Here are the most important information investors need to start their trading day:
Traders work on the floor of the New York Stock Exchange during afternoon trading September 13, 2022 in New York City.
Michael M. Santiago | Getty Images News | Getty Images
1. Stock futures fall
Wall Street was heading for another week of declines with US stock futures falling on Friday. Traders were absorbing a nasty earnings warning from FedEx, which signaled weaker global shipping volumes for its latest quarter and withdrew its full-year forecast. Earlier in the week, US stocks had their worst day since 2020 after August’s Consumer Price Index report showed headline inflation edged up 0.1% on a monthly, despite lower gasoline prices. This indicated an increasingly difficult path for the Federal Reserve to reduce inflation. Traders will get consumer sentiment data at 10 a.m. ET on Friday, but all three major averages were on course for their fourth losing week in five.
A Federal Express truck drives down a freeway in San Diego, California.
Mike Blake | Reuters
2. Learn more about FedEx
FedEx shares plunged Thursday night after the company said it was aggressively cutting costs after weaker global shipping volumes dragged down last quarter results. FedEx said it expected demand to rise as factories in China reopen as restrictions eased due to the Covid pandemic. Instead, he said global demand had fallen. CEO Raj Subramaniam said in an interview with CNBC’s Jim Cramer on “Mad Money” that the loss in volume was significant and the company has seen weekly declines since its Investor Day in June. He said it was an indication of poor economic conditions. “We are a reflection of everyone’s business, especially the high value-added economy in the world,” Subramaniam said.
Ether has hugely outperformed bitcoin since both cryptocurrencies bottomed in June 2022. Ether’s higher gains came as investors anticipate a major upgrade to the Ethereum blockchain called “the merger.”
3. Regulate Crypto
The White House has released a long-awaited framework on what cryptocurrency regulation in the United States should look like. Washington’s leadership understands how the financial services industry should evolve to facilitate borderless transactions and how to combat fraud in the digital asset space. The framework follows an executive order issued in March, in which President Joe Biden called on federal agencies to examine the risks and benefits of cryptocurrencies and issue official reports on their findings. A section of the White House’s new framework on crypto regulation focuses on stamping out illegal activity in the industry — and the proposed measures seem to have some real teeth.
A pedestrian walks past a Bed Bath and Beyond store in San Francisco, California.
Justin Sullivan | Getty Images
4. Bed Bath & Beyond Closures
Kanye West arrives at the Vanity Fair Oscar Party on February 9, 2020 in Beverly Hills, California.
Evan Agostini | Vision | PA
5. Yeezy and Gap split up
Kanye West, who goes by the name Ye, is ending the contract between his company, Yeezy, and Gap Inc. The partnership made headlines when it was announced in 2020, and the first product in the Yeezy Gap line – a down jacket bright blue – sold released within hours of its release a year later. But then, in a letter sent by its attorneys on Thursday, Yeezy told Gap that the retailer failed to meet its contractual obligations, including opening dedicated stores at Yeezy Gap. Gap CEO Mark Breitbard confirmed the breakup in a memo to employees later that day, saying the two parties shared a vision for Yeezy Gap, but how they work to achieve the vision “is not not aligned”. In an interview on CNBC’s “Closing Bell,” the rapper and designer put it another way: “A king can’t live in someone else’s castle.”
— CNBC’s Sarah Min, Jack Stebbins, MacKenzie Sigalos, Melissa Repko and Gabriel Cortes contributed to this report.
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