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5 issues to know earlier than the inventory market opens Monday, September 12

5 things to know before the stock market opens Monday, September 12

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, the United States, September 9, 2022.

Brendan McDermid | Reuters

Here is the key news investors need to start their trading day:

1. Futures go up

US stock markets were primed to open slightly higher on Monday morning as investors sought momentum from last week’s gains. All three major indices have been on a three-week losing streak as markets grapple with the reality of another big rate hike by the Federal Reserve. The central bank’s monetary policy committee is expected to hike interest rates by three-quarters of a point next week, even as inflation shows signs of moderating slightly. Investors will get the latest inflation data on Tuesday, when the government is due to release the August consumer price index.

2. Ukraine strikes back

Military personnel from Ukraine’s State Security Service pose for a photo in the recently liberated city of Kupyansk, in Ukraine’s Kharkiv region, in this handout picture released on September 10, 2022.

Press Service of the State Security Service of Ukraine | Via Reuters

The Ukrainian military has Russia in two parts of the country on the run. Having made significant progress in southern Ukraine, the nation’s forces, supported by US and other Western allied arms, unleashed a lightning counteroffensive in the northeast. According to a Russian official, “the situation is getting more difficult by the hour” for Kremlin forces in what has been a humiliating few weeks for Russian President Vladimir Putin. Ukraine claims it regained more than 1,100 square miles of territory occupied by Russia this month. Follow live updates here.

3. Chapek casts a spell at D23

Disney Chief Executive Officer Bob Chapek speaks at the 2022 Disney Legends Awards during Disney’s D23 Expo in Anaheim, California on September 9, 2022.

Mario Anzuoni | Reuters

Disney CEO Bob Chapek went on a charm offensive at D23 Expo over the weekend, sending positive messages to fans, employees and investors alike. It seemed to be working, too, at least for one big activist investor. Third Point CEO Dan Loeb had been pushing the entertainment and media giant to spin off its ESPN operations, but he backed down on the matter with a tweet Sunday morning. “We have a better understanding of @espn’s potential as a standalone company and another vertical for $DIS to reach global audiences to generate ad and subscriber revenue,” he said. Chapek had told Variety that Disney has “a vision” for where ESPN fits into the company’s plan for the next 100 years. “We didn’t share that plan,” he added.

4. JPMorgan buys another fintech company

JP Morgan CEO Jamie Dimon speaks at the Boston College Chief Executives Club luncheon in Boston, Massachusetts, the United States, on November 23, 2021.

Brian Snyder | Reuters

To counter the fast-growing Stripe and Block, JPMorgan Chase has agreed to buy fintech payments startup Renovite, reports CNBC’s Hugh Son. Chase is already the world’s leading service provider to merchants. It processes about $9 trillion in transactions every day. But executives at the legacy bank, particularly CEO Jamie Dimon, have sounded the alarm about emerging competitors. Since late 2020, as the Covid pandemic raged, JPMorgan has acquired at least five fintech startups in a tech spending frenzy that has drawn some criticism. The Renovite deal allows the bank to expand more quickly in global markets because it doesn’t require as much coding, Mike Blandina, global head of payments technology at JPMorgan, told CNBC.

5. New chip restrictions

U.S. President Joe Biden attends the groundbreaking ceremony for Intel’s new semiconductor manufacturing facility in New Albany, Ohio on September 9, 2022.

Joshua Roberts | Reuters

The Biden administration will unveil new restrictions on US semiconductor supplies to China next month, Reuters reported, citing several people familiar with the matter. The limits focus on chips used for artificial intelligence and tools used to manufacture semiconductors. KLA, Lam Research and Applied Materials were notified in writing earlier this year of the upcoming changes, and the companies acknowledged the notification. Reuters also reported that some of its sources for the article said the administration may also unveil additional measures against China as President Joe Biden pushes to make the United States more competitive with its rival.

– CNBC’s Carmen Reinicke, Holly Ellyatt, Jeff Cox and Hugh Son contributed to this report.

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Business

Confused concerning the housing market? This is what’s taking place

How the Fed affects the real estate market

The slowdown in the otherwise red-hot real estate boom has been amazingly quick.

The US housing market has skyrocketed during the pandemic as housebound people looked for new places to live, boosted by record-low interest rates.

Now real estate agents, who once reported queues of buyers outside open houses and bidding wars on the back deck, say houses are sitting longer and sellers are being forced to lower their views.

This leaves both potential buyers and sellers wondering where they stand.

“As recession concerns weigh on consumer prospects, our survey shows that uncertainty has entered the minds of many shoppers,” said Danielle Hale, chief economist at Realtor.com.

