Investors around the world are always on the lookout for the latest news that could impact their trading decisions. Here are the most important news items that investors need to start their trading day:
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Down again: The stock market closed in the red on Wednesday, failing to fully recover from Monday’s sell-off. The Dow Jones Industrial Average dropped 0.60% to close at 38,763.45, while the S&P 500 moved 0.77% lower to close the session at 5,199.50. The Nasdaq Composite saw the largest percentage drop out of all the major indexes at 1.05%, finishing the session at 16,195.81. This comes after Tuesday’s session served as a bright spot for the markets, with the S&P and the Nasdaq moving 1% higher and the Dow adding almost 300 points.
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Miss after miss: Warner Bros. Discovery missed analyst estimates when it posted its quarterly results after the bell on Wednesday. The company reported a loss of 36 cents per share on revenue of $9.7 billion, compared with a loss of 22 cents on $10.07 billion in revenue that analysts were expecting. Warner Bros. Discovery also reported a $9.1 billion non-cash goodwill impairment charge in its TV networks segment. However, streaming was a positive for the company in the period, with 3.6 million new subscribers added.
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Joining in: Customers aren’t the only ones pushing for lower prices. Politicians are now pledging to fight inflation, blaming it on different factors. Vice President Kamala Harris has said she’d tackle companies‘ "price gouging," while former President Donald Trump has criticized the Biden administration’s policies. Companies like Walmart, McDonald’s, and Kroger have found themselves in the middle of the high inflation debate, facing criticism over affordability.
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Recession ahead?: JPMorgan Chase CEO Jamie Dimon believes the odds of a "soft landing" for the U.S. economy are around 35% to 40%, making a recession more likely. Dimon cited various factors like geopolitics, housing, deficits, spending, and elections as causes for concern. He also expressed skepticism about the Federal Reserve’s ability to bring inflation down to 2%.
- AI price tag: Apple’s advanced artificial intelligence features may come at a cost to customers. Analysts suggest that the company could charge users up to $20 for Apple Intelligence, planned to be released across some devices later this year. This move could potentially lock users into the Apple ecosystem, making it more lucrative for the company.
In conclusion, these news items provide valuable insights for investors as they navigate the ever-changing landscape of the financial markets. Stay informed, stay vigilant, and make well-informed decisions based on the latest developments in the market.