Here are five important things investors should know before starting the trading day.
1. Again and again
The S&P 500 and Nasdaq Composite both recorded record closing prices on Monday. The Composite closed up 0.1% at 5,572.85, while the tech-heavy Nasdaq added 0.28% to close at 18,403.74. This marks the S&P’s fourth positive week out of the last five and comes ahead of key inflation data due later this week, which may provide further clues about the state of the economy and a possible Federal Reserve rate cut. Unlike the S&P and Nasdaq, the Dow Jones Industrial Average closed down 0.08% at 39,344.79. Follow our live market updates.
2. Feel my anger
A customer shops for groceries at a Walmart store in Secaucus, New Jersey, USA, Tuesday, March 5, 2024.
Gabby Jones | Bloomberg | Getty Images
Even though inflation is subsiding, customers are still feeling the pain of higher prices. And in some stores, they’re voicing their dissatisfaction. Wendy’s changed its tune after its CEO said it might start implementing dynamic pricing, raising or lowering prices based on demand. At Walmart, TikTok users criticized the introduction of digital shelf labels that can raise or lower prices. And at Chipotle stores, employees were seen filming themselves trying to stop customers from filling their burrito bowls with less than they wanted. But as people curb spending and sales fall, companies like Target, McDonald’s and Aldi are trying more aggressive approaches, such as price cuts and new product launches, to lure customers.
3. Paramount Panic
Monday, April 29, 2024 at Paramount Studios, Los Angeles, California, USA.
Eric Thayer | Bloomberg | Getty Images
Hollywood movie theater owners are sounding the alarm. On Sunday, Paramount approved its merger with Skydance, but movie theater owners are concerned that the deal will lead to over-consolidation and exacerbate production problems. It’s unclear how the merger will affect future productions, as Paramount and Skydance have other production partners. Moreover, both studios have only three movies to release in 2024, after the pandemic shutdown and Hollywood’s double strike reduced the influx of new movies. Box office analysts expect the number of movies to increase over the next two years, but it’s unclear whether production will return to pre-pandemic levels.
4. Job opportunities are plentiful
Salesforce Tower (left) and Salesforce West office building, Tuesday, February 23, 2021, in San Francisco, California, USA.
David Paul Morris | Bloomberg | Getty Images
Apparently, artificial intelligence can’t solve everything. San Francisco’s real estate market is revitalized by technology, but the city’s office vacancy rate is still soaring. According to commercial real estate firm Cushman & Wakefield, the city’s office space vacancy rate hit a record high of 34.5% in the second quarter. That’s up from 33.9% in the first quarter, 28.1% in the same period last year, and 5% before the pandemic. Additionally, average asking rents fell to $68.27 per square foot in the second quarter, the lowest since late 2015. That’s down from $72.90 a year ago and a peak of $84.70 in 2020. This comes as AI companies are leasing or subleasing hundreds of thousands of office spaces in the city.
5. Look to Sun Valley
The entrance to Sun Valley Lodge in Sun Valley, Idaho.
Michael Newberg | CNBC
Discussions about the future of streaming have been front and center in Sun Valley this week. At an Idaho ski lodge, the annual Allen & Company conference (also known as “summer camp for billionaires”) is set to begin on Tuesday, with media and tech giants gathering to discuss the future of their respective businesses. Many names are reportedly on the guest list, including Apple CEO Tim Cook, Warner Bros. Discovery’s David Zaslav, and Netflix co-CEOs Ted Sarandos and Greg Peters, but it’s unclear whether they will attend. Following the recent Paramount merger deal, streaming alliances could come to the forefront, with some media companies leaning toward bundling their services.
—CNBC’s Brian Evans, Pia Singh, Melissa Repko, Amelia Lucas, Sarah Whitten, Ali Levy, Jordan Novett and Lillian Rizzo contributed to this report.
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