US index futures are falling in pre-market trading on Wednesday, a crucial day for markets due to the presentation of US inflation data. This data could impact the Federal Reserve’s decision on monetary policy next week.

At 7:07 AM, Dow Jones futures (DOWI:DJI) fell 52 points, or 0.15%. S&P 500 futures were down 0.14% and Nasdaq-100 futures were down 0.19%. The yield on the 10-year Treasury note was at 4.306%.

The anticipation of consumer inflation influences a negative trend in future indices. If the index is stable, the Fed may consider keeping interest rates between 5.25% and 5.50%, postponing a possible increase until November, in order to analyze more information before deciding. Experts predict that inflation in the US will increase by 0.60% in August, a rate well above the 0.20% recorded in July. Core inflation, which is crucial for central banks’ decisions on monetary policy, is expected to grow 0.20% over the same period.

The MBA mortgage index showed that demand for mortgage refinancing fell due to rising interest rates. There was a 0.8% drop in mortgage applications last week, with 30-year interest rates hitting 7.27%. Requests for refinancing fell 5%, while requests to purchase properties increased 1%.

In the remainder of Wednesday’s U.S. economic schedule, the Department of Energy will release the week’s oil inventories at 10:30 a.m. At 1 PM, the Treasury announces the third Treasury auction of the week, this time with a thirty-year maturity. Yesterday, the government placed US$35 billion in the tender, with a cut rate of 4.289%. Finally, at 2 PM, it will be the turn of the federal budget balance, which has a consensus of a deficit of US$240 billion in August, whereas in July the deficit was smaller, at US$221 billion.

In the euro zone, industrial production in July recorded a retraction of 1.1%, exceeding the forecast for a drop of 0.70%. This result highlights the bloc’s economic challenges. In the United Kingdom, the drop was 0.70%, also above expectations. Although these numbers show a slowdown, the European Central Bank (ECB) anticipates that inflation in the euro zone will remain above 3% until 2024. This suggests a possible interest rate hike at Thursday’s meeting, as reported by Reuters. However, many expect the rate to remain at 4.25% per year.

Ursula von der Leyen, leader of the European Commission, said the possibility of China providing excessive financial support to electric car manufacturers will be investigated. She emphasized that Europe values ​​fair competition.

In Asia, there is an expectation of new incentives from the Chinese government, especially for the real estate sector. Asian markets closed lower today, with an eye on US inflation. In Japan, producer prices grew 0.30% in August, exceeding the estimate of 0.10%, negatively impacting higher risk investments.

Regarding the real estate sector, according to Bloomberg, Country Garden reached an agreement with creditors to extend the payment of a debt of US$1.4 billion, easing its financial burden.

In the commodities market, iron ore with a concentration of 62% rose 0.47%, to US$118.09. West Texas Intermediate crude oil for October rose 0.71% at $89.47 per barrel. Brent crude oil for November rose 0.66% at US$92.69 per barrel.

At Tuesday’s close, stocks fell, especially the technology sector, with attention focused on the CPI announcement. The Dow Jones fell 17.73 points or 0.05% to 34,645.99. S&P 500 fell 25.56 points or 0.57% to 4,461.90. Nasdaq Composite fell 144.28 points or 1.04% to 13,773.61, largely offsetting the strong gain recorded on Monday. Oracle presented a result below expectations, with a decrease in its sales. The increase in oil prices also influenced the growth of interest rates on Treasuries, increasing the value of the dollar.

On Wednesday’s corporate earnings front, investors are watching reports from Cracker Barrel (NASDAQ:CBRL), Burford (NYSE:BUR), Semtech (NASDAQ:SMTC), Iris Energy (NASDAQ:IREN), Research Solutions (NASDAQ:RSSS), among others.

Wall Street Corporate Highlights for Today

Apple (NASDAQ:AAPL) –  At the event in Cupertino, Apple launched a new series of iPhones with titanium casing, advanced chip and better gaming features. The iPhone 15 will launch on September 22 with a subtle price increase, with new features powered by machine learning. Apple’s iPhone 15 has received mixed reactions in China, its third-largest market. Apple will launch three Apple Watch models with recycled materials and as “carbon neutral”, using renewable energy and reducing air transport. The company aims for carbon neutrality by 2030 and is switching to less polluting transport such as boats and trains. In other news, Apple defended the iPhone 12’s compliance with global radiation standards after French regulatory agency ANFR ordered a halt to sales in France. ANFR claimed that the device exceeded European radiation exposure limits.

Nvidia (NASDAQ:NVDA) – Startup Enfabrica raised $125 million in capital, with Nvidia as a strategic investor. Founded by former executives from Broadcom (NASDAQ:AVGO) and Google (NASDAQ:GOOGL), Enfabrica designs chips that optimize the use of Nvidia GPUs in AI data centers, making them more efficient.

