5 things to know before the opening of the Stock Exchange on Monday August 22

Traders work on the floor of the New York Stock Exchange (NYSE), August 17, 2022.

Brendan McDermid | Reuters

Here are the most important information investors need to start their trading day:

1. Stock futures in the red

The summer rally has entered its scorching period. U.S. stock markets were poised to open lower on Monday, even after Wall Street fell asleep late last week. Investors are still wondering if they believe the Federal Reserve will continue its aggressive rate hikes to rein in inflation. They will look for clues from Fed Chairman Jerome Powell, who is scheduled to speak in Jackson Hole, Wyoming, on Friday. Before that, the markets will hear about several companies. Most of the earnings season is over, although there are a few well-known names on the schedule this week: Palo Alto Networks due to report after the bell Monday, Macy’s and Nordstrom announce Tuesday, Salesforce and Nvidia up Wednesday , and Peloton goes Thursday.

2. Where do stocks go next?

Uber CEO Dara Khosrowshahi reacts on the floor of the New York Stock Exchange (NYSE) in Manhattan, New York, U.S. August 2, 2022.

andrew kelly | Reuters

Now that earnings season is largely over, it’s time to pick some winners. Goldman Sachs cites several, including companies more directly exposed to consumers, such as Amazon and Uber. Read this CNBC Pro article for more details on the bank’s top takeaways. Moreover, is the rally really over or is it simply in bad shape? JPMorgan strategists believe growth stocks, such as tech names that slumped earlier this year, have even more steam this year. For more analysis and insights, check out CNBC Pro.

3. China cuts rates

People walk past the headquarters of the People’s Bank of China (PBOC), the central bank, in Beijing, China, September 28, 2018.

Jason Lee | Reuters

While the United States is raising interest rates to fight inflation, China is cutting them as it faces an economic slowdown brought on by tight Covid restrictions and turmoil in the country’s housing market. Reactions from analysts have been mixed. Some said it was an encouraging sign that the People’s Bank of China is willing to increase liquidity, although this most recent move won’t have much of an impact. David Chao, an Invesco analyst, said the rate cut has so far failed to translate into higher property sales “due to lack of confidence in big developers” and the pre-sale pattern of the country, which allows mortgage payments on unfinished homes.

4. US and South Korea launch joint military exercises

South Korea and the United States began their largest joint military exercises in years on Monday with a resumption of field training, officials said.

Chung Sung-jun | Getty Images News | Getty Images

South Korea and the United States have launched their largest joint military drills since 2017. The Covid pandemic and a momentary change in the South’s diplomatic approach to North Korea have scaled those drills down. South Korean President Yoon Suk-yeol, in office since May, pushed for the resumption of the exercises after his predecessor called for a more open dialogue with Kim Jong Un’s totalitarian government in the north. “Keeping peace on the Korean Peninsula relies on our airtight security posture,” Yoon told his cabinet, according to Reuters. North Korea has fired several missiles this year and may soon conduct another nuclear test, officials have warned.

5. Tesla raises the price of FSD

Tesla vehicles are displayed at a sales and service center in Vista, California on June 3, 2022.

Mike Blake | Reuters

Earlier this year, Elon Musk’s Tesla hiked the prices of its cars, citing supply chain issues and higher material costs. The automaker is now set to raise the price of its premium driver assistance system, which the company calls Full Self-Driving, by 25% next month. “After the wide release of FSD Beta 10.69.2, the price of FSD will reach $15,000 in North America on September 5th,” Musk tweeted over the weekend. Tesla customers pay either $12,000 upfront or a $199 monthly subscription fee for FSD, which has features to help cars slow down automatically for signs and signals, among other things. FSD has undergone regulatory review by state and federal authorities.

– CNBC’s Sarah Min, Su-Lin Tan, Carmen Reinicke and Lora Kolodny contributed to this report.

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