Traders on the floor of the NYSE, September 13, 2022.
Here are the most important information investors need to start their trading day:
1. Pick up the pieces
U.S. stock futures looked set to rebound on Wednesday morning as investors sought to shake off the worst market rout since June 2020. All three major indexes had a lousy Tuesday after the price index to consumption has become hotter than expected. As the Dow fell 1,276 points, the S&P 500 and the tech-heavy Nasdaq suffered bigger percentage declines as it sank through Wall Street that the Fed won’t back down on its plans aggressive rate hike anytime soon. In fact, traders are now split on whether the Fed will raise its benchmark rate by three-quarters of a point or a full point at next week’s meeting. More inflation data is also due on Wednesday — the producer price index drops at 8:30 a.m. ET.
2. Problems on the railways
Shipping containers sit at the BNSF Railroad Intermodal Facility July 28, 2021 in Cicero, Illinois.
Scott Olson | Getty Images
Thousands of railway workers could go on strike Friday as negotiations between a few major unions and rail carriers are deadlocked over sick leave policies. The union’s chief negotiator has accused Union Pacific and Berkshire Hathaway-owned BNSF of holding things up during time off for medical appointments. BNSF called it false, while Union Pacific took a slightly softer tone. “We are in active discussion with the unions to try to address these concerns,” the company told CNBC. The White House, meanwhile, has begun preparing for a work stoppage. A strike could end up costing $2 billion a day. “Strikes are a last resort. It doesn’t help anyone because employees are losing money and companies are losing money,” Dennis Pierce, president of the Brotherhood of Locomotive Engineers and Servicemen, told CNBC. train. “We are not here to harm the economy.”
3. The new Starbucks plan
Starbucks CEO Howard Schultz, left, with new CEO Laxman Narasimhan, September 7, 2022.
Howard Schultz is once again set to step down as CEO of Starbucks, but his vision for the company he transformed into a global coffee juggernaut still reigns supreme. At its Investor Day on Tuesday, Starbucks unveiled its new long-term plans, which include everything from bolstering its loyalty programs, more stores and increased automation in its cafes – as the company battles a surge union growing among its baristas. Starbucks also improved its long-term financial outlook. Schultz will remain as interim CEO until April, when veteran consumer goods executive Laxman Narasimhan is expected to take over. Narasimhan will officially join the company this fall and learn the ropes from Schultz.
4. What is the next step for Ukraine?
A long convoy of invading Russian military vehicles is shown en route to Kyiv at the start of the war in late February, shortly before vehicle breakdowns, a lack of basic supplies and attacks by Ukrainian defenders forced it to turn around and flee to Russia. Over the past week, Ukrainian troops have inflicted on Russia a defeat in Kharkiv as dramatic as that outside Kyiv.
Maxar | Getty Images
Now that the Ukrainian military has reclaimed thousands of kilometers of Russian-occupied territory, President Volodomyr Zelenskyy said his government is working to stabilize several regions and eradicate persistent Russian saboteurs and agents. There is also the question of whether Ukraine’s shocking and successful counteroffensive against the forces of Russian President Vladimir Putin constitutes a turning point in the war. US President Joe Biden said it may be too early to tell and he thinks “it’s going to be a long time”. Elsewhere, German Chancellor Olaf Scholz, in a 90-minute phone call, urged Putin to end the war. Read live updates here.
5. Falling demand for mortgages
A For Sale sign is displayed in front of a home listed at over $1 million on April 29, 2022 in San Francisco, California.
Justin Sullivan | Getty Images
The housing market continues to feel pressure from rising rates. Overall mortgage demand fell more than 1% week-over-week, according to the Mortgage Bankers Association. Since last year, however, the decline is more significant. Demand for mortgages from homebuyers fell by almost a third. Refinancing demand also fell by more than 80%. Rates were indeed at their lowest this time last year, but are now above 6%, about double what they were at the start of 2022. And after Tuesday’s surprisingly high inflation print , the Fed will likely only be more emboldened to continue raising rates. to an aggressive clip.
– CNBC’s Samantha Subin, Lori Ann LaRocco, Emma Kinery, Holly Ellyatt and Diana Olick contributed to this report.
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