open higher on Monday morning after three straight weeks of wins for the S&P 500, is recovering from its worst first half in more than 50 years. The Nasdaq also posted a winning week as investors considered the latest, much stronger-than-expected jobs report, as well as the chance of future rate hikes from the Federal Reserve, which is in the anti-inflation regime. Markets will also get fresh information on inflation this week: The latest Consumer Price Index is expected to be released on Wednesday, and economists expect it to show the pace of inflation. mitigation. Follow live stock market updates here.

2. Senate passes health care and climate package

U.S. Vice President Kamala Harris smiles during her speech at the NAACP National Convention in Atlantic City, New Jersey, U.S. July 18, 2022.

Hannah Beier | Reuters

Senate Democrats, leaning on Vice President Kamala Harris’s winning vote amid unanimous Republican opposition, have finally approved a reconciliation package that includes provisions. to combat climate change and improve health care. The final $430 billion bill is much smaller than what the President Joe Biden and Democratic leaders are looking, but the party is touting it as a huge win ahead of the midterm elections this fall. The ruling party tends to lose seats in Congress during a president’s first term, and with inflation raging and Biden’s approval ratings low, Democrats risk ceding control of both houses. The House is expected to vote on the legislation and send it to Biden later this week. Read the NBC News report here.

3. Fed Governor Sees Bigger Rate Raises

Federal Reserve Bank Governor Michelle Bowman delivers her first public remarks as a Federal policymaker at the American Bankers Association conference in San Diego, California, May 11 February 2019.

Ann Saphir | Reuters

The Fed is relatively new after its second three-quarter point rate hike in a row, but expect more to come, according to Fed Governor Michelle Bowman. She said in comment at the weekend. Bowman, a voting member of the Federal Open Market Committee that sets the central bank’s rate, said high inflation is a greater threat to the economy than slow growth. If prices continue to rise as they have done over the past few months, she said, it “could lead to a further recession, leading to the risk of prolonged economic weakness coupled with high inflation, just as we have seen before.” experienced during the 1970s.”

4. Big loss for SoftBank

SoftBank founder Masayoshi Son said there was “confusion in the world” and in markets due to a number of factors including Russia’s invasion of Ukraine, high inflation and central bank interest rate hikes. . These factors contributed to the record annual loss at SoftBank’s Vision Fund.

Kentaro Takahashi | Bloomberg | beautiful pictures

High interest rates have hit risky tech stocks this year, and SoftBank’s tech-focused Vision Fund is feel pain. The Japanese conglomerate said on Monday that the Vision Fund lost 2.93 trillion yen ($21.68 billion) in its most recent quarter — the second-largest quarterly loss for the fund. Overall, the company reported a record quarterly loss after turning a profit in the same quarter a year earlier. SoftBank founder Masayoshi Son warned in the spring that the company would be “more cautious” with its investments after massive losses in the previous fiscal year.

5. China Sets Up New Military Exercises Near Taiwan

Video screenshot showing a missile being launched by the missile force of the Eastern Theater Command of the People’s Liberation Army of China, targeting designated sea areas east of Taichung Loan, August 4, 2022.

Xinhua News Agency | Xinhua News Agency | beautiful pictures

China has not conducted drastic exercises near Taiwan. China’s military on Monday said it would conduct new air and sea actions near the self-governing island that China claims as its own. China’s military just wrapped up a few days’ worth of drills – the largest ever, according to Reuters – opposes the visit of House Speaker Nancy Pelosi to Taiwan. The drills included firing 11 short-range ballistic missiles, while warships, warplanes and drones conducted a number of maneuvers around the island.

– CNBC’s Yun Li, Jeff Cox and Arjun Khrapal contributed to this report.

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