Here are the key factors behind the upside-down housing market.

mortgage rates

The main driver of the slowdown is rising mortgage rates. The average interest rate on the 30-year fixed-rate mortgage, which is by far the most popular product today and accounts for more than 90% of all mortgage applications, was around 3% earlier this year. It’s now just over 6%, according to Mortgage News Daily.

That means a person buying a $400,000 home would now have a monthly payment about $700 more than they did in January.

Zoom In IconArrows pointing outwards

High prices, low supply

The other drivers of the slowdown are high prices and low supply.

Prices are now 43% higher than when the coronavirus pandemic began, according to S&P Case-Shiller’s national home price index. The supply of homes for sale is up 27% in early September compared to the same time a year ago, according to Realtor.com. While that comparison seems big, it’s still not enough to make up for years of lack of homes for sale.

Active inventory is still 43% lower than in 2019. New listings were also down 6% at the end of September, meaning potential sellers are now concerned as they see more homes staying on the market longer.

Real estate wealth decreases when vulnerable equity decreases

Paul Legere is a buying agent at the Joel Nelson Group in Washington, DC. Focusing on the embattled Capitol Hill neighborhood, he said he saw offers jump by 20 to 171 just after Labor Day. He now calls the market “bloated.” For comparison: In March, only 65 houses were for sale.

“This is a very traditional post-Labor Day inventory increase and it will be very instructive to see how the market absorbs the new inventory in about a week,” he said. “Very.”

Inventory is taking a hit nationwide as homebuilders slow production due to fewer potential buyers touring their models. According to the US Census, single-family housing starts fell 18.5% in July from July 2021.

According to the National Association of Home Builders, homebuilder sentiment in the single-family home market fell into negative territory in August for the first time since a brief dip earlier in the pandemic. Builders reported lower sales and weaker buyer traffic.

“Tighter Federal Reserve monetary policy and persistently elevated construction costs have led to a housing recession,” NAHB chief economist Robert Dietz said in the August report.

Some buyers stay tuned

However, buyers have not completely disappeared despite the still expensive selling market and equally expensive rental market.

“The data suggests some homebuyers are finding silver lining in the form of cooling competition for the rising number of homes for sale,” Realtor.com’s Hale said. “Especially for buyers who are getting creative, for example by exploring smaller markets, this fall could offer a relatively better chance of finding a home on budget.”

We could expect falling home prices nationwide, says Yale's Robert Shiller

Real estate prices are finally starting to cool down. They fell 0.77% from June to July, the first monthly decline in almost three years, according to Black Knight, a mortgage technology and data provider.

While the drop may seem small, it’s the biggest one-month price drop since January 2011. It’s also the second-worst July performance since 1991, after the 0.9% drop in July 2010 during the Great Recession.

affordability issues

Still, this fall in prices will do little to improve the affordability crisis caused by rising mortgage rates. While interest rates fell slightly in August, they have risen sharply again this week, marking the least affordable week for housing in 35 years.

Currently, 35.51% of the median income is required to pay the monthly principal and interest payment for the median home with a 30-year mortgage and 20% down payment. That’s a slight increase from the previous 35-year high in June, when the pay-to-earnings ratio hit 35.49%, according to Andy Walden, vice president of corporate research and strategy at Black Knight.

In the five years before interest rates started to rise, the income-to-payments ratio was steady at around 20%. Although house prices rose sharply in 2020 and 2021, record-low interest rates offset the increases.

“Given the large role that affordability challenges appear to be playing in changing housing market dynamics, the recent decline in house prices is likely to continue,” Walden said.

The housing market slows as mortgage rates hit 6.25%

A new report from real estate brokerage firm Redfin showed that while demand from homebuyers picked up a bit in August, the recent rise in mortgage rates over the past week immediately put them to sleep. Fewer people searched Google for “homes for sale” in the week ended September 3 — 25% fewer than a year ago, according to the report.

Redfin’s Demand Index, which measures requests for home inspections and other home-buying services from Redfin agents, showed that demand in the seven days ended Sept. 4 was up 18% from the 2022 low in June, but still year-on-year has decreased by 11% year.

“The housing market always cools off this time of year,” said Daryl Fairweather, Redfin’s chief economist, “but this year I expect the fall and winter to be particularly cold as sales dry up more than usual.”

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World News

Bitcoin (BTC) value falls under $19,000 as crypto market drops under $1 trillion

This “crypto winter” is different than the last. Here's why

Bitcoin continues to trade in a tight range of $18,000 to $24,000, keeping investors in the loop as to where the price is headed next. The crypto market has been plagued by a range of issues, from collapsed projects to bankruptcies.

Nurphoto | Getty Images

Bitcoin traded below $19,000 on Wednesday morning, hitting its lowest levels since June following a decline in global stock markets and continued US dollar strength.

The value of the overall cryptocurrency market also fell below $1 trillion as digital coins saw a sell-off across the board.

