Here are the most important news items that investors need to start their trading day:
1. Volatility and earnings
Last week, economic data fed the market’s volatility. Inflation remains red hot, so it doesn’t look like the Federal Reserve will ease back on its aggressive push to cool the economy. This week, earnings season gains momentum. Investors will get to see how companies are navigating high costs and price-conscious consumers, while monitoring how the strong dollar is weighing on overseas business. You can follow live markets coverage here. Meanwhile, Bank of America reported Monday (more on that below). Here are some of the other big names set to report this week:
2. Let’s try this again, shall we?
Britain has a new finance minister, Jeremy Hunt, and he unveiled a new economic plan Monday. Hunt replaces Kwasi Kwarteng, who was sacked after just weeks on the job because his tax-cut-heavy economic plan sent UK bonds and the pound spiraling. Hunt on Monday said the new plan will eliminate almost all of the tax cuts proposed under Kwarteng’s budget. Prime Minister Liz Truss’s government, which has only been in office just over a month, is already on thin ice over the market turmoil, but it’s likely she will stay in office for the time being. UK Conservative Party rules say a new leadership election can’t be held for a year.
3. Bank of America beats
Bank of America on Monday posted earnings and revenue that topped Wall Street’s expectations. The bank cited better-than-expected gains from fixed-income trading and interest income, which were fed by rising interest rates and market volatility. Bank of America’s results follow last week’s initial wave of big bank earnings. JPMorgan and Wells Fargo exceeded projections due to strong interest income. Citigroup also topped estimates, but Morgan Stanley fell short due to underwhelming investment management results. Goldman Sachs is set to report Tuesday.
4. Drones hammer Kyiv
Russia’s onslaught on Ukraine’s cities continues. Vladimir Putin’s military is relying more on drones to unleash attacks in urban centers. Kyiv’s mayor and other officials said drone attacks on the capital city’s central district killed people, including a pregnant woman, and damaged residential buildings. Fighting is fierce elsewhere in Ukraine. Russian forces have gone on the offensive in the eastern Donbas region in a bid to solidify its lines after Ukrainian forces seized back large chunks of occupied territory. Read live war updates here.
5. Ye pulls a Trump
Ye, the artist formerly known as Kanye West, has agreed to buy right-wing-friendly social media app Parler just days after Instagram and Twitter limited his accounts over his recent antisemitic remarks. The billionaire rapper and producer’s move is reminiscent of former President Donald Trump’s creation of Truth Social. He helped found the Twitter-like app after Twitter, Facebook and other platforms barred him for inciting violence on Jan. 6, 2021, when hundreds of his followers invaded the U.S. Capitol. Parler, like Truth Social and other conservative-friendly social networks, touts its dedication to “free speech,” which Ye pointed to in a statement provided by Parler’s parent company: “In a world where conservative opinions are considered to be controversial we have to make sure we have the right to freely express ourselves.” Elon Musk, who has praised Ye and is set to acquire Twitter, albeit reluctantly, has vowed to make Twitter a “free speech” platform, as well. He has also said he would allow Trump back on the app.
– CNBC’s Yun Li, Jenni Reid, Holly Ellyatt, Hugh Son and Ryan Browne contributed to this report.