Traders work on the floor of the New York Stock Exchange (NYSE), August 17, 2022.
Brendan McDermid | Reuters
Here are the key news items investors need to start their trading day:
1. Rough morning for stocks
The three major US indices were poised to open in negative territory Friday morning, diminishing hopes of a fifth consecutive winning week for the S&P 500. recent cooling of price increases. The Fed is sounding aggressive about raising interest rates to drive inflation up now, or at least soon. There are also other problems in the economy. While rumors of a broader recession may have softened somewhat, housing is facing a real slowdown, especially on the builders’ side. Still, home prices remain high and people still pay contractors to do work, according to home improvement giants Home Depot and Lowe’s.
2. Meme King Gets Paid
People walk out of a Bed Bath & Beyond store during the coronavirus (COVID-19) pandemic in New York, January 27, 2021.
Carlo Allegri | Reuters
Activist investor Ryan Cohen, a favorite of the meme stock crowd on Reddit’s WallStreetBets forum, is out of Bed Bath & Beyond after all. In a filing filed Thursday, Cohen’s RC Ventures said it has unloaded its entire position in the troubled household goods retailer. Meme investors had pushed stocks this week to heights they hadn’t seen since the spring, but the stock collapsed as it became clear in recent days that Cohen would bail out the company after several major steps, including a CEO change. in June and a strategic review of the retailer’s Buybuy Baby business. Cohen, who is also chairman of the meme stock company GameStop, had pushed for a spin-off or sale of that unit.
3. Do you remember crypto?
After a major blowout that resulted in several bankruptcies and liquidity crises, interesting things are happening in crypto markets. Early Friday saw a rapid decline in crypto markets, sending bitcoin, the largest cryptocurrency in the world, below $22,000 after it recently hit $25,000 in a rally. Ether has also made a comeback, a much bigger one than bitcoin’s, since hitting lows in June. The big step in ether comes for a planned upgrade of the ethereum blockchain next month. Both ether and bitcoin are still a long way from their highs, which they reached in November.
4. Plow at Starbucks
People walk past a Starbucks in Buffalo, New York, December 7, 2021.
Lindsay DeDario | Reuters
Major changes are underway at Starbucks. The coffee chain said Thursday that its chief of operations, John Culver, will leave the company in October after 20 years. It also said it is completely abolishing the role of chief operating officer. Culver was seen as a possible candidate for the CEO role, which Howard Schultz slipped into on an interim basis earlier this year after Kevin Johnson retired. It is Schultz’s third term as Starbucks CEO, although many on Wall Street expect the company to name a successor on investor day next month. The next CEO will have to deal with a growing push for unions in the company’s coffee shops.
5. Xi and Putin plan on G-20 . to be
Russian President Vladimir Putin attends a meeting with Chinese President Xi Jinping in Beijing, China on February 4, 2022.
Aleksey Druzhinin | Sputnik | Kremlin | via Reuters
Chinese President Xi Jinping and his Russian counterpart Vladimir Putin are both planning to attend the Group of 20 meeting in Indonesia in November, according to Reuters. It would be Xi’s first trip outside of China since January 2020, before Covid, which originated in China, became a pandemic. The development comes as Putin continues to wage war in Ukraine after his military launched an unprovoked invasion of Russia’s former Soviet neighbor earlier this year. Both Xi and Putin’s governments have been accused of human rights violations, which they have denied. President Joe Biden, whose administration has supported Ukraine’s defense, is also expected to attend the G-20 summit, and a meeting between him and Xi is also reportedly in the works. Read live updates about Ukraine here.
— Jesse Pound, Diana Olick, Jack Stebbins, Amelia Lucas, Jenni Reid and Arjun Kharpal of CNBC contributed to this report.
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