Bitcoin was trading at $18,812.36 as of 03:50 ET, according to CoinDesk, down more than 5%. Ether, which has far outpaced Bitcoin’s gains over the past few months, fell more than 8% to $1,518.59.

Central banks around the world are fighting rampant inflation by tightening monetary policy. The US Federal Reserve made a series of rate hikes totaling 2.25 percentage points. The markets expect further rate hikes.

The Fed’s tightening of monetary policy has strengthened the US dollar, which has weighed on risky assets. The US 10-year Treasury yield has also risen.

Bitcoin has traded in correlation to stocks, so when they fall, so does cryptocurrency generally.

“The macro environment also continues to prove challenging as the dollar continues to make highs. As we can see, this is affecting all risky assets,” Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno, told CNBC.

“If we see the dollar turning back down, we should be able to push risky assets like bitcoin back up.”

The crypto market has been hit this year with nearly $2 trillion lost since its peak in November. Bitcoin is down about 60% from its record high of $68,990.90 set in November.

The sell-off was caused by a difficult environment for risky assets, as well as crypto-specific issues including collapsed projects and bankruptcies that have spread across the industry.

Ethereum merge in focus

Bitcoin has been trading in a tight range between $18,000 and $24,000 since June. Luno’s Ayyar said that “when a bottom is formed, bitcoin usually likes to pull back and test previous lows to see if they hold as support.”

He said that if Bitcoin does not drop below $17,500, the market is likely to consolidate within the $18,000-$24,000 range.

In the meantime, ether and so-called altcoins, i.e. alternative coins, have managed to rise further than Bitcoin. Ether has overtaken Bitcoin since both cryptocurrencies hit bottoms in June.

Ether is the native cryptocurrency on the Ethereum network. Ethereum is planning a huge upgrade this month — known as a merge — that proponents say will make the network more efficient.

“Ethereum hit yearly highs against Bitcoin pair in anticipation of merger,” Ayyar said. “As such, there has been much more interest and activity in the altcoin space as Bitcoin consolidates.”

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Health

5 issues to know earlier than the inventory market opens Monday, Aug. 23

Dow bounces more than 200 points on Friday, but still heads for losing week

Here are the top news, trends, and analysis investors need to start their trading day:

1. Dow to add to Friday’s gains; Bond yields are rising too

A trader works on the New York Stock Exchange (NYSE) in Manhattan, New York City, USA, 19 August 2021.

Andrew Kelly | Reuters

Dow futures rose more than 150 points on Monday after the 30-stock average broke a three-session losing streak, gaining 225 points on Friday. The S&P 500 and Nasdaq had their second consecutive positive days. But Friday’s rally wasn’t enough to lift the three stock benchmarks out of negative territory for the week. They all hit record highs earlier this month.

Bond yields started the week higher. The yield on 10-year government bonds was trading at 1.28% on the Monday ahead of the Federal Reserve Economic Symposium in Jackson Hole, Wyoming. The Kansas City Fed announced last week that it would be practically holding its annual central bankers’ gathering this year due to the rise in Covid cases. Fed Chairman Jerome Powell’s address to the group this Friday will be streamed live.

2. Bitcoin rises one day after exceeding $ 50,000

A visual representation of Bitcoin.

STR | NurPhoto via Getty Images

Bitcoin rose more than 3% on Monday, a day after it topped $ 50,000 and hit a three-month high. The cryptocurrency hit an all-time high of over $ 64,000 in April, but sold out heavily in June and July, even falling below $ 30,000 for a short time. But Bitcoin has been rising steadily since mid-July. Other large digital coins were also higher on Monday, with ether trading up more than 5%.

In the past few days, two major announcements for cryptocurrencies have been positive. PayPal announced on Monday that it was rolling out its service this week to allow people in the UK to buy, hold and sell digital currency.

3. The FDA is reportedly working on full approval of the Pfizer vaccine

Nurse Mary Ezzat prepares to deliver a Pfizer COVID-19 booster syringe to Jessica M. at the UCI Medical Center in Orange, Calif., Thursday, August 19, 2021.

Jeff Gritchen | MediaNews Group | Orange County Register via Getty Images

The Food and Drug Administration is already working on full approval of the dual Covid vaccine from Pfizer and BioNTech on Monday, the New York Times reported, citing sources. The move would make it the first Covid vaccine to move from emergency approval to full FDA approval.

US companies have tightened vaccination regulations for employees as Covid cases have increased across the country in recent weeks due to the rampant Delta variant. Some companies cited the agency’s full approval as part of the decision-making process. The FDA declined to comment on the Times report to CNBC.

