Here are five important things investors need to know at the start of the trading day:
1. Rebound
Stock futures were higher on Thursday morning after all three major indexes had a positive day on Wednesday on encouraging U.S. inflation data. The Dow Jones Industrial Average rose 0.61% in regular trading, while the S&P 500 gained 0.38% and the Nasdaq Composite added 0.03%. A Labor Department release on Wednesday showed the annual inflation rate slowed to 2.9% in July, the lowest year-over-year price increase since 2021. The rise in the consumer price index was in line with Wall Street economists’ expectations, Dow Jones estimates said, and is likely to keep a Federal Reserve rate cut on the table in September. Follow live market updates.
2. Heavy consumer
Augusta, Georgia, Walmart Supercenter, cashier and customer in line at checkout.
Jeff Greenberg | Universal Images Group |
If you ask Walmart, the American consumer is strong. That was the message from the retailer’s second-quarter earnings report Thursday morning. Walmart beat Wall Street expectations for revenue and profit and raised its full-year sales forecast. “We’re seeing from our members and customers that they continue to be picky, demanding, price-conscious and focused on things like essentials rather than non-essential items, but importantly, we’re not seeing any further deterioration in consumer health,” Chief Financial Officer John David Rainey said in an interview with CNBC’s Melissa Repko. Read more from Walmart’s report.
3. Drug savings
U.S. President Joe Biden speaks during a meeting of the White House Creator Economy Conference in the Indian Treaty Room of the White House August 14, 2024 in Washington, DC.
Brendan Smialowski | AFP | Getty Images
Long-awaited lower drug prices for a select group of drugs are just around the corner. The Biden administration on Thursday announced the results of groundbreaking price negotiations that will reduce the cost of 10 prescription drugs that are among the most expensive drugs covered by Medicare Part D insurance. The lower prices could save the U.S. government $6 billion in Medicare savings in 2026 alone, when the new prices take effect, the government estimates. The price cuts could also save Medicare beneficiaries $1.5 billion in out-of-pocket costs in 2026, U.S. officials said.
4. Cisco cuts
The Cisco logo will be seen at the Mobile World Congress in Barcelona, Spain on February 26, 2024.
Charlie Perez | Photo only | Getty Images
Further staff cuts are planned Cisco. The networking giant said on Wednesday when announcing its quarterly results that it would reduce its global workforce by 7% as part of a restructuring plan, resulting in pre-tax costs of $1 billion. Between $700 million and $800 million of that impact would be incurred in the current quarter, Cisco said. It is the second major wave of layoffs at Cisco in recent months, after the company announced in February that it would cut more than 4,000 jobs, representing 5% of its workforce at the time.
5. Sweet treat
M&M’s packs are seen for sale at a store in Miami, Florida on January 24, 2023.
Joe Raedle |
Candy maker Mars is expanding its range with new products as part of a $36 billion deal for the snack company Kellanova. The company behind brands such as Pringles, Cheez-Its and Eggo was spun off from former parent company Kellogg last year. Now Mars is snapping it up for $83.50 per share, a premium of around 12 percent over the stock’s closing price on Tuesday. “We buy companies to grow companies, and we want to grow them for generations,” Mars CEO Poul Weihrauch told CNBC. The deal is expected to close in the first half of 2025.
—CNBC’s Brian Evans, Jesse Pound, Jeff Cox, Melissa Repko, Annika Kim Constantino, Ari Levy and Justine Fisher contributed to this report.
