Here are the top news investors need to start their trading day:
1. Dow wears tear into Fed week
Stock futures headed into a week full of potential catalysts on Monday morning. The Dow Jones Industrial Average It barely edged higher on Friday, snapping a 10-day winning streak, its longest since 2017. The central bank will play a major role in whether the streak continues. The central bank is expected to raise interest rates on Wednesday after a break for one meeting in an effort to keep stubborn price rises at bay. The personal consumption expenditure index, the Fed’s favorite gauge of inflation, is also due on Friday. A flurry of second-quarter earnings across technology, transportation, restaurants and media will also drive stocks this week. Follow live market updates here.
2. Avalanche of earnings
This week’s flurry of corporate earnings will provide insight into how a number of sectors fared in the second quarter. With 18% of S&P 500 companies reporting on Friday, profit for the quarter fell 7.9% from the year-ago period, but beat Wall Street expectations of 7.4%. Big tech, which has been the main driver of this year’s stock market success, will dominate this week with news from Alphabet, Microsoft, Meta and Intel. McDonald’s, Coca-Cola and Chipotle will offer commentary on how consumers are spending their food and beverage dollars in the face of persistent inflation. General Motors, Ford and Boeing will provide insight into the health of the transportation sector. Here’s this week’s key news:
3. This Barbie is a box office hit
“Barbenheimer” did not disappoint. Whether watching one or both, back-to-back or separate, audiences flocked Warner Bros.’ “Barbie” and Universal‘s “Oppenheimer” during their opening weekends. Greta Gerwig’s blockbuster was no child’s play, scoring the highest opening of 2023 as of Sunday afternoon with $155 million in its first three days in theaters. Christopher Nolan’s “Oppenheimer” followed in the footsteps of the doll in high heels, taking in $80.5 million in the same time frame. It’s expected to be the fourth-best at the box office this weekend, but its ranking could rise even further before the final numbers are released on Monday. Barbie maker Mattel will report earnings on Wednesday, and that should offer insight into how the movie and the company are faring partnerships with retailers affected its results in the second quarter. (Disclosure: Comcast is the parent company of NBCUniversal and CNBC).
4. Goodbye bird, hello X
Elon Musk redesigned Twitter again. People who go to Twitter.com on Monday, they will first see not the platform’s iconic blue bird, but a large “X”. Musk, who has cut staff and changed the way Twitter regulates content since leading a $44 billion takeover of the social media company last year, tweeted on Sunday that the “X” represented the “imperfections in all of us that make us unique.” The change comes as Twitter faces a threat in Meta’s Threads. The Twitter competitor used Instagram’s massive user base to drive it more than 100 million registrations earlier this month. The meta now focuses on improve the platform and cancel the reporting engagement for the product that Twitter quickly identify as a danger to his future.
5. Follow-up job interviews
Key industrial action is taking place across the transport sector – underscoring the strength some workers have gained during the Covid pandemic and its aftermath. American Airlines increased his contract offer to the pilots by more than $1 billion on Friday to match the salary and benefits included in a preliminary agreement between them United Airlines and its pilots last week. At the same time, the United Auto Workers and America’s biggest automakers are holding critical labor talks ahead of a Sept. 14 deadline. Those negotiations could be shaped in that electric vehicle battery factories, which are key to the future of the industry, are not included in the deal. UPS the July 31st deadline for the company and its workers to conclude a new contract is also approaching. The workers authorized the strike as they seek better pay and working conditions at the company, which has delivered more parcels since the pandemic began.
– CNBC’s Tanaya Macheel, Robert Hum, Sarah Whitten, Leslie Josephs and Michael Wayland contributed to this report.
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