Tuesday, September 27, 2022
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    HomeBusinessStock futures nudge higher as investors brace for July inflation report  

    Stock futures nudge higher as investors brace for July inflation report  

    Elon Musk sells Tesla shares

    Musk’s plan to buy Twitter has worried policymakers around the world.

    Joe Skipper | Reuters

    Elon Musk sold shares of Tesla worth roughly $6.88 billion — despite earlier this year saying he has “no further TSLA sales planned.”

    The Tesla CEO sold 7.92 million shares of the electric vehicle company, according to a succession of financial filings on Tuesday night. The SEC filings showed that the transactions occurred between Aug. 5 and 9. Tesla had its annual shareholder meeting on Aug. 4.

    Earlier this year, Musk took to social media to say that he does not plan to sell Tesla shares after April 28. The billionaire investor is currently embroiled in a legal battle with Twitter, which he had agreed to buy for about $44 billion.

    Shares of Tesla are up 2% in Wednesday premarket trading; Twitter is up 4%.

    — Sarah Min

    European stocks mixed ahead of key U.S. inflation print

    European markets were mixed on Wednesday morning as global investors awaited the key U.S. inflation print.

    The pan-European Stoxx 600 was roughly flat by late morning. Travel and leisure stocks climbed 1.3% while health care stocks dropped 0.8%.

    On the data front in Europe, German final July consumer price inflation came in at 7.5% year-on-year and 0.9% monthly, official figures revealed Wednesday, roughly in line with expectations.

    Earnings remain a key driver of individual share price movement in Europe. Ahold Delhaize, ABN AMRO, E.On, TUI Group, Metro, Deliveroo, Prudential and Aviva were among the major companies reporting before the bell on Wednesday.

    – Elliot Smith

    China’s consumer prices hit a two-year high, as pork prices bounce back

    China’s consumer price index in July reached a two-year high as pork prices rebounded, according to official data released Wednesday.

    The prices of pork rose by 20.2% in July from a year ago, marking the first increase since September 2020, according to data from Wind Information.

    Additionally, prices of pork posted their largest month-on-month surge on record — up by 25.6%. Agricultural products analyst at Nanhua Futures, Bian Shuyang, said in a statement that the reluctance of farmers to sell — in hopes of getting higher prices in the future — contributed to the pork price surge.

    Bian added that live hog producers are now operating at a profit, indicating there is more supply to come. Two upcoming Chinese holidays in September and October will help support consumer demand for pork, he said.

    Nevertheless, Wednesday’s inflation data continued to reflect lackluster demand in China’s economy.

    The consumer price index rose by 2.7% in July, missing expectations for a 2.9% increase, according to analysts polled by Reuters. In addition, despite the summer holidays, the tourism price component rose by only 0.5% in July from a year ago.

    — Lee Ying Shan and Evelyn Cheng

    Goldman, BoFA and Barclays name their top consumer stocks

    Market watchers are looking to July’s inflation report — slated to be released later today — for clues on what the Federal Reserve will do next at its September meeting.

    Ahead of the report’s release, CNBC Pro scoured through Wall Street research to identify what investment banks are watching for signs of consumer weakness, and their advice on how investors should position in this environment.

    Find out more about what the consumer-related stocks that analysts at Goldman Sachs, Bank of America and Barclays are loving.

    — Zavier Ong

    Regional Fed presidents scheduled to speak tomorrow

    In addition to Wednesday’s consumer price index report, markets will also digest Fedspeak from two regional bank presidents. They may give further insight as to the central bank’s course forward and the size of future rate hikes, especially at the September meeting.

    Charles Evans, president of the Federal Reserve Bank of Chicago, will speak Wednesday at 11:00 am ET at Drake University in Des Moines, Iowa.

    Later, Minneapolis Fed President Neel Kashkari will speak on a panel about stagflation at the Aspen Economic Strategy Group.

    —Carmen Reinicke

    Key CPI report may show inflation has cooled

    The July inflation report may show that prices have cooled – at least, that’s what economists and investors are hoping.

    Economists estimate for the July report is that the consumer price index increased only 0.2%, less than the 1.3% it jumped in June, according to Dow Jones. That would bring the year-over-year pace of consumer inflation in July to 8.7%, less than the 9.1% seen in June.

    If the reading is lower than it was last month, it may show that we’re past peak inflation and beginning to trend in the right direction. That will inform how aggressively the Federal Reserve hikes rates going forward.

    —Carmen Reinicke

    Coinbase, Roblox slump in after hours trading

    Shares of Coinbase and Roblox are making some of the biggest moves in after hours trading Tuesday after reporting earnings that failed to meet Wall Street’s expectations.

    Coinbase slipped more than 5% after reporting earnings showing a larger-than-expected loss during the quarter, and the company missed revenue estimates.

    Roblox plunged more than 16% after missing on earnings and revenue. In addition, the company also reported only 52.2 million average daily active users, down from the 54.1 million it reported in the previous quarter.

    —Carmen Reinicke

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