A trader works on the floor of the New York Stock Exchange (NYSE) on July 13, 2022 in New York City.
Brendan McDermid | Reuters
Here are the most important news that investors need to start their trading day:
1. Another weak morning for stocks
Just a few days ago, investors enjoyed a winning week in the markets, as stocks attempted to exit a massive hole left by the worst first half for equities in five decades. Things have fallen this week, however, as June’s inflation numbers turned hotter than expected, raising concerns on Wall Street that the Fed will raise rates even more aggressively this month. Futures were down across the board before the bell on Thursday morning, while markets digested the first major bank earnings report.
2. Yellen says inflation is ‘unacceptably high’
U.S. Treasury Secretary Janet Yellen testifies in front of a House Ways and Means Committee hearing on President Biden’s proposed 2023 U.S. budget on June 8, 2022, on Capitol Hill in Washington.
Jonathan Ernst | Reuters
Speaking of inflation, which remains at a four-decade high, Treasury Secretary Janet Yellen could not escape the subject even on a visit to Indonesia. She said tackling rising prices is a “top priority” in Washington, and pledged to support the Fed’s efforts. The US central bank is expected to increase by another 75 basis points this month, but some observers believe policymakers could raise even more, 1% or 100 basis points. Yellen also weighed in on the effect of a stronger dollar on other economies: “On the one hand, it may strengthen their ability to export, which is good for their development. On the other hand, the extent to which countries have dollar- The denomination is debt, it can make those debt problems – which are already very serious – more difficult.”
3. JP Morgan and Morgan Stanley Report Earnings
A man enters JPMorgan Chase headquarters on June 30, 2022 in New York.
Andrew Kelly | Reuters
JPMorgan Chase closed in on big bank earnings by reporting a 28% drop in profit during the second quarter as the bank built up reserves to tackle bad loans. Later, Morgan Stanley reported that its revenue fell in the second quarter, which CEO James Gorman called “a more volatile market environment than we’ve seen in some time.” Investors are looking forward to how Wall Street dealt with volatility during the recent period, which saw strong consumer spending and job growth, even as inflation continued to rise and signs of an economic slowdown were rising. Were.
4. Netflix Taps Microsoft
The Netflix logo is seen on a TV remote controller, in this illustration taken on January 20, 2022.
dado ruvik | Reuters
Netflix is moving forward with its plan for the ad-supported tier — and it’s doing so with a surprising number of partners. After talking with other potential partners, including YouTube parent Google and NBCUniversal parent Comcast, the streaming giant made the decision on Microsoft. According to Netflix, the ad-level effort is still “in the very early days,” with “a lot of work to do,” but investors are eager for any signs that the company is working to combat a customer exodus. Netflix said earlier this year that it expected to lose 2 million subscribers during the second quarter. The company will present its quarterly results on Tuesday.
5. Crypto Firm Files For Bankruptcy
Bitcoin and other cryptocurrencies fell sharply as investors left riskier assets. A crypto lending company called Celsius is stopping withdrawals for its customers, raising fears of a wider market transition.
Nurphoto | Nurphoto | Getty Images
Lender Celsius is the latest crypto firm to fall, having started bankruptcy proceedings this week. A month ago, the firm froze client accounts over “extreme market conditions” as various cryptocurrencies, including bitcoin, were in the midst of a dramatic sell-off. Celsius’ move came as a major loss following Voyager’s Chapter 11 bankruptcy filing last week after being exposed to Three Arrows Capital. Three Arrows Capital has now closed, and a judge this week froze its remaining assets as it undergoes liquidation.
Disclosure: Comcast CNBC is the owner of the original NBCUniversal.
— CNBC’s Carmen Reinke, Su-Lin Tan, Hugh Son, Jessica Burztynski, Kate Rooney and Paige Tortorelli contributed to this report.
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