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5 things to know before the stock market opens on Friday, August 26

Federal Reserve Board Chairman Jerome Powell arrives for a press conference following a two-day meeting of the Federal Open Market Committee (FOMC) in Washington, July 27, 2022.

Elisabeth Franz | Reuters

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

1. Here Comes Powell

It’s been a whole week to this point. Fed Chairman Jerome Powell is due to speak at 10:00 AM ET from Jackson Hole, Wyoming, and the entire investment world will be listening. Investors want to hear how hawkish he will sound when discussing the Fed’s next steps in the fight against runaway inflation. The central bank’s main policy committee is expected to raise rates by another three-quarters of a point next month, but markets are waiting for clarity on what Powell and his team will do next. But, as CNBC’s Patti Domm writes, it’s unlikely the market will hear what it wants from the Fed boss.

2. Sag Stock Futures

Markets looked set for a grim opening on Friday as they look forward to Powell’s speech later in the morning. Stocks had a winning Thursday but are poised for a second consecutive losing week as the summer rally dwindles. Profit and loss reports have also all but dried up and no big company will matter on Friday. Gap, however, is doing well in after-hours trading after it reported its quarterly results and withdrew its full-year guidance after Thursday’s close. “Overall, this remains a really attractive moment to invest in equities. The company’s underlyings are high for the highest quality companies, and multiples are declining due to macro concerns,” Upholdings portfolio manager Robert Cantwell told CNBC.

3. The bathtub goes beyond

Signs outside a Bed Bath & Beyond store in Somerville, Massachusetts.

Brian Snyder | Reuters

4. First time for Chipotle

Prices at the Chipotle Mexican Grill rose about 4% to cover the cost of raising the minimum wage to $15 an hour. Pictured are Chipotle employees in Houston.

Brandon Bell | News Getty Images | Getty Images

5. Trump’s redacted affidavit is in transit

An aerial view of the home of former US President Donald Trump in Mar-a-Lago, after Trump said he was raided by FBI agents, in Palm Beach, Florida, USA, August 15, 2022.

Marco Bello | Reuters


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