4. Vice President Harris says the US is focused on evacuations from Afghanistan

British Coalition Forces, Turkish Coalition Forces and U.S. Marines assist a child during an evacuation at Hamid Karzai International Airport, Kabul, Afghanistan, in this August 20, 2021 photo. Sgt. Victor Mancilla / US Marine Corps / Handout via REUTERS THIS PICTURE WAS TAKEN BY PROVIDED TO A THIRD PARTY. TPX PICTURES OF THE DAY

Sgt. Victor Mancilla | US Marine Corps | via Reuters

The main US focus in Afghanistan right now is on evacuating American citizens, Afghan allies and vulnerable groups, Vice President Kamala Harris said Monday when speaking with reporters during a trip to Singapore. The Pentagon has ordered US commercial airlines to provide aircraft to expedite the process.

The Biden administration is facing increasing criticism for its handling of the US military withdrawal from Afghanistan. Last week the civil government collapsed there and the Taliban took power. Thousands have flooded Kabul airport to flee. A firefight broke out at the airport early on Monday.

5. Henri drenched northeast; Record rain swamps Tennessee

Satellite image of tropical storm Henri, which hit the northeastern United States on August 22, 2021.

NOAA

Henri continued to soak parts of the northeast on Monday. The slow moving weather system that hit land on Sunday in Rhode Island as a tropical storm has already dumped 3 to 6 inches of rain. Parts of New England, New York, New Jersey, and eastern Pennsylvania are projected to have approximately 1 to 3 inches of additional rainfall.

A car is buried under rubble that was washed against a bridge over a creek on Sunday, August 22, 2021 in Waverly, Tenn.

Mark Humphrey | AP

At least 22 people were killed and rescue workers searched Sunday for dozens of people missing after record-breaking Tennessee rains. The floods in rural areas of the state destroyed roads and homes, leaving families unsure whether their loved ones would survive the unprecedented flood.

– Follow the whole market like a pro on CNBC Pro. Get the latest on the pandemic with coronavirus coverage from CNBC.

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Health

5 issues to know earlier than the inventory market opens Friday, Aug 20

Retail earnings and consumer spending

Here are the top news, trends, and analysis investors need to start their trading day:

1. Stock futures are lower as Wall Street is set for a week of losses

A view of the New York Stock Exchange building on Wall Street in downtown Manhattan in New York City.

Roy Rochlin | Getty Images Entertainment | Getty Images

US stock futures were lower on Friday, the day after the S&P 500 posted a slight gain to break a two session loss. S&P 500 and Dow futures were down 0.4%, while Nasdaq futures were down 0.25%. All three major indices enter Friday in the red for the week. The 30-strong Dow is on a three-day losing streak and is in its worst week since June. The Nasdaq, which rose 0.1% on Thursday, is on track for its worst week since May. Factors weighing on Wall Street this week include concerns about a possible tightening of its asset purchases by the US Federal Reserve and the course of the economic recovery amid rising Covid cases. The benchmark ten-year government bond yield was 1.235% on Friday morning, down nearly 1 basis point.

2. Joaquin Duato replaces Alex Gorsky as J&J CEO

Joaquin Duato, Executive Vice President and Worldwide Chairman of Pharmaceuticals at Johnson & Johnson on Tuesday, January 31, 2017.

Andrew Harrer | Bloomberg | Getty Images

Joaquin Duato will replace Alex Gorsky as Chief Executive Officer of Johnson & Johnson effective January 3, the pharmaceutical giant announced on Thursday. The Dow component stocks were slightly lower in Friday’s pre-trading session as investors processed the news. Duato, currently Vice Chairman of the Executive Committee, will also be appointed to the J&J Board of Directors. Gorsky, Chairman and CEO since 2012, will become Executive Chairman. Gorsky ran the company while facing a number of legal issues related to its talc-based baby powder and other products, as well as the opioid crisis.

3. China passes important data protection law

China’s national flag

Russell Monk | The image database | Getty Images

China’s lawmakers passed an important data protection law on Friday, according to state media, a development that follows Beijing’s stricter regulatory approach towards tech companies in recent weeks. Although a final version of the Personal Data Protection Act has not yet been published, it is said to contain stricter rules on how companies collect and store users’ personal data. The law goes into effect on November 1, according to Reuters, and will likely add to the compliance rules that businesses operating in the country must follow.

Investors have become more skeptical of Chinese companies since the government cracked down on ride-hailing giant Didi Global and other industries in early July. Star money manager Cathie Wood told CNBC on Thursday that she believes these recent events, particularly those related to the online education industry, “will stay with our memories for a long time”. She added, “That could happen to any industry.”

