February 6, 2023

5 things to know before the stock market opens on Monday

5 things to know before the stock market opens on Monday

Here are the most important news that investors need to start their trading day:

1. Stock futures are low to start trading in August

A trader works on the floor of the New York Stock Exchange (NYSE), July 27, 2022.

Brendan McDermid | Reuters

Stock futures are down on Monday, as Wall Street begins a new month after strong gains in July. All three US stock indices posted the best months of the year. The Standard & Poor’s 500 And the Dow Jones Industrial Average They rose 9.1% and 6.7% in July, respectively, their biggest monthly advance since November 2020 Nasdaq Composite He outperformed and ended a three-month losing streak. The index rose 12.35% in July marking its best month since April 2020, buoyed by strong gains in the technology sector.

2. Oil prices drop ahead of the OPEC + meeting

OPEC+ agreed to increase oil production by 648,000 barrels per day in July and August – a larger-than-expected amount as the Ukraine war wreaked havoc on global energy markets.

Ian Tuttle | Bloomberg | Getty Images

Crude oil prices fell on Monday, as energy markets digest bad factory data from China And the JapanAnd OPEC and its oil-producing allies are preparing to make a decision on September production later in the week. West Texas Intermediate crude futures, the US oil standard, were trading down about 1.5% on Monday, while international benchmark Brent crude futures were down about 1.1%. WTI and Brent fell for the second month in a row in July as recession fears weighed on prices, their first streak of losses in two months since October 2020. The group known as OPEC+ is due to meet on Wednesday to discuss whether to keep production plans September steady or modest increase in production, According to Reuters.

3. Another busy earnings week

The Starbucks coffee logo was seen in one of their stores.

Stephen Zener | Light Rocket | Getty Images

It’s another profit-packed week on Wall Street, after heavy tech companies including apple And the Amazon Quarterly figures have been published in recent days. In all, 148 S&P 500 companies are expected to report their results over the next five days, including LarvaAnd the Jet Blue And the Starbucks On Tuesday, followed by the likes of Yum Brands and Reservation collectibles Wednesday. In addition to the list of crowded earnings, the July non-farm payrolls report is due on Friday morning. Investors are anticipating the major labor market announcement as they look for more insight into the health of the US economy amid recession fears.

4. Fed official: Inflation is more important than declaring a recession

Neil Kashkari, President and CEO of the Federal Reserve Bank of Minneapolis.

Andrew Harrier | Bloomberg | Getty Images

Minneapolis Federal Reserve Chairman Neil Kashkari said on Sunday He focused inflation data – No disagreement about whether the US economy is in a recession. While that The debate intensified late last week When it showed a pre-estimated GDP for the second quarter negative readingThe central bank official told CBS he is focusing more on other economic data for now. “Whether we’re technically in recession or not, that doesn’t change my analysis,” Kashkari said in an interview on Face the Nation. “I focus on inflation data. I focus on wage data. So far, inflation continues to surprise us on the upside. Wages continue to grow.” CNBC’s Cameron Albert Deitch has more on Kashkari’s comments here.

5. Google CEO: employee productivity needs improvement

Google CEO Sundar Pichai speaks on a panel at the CEO Summit of the Americas hosted by the American Chamber of Commerce on June 09, 2022 in Los Angeles, California.

Anna Money Maker | Getty Images