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Wall Street is on edge heading into the July consumer price report after sharp stock swings this month reignited fears over the fate of the economy. Economists are predicting that inflation remained broadly unchanged in July — a reading that should allow the Federal Reserve to start easing the brakes on the economy next month by cutting interest rates. But a sharper-than-expected slowdown in the Consumer Price Index could intensify worries that the economy is moving quickly toward a more pronounced downturn, while a surprise acceleration is likely to rein in rate cut expectations that investors are already counting on to support the market. That leaves investors in search of an inflation “sweet spot,” Chris Larkin, head of trading and investing at E-Trade, said in a statement: “cool enough that no one will be second-guessing the likelihood of a September rate cut, but warm enough to push aside the recession concerns that have rattled the markets recently.”

Persons: ” Chris Larkin, ” Organizations: Federal Reserve

☆ Starbucks Names Chipotle Boss as New C.E.O.
▼ + stars: | 2024-08-13 | by ( Danielle Kaye | More About Danielle Kaye | ) www.nytimes.com time to read: +1 min

The chief executive of Chipotle Mexican Grill is moving over to Starbucks, the coffee chain announced on Tuesday. Brian Niccol, who has held the top position at Chipotle since 2018, will take the helm of Starbucks next month, the company said. He will replace Laxman Narasimhan, whose relatively brief tenure began in March last year, when he became the first chief executive to come from outside the company. Mr. Niccol’s career also includes a stint as chief executive of Taco Bell. Mr. Narasimhan will step down as chief executive and board director immediately, with the chief financial officer Rachel Ruggeri stepping in as interim chief executive until Sept. 9.

Persons: Brian Niccol, Laxman Narasimhan, Niccol’s, Narasimhan, Rachel Ruggeri Organizations: Starbucks, Taco Bell Locations: Chipotle, United States, China

☆ Thousands of users have reported online brokerage outages as stocks tumbled.
▼ + stars: | 2024-08-05 | by ( Danielle Kaye | More About Danielle Kaye | ) www.nytimes.com time to read: +1 min

Online stock trading platforms, including Fidelity Investments and Charles Schwab, said users had trouble logging into their accounts on Monday morning, preventing some investors from making trades amid a panic sell-off that reverberated around the world. Account holders at the popular trading platforms E-Trade and Robinhood also reported issues. Some Schwab clients had trouble logging onto its platforms because of an unspecified technical issue, the trading platform confirmed in a post on X. By noon, there were fewer than 500 complaints from Schwab users, Downdetector reported, based on its own data and user reports on social media. In response to complaints from customers on X, Fidelity posted around 11 a.m. that the issue had been resolved.

Persons: Charles Schwab, Schwab, Robinhood, Downdetector Organizations: Fidelity Investments, Fidelity, Vanguard, midmorning

☆ Wall Street’s Turbulent Week Ends With Another Drop
▼ + stars: | 2024-08-02 | by ( Danielle Kaye | More About Danielle Kaye | ) www.nytimes.com time to read: 1 min

Stocks skidded on Friday, capping off a turbulent week for Wall Street, as investors were jolted by data showing that hiring slowed and unemployment rose in July. The S&P 500 fell 2.4 percent within the hour after the jobs report was released, while the tech-heavy Nasdaq dropped 3 percent. Yields on government bonds, which are sensitive to expectations for the economy, dropped sharply, and oil prices were lower too. The U.S. economy added 114,000 jobs on a seasonally adjusted basis, much fewer than economists had expected and a significant drop from the average of 215,000 jobs added over the previous 12 months. The unemployment rate rose to 4.3 percent, the highest level since October 2021.

Organizations: Wall, Federal Reserve, Nasdaq Locations: U.S

☆ Tesla and Alphabet Earnings Prompt Big Tech Stock Decline
▼ + stars: | 2024-07-24 | by ( Danielle Kaye | More About Danielle Kaye | ) www.nytimes.com time to read: +1 min

Earnings reports from Google’s parent company, Alphabet, and Tesla on Tuesday led to a drop in big tech stocks, while shares of smaller companies remained strong. The Russell 2000, an index of smaller companies that’s considered to be more tied to the ebb and flow of the economy, was down just 0.48 percent, in line with trading in recent weeks and indicating that shares of smaller companies stayed relatively robust. Investors were expecting perfection from the tech giants’ earnings reports, said Daniel Ives, a tech analyst at Wedbush Securities. “Investors are negatively reacting to any whiff of softness that we see from these big tech players,” he said. “I think it’s an overreaction after a massive run in tech stocks.”

Persons: Tesla, Russell, Daniel Ives, Ives, ”, “ Organizations: Nasdaq, Wedbush Securities

☆ Chip Shares Tumble, Dragging Wall Street to Its Worst Drop in Weeks
▼ + stars: | 2024-07-17 | by ( Danielle Kaye | More About Danielle Kaye | ) www.nytimes.com time to read: +1 min

The S&P 500 fell 1.39 percent, its biggest drop since late April, just one day after the index reached a record. The technology-heavy Nasdaq dropped 2.77 percent, its worst day since late 2022. The decline was led by global chip stocks, with shares of some of the biggest players in the chip industry — including ASML, Nvidia and TSMC — plunging in response to geopolitics and the former president’s remarks. Shares of these companies have surged this year amid a rise in demand for advanced artificial intelligence chips. “Excellent, sustained performance, such as we saw in the semiconductor sector, may have led the trade to become ‘crowded,’ and therefore more fragile.”

Persons: Donald J, ”, Steve Sosnick Organizations: Trump, Nasdaq, Nvidia, Interactive Locations: U.S, China, Taiwan

Investors are poised for a report on Friday to show a slowdown in the pace of hiring in June, building on weak services and manufacturing data, and to firm up their expectations of interest rate cuts starting as soon as September. Signs of lower rates in the near future, which would make it cheaper for consumers and companies to borrow, have typically been accompanied by market rallies. The S&P 500 has repeatedly set fresh records and is up more than 16 percent this year. Economists are forecasting that the June jobs report will show a healthy labor market, albeit with fewer jobs added and an easing in wage growth. Earlier this week, widely watched surveys of manufacturing and services activity both came in lower than forecast.

Persons: Russell

☆ E.V. Maker Fisker Files for Bankruptcy as Cash Runs Short
▼ + stars: | 2024-06-18 | by ( Danielle Kaye | More About Danielle Kaye | ) www.nytimes.com time to read: +1 min

Fisker filed for bankruptcy protection late on Monday, the latest start-up in the electric vehicle industry to fall short after raising large amounts of money from investors with lofty expectations. Fisker’s bankruptcy filing, roughly one year after it delivered its first vehicle and almost four years after it went public, came after months of doubts about its financial viability. The start-up repeatedly cut production targets for its flagship Ocean S.U.V. Talks with another automaker about a potential investment broke down earlier this year, and the company’s beaten-down stock, once worth several billion dollars, was delisted from the New York Stock Exchange for “abnormally low” price levels. It outsourced production and emphasized its design and software, such as a rotating dashboard screen.

Persons: Fisker Organizations: New York Stock Exchange

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