Anika Begay
Here are five key things investors need to know to start their trading day:
1. Bounce
Stock futures rose Thursday morning after a winning day for all three major indexes on Wednesday on the back of encouraging U.S. inflation data. The Dow Jones Industrial Average rose 0.61% in regular trading, while the S&P 500 added 0.38% and the Nasdaq Composite rose 0.03%. A reading from the Labor Department on Wednesday showed the annual inflation rate slowed to 2.9% in July, the slowest annual gain in prices since 2021. The jump in the consumer price index was in line with what Wall Street economists had expected, according to Dow Jones estimates, and is likely to keep a September interest rate cut by the Federal Reserve on the table. Follow live market updates.
2. Heavy consumer
Augusta, Georgia, Walmart Supercenter, cashier and customer in checkout line.
Jeff Greenberg | Universal Images Group | Getty Images
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 its bottom line and net profit and raised its full-year sales forecast. “We see among our members and customers that they remain selective, discerning, value-seeking, focusing on things like essentials rather than discretionary items, but importantly, we don’t see any further attrition in consumer health,” Chief Financial Officer John David Rainey told Vscek’s Melissa Repko in an interview. Read more from Walmart’s report.
3. Savings on medicines
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
The long-anticipated lower drug prices are almost here, for a select group of drugs. The Biden administration on Thursday revealed the results of major drug pricing negotiations that will lower the cost of 10 prescription drugs, which are among the most expensive drugs covered by Medicare Part D. The lower prices could save the U.S. government $6 billion in Medicare savings in 2026 alone, after the new prices take effect, the government estimated. The price cuts could also save Medicare enrollees $1.5 billion in out-of-pocket costs in 2026, U.S. officials said.
4. Cisco cuts
The Cisco logo will be displayed at the Mobile World Congress in Barcelona, Spain on February 26, 2024.
Charlie Perez | Nude Photos | Getty Images
Further staff cuts are planned Cisco. The networking giant said in its quarterly earnings report Wednesday that it would reduce its global workforce by 7% as part of a restructuring plan that would result in $1 billion in pretax charges. Between $700 million and $800 million of that impact will be recognized in the current quarter, Cisco said. It marks the second major round of layoffs at Cisco in recent months after announcing in February that it would cut more than 4,000 jobs, or 5% of its workforce at the time.
5. Sweet surprise
Packs of M&M’s for sale in a store on January 24, 2023 in Miami, Florida.
Joe Raedle | Getty Images
Candy maker Mars is adding new items to its pantry, in a $36 billion deal for the snack company Kellan. The company behind brands like Pringles, Cheez-Its and Eggo spun off from its former parent company Kellogg last year. Now Mars is snapping it up for $83.50 a share, a premium of about 12% over Tuesday’s closing price. “We buy companies to grow companies, and we aim to grow them for generations,” Mars CEO Poul Weihrauch told Vscek. The deal is expected to close in the first half of 2025.
– Vscek’s Brian Evans, Jesse Pound, Jeff Cox, Melissa Repko, Annika Kim Constantino, Ari Levy and Justine Fisher contributed to this report.
