5 things to know before stock markets open on Wednesday, August 17

A trader works on the trading floor of the New York Stock Exchange (NYSE) in New York on August 3, 2022.

Andrew Kelly | Reuters

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

1. Stock futures fall

Stocks appeared A rough Wednesday morning A day after the Dow and S&P 500 finished higher. All three major indices were in the red before the hour. The Dow is on a five-day winning streak, while the S&P is eyeing a fifth straight week of gains. Investors digest targets and earnings on Wednesday Lovin A day after Walmart and Home Depot published their results. They also expect the Federal Reserve to release minutes from its previous meeting as the central bank considers its next steps to fight inflation.

2. Inventory reduction squeezes target profitability

Shares target Big-box rival Walmart closed 4% higher on Tuesday after posting Better results than expected and stuck to its forecast for the rest of the year. However, on Wednesday, The target reported earnings that fell far short Earnings were in line with Wall Street’s expectations. Executives said they’d rather take a big short-term hit to the company’s bottom line than unload piles of unwanted inventory before the holiday season, stretching the pain over time. However, Target stuck to its full-year forecast and said it is well positioned to recover.

3. Walmart CEO: Everyone’s penny pincher

talking WalmartThe nation’s largest retailer and grocer are also struggling with excess inventory in some categories, but it’s grocery and Arrival of new customers. With inflation at a 40-year high, households with incomes of $100,000 or more are shopping for discounts, the company said. “People are paying attention to price now, regardless of income level,” Walmart CEO Doug McMillan told CNBC’s Courtney Reagan on Tuesday. “The longer it lasts, the more likely it will be.”

4. Mortgage demand decreases

Rates are down from their highs, price growth is slowing and sales are cooling, but that doesn’t mean people are jumping back into the housing market. The Mortgage Bankers Association said Wednesday Demand for mortgages hit record lows last week Since 2000. Fewer people are refinancing their mortgages as rates are nearly double where they were earlier this year. Wednesday’s report is based on new studies that show just that More and more people are backing out of contracts Buy houses.

5. New Amazon union initiative

Amazon workers at the LDJ5 Amazon warehouse rally in support of the union on April 24, 2022 in Staten Island, New York. The union referendum on LDJ5 was defeated on May 2, 2022.

Andrew Lichtenstein/Corbis via Getty Images

Labor organizers at a Amazon warehouse near Albany, New York, He filed a petition to form a trade union. Workers will be represented by the grassroots Amazon Labor Union, which previously unionized an Amazon warehouse in Staten Island. The e-commerce giant, which relies on workers in its massive network of warehouses to quickly deliver products to customers, has fought unionization efforts at various facilities including in Alabama and Kentucky.

— CNBC’s Tanaya Maciel, Melissa Repko, Diana Olig and Annie Palmer contributed to this report.

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