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5 Things You Need to Know Before the Stock Market Opens on Tuesday, July 9
- The S&P 500 and Nasdaq Composite hit new records.
- Companies like Walmart and Chipotle are facing criticism from customers.
- Paramount’s recent merger deal is raising concerns among movie theater operators.
Here are five important things investors need to know to start their trading day:
O S&P 500 Index It is Nasdaq Composite set another record close on Monday. The broad-market index closed the session 0.1% higher at 5,572.85, and the tech-heavy Nasdaq gained 0.28% to close at 18,403.74. That marks the fourth positive week in the last five for the S&P and comes ahead of key inflation data later this week that could reveal more clues about the state of the economy and a possible Fed rate cut. Unlike the S&P and Nasdaq, the Dow Jones Industrial Average fell 0.08%, closing the session at 39,344.79. Follow live market updates.
Customers shop for groceries at a Walmart store in Secaucus, New Jersey, USA, on Tuesday, March 5, 2024.
Gabby Jones | Bloomberg | Getty Images
Customers are still feeling the pain of higher prices even as inflation cools. And in some places, they’re making their frustration known. Wendy’s changed its tune after the CEO’s statement that it may start using dynamic pricing – the act of raising or lowering prices depending on demand. WalmartTikTok users criticized the company’s implementation of digital shelf labels, which allowed it to raise and lower prices. And Chipotle locations have seen customers filming workers in an effort to stop them from giving smaller-than-desired portions of food in their burrito bowls. But as people rein in their spending, leading to declining sales, some businesses are trying a more proactive approach, with those like Target, McDonaldsAldi and others cutting prices and launching new businesses to court clients.
Paramount Studios in Los Angeles, California, USA, on Monday, April 29, 2024.
Eric Thayer | Bloomberg | Getty Images
Hollywood movie theater operators are sounding the alarm. On Sunday, Paramount disconnected about a merger with Skydance, leaving theater operators worried that the deal bring a lot of consolidation and worsen production issues. Given that Paramount and Skydance have other production partners, it’s unclear how this merger could affect production going forward. What’s more, both studios have only released three films in 2024. This comes after pandemic shutdowns and a double strike in Hollywood have led to a reduced flow of new films. While box office analysts are anticipating a larger number of films in the next two years, it’s unclear whether production will return to pre-pandemic levels.
Salesforce Tower, left, and the Salesforce West office building in San Francisco, California, U.S., on Tuesday, Feb. 23, 2021.
David Paul Morris | Bloomberg | Getty Images
It seems that artificial intelligence can’t solve everything. While technology has helped boost San Francisco’s real estate market, office vacancies in the city are still flying. For office space in the city, the vacancy rate hit a new record of 34.5% in the second quarter, according to commercial real estate firm Cushman & Wakefield. That’s up from 33.9% in the first quarter, 28.1% in the year-ago period, and 5% before the pandemic. Additionally, the average asking rent fell to $68.27 per square foot in the second quarter, the lowest since late 2015. That’s down from $72.90 a year ago and its peak of $84.70 in 2020. That’s because AI companies have been leasing or subletting hundreds of thousands of office spaces in the city.
Entrance to Sun Valley Lodge in Sun Valley, Idaho.
Michael Newberg | CNBC
Conversations around the future of streaming Allen & Co. are taking center stage in Sun Valley this week. At a ski lodge in Idaho, Allen & Co.’s annual conference — often called “summer camp for billionaires” — is set to begin on Tuesday, and titans of media and technology are gathering to discuss the future of their businesses. Litter CEO Tim Cook, David Zaslav of Warner Bros. Discovery It is Netflix Co-CEOs Ted Sarandos and Greg Peters are among the many supposedly on the guest list, although it is unclear whether they will attend. In the wake of the recent Paramount merger agreementstreaming alliances could be at the forefront, with some media companies perhaps leaning toward bundling services.
—CNBC’s Brian Evans, Pia Singh, Melissa Repko, Amelia Lucas, Sarah Whitten, Ari Levy, Jordan Novet and Lillian Rizzo contributed to this report.
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