4. Tesla plans to build a humanoid robot prototype, says Elon Musk

Elon Musk, CEO of Tesla, said Thursday the electric vehicle maker plans to build a humanoid robot called the Tesla Bot that aims to eliminate “dangerous, repetitive and boring tasks.” Musk, who made the announcement during Tesla’s AI Day, said the company “will likely have a prototype that looks like this next year” while standing on stage near a human actor wearing a white robotic bodysuit. Musk is known for making predictions about upcoming Tesla products or initiatives that, if at all, will not arrive on its original schedule. Tesla shares were about 0.5% higher in pre-trading on Friday. On its AI Day, Tesla also unveiled plans for a custom chip for use in its data centers.

5. NATO will try to speed up evacuations from Afghanistan, says an official

A handout photo received on August 17, 2021 from Twitter via @Bw_Einsatz shows evacuees from Afghanistan arriving in an Airbus A400 transport aircraft belonging to the German Air Force in Tashkent, Uzbekistan.

Marc Tennessohn | via Reuters

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Health

5 issues to know earlier than the inventory market opens Wednesday, Aug 18

5 things to know before the stock market opens Wednesday, Aug 18

Here are the most important news, trends and analysis that investors need to start their trading day:

1. Futures are flat ahead of housing data, Fed minutes

Traders work on the trading floor of the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., August 17, 2021.

Andrew Kelly | Reuters

U.S. stock futures were flat Wednesday as traders awaited key housing data and a summary of the Federal Reserve’s recent meeting. S&P 500 futures dipped about 1 point, while Dow Jones Industrial Average futures were down 46 points, or 0.1%. Nasdaq 100 futures climbed just 0.2%. Wednesday’s moves come a day after the 30-stock Dow dropped 282 points, while the S&P 500 posted its biggest one-day loss since July 19.

U.S. housing starts and building permits data for July is set for release at 8:30 a.m. ET. Economists expect housing starts to have fallen by 3.2% to 1.59 million, according to Dow Jones. Building permits are expected to come in at 1.61 million, up 0.8%. The Fed minutes are set to come out at 2 p.m. ET, and investors will parse them out to look for clues on when the central bank could start tapering its massive stimulus programs.

2. Lowe’s and Target earnings beat estimates

A shopper departs after visiting a Lowe’s hardware store in Philadelphia, Pennsylvania, November 4, 2020.

Mark Makela | Reuters

A shopper leaves a Target store in New York, August 15, 2021.

Scott Mlyn | CNBC

3. Palantir loads up on gold

Alex Karp, CEO of Palantir arrives ahead of a “Tech For Good” meetup at Hotel Marigny in Paris on May 15, 2019, held to discuss good conduct for technology giants.

Bertrand Guay | AFP | Getty Images

Palantir did something unusual for a publicly traded company: It bought gold. The data analytics software company disclosed in its latest quarterly report that it bought nearly $51 million in gold 100-ounce gold bars. The move is unusual because shareholders would normally push for a company to put its cash to work toward capital expenditures, share buybacks or even a dividend. However, the move could be reflective of a company bracing for economic uncertainty.

4. Afghanistan evacuations pick up steam

Evacuees crowd the interior of a U.S. Air Force C-17 Globemaster III transport aircraft, carrying some 640 Afghans to Qatar from Kabul, Afghanistan August 15, 2021.

Courtesy of Defense One | Handout via Reuters

Evacuations from Hamid Karzai International Airport in Kabul picked up steam, as thousands of diplomats and aid workers have left the country along with at least several hundred Afghans. The U.K. government says it’s taking about 1,000 people out of Afghanistan every day. “We’re still bringing out British nationals … and those Afghan nationals who are part of our locally employed scheme,” U.K. Interior Minister Priti Patel told the BBC on Wednesday. Reuters reported, citing an anonymous security official, that more than 2,200 diplomats and civilian workers have been evacuated.

5. TSA extends mask mandate through January

Travelers wait in line at a Transportation Security Administration (TSA) screening checkpoint at Orlando International Airport in May, 2021.

Paul Hennessy | SOPA Images | LightRocket | Getty Images

The Transportation Security Administration has extended a federal requirement for travelers to wear masks on commercial flights, buses and trains. The mandate, which was set to expire next month, is now in place through Jan. 18. “The purpose of TSA’s mask directive is to minimize the spread of COVID-19 on public transportation,” TSA said in a statement. The mandate will now cover traditionally busy travel periods, such as Thanksgiving and the December holidays. The mandate’s extension comes as Covid cases across the U.S. rise due to the highly contagious delta variant.

— Follow all the market action like a pro on CNBC Pro. Get the latest on the pandemic with CNBC’s coronavirus coverage.

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Health

5 issues to know earlier than the inventory market opens Thursday, Aug. 12

5 things to know before the stock market opens Thursday, Aug. 12

Here are the key news, trends, and analysis investors need to start their trading day:

1. Stock futures are unchanged one day after the S&P 500 and Dow posted new records

People walk past the New York Stock Exchange (NYSE) in New York City on August 10, 2021.

