Traders on the floor of the NYSE, August 24, 2022.
Here are the key news items investors need to start their trading day:
1. Stocks aim for new winning streak
Stock futures pointed to a higher open Thursday after a positive Wednesday for all three major US indices. Markets look forward to getting back on track towards September after the summer rally lost some momentum this month. Investors are eager for clues as to what the Federal Reserve will do at its meeting next month in its fight against inflation. A few days of comments from Fed speakers in Jackson Hole, Wyoming starting Thursday might just scratch that itch. Fed Chair Jerome Powell will speak on Friday.
2. Ugly Peloton Results
The losses continue to pile up for Peloton, the fitness equipment maker that became a phenomenon during the Covid pandemic lockdowns, then exploded, and then some, after people started to leave their homes again. On Thursday, the company posted its sixth straight quarter of reported losses as sales collapsed and gross margin hit an astonishing negative 98.1% in its fiscal fourth quarter. (It was a positive 11.7% in the same period a year ago.) Peloton didn’t even bother to give a full-year forecast. The report came a day after investors celebrated the news that Peloton had started selling equipment and clothing through Amazon, marking the company’s first such deal with another retailer.
3. Gentle guidance from Salesforce
Marc Benioff, CEO of Salesforce, at the WEF in Davos, Switzerland on May 25, 2022.
Adam Galica | CNBC
Shares of enterprise software maker Salesforce plunged in after-hours trading after the company scaled back its outlook for the year. “Almost everyone I’ve spoken to takes a more deliberate approach to their business,” the company’s co-founder and co-CEO Marc Benioff said during a conference call with analysts. “We expect these trends to continue in the near term, and we have reflected this in our guidance.” Salesforce also approved a $10 billion share repurchase program. It’s also raising prices for Slack, the team messaging app it bought for $28 billion last year, as it became clear that hybrid work arrangements would continue to exist.
4. What’s next for Amazon’s healthcare push?
Amazon Care is a pilot medical clinic for employees.
Amazon’s telehealth service, Amazon Care, will be discontinued at the end of this year. It represents a big step back for Amazon, though its healthcare ambitions remain robust. Amazon Care helped the company understand “what it takes in the long run to deliver meaningful healthcare solutions for enterprises and individual customers,” the service’s leader, Neil Lindsay, wrote in the memo. The company struck a deal last month to acquire primary care provider One Medical, and it is reportedly bidding on Signify Health, a provider of home health services.
5. Written in the stars
Apple’s September Event Invitation.
September is just around the corner. That means it’s Apple season. The tech giant sent out cosmic-themed invitations on Wednesday to a major event on September 7, where the latest iPhones are expected to be unveiled. Investors and consumers will wait and see if Apple will raise its already premium prices given supply chain problems and inflation, writes CNBC’s Kif Leswing. Apple could also unveil a new Apple Watch at the event.
— CNBC’s Carmen Reinicke, Lauren Thomas, Jordan Novet, Annie Palmer and Kif Leswing contributed to this report.
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