Here’s the key news for investors to start their trading day:
1. Good News
U.S. stocks rebounded on Monday, recovering some of last week’s losses. The S&P 500 rose over 1%, marking its first positive day in September. The Nasdaq and Dow Jones also increased by more than 1%. Oracle’s stock went up in premarket trading on Tuesday after the company exceeded earnings and revenue expectations.
Investors will be paying close attention to inflation data this week, as they expect an interest rate cut from the Federal Reserve’s meeting next week. The consumer price index for August will be released on Wednesday, and the producer price index will come out on Thursday.
2. More from Apple
Apple announced several new products on Monday to boost iPhone sales. They revealed new versions: iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max. Preorders start Friday, and the phones will be available on September 20.
Apple also introduced the Apple Watch Series 10 and AirPods 4. Details on the new features are available. However, Apple also faced some bad news: the European Union’s top court ruled that the company must pay up to $13 billion in back taxes to Ireland.
3. A Boost for Starbucks
Brian Niccol faces big challenges as he starts as CEO at Starbucks. The former Chipotle CEO began the role on Monday. He joins Starbucks during a sales decline and a 4% drop in its shares this year, though the stock jumped over 20% when his hiring was announced.
To improve the business, Niccol needs to fix issues with the mobile app, enhance the China market, and persuade customers that Starbucks products are worth the higher prices.
4. A New Era
SpaceX made a big move on Tuesday by launching its Polaris Dawn mission. This mission aims to achieve the first private spacewalk, something that has only been done by government astronauts before.
The spacewalk is planned to last about two hours. The mission is part of billionaire Jared Isaacman’s effort, who purchased three missions from SpaceX in 2022.
5. Another Setback for Consumers
Big Lots filed for bankruptcy protection on Monday and announced it will sell its business to private equity firm Nexus Capital Management. The discount retailer’s struggles highlight the difficulties faced by companies serving lower-income customers amid ongoing high inflation and interest rates.
Big Lots stated that its core customers have reduced spending on home and seasonal products, which make up a large part of its revenue. The company will keep operating but has begun closing nearly 300 stores.
Summary
U.S. stocks improved, Apple introduced new products but faces a big tax bill, Starbucks has a new CEO with tough tasks ahead, SpaceX is starting private spacewalks, and Big Lots is going bankrupt and closing stores. Investors should watch for inflation data and the Federal Reserve’s actions.
