Here are the most crucial news stories that investors should read to begin their day of trading:
1. August turned out to be challenging after all.
On Friday, before the weekend, the future of stocks looked better. August was a tough month for stocks, with the S&P 500 losing 1.77%, the Nasdaq dropping 2.17%, and the Dow falling 2.36%. But there were some good things happening on Friday. Companies like Dell Technologies and MongoDB did well in trading after they announced earnings that were better than what people expected. Lululemon Athletica, a store that sells sports clothes, also did well, with its stock going up 2%, because it did better than what experts thought and raised its predictions for the future.
2. Unemployment up
Look at your calendar: It’s the first Friday of the month, and investors are checking out job information from the Department of Labor. The report shows that in August, the number of people without jobs went up a lot, which suggests that it’s getting harder to find work. The report also says that 187,000 new jobs were created in the month, which is more than the 170,000 experts predicted. However, the unemployment rate went up a lot, reaching 3.8% in July, which is the highest since February 2022. Also, they changed the numbers for previous months to show that things weren’t as good as they thought. This report could give us hints about what the Federal Reserve might do in September to control rising prices and the strong job market.
3. Ozempic up next?
Ozempic might end up being discussed in the upcoming talks between drug companies and Medicare in 2025. In 2021, Medicare Part D already spent a lot of money, over $2 billion, on this popular diabetes medicine made by Novo Nordisk. This amount is similar to what some of the first 10 drugs picked by the Biden administration for price talks cost. These negotiations aim to reduce the prices of medicines. Many experts on Wall Street believe that Medicare’s spending on Ozempic will increase because more people want it, along with other treatments that help people lose weight.
4. Changes in the marijuana industry
Health authorities in the United States are looking to relax rules around marijuana, which could be a big help for an industry that often faces strict federal regulations. This week, the Department of Health and Human Services asked the Drug Enforcement Agency to think about making marijuana rules less strict. Right now, it’s classified as a Schedule I drug, which is the strictest level. When this news came out, the stock prices of marijuana companies like Aurora Cannabis, Canopy Growth, and Tilray Brands went up on Wednesday and Thursday. If it’s reclassified as a Schedule III drug, it would reduce the taxes that have been a burden for many marijuana growers, processors, and sellers who are struggling to make a profit. It would also allow them to do business across state lines.
5. Exorswift
Guess what she did? Taylor Swift revealed on Thursday that she’s going to release a concert film based on her incredibly popular Eras Tour. Originally, the film was scheduled to premiere on Friday, October 13, which was the same day as the next part of the scary movie series “The Exorcist.” This set the stage for a potential double feature, like the famous “Barbenheimer.” However, later on Thursday, Universal, the company releasing “The Exorcist,” decided to move up the movie’s release by a week to Friday, October 6. It’s clear that Taylor Swift has a lot of influence. According to Morgan Stanley, spending in the third quarter is expected to go up by 1.9%, thanks in part to Swift’s and Beyoncé’s stadium tours, as well as the success of “Barbie” and “Oppenheimer.” However, they also warned that consumer spending might not stay high once these events are over.
