A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, September 9, 2022.
Brendan McDermid | Reuters
Here are the key news items investors need to start their trading day:
1. Is this week over yet?
US stock futures fell Friday, setting markets on course for a losing week. The Nasdaq, in particular, has been hit hard, as risky technology stocks are more sensitive to changes in interest rates. The three major indices plunged again on Thursday, a day after the Fed announced its decision to raise its benchmark rate by another three-quarters of a point to its highest point in more than 14 years. But the central bank’s warning that it could raise interest rates to 4.6%, from the current 3% to 3.25%, raised fears that policymakers would be doing too much too late. Bond yields have also risen, raising fears that a recession is imminent in 2023.
2. FedEx tries to stop the bleeding
FedEx Cargo PlaneRead:Winter is coming, and so are higher electric bills, National Grid warns
Leslie Josephs | CNBC
Speaking of recession fears, the FedEx CEO shook investors up last week when he told CNBC’s Jim Cramer that he believes we are on the brink of a global recession after the delivery company withdrew its guidelines and signaled dwindling demand. . The stock plummeted on the news. FedEx’s troubles left investors and analysts wondering how much they were the result of economic pressures versus the company’s own failings. On Thursday, FedEx released its full earnings report — inadvertently before the market shutdown — and unveiled a plan to cut costs between $2.2 billion and $2.7 billion in fiscal 2023. The company also said it would also increase shipping costs.
3. Putin’s Growing Nuclear Threat
Russian President Vladimir Putin attends a meeting with Governor of the Novgorod Region, Andrei Nikitin, in the city of Veliky Novgorod, Russia, September 21, 2022.
Gavriil Grigorov | Sputnik | via Reuters
The Russian government is sticking to President Vladimir Putin’s warning that he “could use every means at our disposal to protect Russia and our people” as Western weapons and money fuel Ukraine’s increasingly successful defense. Leaders and pundits saw a nuclear threat in Putin’s words. Indeed, Dmitry Medvedev, a former Russian president who is a key figure in Putin’s government, said the country would use all weapons to defend itself, including strategic nuclear weapons. “From the person who has sole decision-making power regarding Russian nuclear weapons, this will have to be taken seriously,” said Andrey Baklitskiy, senior researcher at the United Nations Institute for Disarmament Research, referring to Putin.Read:Sweden’s central bank launches 100 basis point rate hike
4. Live from the Big Apple, it’s… Apple
Giancarlo Stanton #27 of the New York Yankees is greeted by teammate Aaron Judge #99 after hitting a two-run homerun in the first inning during the game between the New York Yankees and Washington Nationals at Nationals Park on Thursday, July 23. 2020 in Washington, DC.
Alex Trautwig | Major League Baseball | Getty Images
Apple’s latest big step in the sport involves arguably the most heated rivalry in professional sports and a slugger’s quest for glory. Apple TV+ has exclusive rights to Friday night’s game between the Boston Red Sox and New York Yankees in the Bronx. Although the Yankees are one of the best baseball teams and the Sox have a losing record, the mutual hatred of the two clubs makes all their matchups worth watching. New York outfielder Aaron Judge could also hit his 61st home run of the season, which would equate him with the American League record of the late Yankee Roger Maris. (Also the non-steroidal home run record for all of baseball, if you’re an old-fashioned purist.) Such an event would be a huge success for Apple. The top gadget maker, like fellow tech giant Amazon, is playing a big role for sports dominance against Disney and its ESPN brand, as well as against legacy broadcast networks. (By the way, Apple will sponsor the Super Bowl halftime show, which starts in February.)Read:Lacy Hunt and Danielle DiMartino Booth on Liquidity and Problems the Fed Faces – Mish Talk
5. Will Bed Bath & Beyond Survive?
A person leaves a Bed Bath & Beyond store in New York City, June 29, 2022.
Andrew Kelly | Reuters
Bed Bath & Beyond is continuing a drastic turnaround plan as its share price and sales fall, but it will be difficult for the retailer to get out of the mess it is in. Bed Bath is drowning in debt and has difficult relationships with the companies that supply the types or products that the household goods chain must sell to avoid bankruptcy. The company says its new plan, based on a new loan and national brands, has been well received. But former executives, who recently left the company, told CNBC that the company has alienated suppliers by making late payments and prioritizing its own brands. Find out what’s at stake for Bed Bath & Beyond here.
– CNBC’s Alex Harring, Sam Meredith, Jack Stebbins, Kif Leswing, Melissa Repko and Lillian Rizzo contributed to this report.
— apply now for the CNBC Investing Club to track Jim Cramer’s every stock move. Follow wider market action like a pro CNBC Pro.