Skip to content

5 things to know before the stock market opens Wednesday, June 29

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

1. Stocks looking for stability

Traders on the floor of the New York Stock Exchange, June 28, 2022.

Source: NYSE

Equities markets’ attempt to build on last week’s momentum has so far fizzled this week. Futures were little changed Wednesday morning following Tuesday’s route. The S&P 500 is on the verge of wrapping up its worst first half of a year since 1970. Earnings season is just around the corner, but companies such as Nike have already given warnings that persistent problems such as inflation and supply chain snarls are weighing on companies’ performance.

2. Fed’s Mester on a July rate hike

Cleveland Federal Reserve President and CEO Loretta Mester gives her keynote address at the 2014 Financial Stability Conference in Washington December 5, 2014.

Gary Cameron | Reuters

Federal Reserve Bank of Cleveland President Loretta Mester, a voting member of the Fed’s policy-setting panel, said she may push for a bigger rate hike next month. “If conditions were exactly the way they were today going into that meeting — if the meeting were today — I would be advocating for 75, because I haven’t seen the kind of numbers on the inflation side that I need to see in order to think that we can go back to a 50 increase,” she said in an interview with CNBC’s Annette Weisbach. Investors will also be paying attention to comments Wednesday from Fed Chairman Jerome Powell, who is speaking at a European Central Bank forum.

3. Bed Bath & Beyond CEO leaving

Bed Bath & Beyond CEO Mark Tritton

Courtesy: Bed Bath & Beyond

Bed Bath & Beyond announced a leadership shakeup morning Wednesday, including the departure of CEO Mark Tritton, as the home goods retailer continues to struggle. Sue Gove, an independent director on the board, will act as interim chief executive. “We must deliver improved results,” she said in a news release. The company, which has faced pressure from activist investor Ryan Cohen, also reported quarterly results that sharply missed Wall Street’s expectations. Shares tumbled over 10% in premarket trading.

4. Tepid data out of China

For more than two years, overseas travelers have had to quarantine upon arrival in China because of Covid restrictions. Pictured here at Beijing International Airport on June 18, 2022, are passengers waiting to be taken to quarantine-designated destinations.

Leo Ramirez | Afp | Getty Images

Tight Covid restrictions and lockdowns in China took a toll on the nation’s economic growth during the second quarter, according to a new report. Various sectors suffered a slowdown, including transportation and services, according to the US-based China Beige Book, which says it conducted more than 4,300 interviews in China during the three-month period. Hiring slowed down, as well, according to the study, and likely won’t pick up again until the Chinese government provides more stimulus this fall.

5. Disney extends Chapek’s deal

Bob Chapek, Disney CEO at the Boston College Chief Executives Club, November 15, 2021.

charles krupa | AP

Disney CEO Bob Chapek will be sticking around for at least a little bit longer as he pursues his goal of broad subscriber growth for Disney+. His contract with him was set to expire in February next year, but the board unanimously voted to extend his deal. Chapek has faced his fair share of controversy and tumult during his relatively short time in the top job. He has faced criticism for his response to Florida’s so-called “Don’t Say Gay” law, and the company’s share price is down 38% so far this year. Chapek also had a tough act to follow, having taken the reins from popular longtime CEO Bob Iger, who oversaw Disney’s acquisitions of the Pixar, Marvel and Star Wars brands.

— CNBC’s Samantha Subin, Elliot Smith, Melissa Repko, Evelyn Cheng and Sarah Whitten contributed to this report.

sign up now for the CNBC Investing Club to follow Jim Cramer’s every stock move. Follow the broader market action like a pro on CNBC-Pro.

.

Leave a Reply

Your email address will not be published.