Spencer Platt | Getty Images

US stock futures were little changed on Thursday after another record-breaking session for the S&P 500 and Dow Jones Industrial Average. S&P 500 futures rose marginally while Dow futures climbed 40 points, or 0.1%. The Nasdaq 100 futures also rose slightly. The S&P 500 and Dow closed on new all-time highs on Wednesday after investors shrugged at the latest US consumer price index readings. The index rose 5.4% year over year, which was roughly in line with expectations.

2. Unemployment claims are canceled for the third week in a row

A chef interviews a job seeker about hospitality employment during a job fair on June 23, 2021 in Torrance, California.

PATRICK T. FALLON | AFP | Getty Images

Initial jobless claims fell for the third week in a row and hit a new low in the pandemic era, the Ministry of Labor said on Thursday. In the week ending August 7, 375,000 claims were filed, which is an estimate by the Dow Jones. The value for the week ending July 31 has been revised up by 2,000 to 387,000. Meanwhile, the July value for the US producer price index rose 1%, beating a Dow Jones estimate of 0.5%.

3. Alaska Air is considering Covid vaccine mandates for employees

A Boeing Co. 737-9 aircraft during a Boeing Co. ecoDemonstrator program tour at Ronald Reagan National Airport (DCA) in Arlington, Virginia, the United States, on Wednesday, July 28, 2021.

Al Drago | Bloomberg | Getty Images

Alaska Airlines is considering making Covid vaccinations mandatory for employees, a company memo viewed by CNBC said. The airline said if it made vaccines mandatory for its employees, it would do so after the Food and Drug Administration fully approved the vaccinations currently available. This policy change would make the airline the newest airline to require its employees to be vaccinated. United Airlines was the first major airline to do this last week.

4. Give Fed Chairman Powell “the benefit of the doubt” on inflation, Cramer says

Federal Reserve Chairman Jerome Powell testifies during a hearing of the U.S. House Oversight and Reform Selection Subcommittee on the Coronavirus Crisis on Capitol Hill in Washington, United States, on June 22, 2021.

Graeme Jennings | Reuters

CNBC’s Jim Cramer urged investors to support the monetary policy approach of Federal Reserve Chairman Jerome Powell as inflationary pressures mount. “I say, give Jay Powell the benefit of the doubt. He has been right like rain since the beginning of the pandemic. His critics have been completely wrong for ages,” said Cramer on Wednesday at “Mad Money”. “Powell insisted we have to wait and see what happens to the Delta option before raising or even lowering rates.” Cramer also said the recent surge in inflation could be temporary.

5. Messi is partially paid in crypto

The Qatari President of Paris Saint-Germain, Nasser Al-Khelaifi (L) and the sporting director of Paris Saint-Germain, Leonardo Nascimento de Araujo (R), pose next to the Argentine soccer player Lionel Messi (C) while he is during a press Shirt with the number 30 held up August 2021 in the Parc des Princes stadium of the French football club Paris Saint-Germain (PSG) in Paris.

Stephane De Sakutin | AFP | Getty Images

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Health

5 issues to know earlier than the inventory market opens Friday, Aug 13

5 things to know before the stock market opens Friday, Aug 13

Here are the top news, trends, and analysis investors need to start their trading day:

1. S&P 500 stock futures slightly higher, Dow closes on records

Matteo Colombo | DigitalVision | Getty Images

Stock futures were slightly higher on Friday, the day after the Dow Jones Industrial Average and S&P 500 closed again at all-time highs. The 30-strong Dow rose 14.88 points on Thursday to end the trading day on a record 35,499.85. The broad S&P 500 gained 0.3% to close at a record high of 4,460.83. The indices enter the Friday session by 0.8% and 0.6% respectively for the week. The Nasdaq Composite was up 0.3% on Thursday, down 0.1% on the tech-heavy index this week. The benchmark 10-year government bond yield was slightly lower on Friday, falling 2 basis points to 1.344%.

2. Disney stocks rise after better than expected earnings

Visitors walk along Paradise Gardens Park during Touch of Disney at Disney California Adventure in Anaheim, California on Thursday, March 18, 2021.

MediaNews Group / Orange County Register via Getty Images | MediaNews Group | Getty Images

Shares in the Dow component Disney rose more than 5% in early trading on Friday as Wall Street cheered the media and entertainment giant’s third-quarter financial results. Disney’s quarterly revenue of $ 17.02 billion surpassed analyst expectations of $ 16.76 billion, while earnings per share of 80 cents exceeded forecasts of 55 cents, according to Refinitiv. The company’s flagship streaming service, Disney +, ended the quarter with 116 million subscribers, more than the 114.5 million analysts expected in a StreetAccount poll. Disney’s Parks, Experiences and Products division also posted a profit in the third quarter, the first since the coronavirus pandemic began early last year.

