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The SPDR S&P 500 ETF Trust SPY suffered heavy losses this week following another round of disappointing inflation data.
On Tuesday, the U.S. Labor Department reported an 8.3% rise in the consumer price index in August, exceeding economist estimates of 8% inflation. Following the release of the CPI number, the Dow Jones Industrial Average dropped by 1,276 points on Tuesday, its worst day since June 2020.
On Thursday, President Joe Biden announced a tentative labor agreement to avoid a national railway strike that could have idled more than 7,000 trains and cost the economy up to $2 billion per day. The agreement came a day after analysts at Bernstein downgraded the stocks of Union Pacific Corporation UNP and CSX Corporation CSX, noting a challenging macroeconomic environment for railroads in the second half of 2022.
Starbucks Corporation SBUX raised its long-term financial forecast and highlighted elements of its business rejuvenation plan at its first investor day event since 2020 on Tuesday. Outgoing Starbucks CEO Howard Schultz said the company expects double-digit revenue and earnings growth over the next three years.
On Friday, the Biden administration released a framework for regulation of the cryptocurrency market that includes provisions to protect investors, promote financial stability and eliminate fraud and illicit activity. Popular cryptocurrency Ethereum ETH/USD completed its long-awaited Merge on Thursday, a conversion from proof-of-work verification to a more energy-friendly proof-of-stake model.
Failed Delivery: FedEx Corporation FDX shares traded lower on Friday after the delivery giant reported fiscal first-quarter earnings and revenue misses, citing weakness in global shipment volumes.
Investors will get more quarterly earnings reports in the week ahead from Aurora Cannabis Inc ACB on Tuesday, General Mills, Inc. GIS and Lennar Corporation LEN on Wednesday and Costco Wholesale Corporation COST on Thursday.
At least 240 companies in the S&P 500 have mentioned “recession” on their second-quarter earnings calls, according to FactSet.
Economic Numbers: Following the disappointing CPI reading, investors will get more 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 and accompanying commentary.
Photo via Shutterstock.
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Image and article originally from www.benzinga.com. Read the original article here.