Here are five things you need to know before Tuesday, August 31:
1. — Global equities follow wave of support for central banks
U.S. stock futures traded mixed Tuesday, with softer bond yields modestly boosting high-tech stocks hitting record highs as investors appear to have experienced the mini-rally sparked by the patience of Federal Reserve Chairman Jerome Powell at the cut down, take a break.
Powell’s calm speech last week by Federal Reserve Chairman Jerome about winding down has led to a mini-rally in equities and a slump in benchmark bond yields, which have revealed some troubling data from major global economies and a stubbornly high. percentage of Delta variant infections belies.
China’s post-COVID recovery appears to have stalled in August, with official economic activity barely above 50 points separating growth from contraction. In Europe, inflation rose to an annual rate of 3% in August, its highest level in 10 years, just a week before the European Central Bank’s policy meeting in September.
On Wall Street, futures point to a modestly weaker session, with technology stocks failing to recover from a slump in government bond yields. Nasdaq Composite futures point to a 10-point opening bell dip, while those pegged to the S&P 500 are priced at a 4-point pullback.
The Dow Jones Industrial Average appears to be down about 30 points at the start of trading Tuesday.
2. — Zoom turns to gloom
Zoom Video Communications ZM shares fell sharply Tuesday after the online conference group said revenues in the current quarter were likely to slow as smaller companies return to office work and schools transition to full-time classes.
Zoom, which saw a surge in revenue during the height of the pandemic as its eponymous conference software gained impressive popularity, beat Street’s second-quarter earnings forecast, with a bottom line of $1.04 a share, but forecast profit for the October quarter ranged from $1.015 billion to $1.020 billion, an annual growth rate of only 31.2%.
Shares in the group were marked 11% lower in pre-market trading Tuesday to mark an opening bell price of $309.43 apiece, a move that would send the stock into negative territory for the year.
3. — EU removes US from “Safe Travel” list
Shares of European airlines plunged Tuesday as EU officials reintroduced travel restrictions on US citizens amid the continued rise in Delta-variant coronavirus infections.
The European Council, the region’s executive, has chosen to remove the US from the “safe list” of countries from which it allows non-essential travel to the 27 member states of the European Union. However, national governments will still be able to impose their own restrictions – or allow US travelers to enter freely – following the Council’s recommendation.
International Consolidated Airlines, British Airways’ parent company, fell 2.8% in London trade, while Germany’s flagship carrier Lufthansa fell 1.3% in Frankfurt. Budget airlines Ryanair and EasyJet each fell 1.9% in active trade in London.
4. — Apple Edges lower
Apple (AAPL) – Apple Inc. Get (AAPL) report shares will aim for a new record Tuesday after the iPhone maker closed Monday’s session with a market cap of just over $2.5 trillion, solidifying its place as the world’s largest tech company.
International Data Corporation, a market research group, forecast better-than-expected smartphone shipments for this year and next, but noted that the largest markets — in Europe and the United States — would struggle to meet pre-pandemic demand.
Still, premium smartphone upgrades, especially those based on Apple’s iOS operating systems, will lead this year’s gains, IDC said.
Apple CEO Tim Cook warned in late July that supply chain problems, as well as a shortage of global semiconductors, are weakening its ability to meet “overwhelming” consumer demand and reducing just over $3 billion of September quarter revenues. .
Apple shares were marked 0.25% lower in pre-market trading Tuesday, to indicate an opening bell price of $152.75 apiece.
5. — Another Slam Dunk Investment for Kevin Durant
NBA superstar Kevin Durant of the Brooklyn Nets appears to have made another big investment gain thanks to his early support of the health and fitness tracking group WHOOP.
Durant, famous for this number 35 shirt, first invested in WHOOP four years ago, through his Thirty Five Ventures vehicle, when the Boston-based company was valued at approximately $125 million.
WHOOP closed a $200 million Series F financing round Monday that brought the market value to about $3.6 billion, delivered a 2,800% return for Durant’s investment group and added a nice cushion to the four-year contract extension of $198. million from the forward with the Nets.