5 things to know before the exchange opens

The news of August 23, 2024

Federal Reserve Chairman Jerome Powell will give a highly anticipated speech this morning in Jackson Hole, Wyoming, with investors watching closely to see what he says about potential interest rate cuts; Canada orders an end to the blockade by the country’s two major rail operators; Skydance Media is looking to end Edgar Bronfman Jr.’s deal for Paramount Global (PARA); working day (DAY) shares rise in premarket trading after the HR software provider posted quarterly results that beat estimates; and Nestlé (NSRGY) stocks are down in Swiss trading after the chocolate maker replaced Chief Executive Officer (CEO) Mark Schneider amid sluggish sales. US stock futures are higher ahead of Powell’s speech as indices look to end the week higher despite yesterday’s decline. Here’s what investors need to know today.

1. Fed Chairman Powell to speak in Jackson Hole

Investors will be closely watching this morning’s speech by Federal Reserve Chairman Jerome Powell at the annual symposium in Jackson Hole to signal that the Fed is on track to cut its benchmark interest rate from its highest level in 23 years. years, when the political decision-makers will meet in September. Minutes from the Fed’s July policy meeting on Wednesday showed growing support for a rate cut at the next policy committee meeting, and investors will be looking for signals from Powell on both the pace and to the extent of this year’s discounts. While the Fed’s high interest rates helped push inflation closer to its annual target rate of 2%, recent data showing the unemployment rate rose to 4.3% in July raised concerns among policymakers about the strength of the labor market .

2. CN ends lockout, CPKC prepares to restart after Canada intervenes

One of Canada’s two largest rail freight operators ended a lockout by unionized workers, while the other prepared to resume operations after Ottawa ordered an end to their shutdowns, which threatened trade with the U.S. and the national economy. Canadian National Railway (CNI) said it ended its employee lockout effective 6:00 p.m. ET Thursday, while Canadian Pacific Kansas City (CP) said it was “preparing to restart rail operations”. The two locked out nearly 10,000 workers after midnight Thursday after failed negotiations with the Teamsters Canada union. The Canadian government ordered an end to the blockades after less than a day and said an arbitrator would negotiate between the rail operators and the union.

3. Skydance is reportedly asking Paramount to stop Bronfman talks

The saga for control of Paramount Global (PARA) continues, Skydance Media has asked the entertainment giant to stop negotiating with Edgar Bronfman Jr. Skydance, in a letter from its lawyers, said Paramount’s special committee violated the terms of its agreement to take over his media empire Shari Redstone by extending the “go-magazin” deadline until September 5, according to The Wall Street Journal. Paramount on Wednesday extended its deadline to evaluate rival bids for Skydance after receiving Bronfman’s reported $6 billion bid for Redstone’s National Amusements and a minority stake in the entertainment giant. Skydance said Bronfman’s offer was not superior and therefore the deadline should not have been extended, diary reported. Paramount shares are down more than 1% in premarket trading.

The story continues

4. Stocks rise on weekdays for strong earnings, international growth

working day (DAY) shares rise more than 12% in premarket trading after the human resources and capital management software provider reported better-than-expected quarterly results and pointed to growth opportunities in international markets. The company’s shares, down about 25 percent from their record close through Thursday, have come under scrutiny from investors this year on concerns that enterprise customers have cut spending on premium software subscription services amid macroeconomic uncertainty.

5. Nestle Stock Slips After Chocolate Maker Replaces CEO

Nestlé SA (NSRGY) shares fall 2% in Swiss trading after the chocolate maker replaced Chief Executive Officer (CEO) Mark Schneider amid slowing sales. Schneider, who resigned from the board, will be replaced on September 1 by veteran company executive Laurent Freixe, who heads its Latin American operations. During his eight years at Nestle, Schneider focused the Swiss firm “on high-growth categories such as coffee, pet care and nutritional health products,” the company said. But Nestle’s shares have fallen 10 percent this year amid falling sales as increasingly frugal consumers watch their spending.

Read the original article on Investopedia.