Expect double-digit revenue and profit growth
The S&P 500 suffered heavy losses last week after another round of disappointing inflation data.
On Tuesday, the US Department of Labor reported an 8.3% rise in the consumer price index in August, beating economists’ estimates of an 8% inflation. Following the release of the CPI number, the Dow Jones Industrial Average fell 1,276 points on Tuesday, its worst day since June 2020.
On Thursday, President Joe Biden announced a tentative labor deal to avert a nationwide railroad strike that could have slowed more than 7,000 trains and cost the economy up to $2 billion a day. The deal came a day after Bernstein analysts downgraded shares of Union Pacific and CSX, noting a difficult macroeconomic environment for railroads in the second half of 2022.
Starbucks on Tuesday raised its long-term financial guidance and highlighted elements of its corporate rejuvenation plan during its first Investor Day since 2020. Outgoing Starbucks CEO Howard Schultz said the company will expects double-digit revenue and profit growth over the next three years.
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On Friday, the Biden administration released a regulatory framework for the cryptocurrency market that includes provisions to protect investors, promote financial stability, and eliminate fraud and illicit activity. On Thursday, popular cryptocurrency Ethereum completed its long-awaited merger, a conversion from proof-of-work verification to a more energy-efficient proof-of-stake model.
FedEx shares traded lower on Friday after the delivery giant reported fiscal first-quarter profits and revenue losses, citing weak global shipping volumes.
Investors will receive more quarterly earnings reports in the week ahead from Aurora Cannabis on Tuesday, General Mills and Lennar on Wednesday, and Costco Wholesale on Thursday.
At least 240 S&P 500 companies mentioned “recession” in their second-quarter earnings calls, according to FactSet.
Following the disappointing CPI reading, investors will receive further key economic updates on Tuesday when the People’s Bank of China announces its latest interest rate decision and on Wednesday when the Federal Reserve releases its own interest rate decision. interest rate and accompanying commentary.
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Benzinga is a financial information and data company headquartered in Detroit.