Taiwan Semiconductor Manufacturing (NYSE:TSM) – TSMC, facing problems at its Arizona factory, is increasingly optimistic about Japan as a production base. With an $8.6 billion factory underway in Kyushu, it is considering expanding capacity and adding another unit. Japanese expansion could strengthen Japan’s position in chip manufacturing. Japan’s work culture and government support are seen as advantages.

Meta Platforms (NASDAQ:META) – Writers including Michael Chabon have sued Meta Platforms, alleging that the company improperly used their work to train the AI ​​software, Llama. They also filed a similar lawsuit against OpenAI. Both companies face increasing copyright-related challenges in AI training.

Microsoft (NASDAQ:MSFT) – EU antitrust regulators are probing Microsoft’s rivals and customers about impacts of Activision Blizzard’s proposed $69 billion acquisition. After being blocked by the UK CMA, Microsoft proposed selling streaming rights to Ubisoft.

Oracle (NYSE:ORCL) – Oracle shares fell on Tuesday due to intense competition in the cloud sector and a pullback in digital spending. Even after a 50% increase this year with optimism about generative AI, recent results have indicated a slowdown. CEO Safra Catz expressed concerns about the growth of the healthcare sector Cerner, acquired by Oracle. Analysts remain cautiously optimistic, acknowledging fierce competition and integration challenges.

Broadcom (NASDAQ:AVGO), VMware (NYSE:VMW) ​​– Broadcom plans to merge with VMware on October 30, in a $75 billion deal. VMware shareholders can choose between Broadcom shares or cash. Due to Broadcom’s appreciation, the stock option is seen as advantageous. There are regulatory uncertainties, mainly Chinese, regarding the approval of the merger.

Amazon (NASDAQ:AMZN) – Amazon will invest more than $440 million in wages for contract delivery drivers, targeting an average wage of $20.50 per hour in the US. Its DSP program, launched in 2018, helps deliver millions of packages daily in 19 countries.

Virtu Financial (NASDAQ:VIRT) – The SEC sued Virtu Financial, alleging the company left customer data vulnerable and misled about data protections. Virtu defended its protocols and denied misconduct, hinting at political motivation behind the allegations.

UPS (NYSE:UPS) – The new five-year deal between United Parcel Service and the Teamsters will cost less than the union’s proposed $30 billion. The contract, which covers 340,000 UPS workers in the U.S., calls for increases in salary and benefit costs by 3.3% annually.

Boeing (NYSE:BA) – In August, Boeing delivered 35 planes, its lowest number since April, due to defects in the 737 MAX. In total, it delivered 344 planes in 2023, while rival Airbus delivered 433. The company registered new orders for 43 planes after considering two cancellations. SMBC Aviation Capital has closed a $3.7 billion deal for 25 Boeing 737 MAX aircraft, bringing its orders to 81 jets. Scheduled for 2028 and 2029, the acquisitions support its growth plans and customer demand.

Tesla (NASDAQ:TSLA) – Tesla led the most shorted US stocks in August, according to Hazeltree. Its shares rose following a Morgan Stanley note on supercomputer Dojo. Charter Communications and Apple followed on the list. Investors have been betting against Tesla, but Elon Musk responded to a short position from Bill Gates, citing bankruptcy risks. Hedge funds have rapidly increased their short positions in recent weeks. Blackbird Capital’s Dan Izzo admitted losses trying to bet against Tesla.

BYD (USOTC:BYDDY),  Nio (NYSE:NIO),  Xpeng (NYSE:XPEV) – The European Commission is investigating the imposition of tariffs on Chinese electric vehicles due to state subsidies. Ursula von der Leyen highlighted the flood of cheap electric cars on the market. Sales of Chinese EVs in Europe have increased, affecting shares of Chinese manufacturers.

VinFast (NASDAQ:VFS) – Vietnamese electric vehicle maker VinFast aims to expand into seven Asian markets, focusing on Indonesia. Vinfast plans to invest US$1.2 billion long-term in the Indonesian market, with US$200 million earmarked for a factory scheduled for 2026, producing 30,000-50,000 units annually.

General Motors (NYSE:GM),  Ford Motor (NYSE:F) – Shares of General Motors and Ford could come under pressure due to the potential strike by auto workers in the US. Data from BondCliQ shows sales exceeding purchases in the last 10 days for both. If negotiations between automakers and the United Auto Workers union fail, some 146,000 workers could go on strike, seeking significant pay increases and benefits.

Advance Auto Parts (NYSE:AAP) – Shares of Advance Auto Parts declined after S&P Global Ratings downgraded its credit rating to “non-investment grade.” S&P cited Advance’s strategic challenges and weak performance, although it predicted gradual improvement. In response, Advance highlighted its financial strategies and search for operational improvements. S&P expressed additional concerns about the company’s strategy.

