Traders on the floor of the NYSE, September 28, 2022.
Here are the most important news items investors need to start their trading day:
1. Bang, or whimper?
The third quarter ends on Friday, and it couldn’t come sooner for battered stock markets. It was a terrible month for equities. Federal Reserve policymakers have made it clear that they are serious about raising rates until price increases cool, bond yields rise and stocks decline. Critics of the central bank say much of the turmoil is the result of the Fed waiting too long to address inflation and then doing too much, too quickly, to fight it. The economic mess in the UK and the nuclear worry over Russia’s war in Ukraine didn’t help either. Earnings season is also around the corner, which could put more pressure on markets already below previous lows in 2022. Follow live market updates here.
Read more: Eurozone inflation rises again
2. Not great, Apple
Apple CEO Tim Cook presents the new iPhone 14 at an Apple event at their headquarters in Cupertino, California, USA September 7, 2022.
Carlos Barria Reuters
A name that surprised Thursday’s big selloff in tech stocks: Apple. Although the top-tier gadget maker is down 20% so far this year, it has outperformed the tech-laden Nasdaq, which has fallen an even worse 31% since the end of 2021. Tech stocks are generally considered riskier. and more. at risk of rising interest rates, so when there is volatility investors turn to safer securities. In this case, Apple’s decline was triggered by a downgrade from Bank of America, which brought down other big names, such as Alphabet and Microsoft. “Shares have significantly outperformed YTD … and have been viewed as a relative safe haven,” BofA analyst Wamsi Mohan wrote Thursday, downgrading Apple in turn. “However, we see a risk to this outperformance over the next year, as we expect material negative revisions driven by weaker consumer demand.” Still, Apple is rated a buy by the vast majority of analysts on the Street.
Read more: Apple Executive leaves company after vulgar comment goes viral on TikTok
3. Toyota CEO stands by EV plan
Akio Toyoda, president of Toyota Motor Corp., gestures as he poses for photos during a news conference at the company’s showroom in Tokyo, Japan, Dec. 14, 2021. Toyota announced plans for its EV vehicles.
Kiyoshi Ota Bloomberg | Getty Images
Akio Toyoda his company has heard your complaints, Toyota, isn’t moving fast enough to go all in on electric vehicles, but it’s not moving. “That is our strategy and we are sticking to it,” said the CEO. While Ford and General Motors are telling investors, customers and politicians alike that they are going all-electric, Toyota is taking an all-above approach. That means producing gas-electric hybrids, such as the Prius, as well as hydrogen-electric and plug-in vehicles. The company has increased investments in electric vehicles, but does not see EVs as the only solution. “Everything will be subject to the customers to decide,” Toyoda told reporters on Thursday.
4. Nike has an inventory problem
A man wearing a protective face mask walks past a central Nike brand store in Kyiv, Ukraine December 10, 2020.
Valentyn Ogirenko Reuters
It looks like people are going to die hard Nike gear for holiday gifts this year. The sneaker and sporting goods company said in its earnings report Thursday that it is overwhelmed with products from different seasons due to supply chain problems. Some shipments intended for earlier seasons showed up after taking too long, Nike said, although the company is also receiving products for the holiday shopping season, which it ordered early to hedge against delays. shipping. Overall, the company’s inventory jumped 44% in the previous quarter, and 65% in North America, its largest market. So Nike has no choice but to “aggressively liquidate” large chunks of its inventory, said Chief Financial Officer Matthew Friend. Nike isn’t the only one in selling mode: the company’s shares fell in after-hours trading.
More from CNBC PRO: Nike’s results hint at a strong dollar and earnings season
5. Ian strengthens after pummeling Florida
A man takes photos of boats damaged by Hurricane Ian in Fort Myers, Florida, on September 29, 2022.
Giorgio Viera | AFP | Getty Images
Ian became a hurricane again after barreling through Florida and hitting the Atlantic Ocean. Now the storm is on a collision course with South Carolina, where it is projected to make landfall on Friday afternoon. Parts of the state could receive up to 8 inches of rain while experiencing flooding and severe winds, weather officials said. Ian has already left a wide path of destruction in Florida, driven by millions. President Joe Biden warned of “substantial loss of life.” Images of Fort Myers, Florida, were horrific: lingering floods, boats left in the streets, broken homes. “Watching the water from my condo in the heart of downtown, watching the water rise and just flood out all the stores on the first floor, it was heartbreaking,” said Fort Myers Mayor Kevin Anderson to “Today” NBC.
– CNBC’s Alex Harring, Jordan Novet, Michael Wayland and Lillian Rizzo contributed to this report.
— Sign up now for CNBC’s Investment Club to follow every stock move from Jim Cramer. Follow the broader market action like a pro CNBC Pro.