5 things to know before the stock market opens on Wednesday, September 14

Traders on the floor of the New York Stock Exchange, September 13, 2022.

Source: NYSE

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

1. Pick up the pieces

US stock futures It seemed to be poised for a rebound on Wednesday morning as investors sought to shake off the worst market slump since June 2020. All three major indicators were poor on Tuesday after the CPI came in higher than expected. While the Dow was down 1,276 points, the S&P 500 and tech heavy Nasdaq It suffered bigger drops in percentage terms as it sank all over Wall Street that the Fed won’t back down from its aggressive interest rate hike plans anytime soon. In fact, traders are now divided over whether the Federal Reserve will raise the benchmark interest rate by three-quarters of a point or one full point at next week’s meeting. More inflation data due on Wednesday – PPI drops at 8:30 AM ET.

2. Rail problem

Shipping containers are located at the BNSF intermodal facility on July 28, 2021 in Cicero, Illinois.

Scott Olson | Getty Images

Thousands of rail workers could go on strike on Friday as negotiations between two major unions and rail companies hit a dead end. on sick leave policies. The chief union negotiator accused Union Pacific And the Berkshire Hathaway– BNSF owned to put things off over time for medical appointments. BNSF described this as incorrect, while Union Pacific adopted a somewhat softer tone. “We are in active discussions with unions to try to address these concerns,” the company told CNBC. The White House, meanwhile, has Preparing to stop work. The strike could end up costing $2 billion a day. “Strikes are a last resort. They don’t help anyone because employees are losing money, companies are losing money,” Dennis Pearce, president of the Brotherhood of Locomotive Engineers and Trinmin told CNBC. “We are not here to harm the economy.”

3. Starbucks’ new plan

Starbucks CEO Howard Schultz, left, with incoming CEO Laxman Narasimhan, September 7, 2022.

Source: CNBC

Howard Schultz is on his way out Starbucks CEO, again, but his vision of the company that turned him into a global coffee powerhouse remains prevalent. On Investor Day Tuesday, Starbucks revealed New long-term plans, which includes everything from boosting loyalty programs, more stores and increased automation in its cafes – as the company battles a growing union push among its baristas. Starbucks also boosted its long-term financial outlook. Schultz will remain in the interim CEO position until April, when veteran consumer goods executive Laxman Narasimhan is scheduled to take over. Narasimhan will officially join the company this fall and learn the skills of Schultz.

4. What is the next step for Ukraine?

A long convoy of invading Russian military vehicles appears on the road to Kyiv early in the war in late February, shortly before vehicles malfunction, lack of essential supplies, and attacks by Ukrainian defenders, forcing it to turn around and return to Russia. Over the past week, Ukrainian forces defeated Russia in Kharkiv as dramatic as the defeat outside Kyiv.

Maxar | Getty Images

5. Mortgage Demand Falls

A sign for sale is placed in front of a home listed for over $1 million on April 29, 2022 in San Francisco, California.

Justin Sullivan | Getty Images

The housing market continues to feel pressure from rising interest rates. The general demand for mortgages decreased More than 1% week after week, according to the Mortgage Bankers Association. But since last year, the decline has been more significant. Demand for mortgages from homebuyers fell by about a third. The demand for refinancing has also fallen by more than 80%. Rates were actually lower this time last year, but are now above 6%, double what they were at the start of 2022. After surprisingly hot inflation data on Tuesday, the Fed will likely be bolder to continue raising rates. In an aggressive segment.

– CNBC’s Samantha Soobin, Laurie Ann Larocco, Emma Kennery, Holly Eliat and Diana Olick contributed to this report.

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