To begin their trading day, investors should be aware of the following key news items:
1. A summertime vibe
With their finest trading day in months, the major indexes saw a rally on Thursday. With gains of 1.78%, the Nasdaq Composite recorded its best session since July; the Dow Jones Industrial Average saw its best day since June with gains of 1.7%; and the S&P 500 saw gains of 1.89%, marking its best day since April. Good economic data released on Thursday hinted that the Federal Reserve may be done raising interest rates, the labour market is slowing down, and inflation is abating.
2. Vibrant mix
Starbucks unveiled its growth strategy for the next ten years, which calls for significantly more cafes and significantly lower spending. Over the next three years, the coffee giant wants to reduce costs by $3 billion and open 17,000 new shops worldwide by 2030, with around 15,000 of those locations located outside of the United States.
3. Winter reluctance
A cautious Christmas is starting to take shape. Despite expectations that Americans will spend more than they did last year during the holidays, the National Retail Federation predicted on Thursday that sales growth will probably not reach the previous year’s level.
4. Apple that fell
After the maker of the iPhone disclosed its fourth consecutive quarter of declining sales, Apple shares is down in after-hours trade. Revenue decreased by less than 1% for the quarter and by 3% for the entire year compared to fiscal 2022. A modest holiday quarter was also forewarned by the corporation. Apple nevertheless revealed a bright light in its services revenue, which increased 16% year over year and exceeded Wall Street forecasts across a number of parameters. Furthermore, as of Thursday’s closing, Apple’s shares, with a market valuation of more than $2.7 trillion, are up 36% year to date despite the premarket stock slide.
5. Holiday reluctance
After a trial spanning several weeks, the disgraced founder of FTX, Sam Bankman-Fried, was found guilty on all seven allegations against him, which were related to money laundering and fraud. He now faces a maximum of 115 years behind bars. Bankman-Fried faced accusations that he had embezzled money from users of the cryptocurrency exchange FTX to finance venture capital, real estate, corporate sponsorships, political contributions, and Alameda, his hedge firm, losses. “While the cryptocurrency sector might be new and the people like Sam Bankman-Fried might be fresh, this kind of corruption is as ancient as time,” stated Damian Williams, U.S. attorney for the Southern District of New York, calling the plan “one of the largest financial frauds in American history.”
Source (CNBC)