3. FDA approves booster vaccination against Covid for people with weakened immune systems

A nurse gives the Covid-19 vaccine at a baseball game on August 5, 2021 in Springfield, Missouri. According to the latest figures from the state health department, just over 4 in 10 Missourians have received the Covid-19 vaccine.

Spencer Platt | Getty Images

The Food and Drug Administration approved booster coronavirus vaccines for people with compromised immune systems late Thursday. The final go-ahead for these third Pfizer-BioNTech or Moderna vaccinations would come from the Centers for Disease Control and Prevention. The agency’s vaccine advisory committee is due to meet on Friday and make a recommendation. Should this be approved by the CDC, booster vaccinations could be given immediately to immunocompromised people, providing those at risk with further protection from Covid. Cancer and HIV patients as well as organ transplant recipients are eligible.

While the FDA stressed that other fully vaccinated people are currently “adequately protected”, said Dr. White House chief medical officer Anthony Fauci said Thursday that it was “likely” that everyone will need a booster shot on the street.

4. Airbnb shares fall after warning of delta ramifications

John MacDoughall | AFP | Getty Images

Airbnb’s shares fell more than 3% in the premarket on Friday as investors digested the travel company’s second-quarter results and its warning of the potential impact of the Covid Delta variant. Revenue of $ 1.34 billion, according to Refinitiv, surpassed analyst projections of $ 1.26 billion, while the company lost 11 cents per share. Airbnb reported a 29% increase in nights and experiences booked compared to the previous quarter’s 83.1 million, while StreetAccount was forecasting 79.2 million. While Airbnb expects third-quarter revenue to be higher than ever, a letter to shareholders said concerns about the Delta option are likely to affect travel behavior.

5. USA sends 3,000 soldiers to evacuate embassy personnel in Afghanistan

Afghan security forces stand guard at a checkpoint in the Guzara district of Herat province, Afghanistan, July 9, 2021.

Facebook Facebook logo Sign up on Facebook to meet up with Jalil Ahmad. to join Reuters

The Pentagon will send 3,000 troops to Afghanistan to help evacuate US embassy personnel in the Afghan capital, Kabul, as the Taliban advance into the city. “This is a very closely focused mission to ensure the orderly reduction of civilian personnel from Afghanistan,” Pentagon spokesman John Kirby said on Thursday. The US still expects to fully withdraw all troops by August 31, Kirby said, as part of the process to end America’s longest war that began after the September 11, 2001 attacks. According to Reuters, the Taliban took control of the second and third largest cities in Afghanistan on Friday. As of August 6, the Taliban have taken control of 14 of the country’s 34 provincial capitals.

– Reuters contributed to this report. Follow the whole market like a pro on CNBC Pro. Get the latest on the pandemic with coronavirus coverage from CNBC.

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5 issues to know earlier than the inventory market opens Monday, Aug 9

5 things to know before the stock market opens Monday, Aug 9

Here are the most important news, trends and analysis that investors need to start their trading day:

1. Dow and S&P 500 set to open lower to start the week

Traders works at the New York Stock Exchange (NYSE), August 4, 2021.

Andrew Kelly | Reuters

Dow Jones Industrial Average and S&P 500 futures indicated a lower open for the benchmark indexes to kick off the new week. Dow futures dipped 81 points, or 0.2%, pointing to a decline of 83 points for the 30-stock index. S&P 500 futures lost 0.1%, indicating a slight opening loss. Nasdaq 100 futures pointed to marginal gains for the tech-heavy benchmark. Wall Street ended last week on a high note, as the Dow notched a record closing high on the back of a stronger-than-expected U.S. jobs report. To be sure, signs of the economy recovering at a fast pace could lead the Federal Reserve to start tapering its massive bond-buying program, which could pressure the market.

2. Judge rules Norwegian Cruise Line can require Florida travelers to show Covid vaccination proof

The Norwegian Cruise Line Holdings Ltd. Norwegian Bliss ship sits docked at the Ogden Point Cruise Terminal in British Columbia, Canada.

James MacDonald | Bloomberg | Getty Images

A federal judge granted a temporary injunction on a Florida law that prohibits businesses from requiring customers to show vaccination proof against Covid-19. The ruling allows Norwegian Cruise Line to require passengers to present proof they are fully vaccinated against the virus. The ruling comes as the Norwegian Gem cruise is set to depart Miami on Sunday. It will be the company’s first trip leaving from Florida since the pandemic began. New infections have been rising in the U.S. as the highly contagious delta variant spreads across the country.

3. Berkshire Hathaway operating earnings jump 21%

Warren Buffett at Berkshire Hathaway’s annual meeting in Los Angeles California. May 1, 2021.

