Here are the most important information investors need to start their trading day:
1. Railway strike averted
With the deadline for a deal fast approaching, President Joe Biden announced an interim labor deal early Thursday to avert a nationwide railroad strike. A strike would have caused a major disruption to the flow of key goods and products in the United States, idling more than 7,000 trains and costing up to around $2 billion a day. Negotiations between the railways and workers’ unions had been suspended over unpaid sick leave. The deal announced Thursday would improve wages and working conditions for railroad workers and give them “peace of mind about their health care costs,” Biden said in a statement. The parties had a deadline of 12:01 a.m. Friday to reach an agreement and avoid a strike.
2. New data on the bridge
Trader Ryan Falvey works on the floor of the New York Stock Exchange.
Richard Drew | PA
Stock futures were relatively flat on Thursday morning as investors awaited a fresh batch of economic data, including retail sales, import prices and jobless claims. Earlier in the week, US stocks had their worst day since 2020 after August’s Consumer Price Index report showed headline inflation rose 0.1% on a monthly basis , despite lower gasoline prices. Then on Wednesday, the Producer Price Index report showed wholesale prices falling 0.1% in August. Jeff deGraaf, founder and president of Renaissance Macro Research, said it comforted him. “Inflation is really a dark cloud over equities, but I think it’s really important for people to keep in mind that it’s not about good and bad in the markets, it’s about better and worse, and it looks like inflation is getting better,” he said. said on CNBC’s “Closing Bell: Overtime.”
3. Boost for electric vehicles
One of the main obstacles to the widespread adoption of electric vehicles is the lack of a national network of charging stations. On Wednesday, Biden announced the release of the first round of funding for such a network that will fund the construction of stations in 35 states. Biden has been a big supporter of electric vehicles, signing legal incentives to encourage consumers to buy them and companies to build them. “You’re all going to be part of a network of 500,000 charging stations — 500,000 — across the country, installed by the IBEW,” Biden said at the Detroit Auto Show., referring to the International Brotherhood of Electrical Workers union.
4. A new muscle car
Ford Mustang 2024
Ford on Wednesday unveiled a seventh-generation Mustang, a version of the iconic muscle car with two gasoline engines. The Detroit automaker said redesigning the iconic car without any kind of electrification is part of its “Mustang family” strategy that includes the all-electric Mustang Mach-E crossover. According to a report from Automotive News, a planned hybrid version has been scrapped, which could make the latest Mustang the latest gasoline-powered muscle car from Detroit automakers. The Dodge Challenger and Chevrolet Camaro, Mustang’s biggest rivals, are expected to go electric in the coming years.
5. Billions of Patagonia
Yvon Chouinard, founder and owner of Patagonia.
Courtesy of Jeff Johnson and Patagonia
Patagonia founder Yvon Chouinard says he is “reinventing capitalism” and that he and his family are giving away their ownership in the clothing manufacturer he founded about 50 years ago. All profits from the company will be dedicated to projects and organizations that will protect wild lands and biodiversity and fight the climate crisis. The company is worth around $3 billion, according to the New York Times. Shares of the private company will now be held by a trust and a group of climate-focused nonprofits called the Patagonia Purpose Trust and Holdfast Collective, respectively. The company expects to contribute about $100 million per year, depending on the health of the business.
– CNBC’s Tanaya Macheel, Emma Kinery, Leslie Josephs, Michael Wayland and Lora Kolodny contributed to this report.
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