RTX Corp (NYSE:RTX) – North American engine manufacturer RTX has revealed a manufacturing flaw in Airbus A320neo jet engines, potentially affecting hundreds of planes. This fault, a defect in the metal, can cause cracks in engine components. RTX plans to recall 600 to 700 engines for inspections over the next three years. The global aerospace industry is concerned about rising costs and reductions in flight capacity. Airlines, such as Lufthansa and Air New Zealand, foresee significant impacts on their operations.

GoDaddy (NYSE:GDDY) – Investor Starboard Value claimed that GoDaddy is undervalued and suggested selling if performance does not improve. GoDaddy, a leader in domain registration, faces financial challenges post-pandemic. Starboard, which owns 7.8% of the shares, criticizes the company’s goals and spending.

Goldman Sachs (NYSE:GS) – Goldman Sachs CEO David Solomon predicts the U.S. economy will avoid a major recession, but warns of persistent inflation. Believing in a more optimistic economic environment, he sees IPOs flourishing. Solomon, however, criticizes US proposals that would increase capital requirements for banks, arguing that this would affect growth and companies’ access to capital. He also commented on the recent departures of senior bankers from Goldman following internal restructurings.

Wells Fargo (NYSE:WFC) – Wells Fargo plans to increase efficiency, possibly further reducing its workforce, which has already seen a 40,000 employee cut since 2020.

Morgan Stanley (NYSE:MS) – U.S. economic growth in the third quarter, driven by entertainment, is seen as a single peak. Morgan Stanley’s Vishwanath Tirupattur believes the economy will slow and inflation will fall, limiting the Fed’s rate hikes. He recommends long-term debt, anticipating lower yields later in the year.

Citigroup (NYSE:C) – In the first half of the year, rich families prioritized bonds and private equity, reducing stocks, according to Citigroup research. Of the 268 family offices consulted, many increased fixed income allocations. The dominant concerns were inflation, interest rates and US-China tensions.

UBS Group (NYSE:UBS) – Goldman Sachs analysts, led by Christopher Hallam, raised their target price on UBS Group AG shares following its recent strong performance. The new target is 35 Swiss francs from 25.80 Swiss francs. UBS, which is part of Credit Suisse after a historic agreement, recovered after turbulence and stands out in Europe. Hallam predicts $6 billion in share buybacks from UBS in 2025.

HSBC (NYSE:HSBC) – Michael Krantz, a former HSBC associate, sued the bank alleging discrimination due to his Jewish faith and request for parental leave. Krantz claims that after requesting time off for Jewish holidays and parental leave, he was given reduced, less significant duties and was subsequently fired. HSBC representatives did not comment on the case.

Northern Trust (NASDAQ:NTRS) – Northern Trust Corp predicted a larger decline in net interest income (NII) in Q3. Jason Tyler revealed that the NII could fall by up to 10%, double the previous forecast. Amid high interest rates, the company faces rising costs. Its deposits are down 10%, but Tyler indicates recent stabilization. The company also predicts limited economic growth and slower stock returns.

BP (NYSE:BP) – BP plans to invest $10.7 billion in Germany by 2030 in low-carbon fuels, renewable energy and electric vehicle charging infrastructure, aiming to rival local energy companies. The strategy includes expanding the electric charger network, decarbonizing refineries and investing in wind energy and low-carbon hydrogen imports. Additionally, Bernard Looney, CEO of BP, resigned due to non-disclosure of past relationships with colleagues. Murray Auchincloss will be interim CEO. Looney took over in 2020, targeting net zero emissions by 2050 and investment in renewable energy.

Enphase Energy (NASDAQ:ENPH) – Enphase Energy shares were downgraded by Truist due to concerns about a slow recovery in the U.S. residential solar market. Analyst Jordan Levy downgraded Enphase to “Hold” and lowered the price target to $135. The stock is down 54% in 2023. However, recent tax incentives could boost solar demand in the future.

Nike (NYSE:NKE) – At Nike’s annual meeting, investors rejected two shareholder proposals on equal pay and sourcing policies. While requiring a majority for approval, Nike is not required to adopt them. The company faces pressure over transparency and labor issues.

Birkenstock – German brand Birkenstock has filed for an initial public offering (IPO) in the US, marking a trend of European companies seeking American listings. Although financial details have not been fully disclosed, the company’s net revenue grew 19% and profit fell 45.3%. Birkenstock’s popularity increased after its appearance in the movie “Barbie”. The company plans to list its shares on the NYSE as “BIRK”.

Philip Morris International (NYSE:PM) – Philip Morris increased its quarterly dividend by 2.4% to $1.30 per share, to be paid on October 12th to shareholders of record by September 27th. Its shares are down 6.7% year to date, while the S&P 500 is up 16.2%.

Rocket Pharmaceuticals (NASDAQ:RCKT) – Rocket Pharmaceuticals rose 18% after announcing that it has achieved agreement with the Food and Drug Administration on its global Phase 2 trial to treat Danon’s disease, a lethal genetic heart condition.

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