5 Things to Know Before the Stock Market Opens on Thursday, July 14

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

Just a few days ago, investors celebrated a week of victory in the markets as stocks struggled to climb out of the big hole left by the worst first half for stocks in five decades. However, things took a turn for the worse this week as June inflation data came in higher than expected, sparking fears on Wall Street that the Fed will raise rates even more aggressively this month. Futures were before the bell on Thursday morning, while the markets were digesting the first earnings reports of the big banks.

Speaking of inflation, which remains at the level For four decades, Treasury Secretary Janet Yellen has not been able to avoid this topic even during a trip to Indonesia. She said fighting rising prices is a “top priority” in Washington and vowed to support the Fed’s efforts. The US central bank is expected to raise rates by another 75 basis points this month, but some observers think policymakers could go even higher, to 1% or 100 basis points. Yellen also noted the impact of a stronger dollar on the economies of other countries: “On the one hand, it can strengthen their ability to export, which is good for their growth. debt, it could exacerbate these debt problems, which are already very serious.”

JPMorgan Chase kicked off the bank’s profits by reporting a 28% decline in second-quarter earnings as the bank built up reserves to fight bad loans. Morgan Stanley later reported that its revenue fell in the second quarter, to which CEO James Gorman called “a more volatile market environment than we’ve seen for some time.” Investors are wondering how Wall Street has dealt with volatility in a recent period of high consumer spending and job growth, even as inflation continued to rise and signs of a slowdown in economic growth mounted.

Netflix is ​​pushing its ad-supported plan – and it’s doing so with an unlikely partner. After talks with other potential partners, including YouTube’s parent Google and NBCUniversal’s parent Comcast, the streaming giant settled on Microsoft. Ad-level efforts are still in their “very early stages” and “much work remains to be done,” according to Netflix, but investors are looking forward to any sign that the company is working to counter subscriber churn. Netflix said earlier this year that it expects to lose 2 million subscribers in the second quarter. The company is due to release quarterly results on Tuesday.

Lender Celsius is the latest crypto firm to fall. The bankruptcy process will begin this week. The firm froze customer accounts a month ago due to “extreme market conditions” as various cryptocurrencies, including bitcoin, were in the midst of a sharp selloff. Celsius’ decision follows Voyager’s Chapter 11 bankruptcy filing last week after its exposure to Three Arrows Capital resulted in large losses. Three Arrows Capital no longer exists and a judge this week froze its remaining assets as it is in liquidation.