Traders work on the floor of the New York Stock Exchange (NYSE), August 17, 2022.
Brendan McDermid | Reuters
Here are the most important news investors need to start their trading day:
The three major US indices were ready to open in negative territory on Friday morning, dimming hopes of a fifth straight winning week for the S&P 500. Stocks have otherwise performed fairly well since the brutal first half concluded, but investors are still looking for certainty despite a recent cooldown in price gains. The Fed seems aggressive about raising rates to tame inflation now, or at least in the short term. There are also other problems in the economy. While talk of a broader recession might have died down a bit, housing is facing a real slowdown, particularly on the constructor side of things. However, house prices remain high and people they are still paying contractors to do the workaccording to home improvement giants house deposit Y Lowe’s.
People leave a Bed Bath & Beyond store amid the coronavirus disease (COVID-19) pandemic in New York on January 27, 2021.
Carlos Allegri | Reuters
Activist investor Ryan Cohen, a favorite of the meme stock crowd on Reddit’s WallStreetBets forum, is out Bed bath and beyond after all. In a presentation Thursday, Cohen’s RC Ventures said that downloaded his entire position at the troubled home goods retailer. Meme investors this week had pushed the shares to highs they hadn’t seen since the spring, but shares fell as it became clear in recent days that Cohen would bail out the company after several major moves, including a CEO change at June. and a strategic review of the retailer’s Buybuy Baby business. Cohen, who also chairs the meme-stock company gamestophad been pushing for a spin-off or sale of that unit.
After a huge blackout that resulted in several bankruptcies and liquidity crises, interesting things are happening in the crypto markets. On Friday morning there was a rapid drop in crypto markets, which sent bitcoin, the world’s largest cryptocurrency, below $22,000 after it recently topped $25,000 in a rally. Ether has also staged a comeback, one much bigger than Bitcoin’s, since hitting lows in June. The great movement in the ether comes forward a planned upgrade of the ethereum blockchain next month. Both ether and bitcoin are still far from their highs, which they hit in November.
People walk past a Starbucks in Buffalo, New York, on December 7, 2021.
Lindsay De Dario | Reuters
Big changes are underway starbucks. The coffee chain said Thursday that its chief operating officer, John Culver, will leave the company in October after 20 years. He also said that he is doing away with the COO role altogether. Culver had been seen as a possible candidate for the CEO job, which Howard Schultz slipped into earlier this year on an interim basis after Kevin Johnson retired. It’s Schultz’s third term as CEO of Starbucks, though many on Wall Street expect the company to name a successor next month on its investor day. The next CEO will have to contend with a growing unionization campaign in the company’s cafeterias.
Russian President Vladimir Putin attends a meeting with Chinese President Xi Jinping in Beijing, China on February 4, 2022.
Alexey Druzhinin | Sputnik | Kremlin | via Reuters
chinese president Xi Jinping and its Russian counterpart, Vladimir Putinboth plan to be at the November 20 Group meeting in Indonesia, according to Reuters. It would mark Xi’s first trip outside China since January 2020, before COVID-19, which originated in China, became a pandemic. The development comes as Putin continues to wage war in Ukraine after his military launched an unprovoked invasion of Russia’s former Soviet neighbor earlier this year. Both the Xi and Putin governments have been accused of human rights violations, which they have denied. President Joe BidenHe, whose administration has been supporting Ukraine’s defense, is also expected to attend the G-20 summit, and a meeting between him and Xi is also reportedly in the works. Read live Ukraine updates here.
— CNBC’s Jesse Pound, Diana Olick, Jack Stebbins, Amelia Lucas, Jenni Reid and Arjun Kharpal contributed to this report.
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