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Good Thursday. This morning, you can see the newly appointed Co-CEOs of Skydance, David Ellison and Ynon Kreiz, on the program Squawk Box at CNBC. You can watch the live broadcast at CNBC or __BJWKEEP_00007+.
Before the opening of trading, U.S. stock futures declined. The three major indices all closed lower on the previous trading day.
Here are five important things that investors need to know before the start of trading days:
1. When and whether interest rates will be raised
According to the minutes of the September meeting released yesterday, Federal Reserve officials believe that there may be another interest rate hike before the end of this year. However, this document does not specify a particular time when policymakers expect such a hike to occur.
We are also following the following news:
- A consumer survey by the Federal Reserve of New York shows that inflation expectations for the next 12 months have risen to their highest level since 2023. The survey also indicates that the proportion of households expecting their financial situation to improve in a year is declining.
- Another report released by the Federal Reserve of New York this week stated that if it weren't for President Trump's tariffs, the prices of many everyday goods would have declined last year and at the beginning of this year.
- At the same time, Levi Strauss has become the latest company to mention in its financial report that tariff refunds have provided a boost.
- Yesterday's stable treasury bond auction alleviated some of the market's concerns about rising U.S. Treasury yields. After the auction, the yield on 10-year U.S. Treasuries fell from a 24-year high.
- Despite the alleviation of pressure from U.S. Treasury yields, the three major indices still ended their consecutive upward trends during trading on Wednesday.
- Click here to view real-time market updates.
2. Global Growth
PepsiCo announced this morning that its third-quarter results exceeded Wall Street's expectations in both revenue and profit, with net sales growing by 5.6%, as the international market continued to drive the growth of this beverage giant.
As written by Amelia Lucas of CNBC, 41% of PepsiCo's net revenue this year has come from its international operations. On the other hand, its North American beverage division continues to shrink; PepsiCo is pursuing a turnaround plan in the United States that focuses on formula innovation and advertising.
The difficulties of these local businesses are dragging down profits, prompting PepsiCo to lower its full-year earnings forecast with only one quarter left. PepsiCo's CEO, Ramon Laguarta, will give an exclusive interview to CNBC at 10 a.m. Eastern Time. Click here to watch the live broadcast.
3. No discussion on protocols
After Trump stated that he no longer wanted to reach an agreement with Iran, crude oil prices rose by more than 4% this morning. "I don't think that agreement is what I really wanted to achieve, but they were willing to offer anything to prevent it," Trump said at a campaign rally in Texas on Wednesday evening.
Trump's remarks appeared after a report from NBC News. The report stated that he and his team have discussed the possibility of resuming military operations soon. Due to market concerns that hostilities in the Middle East could escalate again, both Brent crude oil futures and US West Texas Intermediate crude oil futures rose this morning.
To alleviate the pressure caused by record-high diesel prices, Trump signed an executive order earlier this week that allows truck drivers to use non-highway diesel on highways without having to pay federal consumption taxes. However, analysts say that this order may ultimately only defer these taxes, rather than completely eliminate them.
4. New hardware
Microsoft and NVIDIA announced yesterday that Microsoft’s new laptops will be equipped with NVIDIA chips, priced at $2,599. Consumers can now place orders for Surface Laptop Ultra, and the product will begin to be shipped next week.
As written by Jordan Novet of CNBC, Microsoft has been working hard to add more artificial intelligence features to its consumer devices. Microsoft also stated yesterday that Meta will launch a proxy version of Muse AI suitable for Windows.
CNBC It has been confirmed that Microsoft CEO Satya Nadella and NVIDIA CEO Jensen Huang are both on the list of tech executives expected to be awarded medals by Trump today. Tesla's Elon Musk and Dell's Michael Dell are also on the list, and the event is named “Science: A New Golden Age Summit”.
5. From green to red
According to the analysis of the records of the United States Federal Election Commission (FEC) by CNBC, during this mid-term election cycle, major donors have generally been supporting the Republican Party. Among the 20 largest donors and donor groups, 14 have either fully or almost fully supported Republican candidates or their allied groups.
At the same time, fewer and fewer Democratic donors are contributing money to the Democratic National Committee ( DNC ), preferring to donate directly to candidates. Fundraisers told Luke Fountain of CNBC that Democratic donors have experienced "trauma" from the previous electoral cycle and are also concerned about the growing influence of the leadership of DNC as well as the democratic socialist factions within the party.
FEC Records show that from Labor Day to September 25th, the spending of the conservative Super Political Action Committees (super PAC) on their Democratic counterparts was nearly 2 to 1. The Republicans are making great efforts and spending heavily in hopes of retaining control of Washington, as some once secure districts are now considered to be closely contested.
Daily Dividends
Fasten your seat belts: Wall Street is expecting another season of impressive financial report releases. Here are the changes in analysts' expectations for third-quarter earnings growth since the end of June:
CNBC's Jeff Cox, Jessica Dickler, Laya Neelakandan, Sean Conlon, Amelia Lucas, Anniek Bao, Spencer Kimball, Jordan Novet, Lora Kolodny, Luke Fountain, and Daren Fonda have contributed to this report.
Caleigh Keating assisted in the production of this newsletter. Josephine Rozzelle edited the content of this issue.
