Here are the most important news, trends and analysis that investors need to start their trading day:
1. Wall Street heads for its first weekly advance in the past four
A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., June 22, 2022.
Brendan Mcdermid | Reuters
2. Powell vows ‘unconditional’ measures to fight decades-high inflation
Powell testified before the House Committee on Financial Services on monetary policy and the state of the U.S. economy.
Win Mcnamee | Getty Images News | Getty Images
In Day 2 of his semiannual economic testimony on Capitol Hill, Fed Chairman Jerome Powell told the U.S. House of Representatives Financial Services Committee that the central bank’s commitment to reining in 40-year-high inflation is “unconditional.” A day earlier, on Wednesday, Powell told the U.S. Senate Banking Committee that the Fed was not trying to provoke a recession but that one was “certainly a possibility.” Last week, monetary policymakers hiked rates by 75 basis points and signaled another increase of 50 to 75 basis points at their July meeting.
3. FedEx reports mixed quarter results as ground unit margin improved
A driver for an independent contractor to FedEx Corp. carries packages for delivery during Cyber Monday in the Hell’s Kitchen neighborhood of New York, U.S., on Monday, Nov. 29, 2021.
Angus Mordant | Bloomberg | Getty Images
FedEx shares turned lower in Friday’s premarket, the morning after the delivery giant reported better-than-expected fiscal fourth-quarter profit but missed on revenue. Adjusted earnings of $6.87 per share beat estimates by a penny. Revenue grew 8% to $24.4 billion, lower than expectations of $24.56 billion. Shipment volumes declined, but that was offset by increased shipping rates and fuel surcharges. FedEx’s closely watched ground unit margin improved, but it has lagged United Parcel Service, whose new CEO adopted a “better not bigger” mantra two years ago. FedEx issued upbeat guidance for fiscal 2023.
4. Zendesk surges on reports that it’s nearing a deal to sell itself
Zendesk co-founder and CEO Mikkel Svane
Eric Piermont | AFP | Getty Images
Zendesk shares surged more than 50% in the premarket on reports that the customer service software vendor was close to a buyout deal with a group of private equity firms. The Wall Street Journal reported that Hellman & Friedman and Permira are among those involved. The potential buyout comes after Zendesk announced last week that it had ended efforts to sell itself. The San Francisco-based firm has been under pressure from activist investor Jana Partners. The Journal said it’s unclear where Zendesk’s discussions with Jana stand.
5. Bill designed to prevent gun violence is headed for House, then Biden
Demonstrators attend a rally with senators outside the U.S. Capitol to demand the Senate take action on gun safety on Thursday, May 26, 2022, in the wake of the Robb Elementary School shooting in Texas.
Tom Williams | CQ-Roll Call, Inc. | Getty Images
A bipartisan bill designed to prevent gun violence that passed the Senate on Thursday night goes to the House. Speaker Nancy Pelosi promised a vote Friday to send the most sweeping firearms measure in decades to President Joe Biden for his signature. The legislation, which seemed unimaginable a month ago, got 15 Republican votes in the Senate, including Minority Leader Mitch McConnell. The May 24 massacre at a Uvalde, Texas, elementary school galvanized both sides of the aisle to try to prevent this from happening again.
— CNBC’s Peter Schacknow, Jesse Pound, Sarah Min and Tanaya Macheel as well as Reuters and The Associated Press contributed to this report.
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