Here are five important things investors should know to start the trading day:
1. Great Week
Stock futures were mostly steady in premarket trading on Monday after a great week for the markets last week. The S&P 500 went up 3.9% last week, its best week of 2024.
The Dow Jones Industrial Average and the Nasdaq Composite rose 2.9% and 5.2%, respectively. Liz Young Thomas from SoFi said last week that this recovery was like putting money back into the market after a downturn.
2. On Target
This week, investors will get more insights into how American consumers are doing, with several retail earnings reports coming up. The main event is Target, which will report its results on Wednesday before the market opens. Other reports include some software companies and the struggling home fitness company Peloton. Here’s the schedule for the key reports:
- Monday: Palo Alto Networks (after the market closes)
- Tuesday: Lowe’s (before the market opens)
- Wednesday: Target, Macy’s, TJX Companies (before the market opens); Snowflake, Zoom Video, Urban Outfitters (after the market closes)
- Thursday: Peloton (before the market opens); Workday, Ross (after the market closes)
3. Delay of Game
On Friday, a judge temporarily stopped the new sports streaming service from Disney, Warner Bros. Discovery, and Fox. The service, named Venu and priced at $42.99 per month, was supposed to launch in time for the NFL season.
The delay happened because Fubo TV filed a lawsuit, arguing that the new service was unfairly competitive and would disrupt its streaming business. The companies involved in Venu said they plan to appeal the judge’s decision.
4. Financial Stability
China has announced it reached a deal with the U.S. to work together on financial stability. The People’s Bank of China said that representatives from both countries signed the agreement during a meeting of the U.S.-China Financial Working Group in Shanghai last week.
The discussions were described as “professional, pragmatic, candid, and constructive,” covering topics like capital markets, cross-border payments, and monetary policy. The U.S. Treasury Department has not yet released a statement about the meeting.
5. Applied Knowledge
Starbucks is facing issues with its mobile app, and its incoming CEO, Brian Niccol, might have a solution. Niccol, who previously led Chipotle, successfully boosted the burrito chain’s digital operations with attractive promotions and separate lanes for mobile orders.
In Chipotle’s latest quarter, online orders made up 35% of revenue. Starbucks, however, hasn’t seen the same success with digital orders. Problems like crowded cafes and long wait times from too many mobile orders have hurt Starbucks’ sales. Niccol’s challenge will be to address what former CEO Howard Schultz called Starbucks’ “biggest Achilles heel.”
Summary
Stock futures are steady after a strong week for the markets. This week, watch for important retail earnings reports from Target and Peloton. A judge has delayed Disney’s new streaming service. China and the U.S. are working together on financial stability, and Starbucks needs to fix its mobile app issues with its new CEO.
