People shop at a supermarket in Montebello, California on August 23, 2022.
Frederic J Brown | AFP | Getty Images
Here is the key news investors need to start their trading day:
1. Inflation heat test
After spending much of Tuesday morning in positive territory, US stock futures fell after the much-anticipated inflation data release. The August consumer price index increased slightly month-on-month in August. Analysts had expected price increases to slow over the past month, especially as fuel prices fell. The report comes ahead of next week’s Federal Reserve meeting, where central bankers will decide how much further to hike rates. It’s effectively baked into a three-quarter point, but Tuesday’s data could change expectations about what’s next. “The durability of the rally this week will likely be determined by Tuesday’s CPI report and the tone of next week’s FOMC meeting,” said Mark Hackett of Nationwide.
2. Ukraine pushes forward
Ukrainian President Volodymyr Zelenskyy speaks during a joint news conference with Polish Prime Minister Mateusz Morawiecki and Latvian President Egils Levits amid the Russian attack on Ukraine September 9, 2022 in Kyiv, Ukraine.
Valentin Ogirenko | Reuters
The Ukrainian military has made even more progress in its shocking counteroffensive against Russia. “From the beginning of September until today, our soldiers have already liberated more than 6,000 square kilometers of Ukraine’s territory – in the east and in the south,” Ukrainian President Volodymyr Zelenskyy told his people this week. “The movement of our troops continues.” Ukraine’s recent success, fueled by US and Western money and weapons, has turned the state of war on its head – and put intense political pressure on Russian President Vladimir Putin. Experts believe this could push him either to escalate his aggression in the former Soviet state, or perhaps start serious ceasefire negotiations.
3. HBO, Apple and Netflix rule at the Emmys
Brendan Hunt, Jason Sudeikis and Brett Goldstein star in AppleTV+’s “Ted Lasso.”
Warner Bros. Discovery’s HBO asserted its crown as ruler of the Primetime Emmys with multiple wins from the limited series “The White Lotus” and “Succession.” But Netflix and Apple didn’t have such bad nights either. In fact, at one point, Netflix’s South Korean hit Squid Game seemed poised to upset the Outstanding Drama Series category after racking up directorial and acting wins. But “Succession” ultimately prevailed. On the comedy side, Apple’s “Ted Lasso” came out on top, but ABC’s Disney’s “Abbott Elementary” also put in a strong performance.
4. Restructuring at Peloton
A person walks past a Peloton store in Coral Gables, Florida on January 20, 2022.
Joe Raedle | Getty Images
Let there be no more doubt: Barry McCarthy has full responsibility at Peloton. The CEO announced Monday that Chairman John Foley, one of the company’s co-founders and its CEO for most of its roughly 10-year existence, is leaving the company. (Hisao Kushi, another co-founder, is also leaving his position as chief legal officer next month.) The leadership changes come as McCarthy pursues a comprehensive plan to rejuvenate the once-pandemic darling, whose business began to suffer as people ventured out of their homes to train as Covid restrictions were lifted. As of Monday’s close, shares of Peloton are down almost 70% this year.
5. Get your vacation flight tickets now
Travelers make their way through Orlando International Airport over New Year’s weekend despite thousands of flight cancellations and delays across the United States.
Paul Hennessy | Light Rocket | Getty Images
Why? Because fares are already high and seats might be hard to come by later. Hopper, who follows airfares, said flights this Thanksgiving and Christmas will be the highest in five years. People are adjusting to living with Covid, particularly with widespread vaccines and treatments, and they are eager to see family and friends they haven’t seen in years. Or they just want to leave. The average domestic fare for Thanksgiving is $350, up more than 20% in 2019 before the pandemic, according to Hopper, while domestic round-trip tickets over Christmas are about a third more expensive than 2019 at $463.
— CNBC’s Carmen Reinicke, Patti Domm, Holly Ellyatt, Sarah Whitten, Jack Stebbins, and Leslie Josephs contributed to this report.
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