Traders on the NYSE floor, Aug. 11, 2022.
Here are the top news that traders need to start their trading day:
1. Bad start for stocks
Stock futures fell Monday morningmarks a soft opening to a critical week for investors seeking clues about the state of the economy. All three major US indices closed the week high. It was the fourth consecutive winning week for the S&P 500. On Monday, they awaited extensive retail earnings reports (more on that below) as markets struggled with bad economic news from China (more on that below). However, there was also some good news for consumers as crude oil prices plummeted following weak Chinese data, a sign that gas prices will fall further.
2. Big week for retail earnings
Signage at a Walmart store in Secaucus, New Jersey.
Lucas Jackson | Reuters
In terms of earnings, it’s up to retailers. Tuesday, Walmartmaking waves by lowers its estimate and cut corporate business Earlier this summer, it will offer investors a look at how much inflation and overstocked stocks are reducing margins. Aima deep inventory reduction plan reports on Wednesday. home improvement retailers Home Depot and Lowe’s report on Tuesday and Wednesday, respectively. Finally, on Thursday, kohl’s set to report. Investors will look for clues about the chain’s strategy following its deal with the Franchise Group. fell apart at the end of June.
3. Slow growth in China
Employees working on an air conditioner production line at a Midea factory in Guangzhou, China.
Jade Gao | AFP | Getty Pictures
Many soft economic data points It gained weight on equities Monday morning from China. The government reported industrial production and retail sales growth that fell short of analysts’ expectations. While manufacturing investments slowed, the decline in real estate investments accelerated. As the Chinese economy struggles to ignore the impact of strict Covid restrictions, the real estate sector is suffering from a slump in cash flow as many home buyers withhold mortgage payments to protest home building delays.
4. Peloton cuts to growth quest
Pandemic darling if you missed Friday peloton open a few drastic measures People are looking for ways to make a profit as they return to the gyms and great outdoors to exercise. The linked fitness company said it would cut 780 jobs, close several retail locations, and hand over delivery and other logistics functions to third parties. “We need to get our revenues to stop shrinking and start growing again,” CEO Barry McCarthy said in a note to employees Friday. “Cash is oxygen. Oxygen is life.” Shares of Peloton fell before the market opened on Monday.
5. Going South
Scott Keogh of Volkswagen of America at the VW plant in Chattanooga, TN on June 8, 2022.
Michael Wayland | CNBC
As automakers’ plans to manufacture and sell electric vehicles grow, so do their investments in South America. Since 2017, auto companies have invested billions more in the Southern states than Detroit, the Great Lakes region that is home to Motor City. There are several reasons executives are attracted to the South, including lower costs, tax breaks, and a non-union workforce. But auto companies also face some challenges. Read CNBC auto reporter Michael Wayland’s article Deep dive shipment from Tennessee.
— CNBC’s Tanaya Macheel, Evelyn Cheng, Pippa Stevens, Lauren Thomas, and Michael Wayland contributed to this report.
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