5 things to know before the stock market opens Friday
U.S. stock futures were pointing to gains at Friday's open after early strong advances Thursday turned into steep losses by the close. The Dow Jones Industrial Average lost 405 points, or 1.45%. The S&P 500 retreated 1.8%. The Nasdaq saw the biggest decline of 2%. Shares of Apple and Tesla were up in Friday's premarket, one day after they gave up earlier robust gains. Apple closed lower. Tesla finished up, but well off its high. All three stock benchmarks were down four of the past five sessions. The Nasdaq was tracking for its worst week since March. The Dow and S&P 500 were pacing for their biggest weekly declines since late June.
The government is out with its August consumer price index at 8:30 a.m. ET. Economists expect the key gauge of consumer inflation to show increases of 0.3% in both the headline number and the core rate, which excludes the food and energy sectors. Both jumped 0.6% in July. Investors will be watching these figures following the Federal Reserve's announcement last month that it will let inflation run hotter than normal to support the labor market and broader economy. The move in effect could mean interest rates stay lower for longer.
2. Peloton shares surge on coronavirus-driven demand
Shares of Peloton Interactive jumped about 12% in Friday's premarket trading after the fitness equipment and exercise platform company said that fiscal fourth-quarter sales surged 172% to $607.1 million. Peloton's high-tech stationary bikes and treadmills have become two of the hottest commodities for people looking to work out at home during the coronavirus pandemic. Peloton swung to a per-share profit of 27 cents from a year-ago loss of $2.07 per share. The company also gave rosier guidance. Earlier this week, Peloton announced a more expensive Bike+ and a price drop for its original bike. It also unveiled a less expensive Tread alongside it's original Tread+.
3. Senate Republicans' Covid-19 relief bill fails to advance
Senate Republicans failed to advance their latest coronavirus stimulus bill. The so-called skinny relief package on Thursday fell short of the 60 votes needed to move forward as all Democrats and one Republican, Rand Paul of Kentucky, opposed it. The GOP legislation included reinstating enhanced unemployment insurance, but at $300 per week from the previous $600, and authorizing new small business loans. The measure did not include a second $1,200 direct payment to individuals. It also lacked new relief for cash-strapped state and local governments or money for rental and mortgage assistance and food aid — all priorities for Democrats.
4. Here's why Citi CEO Corbat sped up plans to retire
A series of events — some unforeseeable, others more squarely under Michael Corbat's responsibility — made him speed up plans to retire as CEO of Citigroup. On Thursday, he announced he would step down in February and that Citi appointed Jane Fraser to take his place, which will make her the first female CEO of a major U.S. bank. During his tenure, Corbat has juggled hitting targets versus spending on what regulators consider subpar technology systems. Citi's stock price, while up 40% since Corbat became CEO in October 2012, lagged the performance of J.P. Morgan's 140% surge during that period. Investors, including ValueAct Capital — an activist hedge fund based in San Francisco — may have been growing impatient with Corbat.
5. Wall Street to observe 9/11 moments of silence
The New York Stock Exchange and the Nasdaq will hold moments of silence at 9:20 a.m. ET, 10 minutes before Wall Street opens, to remember the victims of the Sept. 11, 2001, terrorist attacks. Friday marks 19 years since Islamic extremists from Osama bin Laden's al-Qaeda terror group hijacked and crashed planes in New York City, Washington, D.C., and Pennsylvania. Nearly 3,000 people were killed in the attacks, which led then-President George W. Bush to launch a "war on terror," which saw a coalition of world powers join the U.S., start with retaliating against Taliban-controlled Afghanistan for giving bin Laden and al-Qaeda safe harbor.
— Follow all the developments on Wall Street in real-time with CNBC's live markets blog. Get the latest on the pandemic with our coronavirus blog.
Correction: Shares of Tesla closed up Thursday. An earlier version misstated their move.
Source: Read Full Article