Here are the most important news items that investors need to start their trading day:
1. A wary market
U.S. equity futures fell before the bell Wednesday, as investors processed the latest inflation data. The three major indexes had fallen Tuesday as markets started to digest the first reports from earnings season. Several big Wall Street banks are expected to post results this week, including Morgan Stanley and JPMorgan.
2. Crucial inflation report
The latest consumer price index report came in hotter than expected, rising 9.1% from a year ago. Observers had expected an 8.8% year-over-year surge, according to Dow Jones. Inflation has been soaring at rates not seen in four decades, and it has weighed on consumer sentiment even though Americans keep spending at high levels. Investors are eager for signs that inflation could be peaking, as the Federal Reserve considers whether to raise rates by 50 or 75 basis points during its next meeting.
3. Alphabet slows hiring
Google parent Alphabet is the latest company to begin a hiring slowdown in Silicon Valley. In a memo to employees, CEO Sundar Pichai said the tech giant needs "to be more entrepreneurial working with greater urgency, sharper focus, and more hunger than we've shown on sunnier days." While the job market has remained strong, there have been warning signs coming out of the tech world. The sector is contending with share price losses after helping to lead growth in stock markets over several years. Previously Facebook parent Meta said in May that it would slow its hiring while Amazon executives have described the e-commerce leader's warehouses as "overstaffed."
4. Twitter v Musk
Twitter followed through on its threat to sue Elon Musk for backing out of his $44 billion deal to buy the social networking company. Twitter filed suit Tuesday in Delaware, seeking to force the Tesla and SpaceX CEO to fulfill the agreement. The company, accusing Musk of acting in "bad faith," is seeking a four-day trial in September, but these proceedings could be the mere beginning of a costly, drawn-out legal fight. Read more: 8 ways the Elon Musk-Twitter saga could end
5. Delta kicks off airline earnings
Delta Air Lines on Wednesday offered the first taste of how carriers are doing while fares surge and cancellations jump amid overwhelming travel demand and staffing shortages. Delta posted revenue that beat Wall Street's expectations, and it said it expected both sales and costs to grow in the third quarter. Rivals United Airlines and American Airlines are slated to report quarterly results next week.
– CNBC's Yun Li, Patti Domm, Jennifer Elias, Kif Leswing, Lauren Feiner and Leslie Josephs contributed to this report.
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