Here are the most important news items that investors need to start their trading day:
1. Down again
Stocks closed in the red on Wednesday, failing to recover from Monday’s sell-off fully. The Dow Jones Industrial Average dropped 0.60% to close at 38,763.45, while the S&P 500 moved 0.77% lower to close the session at 5,199.50. The Nasdaq Composite saw the largest percentage drop out of all the major indexes at 1.05%, finishing the session at 16,195.81. This comes after Tuesday’s session served as a bright spot for the markets, with the S&P and the Nasdaq moving 1% higher and the Dow adding almost 300 points. It is essential for investors to keep an eye on live market updates to stay informed about the latest trends and developments in the market.
2. Miss after miss
Warner Bros. Discovery missed analyst estimates when it posted its quarterly results after the bell on Wednesday. The company reported a loss of 36 cents per share on revenue of $9.7 billion, compared with a loss of 22 cents on $10.07 billion in revenue that analysts were expecting. Warner Bros. Discovery also reported a $9.1 billion non-cash goodwill impairment charge in its TV networks segment, citing reasons such as market capitalization, softness in the U.S. linear advertising market, and uncertainty related to affiliate and sports rights renewals. However, streaming was a positive for the company in the period, with 3.6 million subscribers added, bringing the total number of global streaming customers to 103.3 million.
3. Joining in
Customers aren’t the only ones pushing for lower prices. In the leadup to November’s election, politicians are now pledging to fight inflation, though they’re blaming it on different things. Vice President Kamala Harris has said she’d tackle companies’ “price gouging,” while former President Donald Trump has taken aim at the Biden administration’s policies. This comes as Walmart, McDonald’s, and Kroger, among others, have found themselves in the middle of the high inflation debate, facing criticism over affordability.
4. Recession ahead?
According to JPMorgan Chase CEO Jamie Dimon, the odds of a “soft landing” for the U.S. economy are around 35% to 40%, indicating that he believes a recession is more likely. Dimon highlighted various factors such as geopolitics, housing, deficits, spending, quantitative tightening, and elections that could contribute to economic uncertainty. While he remains optimistic about the economy’s resilience, he acknowledges the challenges that a recession could pose, especially for those who may lose their jobs.
5. AI price tag
Apple’s advanced artificial intelligence features may come at a cost to customers. Analysts suggest that the company could charge users up to $20 for Apple Intelligence, planned to be released across some devices later this year. This move could potentially be integrated into the Apple One subscription model, offering users access to various services for a monthly fee. The implementation of AI features aims to enhance user experience and lock customers into the Apple ecosystem, fostering loyalty and engagement.
In conclusion, staying informed about the latest news and developments in the market is crucial for investors to make informed decisions. By keeping track of key indicators, earnings reports, inflation trends, economic forecasts, and technological advancements, investors can navigate the dynamic landscape of the financial markets effectively. It is essential to conduct thorough research, seek expert advice, and stay updated on market trends to optimize investment strategies and achieve long-term financial goals.
