Get ready for your trading day with these important news updates:
1. Dow Jones Engages in Strong Momentum Ahead of Fed Announcement
As the new trading week begins, stock futures are showing a slight upward trend. The Dow Jones Industrial Average concluded last Friday with minimal gains but managed to achieve its longest winning streak since 2017. The Federal Reserve’s actions, particularly the expected interest rate hike on Wednesday, will greatly impact the market’s momentum. Additionally, the release of the personal consumption expenditures index, the Fed’s favored inflation indicator, on Friday will be closely watched. In the technology, transportation, restaurant, and media sectors, a wave of second-quarter earnings reports will also influence market performance. Stay updated with live market updates.
2. A Wave of Corporate Earnings Offers Insight into Various Sectors’ Q2 Performance
This week, an influx of corporate earnings reports will provide an overview of how different sectors fared in the second quarter. So far, with 18% of S&P 500 companies reporting, earnings have declined by 7.9% compared to the same period last year. Nonetheless, these results exceed Wall Street’s expectations by 7.4%. The dominance of big tech, the driving force behind the stock market’s success, will mainly define this week, with Alphabet, Microsoft, Meta, and Intel among the companies releasing their reports. Additionally, brands like McDonald’s, Coca-Cola, and Chipotle will provide insights into consumer spending habits in light of persistent inflation. General Motors, Ford, and Boeing will also provide an outlook on the transportation sector. Here are the key reports to watch for:
3. “Barbenheimer” Exceeds Expectations at Box Office
The opening weekend of “Barbenheimer” was a resounding success. Both Warner Bros.’ “Barbie” and Universal’s “Oppenheimer” attracted a significant number of moviegoers, collectively earning $155 million and $80.5 million respectively during the first three days. Greta Gerwig’s blockbuster achieved the highest opening of 2023, with Christopher Nolan’s “Oppenheimer” following closely behind. These box office hits are expected to make this weekend one of the best ever in terms of ticket sales. The financial performance of Barbie-maker Mattel, including its film and retailer partnerships, will be revealed in its upcoming Wednesday earnings report. (Disclosure: Comcast is the parent company of NBCUniversal and CNBC.)
4. Elon Musk Transforms Twitter with Symbolic Rebranding
Elon Musk continues to make changes to Twitter. As of Monday, the platform’s iconic blue bird has been replaced with a capital “X”. Musk, who acquired Twitter for $44 billion last year, has implemented various modifications and alterations to content regulations. His recent tweet explained that the “X” symbolizes the unique imperfections found in all individuals. This change comes as Twitter faces competition from Meta’s Threads, which gained over 100 million signups by leveraging Instagram’s vast user base. Meta now aims to enhance its platform and improve engagement, posing a threat to Twitter’s future.
5. Significance of Ongoing Labor Negotiations in the Transportation Sector
Labor negotiations in the transportation sector are currently underway and emphasize the increased bargaining power of workers following the Covid pandemic and its aftermath. American Airlines has increased its contract offer to pilots by over $1 billion to match the pay and benefits outlined in a preliminary agreement between United Airlines and its pilots. Simultaneously, United Auto Workers and major U.S. automakers are engaged in crucial labor talks before the September 14 deadline. These negotiations are influenced by the fact that electric vehicle battery plants, crucial to the industry’s future, are not covered by the existing agreement. Additionally, UPS looms large as the July 31 deadline approaches for the company and its workers to reach a new contract. Employees have authorized a strike as they advocate for better pay and working conditions at a company that has experienced increased package volume since the start of the pandemic.
– CNBC’s Tanaya Macheel, Robert Hum, Sarah Whitten, Leslie Josephs, and Michael Wayland contributed to this report.
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