Here are the key news highlights that investors should consider as they kick start their trading day:
1. A Slight Uptick
Stock futures rose on Tuesday after a quiet trading session. Dow Jones Industrial Average futures rose 0.13%, while S&P 500 futures and Nasdaq 100 futures gained 0.15%. All three major markets were up less than 0.1% on the previous trading day. Six of the S&P’s 11 major markets closed higher, led by energy, up 0.7%.
Consumer Care, on the other hand, is the most influential and is less than 1%. It is worth noting that the Fed is scheduled to start its two-day meeting today and this situation is being followed by investors. Please stay tuned for updates in the store.
2. Strike Season
The so-called “Strike Summer” is moving into a new phase. Unions are vocal about the effects of high inflation, as many UAW members are on strike and Hollywood writers and actors are on strike.
The U.S. Labor Department reported that the equivalent of 4.1 million workdays were lost in August due to 20 major shutdowns, the highest monthly level since August 2000. The UAW strike has so far affected only a small percentage of workers in our main factories. It has little impact on the overall economy.
However, this situation could change if more workers are called upon to join the strike. On a late Monday announcement, UAW President Shawn Fain indicated the union’s intent to expand the strikes if substantial progress in negotiations is not achieved by noon ET on Friday.
3. Spending Less
According to a poll conducted by the survey company Morning Consult, Americans intend to persist in reducing their expenditures throughout the crucial holiday season.
An overwhelming majority of adults, totaling 92%, reported that they have curtailed their spending in the past six months. Looking ahead, more than three-quarters, or 76%, expressed their intention to decrease spending on non-essential items, while 62% anticipate reducing spending on essential items “occasionally” or “more frequently” in the coming six months, as revealed in the poll.
The areas where consumers are most commonly tightening their belts have remained consistent, with the top three categories being clothing and apparel (63%), restaurants and bars (62%), and out-of-home entertainment (56%).
4. Shiny New Apple Features
On Monday, Apple unveiled its most substantial software update of the year. The good news for users is that they don’t need to invest in a new phone because iOS 17 is available to anyone who owns an iPhone released in 2018 or later. This year’s improvements include improvements to some of your most used apps, like Phone, Messages, and Safari.
One of the main features introduced in iOS 17 is Display, which allows users to choose images and fonts to customize their appearance when searching for other iPhones. There are also new features like improved autocorrection, an improved iMessage interface and roadside assistance, and automatic “Safe at Home” alerts.
5. Instacart Pricing
Instacart, Grocery On Monday, the company discounted its expected initial public offering (IPO) to $30 per share. That’s toward the end of the expected price, making the total impact on the company around $10 billion.
This marks a significant change compared to the company’s $39 billion profit at the beginning of 2021, when the Covid-19 epidemic was at its peak. The company’s shares are planned to be offered for sale on the Nasdaq stock market on Tuesday under the symbol “CART”.
Instacart has received investments from major investment companies such as Sequoia Capital and Andreessen Horowitz, as well as major managers such as Fidelity and T. Rowe Price. Notably, it will be the first large-scale technology company to go public in the US as of December 2021.
Summary
Key highlights for investors starting their trading day include slight market upticks, concerns over inflation leading to strikes, ongoing consumer spending reductions, Apple’s iOS 17 release, and Instacart’s discounted IPO pricing, marking a significant change from its peak valuation in 2021.
