Traders on the floor of the NYSE, August 16, 2022.
Here are the key news items investors need to start their trading day:
1. Trying to Recover Stocks
Major US stock indices opened higher on Tuesday, the morning after a defeat that dealt a major blow to the summer stock rally. The Dow fell more than 600 points on Monday, while the S&P 500 fell 2.14%. The Nasdaq fell by the largest percentage of the three, 2.55%, to close its worst day since late June. On Tuesday, as investors anticipate what Fed Chair Jerome Powell and other central bank officials will say in Jackson Hole later this week, they will also process another round of retail earnings, including Macy’s and Dick’s Sporting Goods; and economic data, including new home sales. Follow live market updates here.
2. Primate Price Action
Charlton Heston and Linda Harrison, alongside Kim Hunter, Roddy McDowall dressed in monkey costumes, in a publicity still issued for the film ‘Planet of the Apes’, 1968. T (Photo by Silver Screen Collection/Getty Images)
Silver screen collection | Moviepix | Getty Images
It’s a madhouse. AMC, the meme-stock movie theater chain, launched its so-called APE units on Monday, making for an exciting afterthought as investors grappled with broader market declines. The APEs, a new share class for AMC investors, actually act as a dividend and in some ways resemble a stock split. They’re also CEO Adam Aron’s latest attempt at targeting meme stock investors who call themselves “monkeys.” Shares of AMC ended up more than 40% on Monday. But, as CNBC’s Jesse Pound points out, the combined value of an AMC stock and an APE unit at close was about 8.7% lower than AMC’s closing price on Friday.
3. Zoom pulls back
Video calling platform Zoom lowered its full-year revenue and earnings forecast on Monday, citing shifts in buying patterns. The company, which has been a pandemic favorite because people worked from home and relatives kept in touch remotely, has seen its revenue growth slow as more employees call staff back to work in their offices and people go back out. “We implemented initiatives aimed at boosting new online subscriptions, which showed promise but were not enough to overcome macro dynamics in the quarter,” the company’s chief financial officer said in a conference call Monday.
4. ‘Dragon’ is hot
Milly Alcock as Rhaenyra Targaryen in HBO’s “House of the Dragon”, a prequel to “Game of Thrones”.
Warner Bros. Discovery
Even after the final season of “Game of Thrones” faced so much resistance from fans and critics alike, audiences were still pumped to watch the first episode of HBO’s new prequel series, “House of the Dragon,” on Sunday night. HBO said late Monday that the premiere had nearly 10 million viewers on its traditional cable service and its streaming platform HBO Max, making it the most-watched series debut in the network’s history. That’s a huge win for recently merged HBO parent company Warner Bros. Discovery and its CEO, David Zaslav. WBD is in a period of turmoil as it plans to combine HBO Max and Discovery+ next year, while cutting costs and reshaping its overall business, which also includes CNN and the Warner Bros. production studio.
5. Ex-Apple Engineer Pleads Guilty
An aerial view of Apple Park is seen in Cupertino, California, United States on October 28, 2021.
Tayfun Coskun | Anadolu Agency | Getty Images
An ex-Apple employee who allegedly stole trade secrets about the tech giant’s auto division pleaded guilty Monday, four years after being arrested for trying to fly to China. The engineer, Xiaolang Zhang, faces up to 10 years in prison. His sentencing is scheduled for November. The former employee was accused of downloading files related to Apple’s silent car project, including a document showing schematics of a circuit board for a possible autonomous vehicle. There is another former Apple employee who is also accused of similar crimes: Jizhong Chen, a US citizen who also planned to travel to China, has pleaded not guilty and is also represented by Zhang’s lawyer.
— Samantha Subin, Jesse Pound, Jordan Novet, Sarah Whitten and Kif Leswing of CNBC contributed to this report.
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