Gerard Miller | CNBC

Warren Buffett’s Berkshire Hathaway posted an operating profit of $6.69 billion for the second quarter, marking a 21% surge from the same period a year prior. Those results were driven in part by Berkshire’s railroads, utilities and energy businesses seeing an earnings jump of more than 27% to $2.26 billion. The conglomerate also saw improvements in other businesses, such as homebuilders. To be sure, Berkshire acknowledged its second-quarter numbers look stellar because they are rebounding from a low base amid the pandemic. The company also said: “The extent of the effects over longer terms cannot be reasonably estimated at this time.”

4. Covid pandemic nowhere near over, epidemiologist says

Kim Dimaunahan, RN, left, and Courtney Herron, RN, right, are working in the covid unit inside Little Company of Mary Medical Center Friday, July 30, 2021 in Torrance, CA.

Francine Orr | Los Angeles Times | Getty Images

The world still has a long way to go before the Covid pandemic is over, since only a small portion of the global population has been vaccinated, epidemiologist Dr. Larry Brilliant CNBC’s told “Squawk Box Asia.” “I think we’re closer to the beginning than we are to the end [of the pandemic], and that’s not because the variant that we’re looking at right now is going to last that long,” said Brilliant, who was part of a World Health Organization team that helped eradicate smallpox. “Unless we vaccinate everyone in 200-plus countries, there will still be new variants.” Brilliant added that the delta variant is potentially “the most contagious virus” ever.

5. Lionel Messi reportedly gets two-year deal offer from French club PSG

Lionel Messi holds an emotional FC Barcelona press conference.

Albert Gea | REUTERS

Soccer superstar Lionel Messi has received a two-year deal offer from French team PSG, Sky Sports reported. The deal, which is being reviewed by Messi’s camp, is thought to be worth 25 million pounds ($35 million) per year after tax, the report said. Messi himself said Sunday that “nothing is confirmed,” but added that a deal with PSG was “one possibility.” Messi’s departure from Spanish club FC Barcelona was confirmed Thursday by the team. Messi played on Barcelona’s top team for 17 years, notching a record 474 goals in La Liga matches. On Sunday, a tearful Messi said he did not want to leave the only team he has played for as a professional.

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Health

5 issues to know earlier than the inventory market opens Friday, Aug. 6

5 things to know before the stock market opens Friday, Aug. 6

Here are the top news, trends, and analysis investors need to start their trading day:

1. Dow futures, bond yields rise after strong job data

A trader works on the floor of the New York Stock Exchange (NYSE) in New York on August 5, 2021.

Andrew Kelly | Reuters

2. The number of people employed outside agriculture was higher than expected in July

Economists polled by Dow Jones were looking for 845,000 new jobs and a headline unemployment rate of 5.7%. The decline in the unemployment rate looked even stronger when you consider that the labor force participation rate rose to 61.7%, the highest level since the pandemic broke out in March 2020. Wages were also stronger, with the average hourly wage rising 0.4% in July.

3. United Airlines requires vaccines for its 67,000 US employees

United Airlines pilot Steve Lindland receives COVID-19 vaccine from RN Sandra Manella at the United on-site clinic at O’Hare International Airport in Chicago, Illinois on March 9, 2021.

Scott Olson | Getty Images

United Airlines will require its 67,000 US employees to be vaccinated against Covid by October 25th or risk being fired, a first for major US airlines that is likely to put pressure on rivals. Airlines, including United, have opposed vaccine mandates for all workers and instead offered incentives such as extra pay or time off for vaccination. Delta Air Lines started asking newly hired employees to provide proof of vaccination in May. United followed suit in June.

4. The White House supports senators pushing for stricter crypto reporting rules

The White House got into a controversial battle for rival $ 1 trillion crypto changes to the infrastructure bill, a little out of the blue. The dispute revolves around a provision in the bipartisan bill that raises money through stricter tax rules for cryptocurrency transactions. The White House wrote in a statement late Thursday that “the amendment proposed by Senators Warner, Portman and Sinema strikes the right balance and takes an important step forward to promote tax compliance”.

5. JPMorgan quietly reveals access to half a dozen crypto funds

A woman walks past JPMorgan Chase & Co’s international headquarters on Park Avenue in New York.

Andrew Burton | Reuters

JPMorgan Chase, led by Bitcoin skeptic Jamie Dimon, began giving its wealth management clients access to six crypto funds last month. On Thursday, financial advisors allowed private banking clients to invest in a new Bitcoin fund created with crypto firm NYDIG, according to people who know about the move. The fund is almost identical to one that NYDIG offers to clients of rival bank Morgan Stanley, people said. Late last month, JPMorgan launched access to four funds from Grayscale Investments and one from Osprey Funds.

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