5 things to know before the stock market opens on Friday
Here are the most important news that investors need to start their trading day:
Traders work on the floor of the New York Stock Exchange during the afternoon trading session on September 13, 2022 in New York City.
Michael M. Santiago | Getty Images News | Getty Images
1. Falling stock futures
Wall Street was headed for another bear week with US stock futures lower on Friday. Merchants were digesting FedEx’s ugly earnings warning, which reported weak global shipping volumes for the fourth quarter and withdrew its guidance for the full year. Earlier in the week, US stocks had their worst day since 2020 after the August CPI report showed headline inflation rose 0.1% month over month, despite lower gas prices. That points to an increasingly difficult path for the Federal Reserve to bring down inflation. Traders will get consumer sentiment data at 10AM ET on Friday, but the three major averages were on track to achieve their fourth week of five.
A Federal Express truck makes its way on a highway in San Diego, California.
Mike Blake | Reuters
2. More about FedEx
FedEx stock prices fell late Thursday after the company said it would sharply cut costs after weak global shipping volumes dragged down fourth-quarter results. FedEx said it expected demand to increase as factories open in China as the restrictions imposed on the outbreak of the Covid virus are eased. Instead, she said, worldwide demand has fallen. CEO Raj Subramaniam said in an interview with CNBC’s Jim Kramer on “Mad Money” that the volume loss has been widespread, and that the company has seen a weekly decline since Investor Day in June. He said that was an indication of poor economic conditions. “We are a reflection of everyone else’s business, especially the world’s high-value economy,” Subramaniam said.
Ether has significantly outperformed Bitcoin since both cryptocurrencies bottomed in June 2022. The outperformance of Ether has come as investors anticipate a major upgrade to the Ethereum blockchain called a “consolidation.”
Yuriko Nakao | Getty Images
3. Encoder regulation
The White House has released a long-awaited framework on what cryptocurrency regulation in the United States should look like. The guidance from Washington includes how the financial services industry should evolve to facilitate borderless transactions and how to eliminate fraud in the digital asset space. The framework follows an executive order issued in March in which President Joe Biden called on federal agencies to examine the risks and benefits of cryptocurrencies and release official reports on their findings. Part of the White House’s new framework for regulating cryptocurrency focuses on eliminating illegal activity in the industry — and the proposed measures appear to have real teeth.
A pedestrian walks past the Bed Bath and Beyond store in San Francisco, California.
Justin Sullivan | Getty Images
4. Bath bed and after closing
Kanye West arrives at the Vanity Fair Oscar Party on February 9, 2020, in Beverly Hills, California.
Evan Agostini | Invision | AP
5. Partial Yeezy and Gap . routes
Kanye West, who goes by Ye, terminates the contract between his company Yeezy and Gap Inc.. The partnership made headlines when it was announced in 2020, selling the first product in the Yeezy Gap line—a bright blue puffed jacket within hours of its release a year later. . But then, in a letter sent by his lawyers on Thursday, Yeezy told Gap that the retailer had failed to meet its contractual obligations, including opening dedicated Yeezy Gap stores. Gap CEO Mark Breitbard confirmed the break in a note to employees later in the day, saying the two parties shared a vision for Yeezy Gap, but their way of working to deliver the vision was “incompatible.” In an interview on CNBC’s “Closing Bell,” the rapper and stylist put it another way, “A king can’t live in someone else’s castle.”
Sarah Maine, Jack Stebbins, Mackenzie Segalos, Melissa Rybko and Gabriel Curtis of CNBC contributed to this report.
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