Traders work on the trading floor of the New York Stock Exchange on the afternoon of January 17, 2024 in New York City.
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This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
presidential debate
President Joe Biden and former President Donald Trump first debate in atlanta 2024 White House Race. The debate, hosted by CNN, comes as Trump faces two criminal indictments for overturning the 2020 election. Biden, who is battling a cold, is under pressure to defend his administration’s record. Addressing high inflation, Biden blamed the economic damage on Trump’s mishandling of the Covid-19 pandemic, highlighted his administration’s efforts to stabilize the economy and promised further action to lower Americans’ daily cost.
Get ready for inflation data
this S&P 500 Index Barely made a profit When investors are ready key inflation data, Look for any signs the Fed may cut interest rates. this Dow Jones Industrial Average increased by 36 points, while those with high technological content Nasdaq Index up 0.3%. Micron Memory chip maker shares drop more than 7% after disappointing offering Fourth quarter revenue guidance. Nvidia It also fell 1.9%. 10-Year Treasury Bond Yield Ministry of Finance slightly loweralthough US oil prices Continued to rise 1% Tensions between Israel and Lebanon.
Nike warns
shares Nike Sneaker giant plunges 12% in extended trading Substantially lowered full-year guidance, sales are expected to drop 10% this quarter. Chief Financial Officer Matthew Friend said on a conference call with analysts that due to slowing online sales, fewer franchise plans for classic footwear, “increased macro uncertainty” in Greater China, and “increased macro uncertainty” in the Nike market, Consumer trends are unbalanced,” and the company lowered its performance forecast. Nike’s fourth-quarter profit exceeded expectations, but revenue fell short of expectations.
The roaring kitten is back
Chewy Stocks have had a rollercoaster ride On Thursday, the stock soared 34% before falling into negative territory following a cryptic post from meme stock influencer Roaring Kitty. Posts of a cartoon dog resembling the Chewy logo sparked speculation among retail investors. However, the gains were short-lived, with the stock ultimately closing down 0.3%.
Asian shares rise, yen weakens
Japan exports heavy Nikkei 225 Index The Topix rose 0.4% and was close to a record high. this JPY The exchange rate fell to 161 against the US dollar Hit a 38-year low. Japan replaces Masato Kanda with Atsushi Mimura as chief monetary diplomat. According to the Nikkei Index. Investors also assessed economic releases, including Inflation in Tokyo, Japanese industrial production and South Korea retail sales. Elsewhere, South Korea Cospi, Australian S&P/ASX 200 IndexHong Kong’s Hang Seng Index and Mainland China CSI 300 All trades higher.
(PRO) Skip Nvidia
Despite Nvidia’s strong short-term outlook, value investor David Katz of Matrix Asset Advisors is cautious about Nvidia’s high valuation. He expects competition to intensify in the coming years See better opportunities elsewhere with lower risk.
bottom line
“Consumers are absolutely stunned,” Walgreens CEO Tim Wentworth told CNBC as a pharmacy operator Post disappointing earnings. Harmit Singh, chief financial officer of Levi Strauss, also issued a warning Consumers “cautious”While it’s easy to blame inflation for consumers’ woes, both companies face their own challenges.
Walgreens was kicked out of the Dow Jones Industrial Average in February and has seen its stock price plunge 70% over the past two years. The company is closing underperforming stores amid a “challenging” environment in the U.S. Pharmacy. Despite denim’s resurgence, Levi’s is reducing its reliance on department stores.
That being said, will the Fed provide assistance to struggling consumers and households? Investors will be watching today’s announcement May core personal consumption expenditures (PCE) price index, the Fed’s preferred inflation indicator. Any weakness could increase the likelihood of a rate cut this year.
CNBC’s Jeff Cox has more reporting What to expect from the Fed’s favored inflation print.
Mohamed El-Erian, chief economic adviser at Allianz, told CNBC Fed should consider cutting interest rates in July. “The economy is slowing down much faster,” El-Erian said. “The household sector no longer has too much savings or too much debt capacity…This is an economy that no longer has a buffer.” He believes that the Fed’s 2% inflation target is wrong and that equilibrium inflation is closer to 3 %.
Tom Lee, head of research at Fundstrat, expects Inflation drops ‘like a stone’“Boosting stocks. He highlighted the auto market, arguing that new car prices are likely to fall, helping to reduce commodity inflation.
As many strategists predicted Market plunges This summer, Lee downplayed comparisons to the dot-com bubble, noting that investor sentiment did not resemble a bubble. “It was more intense. Today, there were a lot of top callers,” Lee said on “Squawk Box.”
— CNBC’s Hakyung Kim, Brian Evans, Sarah Min, Gabrielle Fonrouge, Michelle Fox, Michael Wayland, Annika Kim Constantino, Spencer Kimball and Lim Hui Jie contributed to this report.
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