5 things to know before the stock market opens on Friday
Here are the most important news investors need to start their trading day:
Traders work on the floor of the New York Stock Exchange during daytime trading on September 13, 2022 in New York.
Michael M. Santiago | News Getty Images | Getty Images
1. Stock futures are falling
Wall Street heading into another week of downturns US stock futures are lower on Friday. Traders took a nasty earnings warning from FedEx, which reported weaker global shipments in the last quarter and withdrew its guidance for the full year. Earlier this week, U.S. stocks suffered their worst day since 2020 after the August CPI report showed headline inflation rose 0.1% m/m despite falling gas prices. This indicated that it was becoming increasingly difficult for the Federal Reserve to bring inflation down. Traders will receive consumer sentiment data at 10:00 AM ET Friday, but the three major indexes are heading into their fourth losing week in five.
A Federal Express truck drives on a freeway in San Diego, California.
Mike Blake | Reuters
2. Learn more about FedEx
FedEx shares tumbled late Thursday after the company said it was aggressively cutting costs following a weakening in global shipping volumes. tightened the results for the last quarter. FedEx said it expected demand to pick up as factories in China reopened after restrictions on the Covid pandemic eased. Instead, he said that global demand has fallen. CEO Raj Subramaniam said in an interview with CNBC’s Jim Cramer on “Mad Money” that the loss in volume was wide-ranging and that the company has faced weekly declines since its investor day in June. According to him, this indicates a bad economic situation. “We are a reflection of everyone else’s business, especially the world’s high-value economy,” Subramaniam said.
Ether has significantly outperformed Bitcoin since both cryptocurrencies bottomed out in June 2022. Ethereum’s excellent rise has come as investors anticipate a major upgrade to the Ethereum blockchain, referred to as a “merger”.
Yuriko Nakao | Getty Images
3. Cryptocurrency regulation
The White House has released the long-awaited framework for What should cryptocurrency regulation look like in the US. Directions from Washington include how the financial services industry should evolve to facilitate borderless transactions and how to combat fraud in the digital asset space. This structure follows an executive order issued in March in which President Joe Biden called on federal agencies to study the risks and benefits of cryptocurrencies and release official reports of their findings. One section of the White House’s new crypto regulatory framework aims to eliminate illicit activities in the industry — and the proposed measures appear to have real benefits.
A pedestrian walks past a Bed Bath and Beyond store in San Francisco, California.
Justin Sullivan | Getty Images
4. Closures for the bath and beyond
Kanye West arrives for the Vanity Fair Oscar Party on February 9, 2020 in Beverly Hills, California.
Evan Agostini | Vision | AP
5. Yeezy and Gap split up
Kanye West, aka Ye, is terminating the contract between his company Yeezy and Gap Inc. The partnership made headlines when it was announced in 2020, and the first product in the Yeezy Gap line – a bright blue down jacket – sold out within hours of its release a year later. But then in a letter sent by his lawyers on Thursday, Yeezy told Gap that the retailer had failed to honor its contractual obligations, including opening Yeezy Gap specialty stores. Gap CEO Mark Breitbard confirmed the break in a memo to employees later that day, saying both parties share Yeezy Gap’s vision, but how they work to realize that vision is “not aligned.” In an interview with CNBC’s Closing Bell, the rapper and designer put it differently: “A king can’t live in someone else’s castle.”
— CNBC’s Sara Min, Jack Stebbins, Mackenzie Sigalos, Melissa Repko, and Gabrielle Cortez contributed to this report.
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