A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, July 13, 2022.
Brendan McDermid | Reuters
Here are the most important news items traders need to start their trading day:
Just a few days ago, investors celebrated a winning week in the markets as stocks struggled to bounce off a huge loss left by the worst first half of the year for stocks in five decades. Things took a turn for the worse this week, however, as June inflation numbers rose more than expected, fueling Wall Street fears that the Fed will raise interest rates in an even more drastic way this month. Futures contract is down on the board before the bell on Thursday morning, while the market released the first major bank earnings reports.
U.S. Treasury Secretary Janet Yellen testifies before a House Ways and Means Committee hearing on President Biden’s proposed 2023 U.S. budget, on Capitol Hill in Washington, June 8, 2022.
Jonathan Ernst | Reuters
Talking about inflation, still in the highest level in four decadesSecretary of the Treasury Janet Yellen can’t get off topic, even on a trip to Indonesia. She said addressing rising prices was a “top priority” in Washington and pledged to support the Fed’s efforts. The US central bank is expected to raise interest rates by 75 basis points this month, but some observers believe policymakers could move even higher, to 1% or 100 basis points. copy. Yellen also weighed in on the impact of a stronger dollar on other economies: “On the one hand, it can enhance their ability to export, which is beneficial for their growth. , to the extent that countries have dollar debt, it can make debt problems – which are already very serious – more difficult.”
A person enters the JPMorgan Chase headquarters in New York, June 30, 2022.
Andrew Kelly | Reuters
JPMorgan Chase kickstart big bank earnings by reporting profits down 28% in the second quarter because the bank has accumulated provisions to deal with bad debts. After, Morgan Stanley reported that its revenue fell in the second quarter, which CEO James Gorman Is called “a more volatile market environment than we’ve seen in a while.” Investors are looking to Wall Street to cope with volatility in the most recent period, which has seen strong consumer spending and job growth, even as inflation continues to rise and signs economic recession is increasing.
The Netflix logo is seen on the TV’s remote control, in this illustration taken January 20, 2022.
Dado Ruvic | Reuters
Netflix is pushing its plans for an ad-supported tier – and it’s doing so with a surprising partner. After talking with other potential partners, including YouTube’s parent Google and NBCUniversal’s parent Comcast, the streaming giant has decided Microsoft. According to Netflix, the ad-level effort is still in its “early days” with “a lot of work to do,” but investors are eager for any sign that the company is working hard to combat the fallout. registrant migration. Earlier this year, Netflix said it expected to lose 2 million subscribers in the second quarter. The company is expected to report quarterly results on Tuesday.
Bitcoin and other cryptocurrencies plummeted as investors dumped risky assets. A crypto lender called Celsius is suspending withdrawals for its customers, raising fears of contagion to the broader market.
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Lender Celsius is the latest crypto company to drop, start the bankruptcy process this week. A month ago, it froze customer accounts due to “extreme market conditions” as various cryptocurrencies, including bitcoin, were in the midst of a massive sell-off. Celsius’s move after Voyager filed for bankruptcy last week after the company’s exposure to Three Arrows Capital caused huge losses. Three Arrows Capital is now defunct and a judge froze its remaining assets this week as it was liquidated.
Disclosure: Comcast owns CNBC parent NBCUniversal.
– Carmen Reinecke, Su-Lin Tan, Hugh Son, Jessica Bursztynsky, Kate Rooney and CNBC’s Paige Tortorelli contributed to this report.